Question
The ABC Partnership has the following trial balance: Cash 50,000 Inventory 60,000 PPE, net 400,000 Goodwill 90,000 Accounts payable 30,000 A, capital 300,000 B, capital
The ABC Partnership has the following trial balance:
Cash 50,000
Inventory 60,000
PPE, net 400,000
Goodwill 90,000
Accounts payable 30,000
A, capital 300,000
B, capital 100,000
C, capital 170,000
A, B, and C share profits and losses in a 5:3:2 ratio.
1) How much cash can safely be paid out to the partners at the present time?
2) Refer to the previous question and create a schedule of safe payments for answering questions 2 through 4. How much cash would "A" get at this time? If zero, write "0"
3) Refer to the previous question. How much cash would "B" get at this time? If zero, write "0"
4) Refer to the previous question. How much cash would "C" get at this time? If zero, write "0"
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