Southwestern Wear Inc. has the following balance sheet:

Current assets$1,875,000Accounts payable$375,000Fixed assets1,875,000Notes payable750,000Subordinated debentures750,000Total debt$1,875,000Common equity1,875,000Total assets$3,750,000Total liabilities and equity$3,750,000

Southwestern Wear Inc. has the following balanoe sheet: Current assets $1,575,000 Accounts payable $375,000 xed assets 1,575,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,335,0oo Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustees costs total $235,250, and the rm has no aocrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. [1' the rm 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? Distribution of proceeds on liquidation: 1. Proceeds from sale of assets $ 2500000 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 ling of bankruptcy petition 5. Taxes 6. Unfunded pension liabilities 7. Available to general creditors Distribution to general creditors: Claims of General Application of 100% Alter Subordination Percentage of Original Creditors Claim Distribution Adjustment Claims Received (ll (2) (3) (4) Notes payable $ 5 5 % Accounts payable $ 5 3. % Subordinated _ % $ 5 5 debentures Total $ 5 s The remaining 3; will go to the common stockholders