The partnership of Hendrick, Mitchum, and Redding has the following account balances:

Cash . . . . . . . . . . . . . . . . . . . . . . $ 50,000 Liabilities. . . . . . . . . . . . . . . . . . . . . . . . $ 30,000

Noncash assets. . . . . . . . . . . . . 135,000 Hendrick, capital . . . . . . . . . . . . . . . . . 100,000

Mitchum, capital. . . . . . . . . . . . . . . . . . 70,000

Redding, capital. . . . . . . . . . . . . . . . . . (15,000)

This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all

profits and losses with the remaining 20 percent going to Redding.

a. What is the maximum amount that Redding might have to contribute to this partnership because

of the deficit capital balance?

b. How should the $20,000 cash that is presently available in excess of liabilities be distributed?

c. If the noncash assets are sold for a total of $50,000, what is the minimum amount of cash that

Hendrick could receive?