Oregon Corporation has filed a voluntary petition to reorganize under Chapter 11 of the Bank krucpcy Reform Act. Its creditors are considering an attempt to force liquidation. The company currently holds cash of $6,000 and accounts receivable of $25,000. In addition, the company owns four plots of land.; The first two(labeled A and B) cost $8,000 each. Plots C and D cost the company $20,000 and $25,000 respectively. A mortgage lien is attached to each plot of land as security for four different notes payable of $15,000 each. Presently, the land can be sold for the following:

 

Plot A………………………………………………….$16,000

 

Plot b……………………………………………..11,000

 

p-lot c…………………………………………..14,000

 

plot d…………………………………………….27,000

 

ANOTHER $25,000 note payable is unsecured. accounst payable at this time total $32,000. of this amoynt, $12,000 is salary owed to the comony workers. no employees is due more thsn $3,400. the company expects to collect $12,000 from the ccounst receivabe if liquidation becomes necessary. administration expenses requred for liquidattion are anticipated to be $16,000.

 

a. preapare a statement of finacial affairs for oregon corporation

 

b. if the company liquidateed, how ,much cash would be paid on the note payable secured by plot b

 

c. if the company is liquidated, how much cash would be paid on the unsecured note payable

 

d. if the compnay is liquidated and plot b is sold for $30,000 how much cash would be paud on the note payable secure by plot b
Note: Provide the answers on excel sheet