The Modesto Company is facing possible liquidation. Using the following information, NEED a statement of financial affairs in good form? Here's the company's most recent balance sheet:

Assets Liabilities and equities

Cash $12,000 Accounts payable $170,000 Accounts Receivable 60,000 Notes payable 90,000 Inventory 120,000 Mortgage payable 80,000 Investments 45,000 Equipment 105,000 Common stock 75,000 Land 82,000 Retained earnings 9,000 Total assets $424,000 Total Liab. and Eq's $424,000

The mortgage payable is fully secured by the land. The land can be sold immediately for $103,000

The equipment partially secures the notes payable.

The equipment is not in good shape and at auction will bring only $30,000

The market has declined so the investments have lost 40% of their value.

It is estimated that 30% of the accounts receivable will have to be written off.

The inventory is outdated and will bring only 50% of its book value at auction.

Additional income taxes will be $26,000

Administrative expenses for bankruptcy are expected to total $20,000