[studenthelp143]

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?

[pready]

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.

[jenine575]

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?

[jenine575]

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