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Southwestern Wear Inc. has the following balance sheet: Current assets $ 1 , 8 7 5 , 0 0 0 Accounts payable $ 3 7
Southwestern Wear Inc. has the following balance sheet:
Current assets $ Accounts payable $
Fixed assets Notes payable
Subordinated debentures
Total debt $
Common equity
Total assets $ Total liabilities & equity $
The trustee's costs total $ and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $ million is received from sale of the assets? Round your answers for monetary values to the nearest dollar and for percentage values to the nearest whole number. If your answer is zero, enter Enter your answers as positive values.
Distribution of proceeds on liquidation:
Proceeds from the sale of assets $
Less:
First mortgage paid from the sale of fixed assets
Fees and expenses of bankruptcy
Wages due to workers within months of bankruptcy
Taxes due to federal, state, and local governments
Unfunded pension liabilities
Funds available for distribution to general creditors $
Distribution to general creditors:
General Creditors' Claims
Amount of Claim
Application of Distribution
Distribution after Subordination Adjustment
Percentage of Original Claim Received
Accounts payable $
$
$
Notes payable
Subordinated debentures
Total $
$
$
Round your answer for monetary value to the nearest dollar and for percentage value to two decimal places.
The remaining $
will go to the common stockholders. They will receive only
of the amount of equity on the balance sheet.
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