-3 1 Ranking of claims: Fully secured: 8 Holders of first mortgage and related interest Unsecured priority: 1 Administrative expenses 6 Wages payable Customer claims for merchandise paid for and not 7 delivered 5 State government for gross receipts taxes 3 Local government for property Total unsecured priority claims Unsecured nonpriority 2 Merchandise creditors 4 Local bank for principal of loan 6 President for salary due over $12,475 4 Interest on unsecured bank loan Total unsecured nonpriority claims Total all claims 2 Distribution of available cash: Mortgage holders (100%) 1st 2nd Administrative expenses (100%) 3rd Employees (up to $12,475 each) (100%) 4th Customers for merchandise not delivered 5th State government (100%) Local government (100%) Total 6th Merchandise creditors Local bank for loan principal Company president Total distributed (equal to available cash) 374500 $1rounding differer