Consider Failures Galore, Inc. (Tables 23.10 and 23.11), discussed in this chapter.
a. If total liquidation proceeds are $5.95 million, what is the distribution of these proceeds among the various creditors of Failures Galore?
b. If total liquidation proceeds are $7.65 million, what is the distribution of these proceeds among the various creditors of Failures Galore?
The subordinated debentures are subordinate to the bank notes payable. Assume that all the accrued wages can be paid out of the liquidationproceeds.
