Question
Miller and associates inc was a mid-size company that was started 5 years ago by david miller with the support of four private investors. they
Miller and associates inc was a mid-size company that was started 5 years ago by david miller with the support of four private investors. they initially invested $376000 each for a total of $1.50 million and took back 15000 common shares. the company also issued $1980000 in preferred shares and secured a long term loan for $499000. the company had a few successful years; however, it succumbed to competition eventually ran out of funding. there are no dividends in arrears on the preferred shares. the company did successfully develop several products that it patented and it acquired assets to manufacture those products - all of which still have value. the shareholders are planning an organized windup of the company and plan to sell al the assets at an auction. a summary of the company's statement of finacial position is as follows
total assets: $4824000
total liabilities: 548000
preferred shares: 1980000
common shares: 1504000
retained earnings: 792000
total liabilities and equity: $4824000
a) how much will each group of shareholders receive on the windup if miller and associates is able to sell its assets for
i. $1733000
ii. $4824000
iii. $5978000
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