MCO-00723 The following condensed balance sheet is presented for the partnership of Smith and Jones, who share profits and losses in the ratio of 60:40, respectively Other assets $450,000 Smith, loan 20.000 $470.000 Accounts payable 120.000 Smith capital 195.000 Jones, capital 155,000 $470,000 The partners have decided to liquidate the partnership. It the other assets are sold for $385,000, what amount of the available cash should be distributed to Smruth? A $159 000 B. $136.000 C. 3195 000 D $150,000 Explanation Choice "B" is correct. (In thousands) Bag Balance Sale AP BG Cash $ 0 $385 $(120) 5 265 Other assets 450 (385) $(65) 0 Loan 20 (20) 0 AP 120 (120) 0 Smith 195 (20) (39) 136 000 Jones 155 (26) 179