Solution-Problem regarding the pierre imports

Problem regarding the pierre imports

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Reference no: EM13857170

Pierre Imports will be liquidated. Its current balance sheet is shown below. Current assets are sold for $600,000 and fixed assets are sold for $1,000,000. All fixed assets are pledged as collateral for all mor tgage bonds. Subordinated debentures are subordinate only to notes payable. Trustee costs are $100,000.

Balance Sheet Before Default
Current Assets	1200000	Accounts payable	400000
Net Fixed Assets	1800000	Accrued taxes	80000
		Accrued Wages	60000
		Notes payable	60000
		Total current liabilities	600000
		First-mortgage bonds	900000
		Second-mortgage bonds	400000
		Debentures	500000
		Subordinated debentures	300000
		Common stock	200000
		Retained earnings	100000
Total Assets	3000000	Total claims	3000000

a. How much will SHs receive?

b. How much will mortgage bondholders receive?

c. How much will prior ity creditors receive?

d. Identify the remaining general creditors. How much will each receive before subor dination adjustment and after adjustment?

Reference no: EM13857170

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Problem regarding the pierre imports : Pierre Imports will be liquidated. Its current balance sheet is shown below. Current assets are sold for $600,000 and fixed assets are sold for $1,000,000. All fixed assets are pledged as collateral for all mor tgage bonds. Subordinated debentures..

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Problem regarding the pierre imports

Reference no: EM13857170

Reference no: EM13857170

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