Q2: Edward the chief accountant of Speedy Parts Pty Ltd (Speedy) is aware that the company owes $5.8m to three different suppliers for motor parts. Racer Pty Ltd (Racer) is one of the creditors owed $2.5M and they are threatening to wind up the company. Edward advises the directors to pay Racer first in preference to other creditors. The directors do so on 15 May 2022. Despite the new loan, financial problems for the company continue. The total assets of the company are not sufficient to satisfy all of the company's outstanding debts and Auto Parts Pty Ltd another unpaid creditor applies to the court for a compulsory winding up of Speedy on 31 May 2022. REQUIRED: As the liquidator of Speedy, can you get back the payment of $2.5M made to Racer Pty Ltd. As liquidator you have proof of debt claims from outstanding unsecured creditors of $3.5m. The outstanding creditors are : A $1,750,000 B $850,000 C $900,000 The secured creditors total $860,000. REQUIRED: After the liquidation of Speedy's assets there is $1.8M available to distribute to the secured and unsecured creditors. Advise the liquidator how those funds will be allocated to the secured and unsecured creditors and how much each creditor will receive?