Distribution of Cash Upon Liquidation Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $750 and $1,140 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $3,060 in cash.

Use the minus sign to indicate any deficiency for the capital accounts.

a. How much net income was earned from the venture?

b. How should the $3,060 be distributed?

	Bray	Lincoln	Mapes	Total
Capital balances and cash distribution	$	$	$	$

c. Assume that the partnership has only $1,620 instead of $3,060. Complete the following table to determine if any of the three partners have a capital deficiency?

	Bray	Lincoln	Mapes	Total
Capital balances	$	$	$	$