1. Flow, Slow, and Crow are partners sharing profits and losses 40/30/30. They have the following balance sheet:

Cash $200,000 Payables to Creditors $300,000 Receivable from Flow 50,000 Payable to Slow 40,000 Property & Equipment 600,000 Flow, Capital 200,000 Slow, Capital 120.000 _______ Crow, Capital 190,000 $850,000 $850,000

The partnership is doing poorly, and they decide to liquidate. $350,000 of the property and equipment are sold for $300,000.

1. Prepare a schedule showing a safe payment after the sale of assets assuming there are $35,000 of liquidation expenses.

2. After the safe payment has been made, $180,000 of assets were sold for $230,000. Prepare a schedule showing the second safe payment.