What amount of cash will the investors receive

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Problem - Assume that Harris Company acquires $2,800 cash from creditors and $3,200 cash from investors.

Required

a. If Harris has net income of $2,800 and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive?

b. If Harris has a net loss of $2,800 cash and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive?

c. If Harris has a net loss of $3,900 cash and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive?

Reference no: EM131630000

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