Problem
A liquidator was appointed after Stranded Asset Pty Ltd was declared insolvent on 1 July 2021. The company's assets realised $14,250,000. This came from the sale of the secured land and buildings for $7,500,000 and other assets which were sold for $6,750,000.
The creditors totalled $16,350,000, and were made up of the following amounts:
Secured creditor $9,000,000
receiver's costs when realising secured asset $150,000
liquidator's expenses $600,000
unsecured trade payables $2,400,000
tax payable $1,050,000
local government rates $300,000
staff wages payable $900,000
executive directors' wages payable (5 directors) $450,000
staff leave entitlements $150,000
executive directors' leave entitlements (5 directors) $150,000
unsecured bank overdraft $750,000
dividends payable $450,000
Task
You are required to rank the above creditors and then to calculate how much each creditor would be paid.