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there are multiple questions based on the same information. pls solve if u can ** Use the following information for next 12 (twelve) questions ***
there are multiple questions based on the same information. pls solve if u can
** Use the following information for next 12 (twelve) questions *** Hardin, Sutton, and Williams, HSW, have operated a local business as a partnership for several years. All profits and losses have been allocated in a 6:3:1 ratio, respectively. Recently, the partnership has decided to liquidate its assets. The following balance sheet has been produced: Cash: Noncash assets: $10,000 227,000 Liabilities: $86,000 Hardin, Capital: $84,000 Sutton, Capital: $45,000 Williams, Capital: $22,000 Total Assets: $237,000 Total Liab/Capit. $237,000 During the liquidation process, the following transactions take place: - Liquidation expenses of $12,000 have to be paid. No further expenses are expected, - Any deficit capital balances are deemed to be uncollectible (insolvent). How much is the total amount that is considered to be the payment to external creditors before any partner can get any money back during liquidation? Select one: a. $86,000 O b. $12,000 O c. $98,000 O d. None of the above. Same information as above ** Which partner is considered to be the most vulnerable (.e. least ability to absorb possible losses) during the liquidation process? Select one: a Hardin b. Sutton. o c. Williams. d. Three partners share the same risk. ** Same information as above ** Which partner should get paid first based on pre-cash distribution plan? Select one: o a. Hardin b. Sutton. c. Williams. d. Three partners will get paid at the same time. ** Same information as above ** What is the major reason that some partners will be paid before the other ones during partnership liquidation? Select one: a. Partner who has the highest ending capital is compensated for the largest contribution. b. Partner who absorbs the highest risk is compensated for risk bearing. c. Partner who has the highest profit and loss ratio is compensated for the agree-upon partnership plan. d. Partner who is the most vulnerable is compensated for insolvency. ** Same information as above ** How much is the amount will be paid to the first partner after settling down external creditors? Select one: a. $7,000 b. $3,000. c. Some other amount. d. $10,000. Same information as above ** How much will Hardin get if part of non-cash assets would be sold for $93,000? Select one: a. $0. b. $2,500 C. $3,000 d. $5,000 ** Same information as above ** How much will Williams get if part of non-cash assets would be sold for $111,000 (note there is cash available before liquidation)? Select one: a. $12,500 b. $11,000 c. $Some other amount. d. $7,000Step by Step Solution
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