Determine amount available for distribution to all claimants

Assignment Help Financial Management

Reference no: EM13731341

Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900 million, while the current assets were sold for another $400 million. Thus, the total proceeds from the liquidation sales were $1,300 million. Trustee's costs amounted to $1 million; no single worker was due more than $2,000 in wages; and there were no unfunded pension plan liabilities. Determine the amount available for distribution to all claimants.

Reference no: EM13731341

Questions Cloud

What is the amount of the firms current assets : Killer Whale, Inc., has the following balance sheet statement items: total current liabilities of $889,551; net fixed and other assets of $1,518,050; total assets of $3,015,920; and long term debt of $830,963. What is the amount of the firm’s current..

Gas powered or electric powered forklift truck : Company must choose between a gas powered or electric powered forklift truck. Electric truck will cost more but less expensive to operate its price is $21,000 the gas powered is $17,960. Cost of capital applied to both at 13%. Life expectancy for bot..

Calculate the firms net income : Garden Pro Corporation has sales of $4,611,770; income tax of $483,762; the selling, general and administrative expenses of $243,981; depreciation of $388,811; costs of goods sold of $2,496,450; and interest expense of $166,022. Calculate the firm’s ..

What is the projects payback period : A project has an initial cost of 49,000 expected net cash inflow of 13,000 per year for eight years and a cost of capital of 12%. What is the projects payback period?

Determine amount available for distribution to all claimants : Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900 mil..

What the new preferred stock : Annual dividend of 9% of its $100 par value. Preferred stock of this type yield at 6%. Assume dividends are paid annually. What is the value of preferred stock and interest rates levels increase to 12%. What the new preferred stock?

Risk free rate and market risk premium : Assume the risk free rate is 6% and the market risk premium is 7.5%. Ragnarok Unlimited Corp. (RUC) has a beta of 4, and it offers a return of 27% at the moment. Is RUC fairly priced according to the CAPM? Why or why not? If the price is not fair, wh..

Corporation have other stakeholders besides its shareholders : What exactly does it mean to say that the goal of a corporation is to maximize shareholder wealth? Obviously we mean maximize shareholder wealth in a manner consistent with the law, but does a corporation have other stakeholders besides its sharehold..

Important determinant of meeting retirement goals : The text presents a mathematical relationship between present value and future value. What does this relationship suggest to potential investors as far as setting important priorities? What is the most important determinant of meeting retirement goal..

User Account

All Pages