Safe payments schedule
A condensed balance sheet with profit sharing percentages for the Evers, Freda, and Grace partnership on January 1, 2011, shows the following:
|
Cash |
$100,000 |
Liabilities |
$ 80,000 |
|
Other assets |
500,000 |
Evers capital (40%) |
100,000 |
|
Freda capital (40%) |
250,000 |
||
|
Grace capital (20%) |
170,000 |
||
|
$600,000 |
$600,000 |
On January 2, 2011, the partners decide to liquidate the business, and during January they sell assets with a book value of $300,000 for $170,000.
REQUIRED: Prepare a safe payments schedule to show the amount of cash to be distributed to each partner if all available cash, except for a $10,000 contingency fund, is distributed immediately after the sale.