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The balance sheet of the Addy, Bess, and Clara partnership on January 1, 2014 (the date of partnership dissolution) was as follows: Cash $ 4,000

The balance sheet of the Addy, Bess, and Clara partnership on January 1, 2014 (the date of partnership dissolution) was as follows:

Cash $ 4,000 Liabilities $ 8,000
Other assets 26,000 Loan from Addy 1,000
Loan to Clara 2,000 Addy, capital (20%) 2,000
Bess, capital (40%) 9,000
Clara, capital (40%) 12,000
Total assets $32,000 Total liab./equity $32,000

In January, other assets with a book value of $16,000 were sold for $10,000 in cash.

Required:

Determine how the available cash on January 31, 2014 will be distributed. (Use a safe payments schedule.) _________________________________________________________________________________________

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