XYZ Sales Corporation
Statement of Affairs
December 31, 2021
Total Realizable
Book Value Assets unsecured value
Assets Pledge to Fully Secure
Creditors
3,450,000 Land and Building 2,550,000
Less: Mortgage Payable 2,250,000
Interest in Mortgage Payable 225,000 2,475,000
Assets Pledge to Partially Secure
Creditors
900,000 Machinery 180,000
Less: Notes Payable 750,000
Interest on Notes Payable 75,000 825,000
Free Assets
600,000 Cash
1,050,000 Account Receivables
750,000 Inventories
750,000 Goodwill
Total Available for preferred and
unsecured creditors
Less: Preferred creditors
Total Available for unsecured
creditors
Estimated Deficiency
7,500,000
Liabilities and Stockholders
Equity
Priority Liabilities
900,000 Wages Payable 900,000
150,000 Property taxes payable 150,000
1,050,000
Fully secured liabilities
2,250,000 Mortgage Payable 2,250,000
225,000 Interest in mortgage payable 225,000
2,475,000
Partially secured liabilities
750,000 Notes Payable 750,000
75,000 Interest on notes payable 75,000
total 825,000
Less: Machinery pledged 180,000
Unsecured Liabilities
1,650,000 Accounts Payable
Stockholders' + Equity
3,000,000 Capital Stock
(1,500,000) Retained earnings
7,500,000
2. Compute for the estimated settlement per peso of unsecured liabilities
(1,010,000/1,650,000)
3. Compute for the amount to be received by partially secured creditors
Notes Payable 750,000
Interest on notes payable 75,000
Less: Machinery (180,000)
Unsecured portion 645,000
% of recovery 61.21
Recovarable Amount 394,805
FV of Machinery (180,000)
Total amount of recoverable 214,805
Available to
unsecured
75,000
60,000
555,000
620,000
750,000
2,060,000
1,050,000
1,010,000
1,285,000
2,295,000
Unsecured
Creditors
645,000
1,650,000
2,295,000
0.61:1
1780 Corporation
Statement of Affairs
December 31, 2021
Realizable
Book Value Assets Total unsecured value
Assets Pledge to Fully Secure
Creditors
4,600,000 Land and Building 3,400,000
Less: Mortgage Payable 3,000,000
Interest in Mortgage Payable 300,000 3,300,000
Assets Pledge to Partially Secure
Creditors
1,400,000 Account Receivables 980,000
Less: Notes Payable 1,000,000
Interest on Notes Payable 100,000 1,100,000
Free Assets
800,000 Cash
1,000,000 Inventories
1,200,000 Machinery
1,000,000 Goodwill
Total Available for preferred and
unsecured creditors
Less: Preferred Creditors
Total Available for unsecured
creditors
Estimated Deficiency
10,000,000
Liabilities and Stockholders
Equity
Priority Liabilities
1,200,000 Wages Payable 1,200,000
200,000 Property taxes payable 200,000
1,400,000
Fully secured liabilities
3,000,000 Mortgage Payable 3,000,000
300,000 Interest in mortgage payable 300,000
3,300,000
Partially secured liabilities
1,000,000 Notes Payable 1,000,000
100,000 Interest on notes payable 100,000
total 1,100,000
Less: Account Receivables pledged 980,000
Unsecured Liabilities
2,200,000 Accounts Payable
Stockholders' + Equity
4,000,000 Capital Stock
(2,000,000) Retained earnings
10,000,000
2. Compute for the estimated settlement per peso of unsecured liabilities
(1,490,000 / 2,200,000)
3. Comute for the amount to be received by the notes payable group of creditors
Notes Payable
Partially secured creditors
NRV of Accounts Receivable 980,000
Unsecured portion (120,000 X 0.6773) 81,276
TOTAL 1,061,276
4. Compute for the amount to be paid to the unsecured creditors
Amount available to unsecured creditors 1,490,000
% of recovery 67.73
Recovarable Amount 1,009,177
Available to
unsecured
100,000
800,000
750,000
240,000
1,000,000
2,890,000
1,400,000
1,490,000
830,000
2,320,000
Unsecured
Creditors
120,000
2,200,000
2,320,000
0.68:1
Free Assets
Cash 33,000
Notes Receivable 57,000
Account Receivables 90,000
Merchandise Inventory 145,500
Investment (34,500 - 30,000) 4,500
Plant and Equipment (520,000 - 85,000) 435,000
amount available to unsecured
creditors 765,000
