Reference no: EM132896282
Question - The following information on XYZ Incorporated (Number: 56897425) has been provided to you:
Latest Balance Sheet as at 31st December 2020 (All sums are in s)
Current Assets
Cash at Bank 2,000
Accounts Receivable 120,000
Inventories 655,000
Prepayments 15,000
Total Current Assets 792,000
Non-Current Assets
Plant & Equipment 150,000
Less: Accumulated Depreciation (145,000)
Net 5,000
Goodwill 50,000
Patents 20,000
Research & Development 25,000
Total Assets 892,000
Liabilities
Current Liabilities
Accounts Payable 830,000
Arrears of Employee Wages 20,000
Taxes Payable 30,000
Total Current Liabilities 880,000
Non-Current Liabilities
Bank Loan (Secured against Inventories) 500,000
Total Liabilities 1,380,000
Total Equity- Negative (488,000)
The Following additional; information is given.
Accounts Receivable includes known bad debts of $21,000. Also the directors expect that only 90% of the remaining Accounts Receivable will pay.
Inventories have an auction value of $430,000.
Prepayments represent the advance payments for the rent of the company's premises. This will not be refunded.
Plant & Equipment can be auctioned off and will sell for $70,000.
Goodwill, Patents and Research & Development have no value.
The Secured Creditor is the Bank of Good Faith. Security given was a fixed charge against inventories on the 15th January 2008
The wages creditors represent 20 employees each being owed $1,000 each.
Accounts Payable are as follows:
ABC Supplies $270,000
Pembina Corp $310,000
Better Buys Limited $250,000
REQUIRED - Prepare the Statement of Affairs as at today's date?
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