Flanan Photography Studios, Inc. (FPS) is preparing for a court-ordered bankruptcy and has issued the following preliquidation financial statements.

TruValue Trustees Services (TTS) has been appointed to oversee the sale and disbursement of funds from the liquidation and will charge $450,000 for the service. TTS can obtain $7,250,000 from the sale of FPS’s current assets and $49,850,000 from the sale of fixed assets. Accrued wages represent wages of $4,000 or less per employee, and the wages were earned within 90 days of filing bankruptcy. Unpaid employee benefits represent an amount that was due within the 180-day period preceding the bankruptcy filing. The first and second mortgages are secured by the firm’s total fixed assets. The firm’s stock is currently trading for $3.25 per share.
1. Calculate the amount to be received by each claimant.
2. Calculate and interpret the firm’s Z score.

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Flanan Photography Studios, Inc., Balance Sheet as of December 31, 2012 Assets Liabilities and Stockholders' Equity Cash Marketable securities Accounts receivable $ 800,000 Accounts payable 2,600,000 2,200,000 700,000 385,000 250,000 $ 6,135,000 $ 8,500,000 27,000,000 28,000,000 $63,500,000 1,500,000 7,500,000 689,000 $ 9,689000 $79,324.000 24000 Notes payable 3,500000 Acced wages 400,000 Unpaid employee benefits 000 Taxes payable 9,324,000 Total current liabilit Prepaid expenses Total current assets ies First mortgage $10000.000 Secod mortgage Land Net plant Net equipment Total fixed assets Total 28,000,000 Unsecured bonds 32000000 Total long term debt $700000 Preferred stock (15000 shares) $79,324000 Comon stock (1,500,000 shares) Retained earnings Total stocholders' equity Total Flanan Photography Studios, Inc., Income Statement for the Year Ending December 31, 2012 Sales Cost of goods sold Selling and administrative expenses Eamings before interest and taxes Interest expense Eamings before taxes Taxes (30%) Net income $14.420,000 -7210,000 -787,000 $6,423000 -5,715,000 $708,000 283,200 424,800