1. Ham, Clam, and Ram are partners sharing profits and losses 20/40/40. They have the following balance sheet:

Cash $200,000 Payables to Creditors $300,000 Receivable from Clam 50,000 Loan to Ham, 10,000 Receivable from Ram 20,000 Ham, Capital 240,000 Property & Equipment 480,000 Clam, Capital 250,000 Goodwill 100,000 Ram, Capital 50,000 $850,000 $850,000

The partnership is doing poorly, and they decide to liquidate. The goodwill is non-existent, of course, but was due to the admission of Clam into the business years ago and given to Clams capital. The property and equipment are sold for $200,000. All partners are personally insolvent.

Prepare a schedule showing the liquidation and distribution of any cash to partners assuming there are $20,000 of liquidation expenses.