Question 1

Assume that Kennedy Company acquires $1,400 cash from creditors and $3,000 cash from investors.

Required:

(b)

If Kennedy has a net loss of $1,400 cash and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive? (Omit the "$" sign in your response.)

  Cash received by creditors

$ [removed] 

  Cash received by investors

$ [removed] 

(c)

If Kennedy has net income of $1,400 and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive? (Omit the "$" sign in your response.)

  Cash received by creditors

$ [removed] 

  Cash received by investors

$ [removed]