Book Value Realizable Value

Asset
Cash 80,000.00 80,000.00
Account receivable 440,000.00 334,400.00
Note Receivable 200,000.00 200,000.00
Interest Receivable 20,000.00
Inventory 1,060,000.00 820,000.00
Prepaid Asset 20,000.00
Land 1,000,000.00
5,200,000.00
Buildingg 4,000,000.00
Equipment, net 600,000.00 400,000.00
Total Assets 7,400,000.00 7,054,400.00

Liabilities & Equity

Accrued Expenses 442,000.00 442,000.00
Current tax payable 700,000.00 700,000.00
Accounts Payable 2,000,000.00 2,000,000.00
Note payable (secured by equipment) 600,000.00 600,000.00
Loan payable (secured by land & building) 4,000,000.00 4,000,000.00
Share Capital 1,000,000.00
Interest payable - loan 30,000.00
Administrative Expense 60,000.00
Retained Earning Deficit (1,342,000.00) (777,600.00) 7,832,000.00
Total Liabilities 7,400,000.00 7,054,400.00

ASSET
Asset pledged to fully secured creditors
Land & Building 5,200,000.00
Loan payable (secured by land & building) 4,000,000.00
Interest payable - loan 30,000.00 1,170,000.00

Assets pledged to partially secured creditors

Equipment, net 400,000.00 -

Free Assets
Cash 80,000.00
Account receivable 334,400.00
Note Receivable 200,000.00
Interest Receivable 20,000.00
Inventory 820,000.00
Prepaid Asset - 1,454,400.00
Total Free asset 2,624,400.00

LIABILITIES

Unsecured liabilities with priority Secured Unsecured w/out Priority

Administrative Expense 60,000.00
Accrued Salaries 50,000.00
Current tax payable 700,000.00
Total 810,000.00 -

Fully Secured creditors

Loan payable (secured by land & building) 4,000,000.00
Interest payable - loan 30,000.00
4,030,000.00 -
Partially Secured creditors
Note payable (secured by equipment) 600,000.00
Equipment, net (400,000.00) 200,000.00

Unsecured liabilities without priority

Accounts Payable 2,000,000.00
Accrued Expenses 392,000.00 2,392,000.00
Total unsecured liabilities w/out priority 2,592,000.00

Total Free asset 2,624,400.00

Unsecured liabilities with priority 810,000.00
Net free asset 1,814,400.00
Unsecured liabilities without priority 2,592,000.00
Estimated Recovery 70.00%

Total Claims Recovery % Estimated Recovery

Unsecured liabilities with priority 810,000.00 100% 810,000.00
Fully Secured creditors 4,030,000.00 100% 4,030,000.00
Partially Secured creditors 600,000.00 330k + (750k x 70%) 540,000.00
Unsecured liabilities without priority 2,392,000.00 70.00% 1,674,400.00
Shareholders none 0% -
Total assets at realizable values 7,054,400.00