Distribution to different classes of shareholders  LO8 On 1 December 2020, Meng Ltd went into liquidation. At that date, the equity of Meng Ltd comprised the following. 300 000 preference shares fully paid to $1, to be redeemed for $1.10 $ 300 000 200 000 ‘A’ ordinary shares issued for $1 and paid to 50c 100 000 400 000 ‘B’ ordinary shares issued for $2 and paid to $1.50 600 000 $ 1 000 000 After realising the assets and paying all creditors, the liquidator had $420 000 cash available to distribute to shareholders. The order of priority provided in the constitution for repayment of capital is: (1) preference and (2) ordinary. Required 1. Prepare a statement of the distribution to shareholders supported by a detailed explanation of the apportionment of any cash among the various classes of shareholders. 2. How would the statement of the cash distribution to shareholders change if the available cash for distribution was only $300 000 after realising the assets and paying all creditors? 3. If all the shares were ranked equally according to the constitution in distributing any surplus or deficiency, how would the statement of the cash distribution to shareholders in requirements 1 and 2 change?