Statements of Affairs
Ball Company is facing bankruptcy proceedings. A balance sheet dated June 30, 2012, and other information are presented below:
|
Ball Company Balance Sheet June 30, 2012 |
|
|
Cash |
$ 20,400 |
|
Accounts Receivable (net) |
170,000 |
|
Inventory |
180,000 |
|
Property and Equipment (net) |
430,000 |
|
Total Assets |
$800,400 |
|
Accounts Payable |
$350,000 |
|
Accrued Wages |
120,000 |
|
Notes Payable |
200,000 |
|
Common Stock |
400,000 |
|
Retained Ear gs (deficit) |
(269,600) |
|
Total Equities |
$800.400 |
|
Accounts Receivable |
$ 95,000 |
|
Inventory |
110,000 |
|
Property and Equipment |
320,000 |
Accounts receivable and inventory are each pledged as security on individual notes payable in the amount of $100,000 each.
Required:
Prepare a statement of affairs and determine the estimated settlement per dollar for general unsecured creditors. (Assume that all accrued wages are priority items.)
