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"Fini corporation was forced into Chapter 7 Bankruptcy. A trustee is appointed to liquidate the company's assets and pay creditors in accordance with the provisions of the bankruptcy laws. Fini's balance sheet is as follows: 
Problem fini Ol assets was forced I assets and pay creditors in accorus balance sheet is as follows: S 2,000 100,000 200,000 25,000 500,000 Cash Accounts receivable Merchandise Prepaid expenses Land, buildings, and equipment, net Intangible assets 300,000 1,127,000 Total assets iabilities and stockholders' equity Accounts payable Accrued wages (priority) Accrued taxes (priority) Loan payable $300,000 100,000 80,000 500,000 Note payable Capital stock Retained earnings (deficit) Total liabilities and stockholders' equi 150,000 100,000 (103,000)] $1,127,000 Additional information: It is estimated that $50,000 of the accounts receivable will be collected merchandise will likely be sold to a competitor at a price approximating 40% of book value 3. No recovery of prepaid expenses is expected. The intangible assets have no realizable value. 4. Land, equipment and buildings are appraised at a total of $700,000. Included in this amount is equipment with a book value of $175,000 and realizable value of $125,000 pledged as security on the note payable. Required a. Prepare a statement of affairs for Fini Corporation the total amount, in dollars, that each class of creditors can expect to receive upon liquidation. Calculate the recovery percentage to partially secured creditors and unsecured creditors Round your answers to the nearest dollar, if necessary c. 9 ACCT Exam, A Problem fini Ol assets was forced I assets and pay creditors in accorus balance sheet is as follows: S 2,000 100,000 200,000 25,000 500,000 Cash Accounts receivable Merchandise Prepaid expenses Land, buildings, and equipment, net Intangible assets 300,000 1,127,000 Total assets iabilities and stockholders' equity Accounts payable Accrued wages (priority) Accrued taxes (priority) Loan payable $300,000 100,000 80,000 500,000 Note payable Capital stock Retained earnings (deficit) Total liabilities and stockholders' equi 150,000 100,000 (103,000)] $1,127,000 Additional information: It is estimated that $50,000 of the accounts receivable will be collected merchandise will likely be sold to a competitor at a price approximating 40% of book value 3. No recovery of prepaid expenses is expected. The intangible assets have no realizable value. 4. Land, equipment and buildings are appraised at a total of $700,000. Included in this amount is equipment with a book value of $175,000 and realizable value of $125,000 pledged as security on the note payable. Required a. Prepare a statement of affairs for Fini Corporation the total amount, in dollars, that each class of creditors can expect to receive upon liquidation. Calculate the recovery percentage to partially secured creditors and unsecured creditors Round your answers to the nearest dollar, if necessary c. 9 ACCT Exam, A
