Free Assets Fully secured Partially secured Unsecured liabilities

Assets Liabilities Assets Liabilities With priority

Cash 20,000.00
AR, net 75,000.00 100,000.00
Inventories 70,000.00
Plant assets 280,000.00 220,000.00
AP
With priority claims 80,000.00
90,000.00 280,000.00 220,000.00 75,000.00 100,000.00 80,000.00

NFA TULi w/o Requirement 1:

Excess Estimated deficiency to unsecured creditors
Fully (280K - 220K) 60,000.00 - 105,000.00 NFA - TULi w/o
Partially (75K - 100K) 25,000.00 Ang meron para sa unsecured ay P70,000
Free assets 90,000.00 Ang utang ng unsecured at P175,000
TFA 150,000.00 So magkano ang di makakakolekta = P105,000 deficiency
Unsecured
Without 150,000.00 Requirement 2:
With - 80,000.00 Estimated recovery percentage
70,000.00 175,000.00 P70,000 out of P175,000 ang collectible nalang sa unsecu
NFA TULi w/o 40.00% ERP

per peso (divided by peso)

Peso divided by peso = cancelled out yung peso = it beco
P0.40 per peso
 Unsecured liabilities
Without priority

150,000.00

150,000.00

ed creditors

kta = P105,000 deficiency/estate deficit

llectible nalang sa unsecured

d out yung peso = it becomes a percentage

 Free Assets Fully secured Partially secured
Assets Liabilities Assets
Cash 150,000.00
AR (90,600 CV) 80,700.00 75,000.00
AR (remainder) 187,500.00 130,000.00
Inventory 41,200.00
Prepaid expense -
Building 400,000.00
Salaries payable
AP (120,700 - 75,000 secured)
Notes payable
Tax payable
Liquidtation expense
191,200.00 268,200.00 205,000.00 400,000.00

NFA TULi w/o

Excess
Fully (268,200 - 205K) 63,200.00
Partially (400K - 432,280) 32,280.00
Free assets 191,200.00
TFA 254,400.00
Unsecured
Without 130,000.00
With - 101,900.00 Estimated estate deficit = 152,500 - 162,280 =
152,500.00 162,280.00 ERP of unsecured (152,500 divided by 162,28
93.97%
1. Net free asset = 152,500 EZ

Estimated payments
Fully secured liability
Secured portion Unsecured portion
CV of liability 205,000.00 -
ERP 100% 93.97%
Expected cash payment 205,000.00 - 205,000.00 Conceptually, whatever CV of l

Unsecured without priority

Secured portion Unsecured portion
CV of liability - 130,000.00
ERP 100% 93.97%
Expected cash payment - 122,161.00 122,161.00 Requirement #2

Partially secured
Secured portion Unsecured portion
CV of liability 400,000.00 32,280.00 Di kinaya ng asset yung buong liability
ERP 100% 93.97%
Expected cash payment 400,000.00 30,333.52 430,333.52 Requirement #3

With priority
Since NFA is positive, UL with priority will be paid in full (kasya yung total free assets for unsecured with priority)
Expected cash payment = 101,900

Example: total free assets = 5,000

Salaries payable = 6,000
taxes payable = 2,000

Expected payment
Salaries payable = 5,000 (mas priority kaysa taxes)
taxes payable = 0

Example: total free assets = 7,000

Salaries payable = 6,000
taxes payable = 2,000

Expected payment
Salaries payable = 6,000 (mas priority kaysa taxes)
taxes payable = 1,000
Wala na matitira sa without priority

If NFA > TULi w/o = ERP is 100% and this means that the stockholders will receive something
Fully paid kasi ang liabilities, excess para kay stockholders

Requirement #4: 100% MATIC pag fully secured

 Partially secured Unsecured liabilities
Liabilities With priority Without priority

Refer to bullet #3

432,280.00
85,000.00
45,700.00 Refer to bullet #2
84,300.00
5,600.00
11,300.00
432,280.00 101,900.00 130,000.00

deficit = 152,500 - 162,280 = -9,780

(152,500 divided by 162,280)

nceptually, whatever CV of liab = estimated payment of fully secured

quirement #2

yung buong liability

quirement #3

d with priority)
NFA - TULi w/o = estimated estate deficit

Estimated estate deficit = estimated negative SHE

Beginning SHE 790,000.00

Unrecorded liabilities - 25,000.00 dagdag sa liab
Impairment of goodwill - 150,000.00 matic no value si GW
1st bullet: - 25,000.00 bawas sa AR
2nd bullet: - 30,000.00 loss
3rd bullet - 5,000.00 bawas sa prepayment
4th bullet - 50,000.00 loss
5th bullet 100,000.00 gain
6th bullet - 15,000.00 dagdag expense
Estimated estate equity 590,000.00

NOTE:
Deficit = negative Retained Earnings
Estate deficit = negative SHE
prepayment
Contributed capital (share capital + share premium) 1,000,000.00
Deficit or negative RE - 250,000.00
Beginning SHE 750,000.00
Estimated gain 700,000.00
Estimated loss - 1,000,000.00
Dagdag liabilities - 500,000.00
Unrecorded liab - 200,000.00
Unrecorded asset 750,000.00
Estimated estate equity 500,000.00
Divide: beginning SHE 750,000.00
Percentage of recovery of stockholders 66.67%

Sa simula ang alam ng stockholders na capital ay P750,000

Sa liquidation, we expect only P500,000 nalang sa stockholders
Effectively 66.67% ng alam nila
Beginning cash? 99,750
Ending cash? 90,000
 DR CR
ATBR 41,250.00 41,250.00
AA 45,000.00 45,000.00
AR 52,500.00 52,500.00
ANR 18,750.00 18,750.00 Ending NCA
LTBL 67,500.00 67,500.00
LA 22,500.00 22,500.00
LL 45,000.00 45,000.00
LNL 56,250.00 56,250.00 Ending Liab
Supp Cr 63,750.00 63,750.00
Supp Charge 58,500.00 58,500.00
NI/NL 21,000.00 If credit = net loss
246,000.00 246,000.00

SHE, beg 73,500.00

Net loss - 21,000.00
SHE end 52,500.00

Assets = Liabilities + SHE

Cash + Non-cash assets = Liabilities + SHE

Ending:
Cash ? + NCA 18,750 = Liab 56,250 + SHE 52,500
Cash (SQUEEZED) = 90,000

Beginning
Cash ? + NCA 41,250 = Liab 67,500 + SHE 73,500
Cash (SQUEEZED) = 99,750
 Cash NCA Liabilities SHE
Beginning 500,000.00 3,200,000.00 4,400,000.00 - 700,000.00
a. 600,000.00 600,000.00
- 900,000.00 - 900,000.00
450,000.00 - 450,000.00
- 20,000.00 - 20,000.00
b. 500,000.00 - 800,000.00 - 300,000.00
- 500,000.00 - 500,000.00
c. - 350,000.00 - 350,000.00
d. - 15,000.00 - 15,000.00
585,000.00 1,630,000.00 3,550,000.00 - 1,335,000.00
ANR LNL Estate deficit

Change in equity Net loss - 635,000.00

Based on JEs
Sales 600,000.00
COGS - 900,000.00
OPEX & Losses - 335,000.00
Net loss - 635,000.00
a.

b.

c.

d.
AR 600,000.00 Asset acquired
Sales 600,000.00 Supplementary credit

COGS 900,000.00 Supplementary debit

Inventory 900,000.00 Asset realized

Cash 450,000.00 Ignore

AR 450,000.00 Asset realized (since non-inventory @ 450K)

Loss on realization 20,000.00 Not found sa SOREL

AR 20,000.00

Cash 500,000.00
Loss on realization 300,000.00
PPE 800,000.00 Asset realized (since non-inventory @ 500K)

Bank Loan Payable 500,000.00 Liabilities liquidated (@ 500K cash paid)

Cash 500,000.00

Accounts Payable 350,000.00 Liabilities liquidated (@ 350K cash paid)

Cash 350,000.00

Expense 15,000.00 Supplementary debit

Cash 15,000.00
ATBR 3,200,000.00 AR 1,850,000.00
AA 600,000.00 ANR 1,630,000.00
LL 850,000.00 LTBL 4,400,000.00
LNL 3,550,000.00 LA -
Supp Dr. 915,000.00 Supp Cr. 600,000.00
NL 635,000.00
9,115,000.00 9,115,000.00