Running head: LIQUIDATION

Liquidation

Name

Institution
LIQUIDATION

Distribution of proceeds on liquidation

 Proceeds from sale 3500000

of assets
First mortgage, paid 0
from sale of assets
Fees and expenses of 229250
administration of
bankruptcy
 Wages due workers 0
earned within 3
months 
prior to filing of
bankruptcy petition
 Taxes 0
Unfunded pension 0
liabilities
Available to general 3270750
creditors

Distribution to general creditors:

Claims of Claim  Application After Percentage

General (1) of 100% Subordination of
Creditors $ Distribution Adjustment Original
(2) $ (3) $ Claims
Received
(4) %
Notes 750000 750000 750000 100%
payable
Accounts 375000 375000 375000 100%
payable
Subordinate 750000 750000 750000 100%
d debentures
Total 187500 187500 187500
 LIQUIDATION

Remaining cash = 3270750 - 1875000 = 1395750

$1395750 will go to the common stockholders.

They will recieve only 74.44% (1395750/1875000*100) of the amount of equity in Balance
sheet.