Managerial Finance

Da ?tobUr' JrL+-, )^ tlCeLDog Bankruptcy, Reorganization, anti Liquidation b. After distribution to general crefitors and subordination adjustments are made, how much of the proceeds are received by the second-mortgage holders? By holders of the notes payable? By the subordinated debentures? By the common stockholders? Chapter 24 Subordinated debentures Total debt Common equity Total assets The trustee's costs total $281,250, and the firm has no accrued taxes or wages. 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 $2.5 million is received from sale ofthe assets? The Verbrugge Publishing Company's 2012 balance sheet and statement are as Reorganization follows (in miliions of dollars): ce Sheet Current Intermediate Problenr 2 Southwestern Wear Inc. has the following balance sheet: Current assets Fixed assets Net fixed Goodwill $1,875,000 Accounts payabie 1,875,000 Notes payable &,759,gqq Total liabilities and equity $ 37s,000 750,000 750,000 $1,875,000 1,875,000 $ulgqqq $+z 78 6 135 9 9 $168 153 15 Current Advance stock, $112.50 par value ,200,000 shares) $10.50 preferred stoch no par, callable at $150 (60,000 shares) Common stoch $1.50 par value shares) Ret earnings Total assets Total Income S Net expense operating income income EBT Taxes (50%) Net income Dividends on $6 preferred Dividends on $10.50 preferred Income available to common stockholders 57 $33€ $336 $540.0 516.0 $ 24.0 3.0 $ 27.0 13.5 $ l3.s 7.2 0.6 $_s3