Simple liquidationSchedule of cash available

The partnership of Flo and Fay is in the process of liquidation. On January 1, 2016, the ledger shows account balances as follows: Cash 10,000 Accounts Payable 25000 Accounts Receivables 45000 Flo Capital 45000 Lumber Inventory 50000 Fay Capital 35000 On January 10, 2016, the lumber inventory is sold for $40,000, and during January, accounts receivable of $41,000 is collected. No further collections on the receivables are expected. Profits are shared 60 percent to Flo and 40 percent to Fay.

Required: Prepare a schedule showing how the cash available on February 1, 2016, should be distribute