Statement of Affairs
The following information is available for Dennison Company, which is entering bankruptcy proceedings.
Net realizable values of Dennison’s assets:
Cash | $5,000 |
Accounts receivable | 12,000 |
Inventory | 40,000 |
Equipment | 125,000 |
Dennison has the following claims against it:
Accounts payable to suppliers | $50,000 |
Priority liabilities | 20,000 |
Note payable, secured by equipment with a realizable value of $90,000 | 60,000 |
Loan payable, secured by equipment with a realizable value of $25,000 | 100,000 |
Required
Prepare a statement of affairs for Dennison Company, in good form.
Do not use negative signs with any of your answers below.
Dennison Company Statement of Affairs |
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Estimated Realizable Value |
Free Assets |
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Assets pledged to fully-secured creditors: | ||
Equipment | Answer | |
Less: Liabilities to fully-secured creditors | Answer | Answer |
Assets pledged to partially-secured creditors: | ||
Equipment | Answer | |
Free assets: | ||
Cash | Answer | |
Accounts receivable | Answer | |
Inventory | Answer | |
Equipment | Answer | Answer |
Total free assets | Answer | |
Less: Priority liabilities | Answer | |
Net free assets | Answer | |
Estimated deficiency to unsecured creditors | Answer | |
Total unsecured liabilities | Answer | |
Creditors’ Claims |
Unsecured Liabilities |
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Fully-secured creditors: | ||
Note payable | Answer | |
Partially-secured creditors: | ||
Loan payable | Answer | |
Less: Value of pledged assets | Answer | Answer |
Priority liabilities | Answer | |
Unsecured creditors: | ||
Accounts payable | Answer | |
Total unsecured liabilities | Answer |
Statement of Affairs The following information is available for Dennison Company, which is entering bankruptcy proceedings....
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