Chapter 4 - Corporate Liquidation PROBLEM 4- 1 The balance sheet of XYZ Sales Corporation at December 31, 2019 contains the following items: ASSETS P 600,000 Cash 1,050,000 Accounts receivable-net 750,000 Inventories 1,450,000 Land Building-net 2,000,000 Machinery-net 900,000 Goodwill 750,000 Total assets 7,500,000 EQUITIES Accounts payable 1,650,000 Wages payable 900,000 Property taxes payable 150,000 Mortgage payable 2,250,000 Interest on mortgage payable 225,000 Notes payable 750,000 Interest on notes payable 75,000 Capital stock 3,000,000 Retained earnings 9deficit) (1,500,000) Total equities 7,500,000 The company is in financial difficulty and its stockholders and creditors have requested a statement of affairs for planning purposes. information is available: The following . The company estimates that P 555,000 is the maximum amount collectible for the accounts receivable. . Except for 20% of the inventory items that are damaged and worth only . P20,000, the cost of other items is expected to be recovered in full. The land and building have a combined appraisal value of P 2,550,000 . and are subject to the P 2,250,000 mortgage and related accrued interest. payable The appraise value of machinery is P 180,000 and is pledged to notesRequired: 1. Prepare a statement of affair. 2. Compute for the estimated settlement per peso of unsecured liabilities 3. Compute for the amount to be received by partially secured creditors