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40. -44. At the time it defaulted on its interest payments and filed for bankruptey, Hanson Hardware Stores, Inc. had the balance sheet shown on

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40. -44. At the time it defaulted on its interest payments and filed for bankruptey, Hanson Hardware Stores, Inc. had the balance sheet shown on the attachment (in thousands of dollars). The court, after trying unsuccessfully to reorganize the firm, decided that the only recourse was liquidation under Chapter 7. Sale of the "Fixed Assets," which were pledged as collateral to the mortgage bondholders, were expected to bring in 45% of their book value. the "Current Assets" were expected to sell for 70% of their book value. Trustee's costs totaled $50 (in thousands) a. After the assets are liquidated, what is the total dollar amount available for distribution to all claimants? b. What is the total of all creditor and trustee claims? c. Will the preferred and common stockholders receive any distributions from the liquidation of the assets? Why or why not? Expert Q&A Ayo wwwww Ah Mew Hanson Hardware Stores, Inc Balance Sheet As of December 31, 2015 Dollars in Thousands 2019 DOLLARS ASSETS: Current Assets Net Fixed Assets TOTAL ASSETS 550 300 1350 40. 9.25 ToTOON 5 30 95 2.22 . 16 LIABILITIES AND EQUITY: Accounts Payable Acred Tours Add Wag Notes Payable Total current abilities Mortgage Band Subordinated Debent bonds TOTAL LIABILITIES ROS 200 50 -110 . Nandings TOTAL STOCKHOLDERS' TOUTY YOTA LES AND LOLITY CER Hanson Hardware Stores, Inc, Balance Sheet As of December 31, 2019 (Dollars in Thousands) -2019- DOLLARS % OF ASSETS ASSETS: Current Assets Net Fixed Assets TOTAL ASSETS 550 800 1,350 40.74% 59.26% 100.00% LIABILITIES AND EQUITY: Accounts Payable Accrued Taxes Accrued Wages Notes Payable Total Current Liabilities 65 30 95 220 410 4.81% 2.22% 7.04% 16.30% 30.37% Mortgage Bonds Subordinated Debenture Bonds TOTAL LIABILITIES 800 200 1,410 59.26% 14.81% 104.44% Common Stock Retained Earnings TOTAL STOCKHOLDERS' EQUITY 50 -110 -60 3.70% -8.15% -4.44% TOTAL LIABILITIES AND EQUITY 1,350 100.00%

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