ASSETS AND LIABILITIES BOOK VALUE NRV (fr.

add info) Classification

Cash 1,000 1,000 Free Asset
A/R (N/P Bank) 15,000 15,000 APPSC
Inventory 55,000 32,000 F.A
Supplies 2,500 500 F.A
Prepayments 4,000 0
Land (secured to NP 35,000 37500 APFSC
Building (secured to 55,000 57500 APFSC
Equipment 30,000 14,000 F.A
Goodwill 7,500 0
Patent 0 10375 F.A
NRV 167,875

NP to Bank (A/R) 17,500 17,500 PSC

A/P 46,500 46,500 US w/o P
Interest -Bank 1,000 1,000 PSC
Salaries 3,500 3,500 US w/ Priority
Interest - Insurance 3,000 3,000 FSC
Payroll Taxes 1,000 1,000 US w/ Priority
NP to Insurance Co. 87,500 87,500 FSC
Accrues Employee Benefits 3000 US w/ Priority
Liquidation Expense 7500 US w/ Priority
NRV 170,500

NRV of Assets 167,875

NRV of Liabilities 170,500
Estimated Deficency -2,625

BOOK VALUE ASSETS ERV FREE ASSETS

Assets Pledged to FSC
35,000 Land 37,500
55000 Building 57500
Total 95,000
Less: Liab to FSC
Interest - Insurance (3000)
NP - Insurance (87500) 4,500

Assets Pledged to PSC

15000 A/R 15000

Free Assets
1,000 Cash 1,000
55000 Inventory 32,000
2500 Supplies 500
 4000 Prepayments 0
30000 Equipment 14,000
7500 Goodwill 0
0 Patent 10,375 57,875
Total Free Assets 62,375
Less: UC Liab w/ priority (15,000)
Net Free Assets 47,375
205,000 Estimated Deficiency to UC 2,625

Computation of Est. deficiency:

Net Free Assets 47,375
Total Unsecured liab (50,000)
Est. Deficency -2,625

BOOK VALUE LIAB & EQUITY CREDITOR'S CLAIMS UNSECURED LIAB

Fully Secured Creditors
87,500 NP - Insurance 87500
3,000 Interest - Insurance 3000
Total 90500

Partially Secured Creditors

17,500 NP - Bank 17,500
1,000 Interest - NP Bank 1,000
Total 18,500
Less: APPSC
A/R (15,000) 3,500

UC w/ Priority
3,500 Salaries 3,500
1,000 Payroll Taxes 1,000
0 Accr. Employee Benefits 3,000
0 Liquidation Expense 7,500
Total 15,000

UC w/o Priority
46,500 A/P 46,500

45,000 Stockholder's Equity

205,000 Total 50,000
RED LIAB