$$1,800$ Cash Assets $+$$$12,000$ Land$+$ $$6000$ Liabilities $+$ $$5000$ Common Stock $+$$$2800$ Retained Earnings

Required

a$.$ Are dividends paid to creditors or investors?

b$.$ How much cash is in the Retained Earnings account?

c$.$ Determine the maximum dividend White Company Incorporated can pay.

d$.$ If the obligation to creditors is due, can White Company Incorporated repay the loan?

e$.$ Suppose the land sinks into the sea as a result of an earthquake and a resulting tsunami. The business is then liquidated. How much cash will creditors receive? How much cash will investors receive? $($Assume there are no legal fees or other costs of liquidation.$)$

Complete this question by entering your answers in the tabs below.

Req B and $C$

b$.$ How much cash is in the Retained Earnings account?

c$.$ Determine the maximum dividend White Company Incorporated can pay.

$\backslash$table$[[$b$.$ Retained earnings,$],[$c$.$ Maximum dividend,$$1,800$