Excel Online Structured Activity: Liquidation

At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the balance sheet provided in the Microsoft Excel Online file below. 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, brought in $$440,000,$ while the current assets were sold for another $$210,000.$ Thus, the total proceeds from the liquidation sale were $$650,000.$ The trustee's costs amounted to $$25,000$; no single worker was due more than $$2,000$ in wages; and there were no unfunded pension plan liabilities. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

How much will McDaniel's shareholders receive from the liquidation? If your answer is zero, enter $"0".$ Round your answer to the nearest dollar.

$ fill in the blank $2$

How much will the mortgage bondholders receive? If your answer is zero, enter $"0".$ Round your answer to the nearest dollar.

$ fill in the blank $3$

How much will other priority claimants receive from the liquidation? Do not round intermediate calculations. Round your answers to the nearest dollar.

Claimant Amount

Trustee's expenses $ fill in the blank $4$

Workers' wages due $ fill in the blank $5$

Governments' taxes due $ fill in the blank $6$

Total $ fill in the blank $7$

How much will the remaining general creditors receive from the distribution before subordination adjustment? If your answer is zero, enter $"0".$ Do not round intermediate calculations. Round your answers to the nearest dollar.

Account Amount Received

Accounts payable $ fill in the blank $8$

Notes payable $ fill in the blank $9$

Second mortgage bonds $ fill in the blank $10$

Debentures $ fill in the blank $11$

Subordinated debentures $ fill in the blank $12$

Total $ fill in the blank $13$

What is the effect of adjusting for subordination? If your answer is zero, enter $"0".$ Do not round intermediate calculations. Round your answers to the nearest dollar.

Account Amount Received after

subordination adjustment

Notes payable $ fill in the blank $14$

Subordinated debentures