PROBLEM $15-4$ Simple Liquidation with Personal Asset Information LO $3$

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. The partnership is unable to meet its obligations and the partners

decide to liquidate the partnership. The firm's balance sheet just before the partners sell the other

assets for $$20,000$ is as follows.

After the sale of the noncash assets, the personal assets and liabilities of each partner are determined

to be the following:

The partnership operates in a state that has adopted the Uniform Partnership Act.

Required:

A$.$ Determine the amount of cash each partner will receive in liquidation and 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 any

distribution from the partnership.