a. Based on this information alone, can White pay a $5,400 dividend?

b-1. Reconstruct the accounting equation for each company using percentages on the right side of the equation instead of dollar values.

b-2. Which company is more financially stable? Allen or White

c. Assume Allen incurs a $6,900 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?

d. Assume White incurs a $6,900 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?

+ + Assets $15,000 $13,000 Liabilities $9,300 $3,250 Allen White + Common Stock $2,400 $7,150 + Retained Earnings $ 3,300 $2,600 + + Assets Liabilities + Company Allen White Stockholders' Equity Common Retained Stock Earnings % + % % + % % % = % + % + Amount to paid creditors Amount to paid investors Amount to paid creditors Amount to paid investors