Y Co.

Statement of Affairs
As of January 1, 20x1

Book Values ASSETS Realizable Values Available for unsecured creditors

Asset pledged to fully secured creditors
5,000,000.00 Land & Building 5,200,000.00
Loan payable (secured by land & building) (4,000,000.00)
Interest payable - loan (30,000.00) 1,170,000.00

Assets pledged to partially secured creditors

600,000.00 Equipment, net 400,000.00
Note payable (secured by equipment) (600,000.00) -

Free Assets
80,000.00 Cash 80,000.00
440,000.00 Account receivable 334,400.00
200,000.00 Note Receivable 200,000.00
- Interest Receivable 20,000.00
1,060,000.00 Inventory 820,000.00
20,000.00 Prepaid Asset - 1,454,400.00
Total Free asset 2,624,400.00
Unsecured liabilities with priority (810,000.00)
Net free assets 1,814,400.00
Estimated deficiency 777,600.00
7,400,000.00 2,592,000.00

Book Values LIABILITIES & EQUITY Realizable Values Unsecured non priority liabilities
Unsecured liabilities with priority
- Administrative Expense 60,000.00
50,000.00 Accrued Salaries 50,000.00
700,000.00 Current tax payable 700,000.00
Total 810,000.00 -

Fully Secured creditors

4,000,000.00 Loan payable (secured by land & building) 4,000,000.00
- Interest payable - loan 30,000.00
4,030,000.00 -

Partially Secured creditors

600,000.00 Note payable (secured by equipment) 600,000.00
Equipment, net (400,000.00) 200,000.00

Unsecured liabilities without priority

2,000,000.00 Accounts Payable 2,000,000.00
392,000.00 Accrued Expenses 392,000.00 2,392,000.00
Total unsecured liabilities w/out priority 2,592,000.00

(342,000.00) Shareholders Equity -

7,400,000.00 2,592,000.00