Question
The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash Noncash assets $ 61,440 104,000 Liabilities Delphine, capital Xavier, capital $ 41,000
The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash Noncash assets $ 61,440 104,000 Liabilities Delphine, capital Xavier, capital $ 41,000 Olivier, capital 73,600 42,000 8,840 Total assets $ 165,440 Total liabilities and capital $ 165,440 Delphine, Xavier, and Olivier share profits and losses in the ratio of 5:4:1, respectively. The partners have agreed to terminate the business and estimate that $12,400 in liquidation expenses will be incurred. a. What is the amount of cash that safely can be paid to partners prior to liquidation of noncash assets? b. Calculate the amount of safe payment that can be made to each partner prior to liquidation of noncash assets. Complete this question by entering your answers in the tabs below.
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