Business, 12.08.2020 06:01 misswonderless
Problem 24-01 Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,875,000 Accounts payable $375,000 Fixed assets 1,875,000 Notes payable 750,000 Subordinated debentures 750,000 Total debt $1,875,000 Common equity 1,875,000 Total assets $3,750,000 Total liabilities and equity $3,750,000 The trustee's costs total $276,250, and the firm has no accrued taxes or wages. Southwestern has no unfunded pension liabilities. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $4 million is received from sale of the assets? Distribution of proceeds on liquidation: 1. Proceeds from sale of assets $ 2. First mortgage, paid from sale of assets $ 3. Fees and expenses of administration of bankruptcy $ 4. Wages due workers earned within 3 months prior to filing of bankruptcy petition $ 5. Taxes $ 6. Unfunded pension liabilities $ 7. Available to general creditors $ Distribution to general creditors: Claims of General Creditors Claim (1) Application of 100% Distribution (2) After Subordination Adjustment (3) Percentage of Original Claims Received (4) Notes payable $ $ $ % Accounts payable $ $ $ % Subordinated debentures $ $ $ % Total $ $ $ The remaining $ will go to the common stockholders.
Answers: 1
Another question on Business
Business, 22.06.2019 17:00
Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?
Answers: 1
Business, 22.06.2019 21:00
Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.
Answers: 1
Business, 22.06.2019 23:00
Which of the following is not one of the four principles of bottleneck management? a. increasing capacity at non-bottleneck stations is a mirageb. lost time at the bottleneck is lost system capacity.c. release work orders to the system at the bottleneck's capacity pace.d. increased bottleneck capacity is increased system capacity.e. bottlenecks should be moved to the end of the system process.
Answers: 1
Business, 22.06.2019 23:00
Investors who put their own money into a startup are known as a. mannequins b. obligators c. angels d. borrowers
Answers: 1
You know the right answer?
Problem 24-01 Liquidation Southwestern Wear Inc. has the following balance sheet: Current assets $1,...
Questions
Mathematics, 10.12.2020 20:30
Biology, 10.12.2020 20:30
History, 10.12.2020 20:30
Mathematics, 10.12.2020 20:30
SAT, 10.12.2020 20:30
English, 10.12.2020 20:30
Mathematics, 10.12.2020 20:30
Advanced Placement (AP), 10.12.2020 20:30
Physics, 10.12.2020 20:30
Social Studies, 10.12.2020 20:30
Mathematics, 10.12.2020 20:30
