The brandy company acquires $1400 cash from creditors and $1,800 cash from investors (stockholders). The company then has an operating loss of $2,000 cash and goes out of business,
a) what amount of cash will brandy's creditors receive?
b) What amount of cash will brandy's investors (stockholders) receive?

First calculate how much cash the company received.

Next you subtract the amount that you owe to your creditors.

Any cash remaining will go to your investors.

The brandy company acquires $1400 cash from creditors and $1,800 cash from investors (stockholders). The company then has an operating loss of $2,000 cash and goes out of business,
a) what amount of cash will brandy’s creditors receive?
b) What amount of cash will brandy’s investors (stockholders) receive?

1,400 + 1,800=3200-1,400=-200