Endco is a wireless solutions provider that facilitates wireless Internet access through small remote devices that connect to portable computers. During the past several years, Endco was lavished with an abundance of equity financial capital from a variety of venture investors. Although initial adoption rates for this new service were far below expectations, most were confident that expanding the service area, and thus increasing the service€™s availability to new and existing users, would result in rapid increases in the volume of new subscribers. Helping to fund this massive expansion, Endco arranged tremendous amounts of debt financing, much of which was secured by the expansion assets themselves (i.e., wireless towers and transmission facilities). However, recently it became clear that Endco would not be profitable and would only continue to burn large amounts of cash if it continued to operate. Using the financial data provided, answer the following questions regarding Endco€™s Chapter 7 bankruptcy liquidation. Administrative and legal fees are $370,000, and the bank underwriting the notes payable has the right of offset on cash deposits, the amount indicated in the cash account on the balance sheet for Endco, Inc.

A. Who are considered to be the priority claimants in this liquidation?
B. Who are considered to be general creditors?
C. Create a table indicating the cash distribution to each creditor and the percentage of the original liability that issatisfied.

BALANCE SHEET ($ MILLIONS) LIQUIDATION RECEIPTS ASSETS Cash Inventory Accounts receivable Net plant Net equipment 2.4 16.0 5.6 200.0 100.0 $324.0 S 24 5.0 3.0 165.0 57.0 $232.4 Total assets LIABILITIES AND EQUITY Accounts payable Notes payable (12% bank loan) Accrued liabilities wages and taxes Long-term mortgage loans(12%, 10 years} Long-term subordinated loans(14%, 15 years Debentures (subordinated to notes payable Preferred stock Common stock Retained eamings S 3.5 29.0 1.5 140.0 80.0 20.0 300.0 100.0 Total liabilities and Equity 324.0