Liquidation Southwestern Wear Inc. has the following balance sheet: The trustee's costs total $312,250, and the firm has
Posted: Wed Jul 06, 2022 6:44 pm
Liquidation
Southwestern Wear Inc. has the following balance sheet:
The trustee's costs total $312,250, 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 $3.0 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 thecommon stockholders. They will receive only _________% of theamount of equity on the balance sheet.
Southwestern Wear Inc. has the following balance sheet:
The trustee's costs total $312,250, 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 $3.0 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 thecommon stockholders. They will receive only _________% of theamount of equity on the balance sheet.