At the time it defaulted on its interest payments and filed for bankruptcy, Hanson Hardware Stores, Inc. had the balance sheet shown on the attachment (in thousands of dollars).The court, after trying unsuccessfully to reorganize the firm, decided that the only recourse was liquidation.Sale of the "Fixed Assets," which were pledged as collateral to the mortgage bondholders, were expected to bring in 45% of their book value.the "Current Assets" were expected to sell for 70% of their book value.Trustee's costs totaled $50 (in thousands).

a.After the assets are liquidated, what is the total dollar amount available for distribution to all claimants?

b.What is the total of all creditor and trustee claims?

c.Will the preferred and common stockholders receive any distributions from the liquidation of the assets?Why or why not?

Hanson Hardware Stores, Inc, Balance Sheet As of December 31, 2019 (Dollars in Thousands) --2019-- DOLLARS % OF ASSETS ASSETS: Current Assets 550 40.74% Net Fixed Assets 800 59.26% TOTAL ASSETS 1,350 100.00% LIABILITIES AND EQUITY: Accounts Payable 65 4.81% Accrued Taxes 30 2.22% Accrued Wages 95 7.04% Notes Payable 220 16.30% Total Current Liabilities 410 30.37% Mortgage Bonds 800 59.26% Subordinated Debenture Bonds 200 14.81% TOTAL LIABILITIES 1,410 104.44% Common Stock 50 3.70% Retained Earnings -110 -8.15% TOTAL STOCKHOLDERS' EQUITY -60 -4.44% TOTAL LIABILITIES AND EQUITY 1,350 100.00%