The following balance sheet has been prepared by the accountant for Limestone Company as of June 3, 2011, the date on which the company is to file a voluntary petition of bankruptcy:

Additional Information
€¢ If the company is liquidated, administrative expenses are estimated at $18,000.
€¢ The Accounts Payable figure includes $10,000 in wages earned by the company€™s 12 employees during May. No one earned more than $2,200.
€¢ Liabilities do not include taxes of $14,000 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 $80,000. The land and buildings will be sold together for approximately $310,000; the equipment should bring $130,000 at auction.
Prepare a statement of financial affairs for Limestone Company as of June 3,2011.

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LIMESTONE COMPANY Balance Sheet June 3, 2011 Assets S 3,000 65,000 88,000 100,000 300,000 180,000 736,000 ash Accounts receivable (net) Inventory . Land Equipment (net) . .* .. Total assets. Liabilities and Equities _ . . _ . - Accounts payable Notes payable-current secured by equipment) .. Notes payable-long term (secured by land and buildings) . Common stock . Retained earnings... . - 98,000 . 250,000 190,000 120,000 78,000 736,000 Total liabilities and equities . . +····.. ..