Grackle, Buzzard and Crow are partners sharing profits and losses 40/40/20 respectively.

The business is doing poorly, and they decide to go out of business. Their balance sheet is below:

PREPARE A SAFE PAYMENT SCHEDULE AFTER THE ASSETS ARE SOLD.

Cash Receivable from Grackle Property & Equipment $200,000 100,000 550,000 Payables to Creditors Payable to Buzzard Grackle, Capital Buzzard, Capital Crow, Capital $320,000 20,000 200,000 120,000 190,000 $850,000 $850,000 Property & Equipment of $350,000 was sold for $250,000. They estimate that liquidation expenses will be $35,000