Cyclical High Risk Enterprises (CHRE) had the following balance sheet at the time it filed for
bankruptcy (in thousands of dollars):
Cash $20 Accounts Payable $750
Receivables $100 Notes Payable $1,500
Inventories $580 Wages Payable $200
Total Current Assets $700 Taxes Payable $100
Net Plant $10,000 Total Current Liabilities $2,550
Net Equipment $8,000 Mortgage Bonds $9,000
Subordinated Debentures $3,000
Preferred Stock $1,500
Common Stock $2,650
Total Assets $18,700 Total Claims $18,700

The mortgage bonds are secured by the plant but not by the equipment. The subordinated debentures are
subordinated to the 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 $750,000, sold
off the assets and received the following proceeds (in thousands of dollars):
ASSET PROCEEDS
Plant $7,000
Equipment $4,500
Cash $20
Receivables $60
Inventories $325
Total $11,905

No single wage earner had over $2,000 in claims, and there were no unfunded pension plan liabilities.
Use the information on CHRE to answer questions 33 through 38.

33. As priority claims, the trustee fees, wages payable, and taxes payable had the same percentage of
their claim satisfied. What percentage of their claims were satisfied?

34. The preferred shareholders and common shareholders had the same percentage of their claim
satisfied. What percentage of their claims were satisfied?

35. What percentage of the mortgage bonds claims were satisfied?

36. What percentage of the notes payable claims were satisfied?

37. What percentage of the accounts payable claims were satisfied?

38. What percentage of the subordinated debentures claims were satisfied?

39. What percentage of the notes payable claim would have been satisfied if the Debentures were not
subordinated to the notes payable?

Additional Requirements

Other Requirements: excel calculations required