SALIVA, ROBIN JAYCOB M.

1.) ASSETS PLEDGE TO FULLY SECURED CREDITORS:

Land 1,300,000
Loan payable (750,000)
Available for unsecured creditors 550,000

2.) ASSETS PLEDGE TO PARTIALLY SECURED CREDITORS:

Equipment, net 150,000
Notes payable (500,000)
Available for unsecured creditors -

3.) FREE ASSETS & NET FREE ASSETS:

Excess of land over loan payable 550,000
Cash 200,000
Accounts receivable 450,000
Total free assets 1200000
Unsecured liabilities with priority:
Administrative expenses (180,000)
Salaries payable (800,000)
Net free assets 220,000

4.) UNSECURED LIABILITIES WITH PRIORITY:

Administrative expenses 180,000
Salaries payable 800,000
Total 980,000

5.) FULLY SECURED LIABILITIES:

Loan payable 750,000

6.) PARTIALLY SECURED LIABILITIES:

Notes payable 500,000
7.) ESTIMATED DEFICIENCY:
NRV of total assets 2,100,000
Unsecured liabilities with priority:
Salaries payable (800,000)
Administrative expenses (180,000) (980,000)
Fully secured liabilities:
Loan payable (750,000)
Secured portion of partially secured liabilities:
Notes payable(fair value of equipment) (150,000)
Total 220,000
Unsecured liabilities without priority:
Notes payable excess over fair value of equipment(500k-150k) (350,000)
Accounts payable (700,000)
Estimated deficiency (830,000)

8.) ESTIMATED RECOVERY PERCENTAGE

Net free assets 220,000
Divided by: Total unsecured liabilities without prior 1,050,000
Estimated recovery percentage 20.95%
Computation for total unsecured liabilities without priority:
Notes payable excess over fair value of equipment 350,000
Accounts payable 700,000
Total 1,050,000

9.) EXPECTED COLLECTION OF MR. A

Claim of Mr. A 500,000
Multiplied by: Estimated recovery percentage 20.95%
Expected collection of Mr. A 104,750
10.) STATEMENT OF AFFAIRS
BYE-BYE CORPORATION
STATEMENT OF AFFAIRS
AS OF JANUARY 1, 20X1

BOOK VALUES ASSETS REALIZABLE VALUES

ASSETS PLEDGE TO FULLY SECURED CREDITORS:
1,000,000 Land 1,300,000
Loan payable (750,000)
ASSETS PLEDGE TO PARTIALLY SECURED CREDITORS:
600,000 Equipment, net 150,000
Notes payable (500,000)
FREE ASSETS:
200,000 Cash 200,000
500,000 Accounts receivable 450,000
Total free assets
Unsecured liabilities with priority
Net free assets
Estimated deficiency
2,300,000 Totals
BOOK VALUES LIABILITIES REALIZABLE VALUES
UNSECURED LIABILITIES WITH PRIORITY:
- Administrative expenses 180,000
800,000 Salaries payable 800,000
FULLY SECURED LIABILITIES:
750,000 Loan payable 750,000
PARTIALLY SECURED LIABILITIES:
500,000 Notes payable 500,000
Equipment, net (150,000)
UNSECURED LIABILITIES WITHOUT PRIORITY:
 700,000 Accounts payable 700,000
(450,000) SHAREHOLDER'S EQUITY -
2,300,000 Totals
 AVAILABLE FOR
UNSECURED CREDITORS

550,000
EDITORS:

650,000
1,200,000
(980,000)
220,000
830,000
1,050,000
UNSECURED NON-PRIORITY
LIABILITIES

350,000
 700,000
-
1,050,000