Cash distribution plan
Fred, Flint, and Wilma announced the liquidation of their partnership beginning on January 1, 2011. Profits and losses are divided 30 percent to Fred, 20 percent to Flint, and 50 percent to Wilma. Balance sheet items are summarized as follows:
|
Cash |
$ 45,000 |
Accounts payable |
$ 20,000 |
|
Accounts receivable—net |
25,000 |
Fred capital (30%) |
75,000 |
|
Inventories |
25,000 |
Flint capital (20%) |
30,000 |
|
Plant assets—net |
80,000 |
Wilma capital (50%) |
60,000 |
|
Flint loan |
10,000 |
$185,000 |
|
|
$185,000 |
REQUIRED : Prepare a cash distribution plan as of January 1, 2011, for the Fred, Flint, and Wilma partnership.