Demote manufacturing Company Ltd. was adjudged bankrupt on a petition of its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets: (10 marks)

Cash in Bank$ 14,000

Accounts Receivable 42,000

Inventories 20,000

Land & Buildings 72,000

The liabilities of the business were as follows at the time of the receiving order: (Assume all secured creditors had taken the necessary steps to protect their security.)

Use the LIST OF CREDITORS when completing the questions below.

Rent(5 months owed to landlord @ $3,000 per month)$15,000

Trade accounts payable 63,000

Municipal taxes (1.5 years payable) 4,000

Wages (2 months payable @ $2,500 per month - three employees)15,000

Section 427 Bank loan (inventories secured) 35,000

First mortgage (on land & buildings) 50,000

Second mortgage (on land & buildings)30,000

Liquidation expensesare $7,000 and Trustee's fees are $5,000.

Order of Payments to Creditors

Show the order in which the trustee in bankruptcy made payments to the various types of creditors. Assume that all secured creditors had taken the necessary steps to protect their security.

Note that all monetary amounts must be entered in this format for the computer to score them correctly:$10,000 [dollar sign, followed by thousands digits, followed by comma, followed by hundreds digits -- do not space after the last digit]

LIST OF CREDITORS (Type exactly as given when filling in the blanks below.)

Rent

Trade accounts payable

Municipal taxes

Wages

S427 Bank loan

First mortgage

Second mortgage

Liquidation expenses

Trustee's fees

Question 21(0.5 points)

Total of liquidated assets (Use format $10,000 or $1,000 or $100):?

Less Payments to Secured Creditors

Identify the secured creditors and the amount of their payments in order from highest to lowest amount they will receive.

Question 22(0.5 points)

Enter the name of the secured creditor receiving the highest payment in the blank. (Enter exactly as written in the LIST OF CREDITORS.)?

Enter the amount paid to the creditor. (Use format $10,000 or $1,000 or $100.)?

Question 23(0.5 points)

Enter the name of the secured creditor with the second highest payment in the blank. (Enter exactly as written in the LIST OF CREDITORS.)?

Enter the amount paid to the creditor in the blank. (Use format $10,000 or $1,000 or $100.)?

Question 24(0.5 points)

Enter the name of the next highest secured creditor in the blank provided. (Enter exactly as written in the LIST OF CREDITORS).?

Enter the amount the creditor received in the blank. (Use format $10,000 or $1,000 or $100)?

Question 25(0.5 points)

Enter the total of payments to secured creditors in the blank provided. (Use format $10,000 or $1,000 or $100.)?

Less Payments to Preferred Creditors

Identify the preferred creditors and the amounts they will receive according to theBankruptcy and Insolvency Act.

Question 26(0.5 points)

Enter the name of the preferred creditor who has first priority under theAct. (Enter exactly as written in the LIST OF CREDITORS.)?

Enter the payment amount. (Use format $10,000 or $1,000 or $100.)?

Question 27(0.5 points)

Enter the name of the preferred creditorwho has priority next. (Enter exactly as written in the LIST OF CREDITORS.)?

Enter the amount of the payment. (Use format $10,000 or $1,000 or $100.)?

Question 28(0.5 points)

Enter the name of the preferred creditorwho has priority next. (Enter exactly as written in the LIST OF CREDITORS.)?

Enter the amount of the payment.(Use the format $10,000 or $1,000 or $100)?

Question 29(0.5 points)

Enter the name of the preferred creditorwho has priority next. (Enter exactly as written in the LIST OF CREDITORS.)?

Enter the amount of the payment. (Use the format $100,000 or $1,000 or $100)?

Question 30(0.5 points)

Enter the name of the preferred creditor with the fifth highest payment. (Enter exactly as written in the question.)?

Enter the amount of the payment. (Use format $10,000 or $1,000 or $100.)?

Question 31(0.5 points)

Enter the amount of the total payments to preferred creditors in the space provided. (Use format $10,000 or $1,000 or $100.)?

Question 32(0.5 points)

Enter the amount of money available to general creditors in the space provided. (Use format $10,000 or $1,000 or $100.)?

Amounts Owed to General Creditors

Identify thegeneral creditors and the amounts still owed to them, in order fromhighest to lowestamount.

Question 33(0.5 points)

Enter the name of the general creditor with the highest outstanding amount. (Enter exactly as written on the LIST OF CREDITORS.)?

Enter the amount of the payment.(Use the format $100,000 or $1,000 or $100.)?

Question 34(0.5 points)

Enter the name of the general creditor with the second highest outstanding amount. (Enter exactly as written on the LIST OF CREDITORS.)?

Enter the amount owed. (Use format $10,000 or $1,000 or $100.)?

Question 35(0.5 points)

Enter the name of the general creditor with the third highest outstanding amount. (Enter exactly as written on the LIST OF CREDITORS.)?

Enter the amount owed to this general creditor. (Use format $10,000 or $1,000 or $100.)?

Question 36(0.5 points)

Enter the name of the general creditor with the fourth highest outstanding amount. (Enter exactly as written on the LIST OF CREDITORS.)?

Enter the amount owed to this general creditor. (Use format $10,000 or $1,000 or $100.)?

Question 37(0.5 points)

Enter the name of the general creditor with the fifth highest outstanding amount. (Enter exactly as written on the LIST OF CREDITORS.)?

Enter the amount owed to this general creditor. (Use format $10,000 or $1,000 or $100.)?

Question 38(0.5 points)

Enter the total amount owed to general creditors in the space provided. (Use format $10,000 or $1,000 or $100.)?

Question 39(0.5 points)

The cents on the dollar each general creditor will receive is: (Enter amount in the blank using this format ROUNDED to four digits: $0.1234)?