Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets Fixed assets $1,875,000 Accounts payable...

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Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets Fixed assets $1,875,000 Accounts payable Total assets 1,875,000 Notes payable Subordinated debentures Total debt Common equity $3,750,000 Total liabilities & equity $ 375,000 750,000 750,000 $1,875,000 1,875,000 $3,750,000 The trustee's costs total $261,750, and the firm has no accrued taxes or wages. Southwestern has no unfunded pens subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investo received from sale of the assets? Round your answers for monetary values to the nearest dollar and for percentage v If your answer is zero, enter "0". Enter your answers as positive values. Distribution of proceeds on liquidation: Proceeds from the sale of assets Less: 1. First mortgage (paid from the sale of fixed assets) 2. Fees and expenses of bankruptcy 3. Wages due to workers within 3 months of bankruptcy 4. Taxes due to federal, state, and local governments 5. Unfunded pension liabilities Funds available for distribution to general creditors Distribution to general creditors: $ General Creditors' Claims (1) Accounts payable Notes payable Subordinated debentures Total Distribution after Application of 100% Subordination Percentage Original Cla Amount of Claim (2) Distribution (3) Adjustment Received (4) (5) $ $ Round your answer for monetary value to the nearest dollar and for percentage value to two decimal places. The remaining $ will go to the common stockholders. They will receive only sheet. % of the Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets Fixed assets $1,875,000 Accounts payable Total assets 1,875,000 Notes payable Subordinated debentures Total debt Common equity $3,750,000 Total liabilities & equity $ 375,000 750,000 750,000 $1,875,000 1,875,000 $3,750,000 The trustee's costs total $261,750, and the firm has no accrued taxes or wages. Southwestern has no unfunded pens subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investo received from sale of the assets? Round your answers for monetary values to the nearest dollar and for percentage v If your answer is zero, enter "0". Enter your answers as positive values. Distribution of proceeds on liquidation: Proceeds from the sale of assets Less: 1. First mortgage (paid from the sale of fixed assets) 2. Fees and expenses of bankruptcy 3. Wages due to workers within 3 months of bankruptcy 4. Taxes due to federal, state, and local governments 5. Unfunded pension liabilities Funds available for distribution to general creditors Distribution to general creditors: $ General Creditors' Claims (1) Accounts payable Notes payable Subordinated debentures Total Distribution after Application of 100% Subordination Percentage Original Cla Amount of Claim (2) Distribution (3) Adjustment Received (4) (5) $ $ Round your answer for monetary value to the nearest dollar and for percentage value to two decimal places. The remaining $ will go to the common stockholders. They will receive only sheet. % of the

Answer rating: 100% (QA)

To determine the distribution of proceeds on liquidation and the distribution to general creditors w... View the full answer