Problem 24-01 Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Faced assets 1,875,000 Notes payable 750.000 ubordinated debentures 750,000 Total debt $1.875,000 Common equity 1875,000 Total assets $2,750,000 Total abilities and equity $2,750,000 The trustee's cost total $221,500, and the firm has no scored taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the form goes bankrupt and liquidates, how much will each class of Investors receive if a total of $3.5 million is received from sale of the assets? Distribution of proceeds on liquidation 3500000 $ $ 1. Proceeds from sale of assets 2. First mortgage, paid from sale of assets 2. 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 Distribution to general creditors: $ Claims of General Creditors Percentage of Original Claims Received (4) Application of 100% Claim Distribution (1) (2) 750000 $ $ $ S will go to the common stockholders After Subordination Adjustment (3) $ $ $ $ Notes payable $ Accounts payable $ Subordinated debentures $ Total The remainings MacBook Air