DOWN DOG CORPORATION

Statement of Affairs
June 30, 2014

BOOK VALUE ASSETS

165,000 Pledged with partially secured creditors

Equipment - Net
Less:Note Payable and Accrued Interest
Unsecured Amount

3,000 Free assets

72,000 Cash
Accounts receivable-net
60,000 Inventories
Total net realizable value
Less: Priority liabilities- wages payable
Total available for unsecured creditors
Estimated deficiency to unsecured creditors
300,000

BOOK VALUE EQUITIES

45,000 Priority liabilities
Wages payable (assumed under $4,650 per employee)

96,000 Partially secured creditors

Notes payable and accrued interest
Less: Equipment pledge as security

72,000 Unsecured creditors

Accounts poyable
Rent payable

180,000 Stockholder's equity

Capital stock

Retained earnings (deficit)

Estimated deficiency

B. Estimated payments per dollar for unsecured creditors

Cash Available
Distribution to partially secured and unsecured priority creditors:
Note payable and interest
Administrative expenses
Wages payable
Available to unsecured nonpriority creditors
Note payable and interest (unsecured portion)
Accounts payable
Rent payable
Unsecured nonpriority claims (54,000/108,000= 0.50 per dollar)

Partially secured
Note payable and interest

Unsecured priority

Unsecured nonpriority
 DOWN DOG CORPORATION
Statement of Affairs
June 30, 2014
DEFICIENCY
REALIZABLE VALUE ACCOUNT
(LOSS/GAIN)

87,000 -78,000
-96,000
-9,000

3,000
48,000 -24,000
72,000 12,000
123,000
-45,000
78,000
30,000
108,000 -90,000

UNSECURED LIABILITIES

45,000

96,000
-87,000 9,000

27,000
27,000

-120,000
-120,000
300,000
108,000 60,000
-30,000

210,000
d priority creditors:
87,000
24,000
45,000 -156,000
54,000
 9,000
72,000
27,000
000= 0.50 per dollar) 108,000

Secured portion 87,000

Unsecured portion (9,000 x 0.50) 4,500 91,500

Administrative expenses 24,000

Wages payable 45,000 69,000

Accounts payable (72,000 x 0.50) 36,000

Rent payable (27,000 x 0.50) 13,500 49,500
Total payments 210,000
REQUIRED:
compute the amount that will be paid to each class of creditor

Realizable Value of All Assets (635,000+300,000+340,000) 1,275,000

Less: Fully Secured Creditors 316,000
Partially Secured Creditors 300,000
Unsecured Creditors with Priority 100,000
Available to General Unsecured 559,000

Payment Rate to General Unsecured Creditors

(559,000/(1,165,000+(400,000-300,000)) 44.20%

Realizable Value of Assets:

Assets Pledged to Fully Secured Creditors 635,000
Assets Pledged to Partially Secured Creditors 300,000
Free Assets 340,000
Total Realizable Value 1,275,000

Amounts to be Paid to:

Fully Secured Creditors 316,000
Partially Secured Creditors (300,000+(44.20%*100,000)) 344,200
Unsecured Creditors with Priority 100,000
General Unsecured Creditors (44.20% *1,165,000) 514,800
Total 1,275,000
0.441897
How much will be paid to each of the following?

1. SALARIES PAYABLE
2. ACCOUNTS PAYABLE
3. NOTES PAYABLE
4. BONDS PAYABLE

Free Assets
Cash 30,000
Receivables (30% collectible) 15,000
Inventory 39,000
Land (120,000-110,000) 10,000
Total 94,000
Less: Liability with Priority
Salaries Payable -10,000
Free Assets Available 84,000

Unsecured Liabilities
Accounts Payable 90,000
Bonds Payable 120,000
Total Unsecured Liabilites 210,000

Percentage of Free Assets to Unsecured

Liability Free Assets 84,000 40% or
Unsecured Liability 210,000 0.40

Allocation of Payments
(liabilities with
Salaries Payable priority to be paid in
full) 10,000
Accounts Payable (90,000*40%) (unsecured) 36,000
(fully payable as
Notes Payable secured by land 110,000
Bonds Payable(180,000+(120,000*40%) (partilally secured) 228,000.00
 SMITH COMPANY
STATEMENT OF REALIZATION AND LIQUIDATION
ASSETS
Assets to be Realized
Old Receivables, Net 50,000
Marketable Securities 20,000
Old Inventory 72,000
Depreciable Assets, Net 120,000

Assets Acquired
New Receivables 100,000

SUPPLEMENTARY ITEMS
Supplementary Charges
Trustee's Fee 6,000

LIABILITIES
Liabilities Liquidated
Old Current Payables 31,000

Liabilities Not Liquidated

Old Current Payables 34,000
433,000
 SMITH COMPANY
F REALIZATION AND LIQUIDATION
ASSETS
Assets Realized
Old Receivables 28,000
New Receivables 65,000
Marketable Securities 15,000
Sales of Inventory 100,000

Assets Not Realized

Old Receivables, Net 22,000
New Receivables, Net 35,000
Depreciable Assets 96,000

PPLEMENTARY ITEMS
Supplementary Credits
Net Loss 7,000

LIABILITIES
Liabilities to be Liquidated
Old Current Payables 65,000

Liabilities Incurred

433,000
 MALLORY CORPORATION
Statement of Realization and Liquidation
For the Three Months Ended July 31, 20x5

ASSETS
Assets Cash Non-Cash
Beginning Balances assigned 5/1/x5 4,000 720,000
Cash Receipts:
Collection of Accounts Receivable 60,000 -70,000
Sales of Inventory 170,000 -200,000
Sales of Land and Building 20,000 -340,000
Sales of Machinery 70,000 -100,000
Cash Disbursements:
Payment of Salaries Payable -60,000
Partial Payment of Accounts Payable -170,000
Partial Payment of Bank Loan -70,000
Ending Balance 24,000 10,000

LIABILITIES

Fully Secured Partially Secured

Assets
Beginning Balances assigned 5/1/x5 240,000 270,000
Cash Receipts:
Collection of Accounts Receivable
Sales of Inventory
Sales of Land and Building -240,000
Sales of Machinery
Cash Disbursements:
Payment of Salaries Payable
Partial Payment of Accounts Payable -180,000
Partial Payment of Bank Loan -90,000
Ending Balance 0 0
LIABILITIES
UNSECURED
With Priority Without Priority Owner's Equity
94,000 0 120,000

-10,000
-30,000
-80,000
-30,000

-60,000
10,000
20,000
34,000 30,000 -30,000