Go-for-Broke Company is being liquidated of the bankruptcy code. When it filed for bankruptcy, its balance sheet was as follows:
a. Determine the distribution (dollar amount and percentage) of the liquidation proceeds among the various creditors of Go-for-Broke.
b. Assume that the debentures ($2.45 million) are subordinated to bank notes payable. Determine the distribution (dollar amount and percentage) of the liquidation proceeds among the various creditors of Go-for-Broke.