Southwestern Wear Inc. has the following balance sheet: The trustee's costs total $285,500, and the firm has no accrued
Posted: Sun Jul 03, 2022 12:53 pm
Southwestern Wear Inc. has the following balance sheet:
The trustee's costs total $285,500, and the firm has no accruedtaxes or wages. Southwestern has no unfunded pension liabilities.The debentures are subordinated only to the notes payable. If thefirm goes bankrupt and liquidates, how much will each class ofinvestors receive if a total of $2.9 million is received from saleof the assets? Round your answers for monetary values to thenearest dollar and for percentage values to the nearest wholenumber. If your answer is zero, enter “0”. Enter your answers aspositive values.
Distribution of proceeds on liquidation:
Distribution to general creditors:
Round your answer for monetary value to the nearest dollar andfor percentage value to two decimal places.
The remaining $ will go to the commonstockholders. They will receive only % of theamount of equity on the balance sheet.
The trustee's costs total $285,500, and the firm has no accruedtaxes or wages. Southwestern has no unfunded pension liabilities.The debentures are subordinated only to the notes payable. If thefirm goes bankrupt and liquidates, how much will each class ofinvestors receive if a total of $2.9 million is received from saleof the assets? Round your answers for monetary values to thenearest dollar and for percentage values to the nearest wholenumber. If your answer is zero, enter “0”. Enter your answers aspositive values.
Distribution of proceeds on liquidation:
Distribution to general creditors:
Round your answer for monetary value to the nearest dollar andfor percentage value to two decimal places.
The remaining $ will go to the commonstockholders. They will receive only % of theamount of equity on the balance sheet.