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    Big Company Statement of Affairs: Book Values Assets Realizable Values

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    Majoy Bantoc
    Big Company has assets with a book value of $7.4 million and liabilities of $7.4 million. When adjusting for realizable values, the company has $1.8 million in net free assets available after paying priority liabilities of $810,000. However, the company has $2.6 million in unsecured non-priority liabilities, resulting in an estimated deficiency of $777,600, meaning the unsecured creditors likely will not be paid in full.

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    Big Company Statement of Affairs: Book Values Assets Realizable Values

    Uploaded by

    Majoy Bantoc
    32 views2 pages
    Big Company has assets with a book value of $7.4 million and liabilities of $7.4 million. When adjusting for realizable values, the company has $1.8 million in net free assets available after paying priority liabilities of $810,000. However, the company has $2.6 million in unsecured non-priority liabilities, resulting in an estimated deficiency of $777,600, meaning the unsecured creditors likely will not be paid in full.

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    Big Company has assets with a book value of $7.4 million and liabilities of $7.4 million. When adjusting for realizable values, the company has $1.8 million in net free assets available after paying priority liabilities of $810,000. However, the company has $2.6 million in unsecured non-priority liabilities, resulting in an estimated deficiency of $777,600, meaning the unsecured creditors likely will not be paid in full.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    32 views2 pages

    Big Company Statement of Affairs: Book Values Assets Realizable Values

    Uploaded by

    Majoy Bantoc
    Big Company has assets with a book value of $7.4 million and liabilities of $7.4 million. When adjusting for realizable values, the company has $1.8 million in net free assets available after paying priority liabilities of $810,000. However, the company has $2.6 million in unsecured non-priority liabilities, resulting in an estimated deficiency of $777,600, meaning the unsecured creditors likely will not be paid in full.

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    Big Company

    Statement of Affairs

    Book Values ASSETS Realizable Values


    Assets pledged to fully secured creditors:
    5,000,000.00 Land and Building 5,200,000.00
    Loan Payable - 4,000,000.00
    Interest Payable - 30,000.00

    Assets pledged to partially secured creditors:


    600,000.00 Equipment, net 400,000.00
    Note Payable - 600,000.00

    Free Assets:
    80,000.00 Cash 80,000.00
    440,000.00 Accounts 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 Assets -
    Total Free Assets
    Less: Unsecured Liab. w/ Priority
    Net Free Assets
    Estimated Deficiency
    7,400,000.00

    Book Values LIABILITIES AND EQUITY Realizable Values


    Unsecured liabilities with priority:
    - Administrative Expenses 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 4,000,000.00
    - Interest Payable 30,000.00

    Partially Secured Creditors:


    600,000.00 Note Payable 600,000.00
    Equipment, net - 400,000.00

    Unsecured Creditors:
    392,000.00 Accrued Exp net of Salaries 392,000.00
    2,000,000.00 Accounts Payable 2,000,000.00
    Total Unsecured Creditors:

    - 342,000.00 Shareholder's Equity -


    7,400,000.00
    Available for Unsecured Creditors

    1,170,000.00

    1,454,400.00
    2,624,400.00
    - 810,000.00
    1,814,400.00
    777,600.00
    2,592,000.00

    Unsecured Non-Priority Liabilities

    200,000.00

    2,392,000.00
    2,592,000.00

    -
    2,592,000.00

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