Mary, Paula, and Ray have operated a retail store for 20 years. The partners share profits and losses in the ratio of 4:3:3, respectively. Thepartnershipis unable to meet its obligations and the partners decide to liquidate thepartnership.The firm'sbalance sheetjust before the partners sell the other assets for $20,000 is as follows.

Assets Liabilities and Partner's Equities

Cash $10,000 Liabilities $40,000

Other Assets 100,000 Mary, Capital 50,000

Paula, Capital 10,000

Ray, Capital 10,000

110,000 $110,000

After the sale of the noncash assets, the personal assets and liabilities of each partner are determined to be the following:

Personal Assets Personal Liabilities

Mary $50,000 $80,000

Paula 30,000 10,000

Ray 30,000 50,000

Thepartnershipoperates in a state that has adopted the UniformPartnershipAct.

Required:

A. Determine the amount of cash each partner will receive inliquidationand how much cash each partner must contribute to the firm, given their personal positions.

B. Determine the amounts that the personal creditors will receive from personal assets and anydistributionfrom the partnership.