Finito Corporation Has Filed for Chapter 7 Bankruptcy Additional Information:
1) It Is Estimated That $60,000 of the Is

Finito Corporation has filed for Chapter 7 bankruptcy. A trustee is appointed to liquidate the company's assets and pay creditors in accordance with the provisions of the bankruptcy laws. Finito's balance sheet, prepared using GAAP for continuing businesses, is as follows:
$\begin{array}{|l|r|}\hline \text { Assets } & \\\hline \text { Cash } & \$ 5,000 \\\hline \text { Accounts receivable } & 90,000 \\\hline \text { Inventories } & 200,000 \\\hline \text { Prepaid expenses } & 40,000 \\\hline \text { Building, net } & 400,000 \\\hline \text { Equipment, net } & 250,000 \\\hline \text { Intangible assets } & 300,000 \\\hline{\text { Total assets }} & \$ 1,285,000 \\\hline \text { Liabilities and shareholders' equity } & \\\hline \text { Accounts payable (unsecured) } & \$ 340,000 \\\hline \text { Accrued wages (priority) } & 80,000 \\\hline \text { Accrued taxes (priority) } & 90,000 \\\hline \text { Loan payable (unsecured) } & 400,000 \\\hline \text { Note payable (secured by building) } & 350,000 \\\hline \text { Capital stock } & 100,000 \\\hline \text { Retained earnings (deficit) } & (75,000) \\\hline{\text { Total liabilities and shareholders' equity }} & \$ 1,285,000 \\\hline\end{array}$
Additional information:
1) It is estimated that $60,000 of the accounts receivable will be collected.
2) The inventories will likely be sold at a price approximating 50% of book value.
3) A refund of $10,000 is expected on the prepaid expenses.
4) The building is appraised at $320,000, and the equipment is appraised at $275,000. The intangible assets have no realizable value.
Required
a. Prepare a statement of affairs for Finito Corporation
b. Compute the following:
i. Estimated gains and losses on asset dispositions
ii. Total cash expected to be distributed
iii. Expected payments to partially secured, priority, and unsecured creditors. Round your answers to the nearest dollar. Note: The totals in requirements ii and iii should be the same.