What amount of cash will the creditors receive

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Assume that Martin Company acquires $2,400 cash from creditors and $3,400 cash from investors.

Required:

a. Explain the primary differences between investors and creditors. 
b. If Martin has net income of $1,500 and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive? 
c. If Martin has a net loss of $1,500 cash and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive? 
d. If Martin 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?

Reference no: EM13920209

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