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Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $ 375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total

Southwestern Wear Inc. has the following balance sheet:

Current assets $1,875,000 Accounts payable $ 375,000
Fixed assets 1,875,000 Notes payable 750,000
Subordinated debentures 750,000
Total debt $1,875,000
Common equity 1,875,000
Total assets $3,750,000 Total liabilities & equity $3,750,000

The trustee's costs total $245,000, 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 $2.5 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 0. Enter your answers as positive values.

Distribution of proceeds on liquidation:

Proceeds from the sale of assets $ __________
Less: ____________
1. First mortgage (paid from the sale of fixed assets) ___________
2. Fees and expenses of bankruptcy ___________
3. Wages due to workers within 3 months of bankruptcy ___________
4. Taxes due to federal, state, and local governments ___________
5. Unfunded pension liabilities ___________
Funds available for distribution to general creditors $ __________

Distribution to general creditors::

General Creditors' Claims (1) Amount of Claim (2) Application of 100% Distribution (3) Distribution after Subordination Adjustment (4) Percentage of Original Claim Received (5)
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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