- liquidation of a partnershi Charles, Howard, Jimmy and Kim are partners in a law firm, CHJK. Due to the impending death of Charles (spoiler alert) and the philosophical differences between the other three (Howard is an ego maniac, Jimmy is always cutting corners, he's "colorful" while Kim is honest and tough while at the same time, she's nice), the partners will be dissolving the partnership. A condensed balance sheet for the partnership is as follows: Assets Liabilities and Capital Cash Accounts Receivable Inventory Loan Receivable from Jimmy Equipment Building $ 40,000 $ 45,000 $ 11,000 $ 15,000 $125,000 $300,000 Accounts Payable Notes Payable (bank) Loans Payable to Charles Charles, Capital Howard, Capital Jimmy, Capital Kim, Capital $ 25,000 $250,000 $ 40,000 $100,000 $ 70,000 $ 1,000 $ 50,000 The profit and loss percentages are 40-30-15-15 for Charles, Howard, Jimmy and Kim respectively. The accounts receivable are settled for $39,000 cash, the inventory is sold for $6000 cash, the equipment is sold for $105,000 cash and the building is sold for $355,000 cash. 1) Prepare a schedule to show how much each partner will receive at the end (Jimmy's capital will be negative, so let's assume he will be able to pay into the partnership what he owes because he has business dealings on the side with Walt and Jesse). After Jimmy has paid in what he owes, how much will the other three partners receive? Show all calculations and circle your answers 2) Using your answers from part 1, how much will each partner receive if Jimmy is not able to pay into the partnership what he owes? Show all calculations and circle your answers