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Daphne, Inc. is currently in the process of bankruptcy. Below balance sheet represents Daphne's position at the time it filed for bankruptcy. All the numbers are expressed in thousands of dollars. Cash $20 Accounts Payable $3,200 Receivables 200 Notes Payable 1,100 Inventories 1,780 Wages Payable 350 Taxes Payable 150 Total Current Assets $2,000 Total Current Liabilities $4,800 Mortgage Bonds 4,000 Net Plant 8,000 Subordinated Debentures 5,000 Net Equipment 10,200 Preferred Stock 3,000 Common Stock 3,400 Total Assets $20,200 Total Claims $20,200 The mortgage bonds are secured by the plant but not by the equipment. The subordinated debentures are subordinated to notes payable. The firm was unable to reorganize under Chapter 11; therefore, it was liquidated under Chapter 7. The trustee, whose legal and administrative fees amounted to $400,000, sold off the assets and received the following proceeds (in thou-sands of dollars): Assets Proceeds Plant $3,400 2,850 Equipment Receivables 100 Inventories 480 Total $6,830 In addition, the firm had $20,000 in cash available for distribution. No single wage earner had claims exceeding the maximum allowable wages per worker, and there were no unfunded pension plan liabilities. Question 1: What is the total amount available for distribution to all claimants? What is the total of creditor and trustee claims? Will the preferred and common stockholders receive any distributions? Question 2: Determine the dollar distribution to each creditor and to the trustee. What percentage of each claim is satisfied? Daphne, Inc. is currently in the process of bankruptcy. Below balance sheet represents Daphne's position at the time it filed for bankruptcy. All the numbers are expressed in thousands of dollars. Cash $20 Accounts Payable $3,200 Receivables 200 Notes Payable 1,100 Inventories 1,780 Wages Payable 350 Taxes Payable 150 Total Current Assets $2,000 Total Current Liabilities $4,800 Mortgage Bonds 4,000 Net Plant 8,000 Subordinated Debentures 5,000 Net Equipment 10,200 Preferred Stock 3,000 Common Stock 3,400 Total Assets $20,200 Total Claims $20,200 The mortgage bonds are secured by the plant but not by the equipment. The subordinated debentures are subordinated to notes payable. The firm was unable to reorganize under Chapter 11; therefore, it was liquidated under Chapter 7. The trustee, whose legal and administrative fees amounted to $400,000, sold off the assets and received the following proceeds (in thou-sands of dollars): Assets Proceeds Plant $3,400 2,850 Equipment Receivables 100 Inventories 480 Total $6,830 In addition, the firm had $20,000 in cash available for distribution. No single wage earner had claims exceeding the maximum allowable wages per worker, and there were no unfunded pension plan liabilities. Question 1: What is the total amount available for distribution to all claimants? What is the total of creditor and trustee claims? Will the preferred and common stockholders receive any distributions? Question 2: Determine the dollar distribution to each creditor and to the trustee. What percentage of each claim is satisfied

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