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