Cash distribution plan
The December 31, 2011, balance sheet of the Chan, Dickerson, and Grunther partnership, along with the partners’ residual profit and loss sharing ratios, is summarized as follows:
|
Assets |
Equities |
$ 90,000 |
|
|
Cash |
$ 60,000 |
Accounts payable |
50,000 |
|
Receivables |
120,000 |
Loan from Dickerson |
95,000 |
|
Inventories |
150,000 |
Chan capital (20%) |
160,000 |
|
Due from Chan |
15,000 |
Dickerson capital (30%) |
205,000 |
|
Other assets |
255,000 |
Grunther capital (50%) |
$600,000 |
|
$600,000 |
The partners agree to liquidate their partnership as soon as possible after January 1, 2012, and to distribute all cash as it becomes available.
REQUIRED: Prepare a cash distribution plan to show how cash will be distributed as it becomes available.