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A company was founded in 2010. It acquired $30,000 cash by issuing stock to investors and an additional $20,000 cash by borrowing from creditors. During 2010 it received $15,000 cash revenues and paid $22,000 in cash expenses. The company then went out of business.
a. What amount of cash should the company have had on hand immediately before going out of business?
b. What amount of cash will it's creditors receive?
c. What amount of cash will it's stockholders receive?
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