The note is secured by the equipment. All other liabilities are unsecured. During the next two months, you completed the following transactions:

1. Collected $45,000 on the accounts receivable.
2. The remainder are considered uncollectible.
3. Sold half the merchandise for $25,000.
4. The remaining merchandise is expected to yield $18,000.
5. Sold the equipment for $110,000.
6. Used the proceeds from the sale of the equipment to pay the note.
7. Accrued administrative expenses of $5,000.
8. Paid $140,000 on the loan.

Using a separate document – preferably a spreadsheet, prepare the statements listed below. Be sure to follow the file naming and formatting guidance presented on page 1 of this exam.

a. Prepare the receiver’s balance sheet.