Bankrupt Corporation

Statement of Affairs
February 4, 2015
BV
200,000
160,000

190,500
160,000
158,000

62,000
80,000
10,000
63,500

1,084,000

Assets
Pledged with Fully Secured Creditors:
Land
Building
Total
Mortgage Payable with Interest
Pledged with Partially Secured Creditors:
Investment in Stock (75%)
Inventory
Machinery & Equipment
Total
Free Assets:
Cash
Accounts Receivable
Supplies
Investment in Stock (25%)
Total Free Assets
Liabilities with Priority
Net Free Assets
Estimated Deficiency to Unsecured Creditors
Total Free Assets

ERV/FMV
250,000
80,000
330,000
260,000
202,500
130,000
120,000
452,500
62,000
76,000
8,000
67,500

Free Assets

BV
40,000
18,000

70,000
250,000
10,000

244,000
6,000

280,000
213,500
283,500
58,000
225,500
140,000
365,500

288,000
(52,000)
1,084,000

Liabilities
Liabilities with Priority
Salaries Payable
Taxes Payable
Total
Fully Secured Creditors:
Mortgage Payable
Interest on Mortgage Payable
Total
Partially Secured Creditors:
Notes Payable
Interest Payable
Total
Investment in Stock
Bank Loan
Inventory and Mach. & Equipment
Unsecured Creditors:
Accounts Payable
Shareholders Equity:
Estate Deficit
Total
Estimated Final Dividend Rate or Estimated Recovery Rate

Secured Amount

mated Recovery Rate

Unsecured Amounts

40,000
18,000
58,000
250,000
10,000
260,000
244,000
6,000
250,000
202,500
280,000
250,000

47,500
30,000
288,000
365,500
61.70%

Bankrupt Corporation
Fritz Martin - Trustee
Statement of Estate Deficit
For the Six-Month Ending July 31, 2015

Estate Deficit, beginning

Gain on Sale of Investment
Loss on Collection of Accts. Rec.
Loss on Sale of Merchandise
Administrative Expenses
Estate Deficit, End

(52,000)
6,000
(5,000)
(25,000)
(15,000)

(39,000)
(91,000)

Bankrupt Corporation
Fritz Martin - Trustee
Statement of Realization and Liquidation
For the Six-Month Ending July 31, 2015
Assets
To be Realized @ Book Value
Accounts Receivable
Merchandise Inventory
Supplies
Investment in Common Stock
Land
Building
Machinery & Equipment

80,000
160,000
10,000
254,000
200,000
160,000
158,000

1,022,000

Acquired @ Book Value

Total Assets Accountability

1,022,000
Liabilities

Liquidated:
Bank Loan
Notes Payable
Interest Payable
Salaries & Wages
Taxes Payable

135,000
189,000
6,000
40,000
18,000

388,000
Not Liquidated:
Notes Payable
Accounts Payable
Mortgage Payable
Interest on Mortgage Payable
Bank Loan
Total Liabilities (Accountability)

Administrative Expenses
Total

55,000
288,000
250,000
10,000
145,000

748,000
1,136,000
Supplementary Items
15,000
2,173,000

Assets
Realized @ Realized Value
Investment in Common Stock
Accounts Receivable
Merchandise Inventory

260,000
75,000
135,000

470,000
Not Realized @ Book Value
Supplies
Land
Building
Machinery & Equipment
Total Assets Accounted For
Liabilities
To be Liquidated:
Notes Payable
Interest Payable
Accounts Payable
Mortgage Payable
Interest on Mortgage Payable
Salaries & Wages
Taxes Payable
Bank Loan

10,000
200,000
160,000
158,000

244,000
6,000
288,000
250,000
10,000
40,000
18,000
280,000

528,000
998,000

1,136,000

Liabilities Assumed/Incurred:

Total Liabilities Accounted For

lementary Items
Net Effect to Estate Deficit
Total

1,136,000

39,000
2,173,000

Bankrupt Corporation
Fritz Martin - Trustee
Statement of Financial Position
As of July 31, 2015

Assets:
Cash
Supplies
Land
Building
Machinery & Equipment
Total Assets

129,000
10,000
200,000
160,000
158,000
657,000

Liabilities & Estate Deficit:

Notes Payable
Accounts Payable
Mortgage Payable
Interest on MP
Bank Loan
Estate Deficit
Total Liabilities & Estate Deficit:

55,000
288,000
250,000
10,000
145,000
(91,000)
657,000

Fully Pledged
Assets:
Cash
Accounts Receivable
Merchandise Inventory
Supplies
Investment in Stock
Land
Building
Machinery & Equipment
Total
Liabilities
Notes Payable
Interest Payable - NP
Accounts Payable
Mortgage Payable
Interest Payable - MP
Salaries Payable
Taxes Payable
Bank Loan
Total

Partially Pledged

130,000
202,500
250,000
10,000
120,000
452,500

260,000
Fully Secured

Partially Secured
196,500
6,000
250,000
10,000

260,000

1 In the Statement of Affairs, how much is the Net Free Assets

Total Free Assets
Less: Liabilities with Priority
Net Free Assets
2 How much is the Estimated Deficiency to Unsecured Creditors?
Net Free Assets
Less: Liabilities without Priority
Estimated Deficiency
3 Total amount of unsecured creditor is:
Liabilities without Priority

250,000
452,500

283,500
(58,000)
225,500

225,500
(365,500)
(140,000)

365,500

4 Estimated Final Dividend Rate or Estimated Recovery Rate

5 In the Statement of liquidation and realization, how much is the proceeds from sale of assets duri
the six month period?
Cash Proceeds:
Sold Investment in stocks

260,000

Collections from Accounts Receivable

Sold Merchandise
Total Cash Proceeds/Assets Realized
6 Total payment of liabilities in the six-month period is:
Bank Loan
Interest Payable - NP
6,000
Notes Payable
189,000
Liabilities with Priority
Total paid liabilities/
Liquidated

75,000
135,000
470,000

135,000
195,000
58,000
388,000

7 Total loss on realization is:

Asset Accounted for
Asset Accountability
Loss

998,000
1,022,000
(24,000)

Liabilities accounted for

Liabilities accoutability
Loss/Gain

1,136,000
1,136,000
-

Supplementary credit
Supplementary debit
Gain
Total loss on realization

39,000
15,000
24,000
-

8 Net decrease in estate deficit as of July 31, 2015

(39,000)

9 Total assets as of July 31, 2015

657,000

10 Balance of the estate deficit as of July 31, 2015

(91,000)

Free Assets
62,000
76,000
8,000
67,500
70,000
283,500
Liabilities with Priority

eeds from sale of assets during

Liabilities without Priority

47,500
288,000

40,000
18,000
58,000

61.70%

30,000
365,500