CASE 1: BANKRUTCY

On March 1, 2017, Vinson Stores, Inc. a owner of womens clothing stores, was petitioned into involuntary bankruptcy by several creditors under the provisions of Chapter 7 of the Federal Bankruptcy Code.

Assets of the Corporation at that date were as follows:

Cash and cash equivalents $100,000

Accounts Receivable 80,000

Inventories 140,000

Computer equipment 55,000

Store equipment 105,000

Land and Buildings 250,000

Liabilities:

IRS 2011 Income taxes 15,000

Tom Davis (Manager) wages due 15,000

Quinn Company account payables 95,000

City Mall rent for six months 30,000

IRS 2013 employment taxes 20,000

Pension contribution accrued 30,000

Tom Daviss part (8,000)

Sysco Systems computers 35,000

First National Bank line of credit 40,000

Note payable on equipment (FNB) 45,000

Bankruptcy fees 5,000

City Bank mortgage on real property 165,000

Third National Bank second mortgage 40,000

Other information:

1. Quinn Company filed a proper UCC financing statement covering inventories for $75,000.

2. Inventories were liquidated for 40 cents on the dollar.

3. Sysco Systems filed a proper UCC financing statement on computers for 50,000

4. Computers were in the process of being repossessed by Sysco when bankruptcy was filed . They were valued at $35,000 at the time of repossession.

5. Store equipment, accounts receivable were listed as collateral on a UCC financing statement by First National Bank

6. Accounts receivable were factored for 50% of value.

7. Store equipment was sold for $35,000

8. Buildings and land were sold for $180,000.

Please compute the amount that each creditor is due under a Chapter 7 bankruptcy.