The trial balance for the MAD Partnership is as follows just before declaring bankruptcy.

Cash		Other Assets		Liabilities		Matt Loan		Matt Capital		Allen Capital		Dave Capital
$19,000		$99,000	=	$16,000		$10,000		$44,000		$30,000		$18,000

Partners share profits in the ratio 45:30:25.

(a)

Prepare a schedule to show how available cash would be distributed to the partners after creditors are paid in full.

Loss Absorption Potential

Assets Distribution

Matt

Allen

Dave

Matt

Allen

Dave

$

$

$

$

$

$

$

$

$

$

$

$

State which partner would receive the first cash available and at what point and to what degree each of the remaining partners would participate in cash distributions.

Cash Distribution Plan				Matt		Allen		Dave
Order of Cash Distribution		Liabilities		0.45		0.3		0.25
1. First $16,000		%		%		%		%
2. Next $9,000		%		%		%		%
3. Next $21,000		%		%		%		%
4. Remainder		%		%		%		%

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(a) Ef Collapse question part abadla to how how available cash would be distributed to the partners after creditors are paid in full. Loss Absorption Potential Matt Allen Assets Distribution Allen Dave Matt + State which partner would receive the first cash available and at what point and to what degree each of the remaining partners would participate in cash distributions. Cash Distribution Plan Order of Cash Distribution Matt 0.45 Allen 0.3 Dave 0.25 Liabilities 1. First $16,000 % % % % 2. Next $9,000 % % % % 3. Next $21,000 % % % % 4. Remainder % % % %