The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2017, the date on which the company is to file a voluntary petition of bankruptcy: $ LIMESTONE COMPANY Balance Sheet June 3, 2017 Assets Cash Accounts receivable (net) Inventory Land Buildings (net) Equipment (net) Total assets Liabilities and Equities Accounts payable Notes payable-current (secured by equipment) Notes payable-long term (secured by land and buildings) Common stock Retained earnings Total liabilities and equities 4,000 66,00 90,000 101,00 301,200 182.ee $ 744.800 $ 100,00 252,00 191,00 121,00 80,000 $ 744,00 Additional Information If the company is liquidated, administrative expenses are estimated at $19.000. The accounts payable figure includes $11,000 In wages earned by the company's 12 employees during May. No one earned more than $2,300. Liabilities do not include taxes of $15,000 owed to the U.S. government. Company officials estimate that 35 percent of the accounts receivable will be collected in a liquidation and that the Inventory disposal will bring $81,000. The land and buildings will be sold together for approximately $312,000, the equipment should bring $131,000 at auction. Prepare a statement of financial affairs for Limestone Company as of June 3, 2017 LIMESTONE COMPANY Statement of Financial Affairs June 3, 2017 Book Values Assets Available for Unsecured Creditors $ 402,000 $ 312.000 191.000 $ 121.000 182,000 Pledged with Fully Secured Creditors Land and buildings Less: Notes payable-long term Pledged with Partially Secured Creditors: Equipment Less: Notes payable-current Free Assets Cash Accounts receivable Inventory Ooooooo 131,000 252,000 0 4.000 86.000 90.000 4.000 23.100 81.000 $ 229,100 Total amount available to pay liabilities with priority and unsecured creditors Less: Liabilities with priority Available for unsecured creditors Estimated deficiency 45,000 $ 184,100 (146.900) X $ 37.200 Unsecured Nonpriority Liabilities $744.000 Book Values Liabilities and Stockholders' Equity Liabilities with Priority: Total Fully Secured Creditors: 101,000N otes payable-long term 191.000 O X Partially Secured Creditors: 252.000N otes payable current 252.000 X s 252.000 Unsecured Creditors: 100,000 > Accounts payable 15.000 Taxes payable 121,000 Stockholders' equity $679,000 Retext indicates no response was expected in a celor a formule-based calculation 100.000 15.000 121,000 % $ 488.000
