4. ABC Co. is in liquidation. Some of the account balances prior to liquidation are given below: Arbits drawing B. drawing C drawing credits liabilities B, loan C, loan 180,000 70,000 10,000 20,000 10,000 15,000 195,000 30,000 25,000 A, cap (50%) B, cap (30%) C,cap (20%) Prepare a schedule for the advance plan for the distribution of cash as it becomes available. Show your calculations. 5. Partners A, B, C and D share profits in the ratio of 2:5:4:5. Their capital balances are the following: $12,000, $10,000, S40,000 and $18,000. Cash on hand is $2,000. Other assets total $98,000. Liabilities total $20,000. $40,000 of assets are sold for $10,000 Distribute all available cash. Use either of the two safe payment m 6. P is making an offer for S. To determine a fair offering price, P makes the following assumptions: S has identifiable assets with a total fair value of $18,000,000 and liabilities of $8,000,000. The assets include land with a fair value 20% less than book value and buildings with a fair value 30% higher than book value. All other assets are fairly valued. Normal returns for the industry are 10% on net assets. S's pretax income for the last three years was a total of $6,000,000. P feels the annual average of the three years fairly represents the expected annual income for S for each of the next four years. However, it needs to consider adjustments to the following items included in pretax income. $600,000 Annual depreciation on buildings extraordinary gain in second year annual pension costs $400,000 $600,000 oodwill be calculated on four years of P desires to earn 12% on its investment in S and determines that g capitalized excess earnings. How much should P offer for S? How much of that price represents goodwill? Answer question 6, and any 4 of the first 5 questions. Label all work. 4. ABC Co. is in liquidation. Some of the account balances prior to liquidation are given below: Arbits drawing B. drawing C drawing credits liabilities B, loan C, loan 180,000 70,000 10,000 20,000 10,000 15,000 195,000 30,000 25,000 A, cap (50%) B, cap (30%) C,cap (20%) Prepare a schedule for the advance plan for the distribution of cash as it becomes available. Show your calculations. 5. Partners A, B, C and D share profits in the ratio of 2:5:4:5. Their capital balances are the following: $12,000, $10,000, S40,000 and $18,000. Cash on hand is $2,000. Other assets total $98,000. Liabilities total $20,000. $40,000 of assets are sold for $10,000 Distribute all available cash. Use either of the two safe payment m 6. P is making an offer for S. To determine a fair offering price, P makes the following assumptions: S has identifiable assets with a total fair value of $18,000,000 and liabilities of $8,000,000. The assets include land with a fair value 20% less than book value and buildings with a fair value 30% higher than book value. All other assets are fairly valued. Normal returns for the industry are 10% on net assets. S's pretax income for the last three years was a total of $6,000,000. P feels the annual average of the three years fairly represents the expected annual income for S for each of the next four years. However, it needs to consider adjustments to the following items included in pretax income. $600,000 Annual depreciation on buildings extraordinary gain in second year annual pension costs $400,000 $600,000 oodwill be calculated on four years of P desires to earn 12% on its investment in S and determines that g capitalized excess earnings. How much should P offer for S? How much of that price represents goodwill? Answer question 6, and any 4 of the first 5 questions. Label all work