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Liabilities + Common Stock Assets $10,000 M Allen $2,000 +Retained Earnings $ 500 $1,800 $7,500 $3,000 White $12,000 = $7,200 Required a. Based on this
Liabilities + Common Stock Assets $10,000 M Allen $2,000 +Retained Earnings $ 500 $1,800 $7,500 $3,000 White $12,000 = $7,200 Required a. Based on this information alone, can White pay a $2,000 dividend? b-1. Reconstruct the accounting equation for each company using percentages instead of dollar values. b-2. Which company is more financially stable? c. Assume Allen incurs a $3,500 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 $3,500 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? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C Req D Reconstruct the accounting equation for each company using percentages instead of dollar values. Stockholders' Equity Company. Assets Liabilities + Allen % % + White %+ %+ Next > 100 %- 100% Common Stock Retained Earnings Assets $10,000 Allen Liabilities + Common Stock $7,500 +Retained Earnings: = + $2,000 White $12,000 = $3,000 $7,200 $ 500 $1,800 Required a. Based on this information alone, can White pay a $2,000 dividend? b-1. Reconstruct the accounting equation for each company using percentages instead of dollar values. b-2. Which company is more financially stable? c. Assume Allen incurs a $3,500 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 $3,500 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? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C Reg D Assume Allen incurs a $3,500 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? Amount to paid creditors Amount to paid investors Liabilities + Assets $10,000 = Common Stock Allen White $7,500 $3,000 $2,000 Retained Earnings $ 500 $1,800 $12,000 = $7,200 Required a. Based on this information alone, can White pay a $2,000 dividend? b-1. Reconstruct the accounting equation for each company using percentages instead of dollar values. b-2. Which company is more financially stable? c. Assume Allen incurs a $3,500 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 $3,500 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? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C Req D Assume White incurs a $3,500 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? Amount to paid creditors Amount to paid investors
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