Can you help with this problem and the attached given spread sheet given by the instructor. Thank you very much. Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900 million, while the current assets were sold for another $401 million. Thus, the total proceeds from the liquidation sales were $1,300 million. The trustee?s costs amounted to $1 million; no single worker was due more than $2,000 in wages; and there were no unfunded pension plan liabilities. Determine the amount available for distribution to shareholders and all claimants Duchon Industries?s Balance Sheets (Millions of Dollars) Current assets $ 400 Accounts payable $ 50 Net fixed assets 600 Accrued taxes 40 Accrued wages 30 Notes payable 180 Total current liabilities $ 300 First-mortgage bondsa 300 Second-mortgage bondsa 200 Debentures 200 Subordinated debenturesb 100 Common stock 50 Retained earnings (150) Total assets $1,000 Total claims $1,000 Notes aAll fixed assets are pledged as collateral to the mortgage bonds. bSubordinated to notes payable only.

4/19/2010 Chapter 22. Ch 22-5 Build a Model Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900 million, while the current assets were sold for another $400 million. Thus, the total proceeds from the liquidation sales were $1,300 million. Trustee's costs amounted to $1 million; no single worker was due more than $2,000 in wages; and there were no unfunded pension plan liabilities. Determine the amount available for distribution to all claimants. Balance Sheets (Millions of Dollars) Assets Current assets Net fixed assets Total assets $700 1,300 $2,000 Liabilities and equity Accounts payable Accrued taxes Accrued wages Notes payable Total current liabilities First-mortgage bondsa Second-mortgage bondsa Debentures Subordinated debenturesb Common stock Retained Earnings Total claims $80 80 70 400 $630 700 300 500 200 100 (430) $2,000 a b All fixed assets are pledged as collateral to the mortgage bonds. Subordinated to notes payable only. Other inputs (in thousands of dollars): Proceeds from sale of fixed assets = Proceeds from sale of current assets = Trustee's costs = $900 $401 $1 Total claims (including trustee expenses) Total cash from liquidation Amount available for distribution to shareholders Initital Distribution to Priority Claimants Priority claims: Trustee's expenses Worker's wages due Government taxes due Distribution to first mortgage (paid from sale of fixed assets) Remaining proceeds from sale of fixed assets after satisfying first mortgage holders Distribution to second mortgage (paid from sale of fixed assets after satisfying first mortgage holders) Remaining proceeds from sale of fixed assets after satisfying first and second mortgage holders Total preliminary distributions to priority claimaints Total of satisfied priority claims Total unsastified claims from all claimants Funds available for distribution to general creditors: Pro rata distribution percentage Distributions due to general claims: Amount of Claim Pro Rata Distribution Remaining Unsatisfied Claim Subordination Adjustment Distribution after Subordination Adjustment Unsatisfied first mortgage Unsatisfied second mortgage Accounts payable Notes payable Debentures Subordinated debentures Total Total distributions (including prior distributions to mortgage holders and subordination adjustment): First mortgage Second mortgage Accounts payable Notes payable Debentures Subordinated debentures Total Percent of Distribution Original Claim Claim Satisfied $700 $300 $80 $400 $500 $200