The following balance sheet summary, together with residual profit sharing ratios, was developed on April 1, 2011, when the Dick, Frank, and Helen partnership began its liquidation:
|
Cash |
$140,000 |
Liabilities |
$ 60,000 |
|
Accounts receivable |
60,000 |
Loan from Frank |
20,000 |
|
Inventories |
85,000 |
Dick capital (20%) |
75,000 |
|
Plant assets—net |
200,000 |
Frank capital (40%) |
200,000 |
|
Loan to Dick |
25,000 |
Helen capital (40%) |
155,000 |
|
$510,000 |
$510,000 |
If available cash except for a $5,000 contingency fund is distributed immediately, Dick, Frank, and Helen, respectively, should receive:
a $0, $60,000, and $15,000
b $11,000, $22,000, and $22,000
c $0, $70,000, and $5,000
d $0, $27,500, and $27,500