The following balances were ascertained in NOMONEY Corp. which is experiencing insolvency: Cash P8,000 Accounts payable P80,000 Notes receivable 120,000 Accrued expenses 30,000 Inventories 80,000 Salaries payable 15,000 Prepaid expenses 10,000 Mortgage payable 155,000 Equipment, net 150,000 Ordinary shares 100,000     Deficit (12,000) Total P368,000 Total P368,000   Additional information:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following balances were ascertained in NOMONEY Corp. which is experiencing insolvency:

Cash

P8,000

Accounts payable

P80,000

Notes receivable

120,000

Accrued expenses

30,000

Inventories

80,000

Salaries payable

15,000

Prepaid expenses

10,000

Mortgage payable

155,000

Equipment, net

150,000

Ordinary shares

100,000

 

 

Deficit

(12,000)

Total

P368,000

Total

P368,000

 

Additional information:

 

  • Estimated net realizable value of the notes receivable was P105,000 and was pledged to the mortgage payable.
  • 80% of the book values of the inventories can be sold at P45,000 and was pledged to 60% of the accounts payable.
  • The remaining book value of the inventories have an estimated fair value of P20,000.
  • 80% of the remaining unpaid accounts payable were secured by the equipment having an estimated fair value of P60,000.
  • Prepaid expenses has no estimated fair value.
  • Liquidation and administration expenses were estimated in the amount of P8,000.
  • Income tax payable had been accrued in the amount of P2,000 (the accountant recorded it using the accrued expense account)
  • Interest on the notes receivable and mortgage payable have not been accrued in the amount of P10,000 and P15,000 respectively.

How much are the net free assets?

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