On June 1, 2015, Bland Corporation prepared a statement of financial position just prior to going out of business. The totals for the three main components showed the following:

Assets (no cash) ........... $ 90,000

Liabilities .............50,000

Shareholders€™ equity ........40,000

Shortly thereafter, all of the assets were sold for cash.

Required:

1. How would the statement of financial position appear immediately after the sale of the assets for cash for each of the following cases? Use the format given here.

2. How should the cash be distributed in each separate case?

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Balances Immediately after Sale Cash Received for the Assets $90,000 80,000 100,000 35,000 Assets LiabilitiesShareholders' Equity Case A Case B Case C Case D To Creditors To Shareholders Total Case A Case B Case C Case D