The Not So Fine Manufacturing Co. Ltd. was judged bankrupt on a petition by its creditors, and the trustee in bankruptcy realized the following amounts from the sale of its business assets:

Cash in Bank	$1,000
Accounts Rec	$40,000
Inventories	$25,000
Land & Building	$74,000
Total Assets	$140,000

The liabilities of the business were as follows at the time of the receiving order:

First mortgage on lands & building	$50,000
Second mortgage on lands & building	$25,000
Bank loan secured under section 427	$40,000
Profit-sharing plane	$65,000
Municipal taxes payable ($2,500/yr.)	$5,000
Wages payable (3 employees)	$15,000
Total Liabilities	$200,000

The expenses of liquidation were $5000. The trustee's fee was $3000.

Respond to these questions for bankruptcy situation #2:

• List the creditors and the amount of their payments, in the correct order, in which the trustee in bankruptcy made payment to the various types of creditors.
• Assume that all secured creditors had taken the necessary steps to protect their security.
• Identify the amounts available and owed to the different categories of creditors.
• How many cents on the dollar should the general unsecured creditors receive?