Question 5. (20 points) Cambria, Inc. is being liquidated under Chapter 7 of the Bankruptcy Act. Its current balance sheet is shown below. Fixed assets are sold for $30,000,000 and current assets are sold for $10,000,000. All fixed assets are pledged as collateral for all mortgage bonds. Subordinated debentures are subordinate only to notes payable. Trustee costs are $1,000,000. No employee is owed over $2,000.
|Current Assets||45,000,000||Accounts payable||15,000,000|
|Net fixed assets||85,000,000||Accrued taxes||10,000|
|Total current liabilities||19,360,000|
|Total assets||130,000,000||-||Total claims||130,000,000|
|a. How much will SHs receive?|
|b. How much will mortgage bondholders receive?|
|c. How much will priority creditors receive?|
d. Identify the remaining general creditors. How much will each receive before subordination adjustment?
e. How much will each of the general creditors receive after subordination adjustment?