The following balance sheet has been prepared by the accountant for Limestone Company as of June 3,

Question:

The following 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,000
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Buildings (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Equipment (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $736,000
Liabilities and Equities
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,000
Notes payable-current
(secured by equipment) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
Notes payable-long term
(secured by land and buildings) . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,000
Total liabilities and equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $736,000
Additional Information
∙ If the company is liquidated, administrative expenses are estimated at $18,000.
∙ The figure includes $10,000 in wages earned by the company's 12 employees during May. No one earned more than $2,200.
∙ Liabilities do not include taxes of $14,000 owed to the U.S. government.
∙ Company officials estimate that 40 percent of the will be collected in a and that the inventory disposal will bring $80,000. The land and buildings will be sold together for approximately $310,000; the equipment should bring $130,000 at auction.
Prepare a statement of financial affairs for Limestone Company as of June 3, 2017.
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