if kennedy has net income of $1,600 and then liquidates, what amount of cash will the creditors receive? what amount of cash will the investors receive?:

To determine the amount of cash that creditors and investors will receive after Kennedy liquidates, we need additional information. Specifically, we need to know the amount of liabilities and the ownership structure of the company.

Creditors are the individuals or organizations to whom Kennedy owes money or has outstanding debts. When a company liquidates, the creditors are typically paid first, as they have legal priority over the company's assets. The amount of cash that creditors will receive depends on the total amount of liabilities (debts) and the available assets that can be used to repay these debts.

Investors, on the other hand, are the owners of the company. They have equity stakes in the business and typically receive a share of the company's profits and assets. If Kennedy liquidates, the investors are typically paid after all the creditors have been settled. The amount of cash that investors will receive depends on their ownership percentage and the remaining assets available after paying off the creditors.

Without the specific details of Kennedy's liabilities and ownership structure, it is not possible to determine the exact amounts that creditors and investors will receive. To find out the cash distribution in this scenario, you should refer to the financial statements, such as the balance sheet and/or the liquidation plan of Kennedy. These documents will provide the necessary information to calculate the distribution of funds to creditors and investors during the liquidation process.