Following is the balance sheet of the BDO Partnership:

The partners share income 40:40:20, respectively. Assume that 70% of the receivables are collected and that inventory with a book value of $14,000 is sold for $9,000. All cash available at this time is to be distributed.

Required:

Determine the proper distribution of cash, using the safe payment approach.

$ 18,000 $ 10,000 40,000 30,000 60,000 $140,000 Cash Liabilities Brink, Capital Davis, Capital Olsen, Capital Accounts Receivable Inventory Equipment 45,000 27,000 50,000 $140,000