the balance sheet of everlast window corporation at june 30 357309

The balance sheet of Everlast Window Corporation at June 30, 2011, contains the following items:

Assets

Cash…………………………………………. $ 40,000

Accounts receivable—net…………………… 70,000

Inventories…………………………………… 50,000

Land…………………………………………. 30,000

Building—net……………………………….. 200,000

Machinery—net…………………………….. 60,000

Goodwill……………………………………. 50,000

$500,000

Equities

Accounts payable………………………… $110,000

Wages payable…………………………… 60,000

Property taxes payable…………………… 10,000

Mortgage payable……………………… 150,000

Interest on mortgage payable……………… 15,000

Note payable—unsecured…………………. 50,000

Interest payable—unsecured……………….. 5,000

Capital stock………………………………… 200,000

Retained earnings deficit…………………… (100,000)

$500,000

The company is in financial difficulty, and its stockholders and creditors have requested a statement of affairs for planning purposes. The following information is available:

1. The company estimates that $63,000 is the maximum amount collectible for the accounts receivable.

2. Except for 20% of the inventory items that are damaged and worth only $2,000, the cost of the other items is expected to be recovered in full.

3. The land and building have a combined appraisal value of $170,000 and are subject to the $150,000 mortgage and related accrued interest.

4. The appraised value of the machinery is $20,000.

5. Wages payable and property taxes payable are unsecured priority items that do not exceed any limitations of the bankruptcy act.

REQUIRED

1. Prepare a statement of affairs for Ever last Window Corporation as of June 30, 2011.

2. Compute the estimated settlement per dollar of unsecured liabilities.