Postpetition Liabilities: $73,000

Prepetition Liabilities: -

Accounts Payable: 26,000

Notes Payable, partially secured: 10,000

Notes Payable, unsecured: 80,000

Accrued interest: 3,000

Accrued wages: 14,000

Equity

Preferred Shareholders: 40,000

Common Shareholders: 10,000

Retained Earnings Deficit: 76,000

Additional information:

Details of the reorganization plan is given below:

(a) the accounts payable of $26,000 will be provided for as follows: [1] $6,000 will be eliminated, (2) $4,000 will be paid in cash. [3] $12,000 of the payables will be exchanged for subordinated debt, and $4,000 of the payables are to be exchanged for 4,000 shares of newsty issued common stock.

[b] The partially secured notes payable of $10,000 will be provided for as follows: (1) $2,000 will be paid in cash and (2) $8,000 will be exchanged for senior debt secured by a lien on equipment.

[C] The unsecured notes payable of $80,000 will be provided for as follows: (1) $12,000 is eliminated, [2] $14,000 is to be paid in cash, (3) $40,000 is to be exchanged into senior debt secured by a lien against fixed assets, and $5,000 is to be exchanged into 5,000 shares of newly issued common stock.

(d) The accrued interest of $3,000 will be provided as follows: (1) $2,000 will be eliminated and [2] the remaining $1,000 will be paid in cash.

[e] The accrued wages of $14,000 will be provided as follows: (1) $12,000 will be paid in cash and [2] the remaining $2,000 will be exchanged into 2,000 shares of newly issued common stock.

[F] The preferred shareholders will receive 8,000 shares of newly issued common stock in exchange for their preferred stock.

[G] The present common stockholders will receive 1,000 shares of newly issued common stock in exchange for their present common stock.

Please provide answers to the related question above.

A) What is the total recovery value?

(The Answer is: $195,000, but how?)

B) What is the value of subordinated debt?

(The answer is 12,000, but how?)

C) What is the percentage of common stock after the recovery analysis?

(The answer is 5%, but how?)

D) how much in percentage terms will be recovered from the accounts payable?

(The answer is 77%, but how?)

*note: I already have the answers but I just want to know how to get them

edit for (c) (3) is actually $49,000 to be exchanged into senior debt secured by a lien against fixed assets