Accounts Receivable, NRV

Add: portion of free assets

(60,000-45,000) x 80%
Est. amount to be paid to partially secured creditors

Unsecured Loan
x Expected recovery
Estimated amount to be paid

Machinery at liquidation value

Add: Portion of free assets
(100,000-25,000) x 40%
Assrt at liquidation value
Add: Portion of free assets
(30,000-5,000) x 40%

Inventory, at selling price

Add: Portion of free assets
(10,250-8,000) x 30%
 Claims Secured
Michael 750 750
Meldcan 1,050
Compboy 6,300 5,000
Serpor 2,650 2,650

Recovery Percentage =

=
Car, at net realizable value
Add: Portion of free assets
(6M - 4M) x 50%

Total assets at net realizable value

Less: Liabilities
Per books
Add: Unrecorded Interest
Estate (deficit)
Total assets at net realizable value
Less: Fully secured liabilities
Total Free Assets
Less: Unsecured creditors with priority-
Admin Expenses
Net Free Assets
Less: Unsecured creditors w/o priority-
Unsecured Accounts and Notes
Interest on bank notes
Est. deficiency to unsecured creditors
 Assets
Cash Noncash Fully Secured
Original balance - 1,480,000 670,000
Subsequently discovered 45,000
Sale of assets 715,000 - 740,000
Payment of liabilities - 690,000 - 410,000
Est. Liquidation exp
Balance to date 25,000 785,000 260,000
Ant. Transactions:
Liquidation of rem. Assets 732,000 - 785,000
Payment of fully secured - 240,000 - 240,000
Payment of partially secured - 110,000
Reallocation of secured - 20,000
Anticipated balance 407,000 - -

Net Free Assets 177,000

Unsecured Liab w/o P 385,000 =

Assets pledged to fully secured liab 180,000

Less: Fully secured liab 100,000
Free Assets 80,000
Unsecured debts 170,000
Est deficiency - 90,000 B

Partially secured liab 65,000

Assets pledged 30,000
Unsecured portion 35,000
Unsecured creditors 90,000
Total unsecured liab 125,000
Less: Est. Deficiency 40,000
Net Free Assets 85,000 C
 45,000

12,000
57,000 C

200,000
30%
60,000 B

25,000

30,000
55,000 C
 5,000

10,000
15,000 C

8,000

675
8,675 C
Unsecured Payment
750
1,050 630
1,300 5,780
2,650 D

36,000
60,000

60%
 4,000,000

1,000,000
5,000,000 B

105,000

130,000
500 130,500
- 25,500 C
 105,000
60,000
45,000

6,000
39,000

70,000
500 70,500
- 31,500 C
Assets pledged to fully secured
Less: Fully secured liabilities
Free assets
Add: Free assets, at fair value
Total Free Assets
Less: Unsecured creditors w/ P
Net Free Assets
Less: Unsecured creditors

Est. Deficiency

Exp. Recovery Percentage

 Unsecured
Partially Secured W/ Priority W/o Priority OE
400,000 200,000 320,000 - 110,000
35,000 10,000
- 25,000
- 280,000
30,000 - 30,000
120,000 230,000 355,000 - 155,000

- 53,000

- 110,000
- 10,000 30,000
- 230,000 385,000 - 208,000

Recovery Percentage 45.97%

 Free Assets
Assets pledged to fully secured creditors 370,000
Less: Fully secured creditors 260,000 110,000
Free Assets, at current value 320,000
Total Free Assets 430,000
Less: Liabilities with priority 70,000
Net Free Assets 360,000
Cash available 100,000
Less: Mortgage payable 50,000
Amount available to unsecured creditors 50,000
Less: Unsecured creditors w/ P
Admin expenses 8,000
Salaries pay 2,000 10,000
Net free assets 40,000

Exp Recovery percentage

40k / (30k+50k) 50%

Unsecured Creditors with priority 10,000

Partially secured creditors:
Property at selling Price 50,000
Add: Portion of free assets
(80k-50k) x 50% 15,000 65,000
Unsecured Credirots w/o P
Accounts payable (50k x 50%) 25,000
Total 100,000 D

Assets pledged to fully secured liabilities 100,000

 Less: Fully Secured liabilities 80,000
Total Free Assets 20,000
Add: Free assets 120,000
Total Free assets to unsecured liabilities 140,000
Less: Unsecured liab. w/ P 60,000
Net free assets 80,000

Exp Recovery Percentage

(80,000 / 100,000) 80%

Unsecured liabilities:
Partially secured liab 50,000
Assets pledged 40,000 10,000
Unsecured liabilities w/o priority 90,000
Total unsecured liabilities 100,000

Claims % Payment
Fully secured liabilities 80,000 100% 80,000
Unsecured liab w/ P 60,000 100% 60,000
Partially secured liab: 50,000
Assets 40,000 100% 40,000
Add: Portion of FA 10,000 80% 8,000 48,000
Unsecured liab w/o P 90,000 80% 72,000
Total 260,000

Assets pledged to fully secured liabilities, at fair value 75,000

Less: Fully secured liabilities 30,000
Free assets 45,000
Add: Free assets, at fair value 40,000
Total Free Assets 85,000
Less: Unsecured creditors w/ P 7,000
Net Free Assets 78,000
Less: Unsecured creditors
Partially secured liabilities 60,000
Less: Assets pledged 52,000 8,000
Unsecured creditors w/o P 112,000 120,000
Est. Deficiency - 42,000

Exp. Recovery Percentage

(78,000 / 120,000) 65% 0.65
Total Free Assets 70,000
Less: Unsecured creditors w/ P
Admin exp 1,500
Unpaid Income taxes 3,500 5,000
Net Free Assets 65,000

Total Unsecured creditors w/o P

Total unsecured claims of all classes 105,000
Less: Unsecured claims w/ P 5,000
Total Unsecured creditors w/o P 100,000

Recovery % 65%

Realizable value of AR (4000 x 60%) 2,400

Add: Portion of free assets (600 x 65%) 390
Est. payment to partially secured creditors 2,790 D
D