2.

LIMESTONE COMPANY Balance Sheet June 3, 2017
Assets
Cash	$	6,000
Accounts receivable (net)		68,000
Inventory		94,000
Land		103,000
Buildings (net)		303,000
Equipment (net)		186,000
Total assets	$	760,000
Liabilities and Equities
Accounts payable	$	104,000
Notes payablecurrent (secured by equipment)		256,000
Notes payablelong term (secured by land and buildings)		193,000
Common stock		123,000
Retained earnings		84,000
Total liabilities and equities	$	760,000

Additional Information

If the company is liquidated, administrative expenses are estimated at $21,000.

The accounts payable figure includes $13,000 in wages earned by the company's 12 employees during May. No one earned more than $2,500.

Liabilities do not include taxes of $17,000 owed to the U.S. government.

Company officials estimate that 40 percent of the accounts receivable will be collected in a liquidation and that the inventory disposal will bring $83,000. The land and buildings will be sold together for approximately $316,000; the equipment should bring $133,000 at auction.

Prepare a statement of financial affairs for Limestone Company as of June 3, 2017.

LIMESTONE COMPANY Statement of Financial Affairs June 3, 2017 Book Values Assets Available for Unsecured Creditors Pledged with Fully Secured Creditors: ? ? ? ? ? $0 Pledged with Partially Secured Creditors: ? ? ? ? ? ? Free Assets: ? ? ? ? ? ? ? ? ? ? ? ? Total amount available to pay liabilities with priority and unsecured creditors $0 ? ? Available for unsecured creditors $0 Estimated deficiency ? $0 $0 Book Values Liabilities and Stockholders' Equity Unsecured Nonpriority Liabilities Liabilities with Priority: ? ? ? ? ? ? ? ? ? ? ? ? Total $0 Fully Secured Creditors: ? ? ? ? ? ? Partially Secured Creditors: ? ? ? ? ? $0 Unsecured Creditors: ? ? ? ? ? ? ? Stockholders' equity ? $0 $0