Vandalay Industries has the following balance sheet: The debentures are subordinated to only the notes payable. Suppose the company goes bankrupt and is liquidated, receiving 50 cents on the dollar for inventory, $1,000 being received from A/R and cash at face value. Fixed assets are liquidated for $3,300. The fixed assets served as collateral for the 1st and 2nd mortgage bonds. Trustees costs total $500 How much will each class of investor receive and what percentage of their original claim will they recover?

Vandalay Industries has the following balance sheet:

Assets			Liabilities and Equity
Cash	$ 60		A/P	$1,580
A/R	1,200		N/P (Bank)	1040
Inventory	1,800		Accrued Taxes	250
Total Current	3,060		Accrued Wages	580
			Total Current	3,450
Equipment	2,500
Buildings	2,200		1st Mortgage Bonds	2,500
Land	2,480		2nd Mortgage Bonds	1,000
Total Fixed	7,180		Subordinated Debentures	1,730
			Total Liabilities	8,680
			Preferred Stock	360
			Common Stock	1,200
Total Assets	$10,240		Total Liabilities & Equity	$10,240