Exercise 16-5

Following is the balance sheet of the BDO Partnership:

Cash		$8,000		Liabilities		$20,000
Accounts Receivable		40,000		Brink, Capital		47,000
Inventory		31,000		Davis, Capital		29,000
Equipment		62,000		Olsen, Capital		45,000
		$141,000				$141,000

The partners share income 40:40:20, respectively. Assume that 70% of the receivables are collected and that inventory with a book value of $14,000 is sold for $9,000. All cash available at this time is to be distributed. Determine the proper distribution of cash, using the safe payment approach. (Round answers to 0 decimal places, e.g. 5,125. Enter credit balance of an account and credit posting to an account with negative sign preceding the number, e.g. -45 or parentheses, e.g. (45).)

***THE OPTIONS ARE GIVEN IN PICTURE***

LUS hele i System Announcements Jeter, Advanced Accounting, 6e Help System Announcements CALCULATOR PRIN CES 16 Exercise 16-5 Following is the balance sheet of the BDO Partnership: Cash Accounts Receivable Inventory Equipment $8,000 40,000 31,000 62,000 Liabilities Brink, Capital Davis, Capital Olsen, Capital $20,000 47,000 29,000 45,000 $141,000 $141,000 ady The partners share income 40:40:20, respectively. Assume that 70% of the receivables are collected and that inventory with a book value of $14,000 is sold for $9,000. All cash available at this time is to be distributed. Determine the proper distribution of cash, using the safe payment approach. (Round answers to o decimal places, e.g. 5,125. Enter credit balance of an account and credit posting to an account with negative sign preceding the num parentheses, e.g. (45).) Noncash Capital Balances Davis 4096 Cash Brink 40% Assets Liabilities Olsen 2096 Account Balances Payment to Creditors Payment to Partners Sale of Inventory, Collect Accounts Receivable Question Attempts: 0 of 5 used SAVE FOR e here to search BI La