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The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2020, the date on which the company is to file a voluntary petition of bankruptcy:

LIMESTONE COMPANY Balance Sheet June 3, 2020
Assets
Cash	$	10,000
Accounts receivable (net)		83,000
Inventory		124,000
Land		118,000
Buildings (net)		318,000
Equipment (net)		216,000
Total assets	$	869,000
Liabilities and Equities
Accounts payable	$	134,000
Notes payablecurrent (secured by equipment)		286,000
Notes payablelong-term (secured by land and buildings)		208,000
Common stock		138,000
Retained earnings		103,000
Total liabilities and equities	$	869,000

Additional Information

• If the company is liquidated, administrative expenses are estimated at $36,000.
• The accounts payable figure includes $28,000 in wages earned by the company's 12 employees during May. No one earned more than $4,000.
• Liabilities do not include taxes of $32,000 owed to the U.S. government.
• Company officials estimate that 34 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $98,000. The land and buildings will be sold together for approximately $346,000; the equipment should bring $148,000 at auction.

Prepare a statement of financial affairs for Limestone Company as of June 3, 2020.

\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ LIMESTONE COMPANY } \\ \hline \multicolumn{3}{|c|}{ Statement of Financial Affairs } \\ \hline \multicolumn{3}{|c|}{ June 3,2020} \\ \hline \multirow[t]{2}{*}{ Book Values } & Assets & \begin{tabular}{c} Available for \\ Unsecured \\ Creditors \end{tabular} \\ \hline & Pledged with Fully Secured Creditors: & \\ \hline \\ \hline & 7 & $ \\ \hline & Pledged with Partially Secured Creditors: & \\ \hline \\ \hline & {[} & \\ \hline & Free Assets: & \\ \hline \multicolumn{3}{|r|}{7} \\ \hline \multicolumn{3}{|c|}{17} \\ \hline \multicolumn{3}{|r|}{7} \\ \hline \multicolumn{3}{|c|}{7} \\ \hline & \begin{tabular}{l} Total amount available to pay liabilities with \\ priority and unsecured creditors \end{tabular} & $ \\ \hline & & \\ \hline & Available for unsecured creditors & $ \\ \hline & Estimated deficiency & \\ \hline$ & & $ \\ \hline Book Values & Liabilities and Stockholders' Equity & \begin{tabular}{c} Unsecured \\ Nonpriority \\ Liabilities \end{tabular} \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline \hline Book Values & \multicolumn{1}{|c|}{ Liabilities and Stockholders' Equity } & & \begin{tabular}{c} Unsecured \\ Nonpriority \\ Liabilities \end{tabular} \\ \hline & Liabilities with Priority: & & \\ \hline & & & \\ \hline & Total & & \\ \hline & Fully Secured Creditors: & & \\ \hline & & & \\ \hline & Partially Secured Creditors: & & \\ \hline & & & \\ \hline & & & \\ \hline & Unsecured Creditors: & & \\ \hline & & & \\ \hline & & & \\ \hline & Stockholders' equity & & \\ \hline \end{tabular}

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