The partners' profit and loss sharing ratio is 2:3:5, respectively.

D, E, AND F PARTNERSHIP
Balance Sheet
December 31, 2010
Assets			Liabilities and Partners' Equity
Cash	$ 35,000		Liabilities	$ 40,000
Noncash assets	75,000		D, Capital	30,000
			E, Capital	25,000
	_______		F, Capital	15,000
Total	$110,000		Total	$110,000

38.	If the D, E, and F Partnership is liquidated by selling the noncash assets for $45,000 and creditors are paid in full, what is the amount of cash that can be safely distributed to each partner?
	A)	D, $24,000; E, $16,000; F, $0.	C)	D, $20,000; E, $25,000; F, $5,000.
	B)	D, $14,000; E, $21,000; F, $5,000.	D)	D, $30,000; E, $25,000; F, $15,000.

39.	If the D, E, and F Partnership is liquidated by selling the noncash assets for $125,000, and creditors are paid in full, what is the total amount of cash that Partner D will receive in the distribution of cash to partners?
	A) $10,000. B) $39,000. C) $40,000. D) $25,000.

40.	If the D, E, and F Partnership is liquidated and the noncash assets are worthless, the creditors will look to what partner's personal assets for settlement of the creditors' claims?
	A)	The personal assets of Partner E.
	B)	The personal assets of Partners D and F.
	C)	The personal assets of Partners D, E, and F.
	D)	The personal assets of the partners are not available for partnership debts.