Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Foxed assets 1.875.000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $285,250, and the firm has no accrued taxes or wages. Southwestem has no unfunded pension libe The debentures are subordinated the firm goes bankrupt and liquidates, how much will each class of investors receive it a total of $3 millions received from sale of the asses? to the Distribution of proceeds on liquidation 1. Proceeds from sale of assets 2. First mortgage, paid from sale of assets 3. Fees and expenses of administration of bankruptcy 4. Wages due workers earned within 3 months prior to filing of bankruptcy petition 5. Taxes 6. Unfunded pension liabilities 7. Available to general creditors Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Foxed assets 1.675.000 Notes payable 750,000 Subordinated debentures 750.000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $285,250, and the form has no accrued taxes or wages. Southwestern has no unfunded pension lib .The debentures are subordinated the firm goes bankrupt and liquidates, how much will each class of investors receive it a total of $3 millions receved from sale of the asses? to the Distribution of proceeds on liquidation 1. Proceeds from sale of assets 2. First mortgage, paid from sale of assets 3. Fees and expenses of administration of bankruptcy 4. Wages due workers earned within 3 months prior to filing of bankruptcy petition 5. Taxes 6. Unfunded pension liabilities 7. Available to general creditors 6. Unfunded pension liabilities 7. Available to general creditors Distribution to general creditors: Claims of General Creditors Application of 100% Distribution (2) Claim After Subordination Adjustment (3) Percentage of Original Claims Received Notes payable $ Accounts payable $ Subordinated debentures Total The remaining $ will go to the common stockholders. Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Foxed assets 1.875.000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $285,250, and the firm has no accrued taxes or wages. Southwestem has no unfunded pension libe The debentures are subordinated the firm goes bankrupt and liquidates, how much will each class of investors receive it a total of $3 millions received from sale of the asses? to the Distribution of proceeds on liquidation 1. Proceeds from sale of assets 2. First mortgage, paid from sale of assets 3. Fees and expenses of administration of bankruptcy 4. Wages due workers earned within 3 months prior to filing of bankruptcy petition 5. Taxes 6. Unfunded pension liabilities 7. Available to general creditors Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Foxed assets 1.675.000 Notes payable 750,000 Subordinated debentures 750.000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $285,250, and the form has no accrued taxes or wages. Southwestern has no unfunded pension lib .The debentures are subordinated the firm goes bankrupt and liquidates, how much will each class of investors receive it a total of $3 millions receved from sale of the asses? to the Distribution of proceeds on liquidation 1. Proceeds from sale of assets 2. First mortgage, paid from sale of assets 3. Fees and expenses of administration of bankruptcy 4. Wages due workers earned within 3 months prior to filing of bankruptcy petition 5. Taxes 6. Unfunded pension liabilities 7. Available to general creditors 6. Unfunded pension liabilities 7. Available to general creditors Distribution to general creditors: Claims of General Creditors Application of 100% Distribution (2) Claim After Subordination Adjustment (3) Percentage of Original Claims Received Notes payable $ Accounts payable $ Subordinated debentures Total The remaining $ will go to the common stockholders
