Question
The balance sheet for the Delphine, Xavier, and Olivier partnership follows: Cash $ 60,000 Liabilities $ 40,000 Noncash assets 100,000 Delphine, capital 60,000 Xavier, capital
The balance sheet for the Delphine, Xavier, and Olivier partnership follows:
| Cash | $ | 60,000 | Liabilities | $ | 40,000 | |
| Noncash assets | 100,000 | Delphine, capital | 60,000 | |||
| Xavier, capital | 40,000 | |||||
| Olivier, capital | 20,000 | |||||
| Total assets | $ | 160,000 | Total liabilities and capital | $ | 160,000 | |
Delphine, Xavier, and Olivier share profits and losses in the ratio of 4:4:2, respectively. The partners have agreed to terminate the business and estimate that $12,000 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?
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Accounting Costing And Management
Authors: Riad Izhar, Janet Hontoir
2nd Edition
9780198328230
