The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2011, the date on which the company is to file a voluntary petition of bankruptcy:
.png)
Additional Information:
If the company is liquidated, administrative expenses are estimated at $18,000.
The Accounts Payable 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 accounts receivable will be collected in a liquidation 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 3,2011.