The Drysdale, Koufax, and Marichal partnership has the following balance sheet immediately prior to liquidation:

Cash	$	54,000	Liabilities	$	59,500
Noncash assets		294,000	Drysdale, loan		27,500
			Drysdale, capital (50%)		97,000
			Koufax, capital (30%)		87,000
			Marichal, capital (20%)		77,000

1. Liquidation expenses are estimated to be $14,000. Prepare a predistribution schedule to guide the distribution of cash.
2. Assume that assets costing $92,000 are sold for $69,000. How is the available cash to be divided?

3. Liquidation expenses are estimated to be $14,000. Prepare a predistribution schedule to guide the distribution of cash.

   DRYSLADE, KOUFAX, AND MARICHAL
   Distribution of Available Cash
   First	$54,000	Liabilities	$59,500
   		Liquidation expenses	14,000
   Next		Marichal		%
   Next		Koufax	60	%
   		Marichal	40	%
   All remaining cash		Drysdale	0	%
   		Koufax		%
   		Marichal		%

that assets costing $92,000 are sold for $69,000. How is the available cash to be divided?

		Drysdale	Koufax	Marichal
Reported balances
Assumed loss
Schedule 1
Adjusted balances
Assumed loss
Schedule 2
Adjusted balances