Demote manufacturing Company Ltd. was adjudged bankrupt on a
petition of its creditors, and the trustee in bankruptcy realized
the following amounts from the sale of its business assets:
Cash in Bank
$14,000
Accounts Receivable
42,000
Inventories
20,000
Land & Buildings
72,000
The liabilities of the business were as follows at the time of
the receiving order: (Assume all secured creditors had taken the
necessary steps to protect their security.)
Rent owed to landlord (5 months @ $3,000 per month)...