Please show work in excel

22-4 Liquidation.

At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining

Company had the balance sheet shown here (in thousands of dollars). The court, after trying

unsuccessfully to reorganize the firm, decided that the only recourse was liquidation under Chapter 7.

Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in

$400,000, while the current assets were sold for another $200,000. Thus, the total proceeds from the

liquidation sale were $600,000. The trustee's costs amounted to $50,000; no single worker was due

more than the maximum allowable wages per worker; and there were no unfunded pension plan

liabilities.

Balance Sheet (Thousands of Dollars) See Text.

Questions.

a. How much will McDaniel's shareholders receive from the liquidation?

b. How much will the first mortgage bondholders receive from collateralized assets? Will they receive

their full claim? If not, how much is their remaining claim?

c. How much will the second mortgage bondholders receive from collateralized assets? Will they

receive their full claim? If not, how much is their remaining claim?

d. Who are the other priority claimants (in addition to the mortgage bondholders)? How much will they

receive from the liquidation?

e. Who are the remaining general creditors? How much will each receive from the distribution before

subordination adjustment? How much will each receive after subordination? How much in total will the

second mortgage holders receive (include the amount received from collateral).

O Balance Sheet (Thousands of Dollars 1 400 Accounts payable Net Ford avichi Accrued Inan Accrued wages Notes payable Total current lubiltin 300 Fint-mortgage bonds' 300 Second-mortgage bonds' Debenaics Subordinated debenturci 109 Common Mock Retained earnings Total aviets Total Ibilities & equity a I how much will Me Daniel's shareholders receive from the liquidations