The Statement of Financial Position for Broadway Company shows the following items presented on the January 31, 2008: ASSETS Cash P 9,700 Accrued interest on Notes Receivable 1,000 Notes Receivable 40,000 Accounts Receivable P 90,000 Allowance for doubtful accounts (3,000) 87,000 Merchandise Inventory 80,000 Prepaid Insurance 1,000 Furniture and Fixtures 24,000 Accumulated Depreciation (16,000) 8,000 Delivery Equipment 40,000 Accumulated Depreciation (4,000) 36,000 Goodwill 50,000 Total Assets P312,700 LIABILITIES AND SHAREHOLDERS' EQUITY Accrued salaries and wages P 800 Accrued interest on notes payable 1,600 Notes payable 100,000 Accounts payable 136,000 Ordinary share 100,000 Share premium 10,000 Deficit (35,700) Total liabilities & shareholders' equity P 312,700 A trustee appointed on January 31, obtained the following data: It is estimated that the assets will realize the following amounts: Notes receivable and accrued interest P26.800 Accounts receivable 75,000 Merchandise inventory 70% of book value Prepaid Insurance nothing Furniture and fixtures 9,000 Delivery equipment 28,000 Goodwill nothing Notes payable of P40,000 (interest of P400 which is accrued) is secured by merchandise inventory with a book value of P60,000. Notes payable of P30,000 (interest of P900 is accrued) is secured by the delivery equipment. Estimated liquidation expenses of the receiver, P12,000