On April 15, 2003, Gary and his friends Alex and Matt decided to setup a partnership to run a Baskin- Robbins franchise. The business consisted of a Baskin-Robbins store front off the corner of Halsted and Maxwell in Chicago and an ice cream truck that would regularly drive around the campus of UIC (both the west and east campuses). A year later, they reevaluated their business prospects and decided that it was best to shut down. On April 15, 2004, the partnership balance sheet was as such: Cash Non-cash Assets Total $ 100,000 250,000 Liabilities Loan from Alex $ 90,000 25,000 Gary, capital 40,000 Alex, capital 35,000 $ 350,000 Matt, capital Total 160,000 350,000 The profit/loss ratios for Gary, Alex, and Matt are 3:2:4. Each partner is personally insolvent. The following events occurred related to the liquidation of the partnership's assets. June 23, 2004: Frozen Yogurt machine with net book value of $50,000 is sold for $10,000. December 2, 2004: Ice cream truck with a net book value of $190,000 is sold for $100,000. August 8, 2005: Remaining inventory of Baskin-Robbins ice cream with a book value of $10,000 is sold for $1,000. 1.) If the partners wait until all the partnership assets are sold before distributing the cash, what would each partner receive? 2.) If the partners decide to distribute cash after each asset is sold, what cash would each partner receive? Create interim safe payment schedules to find out. What total cash would each partner get at the end of the liquidation process? 3.) Repeat 2.), but using a predistribution plan. What total cash would each partner get at the end of the liquidation process?