LiquidationCash distribution computation, safe payments schedule Jan, Kim, and Lee announce plans to liquidate their partnership immediately. The assets, equities, and profit and loss sharing ratios are summarized as follows. Loan to Kim $ 20,000 Accounts payable $ 60,000 Other assets 180,000 Jan capital (50%) 59,000 $200,000 Kim capital (30%) 29,000 Lee capital (20%) 52,000 $200,000 Partnership Liquidation 579 The other assets are sold for $120,000, and an overlooked bill for landscaping services of $5,000 is discovered. Kim cannot pay her partnership debt at the present time, but she expects to have the money in a month or two.

REQUIRED: Determine how cash should be distributed to creditors and partners.