Problem 24-01 Liquidation Southwestern Wear Inc, has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,575.000 Notes payable 750,000 Subordinated debenturas 750,000 Total dabt $1,875,000 Common couity 1,275,000 Total assets $3,750,000 Tatal liabilities and equity $3,750,000 The trustee's custs lotel $320,000, and the firm has ne accrued taxes or weges. Southwestern tes na unfurided pension liabilities. The debentures are subordinated only to the roles payable. If the firm goes bankrupt and liquidates, how much will each cless of investors receive if a total of $3.5 million is received from sale of the assets? Distribution of prornads 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 iling of hankruptcy patition 5. Taxes 6. Unfunded pension liabilities 7. Available to general creditors Distribution to general creditors: $ Claims of General Creditors Percentage of Original Claims Received Claim (1) Application of 100% Distribution (2) # After Subordination Adjustment (3) s S $ $ $ Nous payable Accounts payable Subordinated debentures Total The remaining & S $ $ S S $ $ will yo lo the curnirion vluckholders