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The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash $ 73,680 Liabilities $ 49,500 Noncash assets 138,000 Delphine, capital 63,240 Xavier, capital
The balance sheet for the Delphine, Xavier, and Olivier partnership follows:
Cash | $ | 73,680 | Liabilities | $ | 49,500 | |
Noncash assets | 138,000 | Delphine, capital | 63,240 | |||
Xavier, capital | 59,000 | |||||
Olivier, capital | 39,940 | |||||
Total assets | $ | 211,680 | Total liabilities and capital | $ | 211,680 | |
Delphine, Xavier, and Olivier share profits and losses in the ratio of 3:4:3, respectively. The partners have agreed to terminate the business and estimate that $15,800 in liquidation expenses will be incurred.
- What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets?
- Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets.
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