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The following balance sheet represents Boles Electronics Corporation's position at the time it filed for bankruptcy (in thousands of dollars): Cash $10 Accounts payable $1,600

The following balance sheet represents Boles Electronics Corporation's position at the time it filed for bankruptcy (in thousands of dollars):

Cash $10 Accounts payable $1,600
Receivables 100 Notes payable 500
Inventories 890 Wages payable 150
Taxes payable 50
Total current assets $1,000 Total current liabilities $2,300
Net plant 4,000 Mortgage bods 2,000
Net equipment 5,000 Subordinated debentures 2,500
Preferred stock 1,500
Common stock 1,700
Total assets $10,000 Total claims $10,000

The mortgage bonds are secured by the plant but not by the equipment. The subordinated debentrues are subordinated to notes payable. The firm was unable to reorganize under Chapter 11; therefore, it was liquidated under Chapter 7. The trustee, whose legal and administrative fees amounted to $200,000, sold off the assets and received the following proceeds (in thousands of dollars):

Asset Proceeds
Plant $1,600
Equipment 1,300
Receivables 50
Inventories 240
Total $3,190

In addition, the firm had $10,000 in cash abailable for distribution. No single wage earner had more than $10,000 in claims, and there were no unfunded pension plan liabilities.

QUESTION:

What is the total amount available for distribution to all claimants? What is the total of creditor and trustee claims? Will the preferred and common stockholders receive any distributions?

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