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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/ Equity	$3,750,000

The trustee's costs total $270,750, 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:

Proceeds from assets	$
First mortgage, paid from sales of assets	$
Fees & expenses of administration of bankruptcy	$
Wages due workers earned in 3 months prior to BK	$
Taxes	$
Unfunded pension liabilities	$
Available to general creditors	$

Distribution to general creditors:

	Claim	Application of 100% distribution	After subordination	% of original claim
Notes payable	$	$	$	%
Accounts payable	$	$	$	%
Subordinated debentures	$	$	$	%
Total	$	$	$

The remaining $...... will go to the common stockholders.

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