On April 15, 2003, Gary and his friends Alex and Matt decided to setup a partnership to run a BaskinRobbins 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 University. 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	100,000	Liabilities	90,000
Non-cash Assets		Loan from Alex	25,000
		Gary, capital	40,000
		Alex, capital	35,000
		Matt, capital	160,000
Total	350,000	Total	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 partnerships 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 Q2, but using a predistribution plan. What total cash would each partner get at the end of the liquidation process?