Regina Davine

PPA 46 / 32
P18-4
1 Hanna Corporation
Statement of Affairs
June 31, 2011
Assets
Realizable Values -
Liability Offsets for
Book Value Secured Creditors
Pledged for partially secured creditors
$ 55,000 Equipment - net $ 28,000
Less: Mortgage note payable and accrued interest $ (31,000)

Available for priority and unsecured creditors

$ 2,200 Cash
$ 15,000 Accounts receivable - net
$ 20,000 Inventories
Total available for priority and unsecured creditors
Less: Priority liabilities
Total available for unsecured creditors
Estimated deficiency
$ 92,200

Liabilities and Stockholders' Equity

Secured and
Book Value Priority Claims
Priority liabilities
$ 12,000 Wages payable $ 12,000

Partially secured creditors

$ 31,000 Note payable and accrued interest $ 31,000
Less: Equipment pledged as security $ (28,000)

Unsecured creditors
$ 26,400 Accounts payable
$ 7,600 Rent payable

Stockholders' equity
$ 55,000 Capital stock
$ (39,800) Retained earnings
$ 92,200

2 Estimated payments per dollar for unsecured creditors

Cash available
Distribution to partially secured and unsecured priority creditors:
Note payable and interest $ 28,000
 Administrative expenses $ 4,000
Wages payable $ 12,000
Available to unsecured non-priority creditors

Note payable and interest (unsecured)

Accounts payable
Rent payable
Unsecured non-priority claims

$ 22.200 / $37.000 = $0,60

Expected recovery for each class of claims

Partially secured
Note payable and interest
Secured portion $ 28,000
Unsecured portion ($3.000 x $0,60) $ 1,800

Unsecured priority
Administrative expenses $ 4,000
Wages payable $ 12,000

Unsecured non-priority
Accounts payable ($26.400 x $0,60) $ 15,840
Rent payable ($7.600 x $0,60) $ 4,560
Total payments
 Realizable Value
Available for
Unsecured Creditors

$ -

$ 2,200
$ 13,500
$ 22,500
$ 38,200
$ 12,000
$ 26,200
$ 10,800
$ 37,000

Unsecured Non-
priority Claims

$ 3,000

$ 26,400
$ 7,600

$ 37,000

$ 66,200
$ 44,000
$ 22,200

$ 3,000
$ 26,400
$ 7,600
$ 37,000

$ 29,800

$ 16,000

$ 20,400
$ 66,200