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Northeastern Wear Inc. has the following balance sheet: Current Assets $1,500,000 Account Payable $300,000 Fixed Assets $1,500,000 Notes Payable $700,000 Subordinated Debentures $700,000 Total Debt

Northeastern Wear Inc. has the following balance sheet: Current Assets $1,500,000 Account Payable $300,000 Fixed Assets $1,500,000 Notes Payable $700,000 Subordinated Debentures $700,000 Total Debt $1,700,000 Common Equity $1,300,000 Total Assets $3,000,000 Total Liabilities and Equity $3,000,000 The trustees costs total $343673, and the firm has no accrued taxes or wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will be available to general creditors if a total of $2.2 million is received from the sale of the assets?

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