The following condensed balance sheet is presented for the partnership of Smith and Jones, who share profits and losses in the ratio of 60:40, respectively:
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|
Other assets |
$450,000 |
|
Smith, loan |
20,000 |
|
$470,000 |
|
|
Accounts payable |
$120,000 |
|
Smith, capital |
195,000 |
|
Jones, capital |
155,000 |
|
$470,000 |
The partners have decided to liquidate the partnership. If the other assets are sold for $385,000, what amount of the available cash should be distributed to Smith?
- $136,000
- $156,000
- $159,000
- $195,000