A receiver was appointed by the court to manage the affairs of Davis Manufacturing Company on March 31,2009. On this Date, the following balance sheet applied:

   Davis Manufacturing Company Balance Sheet March 31, 2009.

Cash                                                             $22,500

Accounts receivable                                        115,500

Notes receivable                                             60,000

Accrued interest on note receivable                  1,375

Inventories

            Finished Goods                                   140,000

            Work in Process                                 97,500

            Raw Materials                                    60,000

            Supplies                                            7,750

Prepaid Expenses                                          3,000

Investment in Stock                                      66,250

Land                                                            105,000

Buildings (net)                                              495,000

Equipment (net)                                            232,500

            Total                                           $1,406,375

Notes Payable                                              196,000          

Accounts Payable                                         587,500          

Wages Payable (all with priority)                   33,750

Payroll Taxes Payable (all with priority)         5,250

Accrued Interest on Payable

            On Notes Payable                               2,750  

            On Mortgage Payable                         21,250

Mortgage Note Payable                                  440,000

Common Stock                                               469,000

Retained earnings (deficit)                             (349,125)

            Total                                               1,406,375

 Additional information :

1. The cash account includes a $500 travel advance that has been spent.

 2. Of the total accounts receviables,$75,000 is believed to be collectable. The remaining accounts are doubtful, but it is believed that about one-third of these will be realized eventually. The accounts receivable are pledged as security on a $10,000 note payable.

 3. Notes receivable of $50,000 have been pledged as security on a note payable of $45,000. This portion of the notes receivable has an estimated realizable value of $35,000. The remaining notes receivable, including the accrued interest, are expected to be fully collected. The $45,000 note payable has accrued interest due of $1,000.

 4. The finished-goods inventory is expected to sell at 20% above its cost, with expenses involved in its disposition approximating 10% of the selling price. The work in process inventory can be completed at an additional cost of $55,000, of which $40,000 represents materials used from the present raw materials inventory. The completed work in process should then sell for $145,000; the remaining raw materials should sell for one-half their cost. Supplies are expected to realize $1,300.

 5. The investment in stock consists of 2,000 share of Monelli Vineyards. The stock had a current market value of $50 par share and is pledged as security on a note payable of $41,000. Interest accrued on the note payable amount amounts to $1,750.

 6.  The land and buildings have been appraised at $165,000 and $260,000, respectively. They are pledged as collateral on the mortgage note payable.

 7. The equipment is expected to realize $100,000

 8. Prepaid expenses are non realized

 Required .

a. Prepare a Statement of Affairs

b. Prepare a Deficiency Account detailing estimated gains and losses

c. Calculated the dividend rate per dollar of unsecured liabilities.