Question
The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet: Cash $10,000 Noncash Assets $400,000 Total Assets: $410,000 Liabilities
The Abrams, Bartle, and Creighton partnership began the process of liquidation with the following balance sheet:
Cash $10,000
Noncash Assets $400,000
Total Assets: $410,000
Liabilities $150,000
Abrams, Capital $50,000
Bartle, Capital $120,000
Creighton, Capital $90,000
Total Liabilities + Capital: $410,000
Abrams, Bartle, and Creighton share profits and losses in a ratio of 3:2:5. Liquidation expenses are expected to be $12,000. The noncash assets were sold for $200,000.
What is the amount of cash that safely can be paid to partners after sale of noncash assets?
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