28.rersip ofi Alex and Ned has the fol The partnership of Robbi, Alex, and Ned h

Question

28.rersip ofi Alex and Ned has the fol The partnership of Robbi, Alex, and Ned has the following trial balance on September 30, 20X9: Debit Credit Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Rachel, Capital Adams, Capital Nixon, Capital Total $20,000 30,000 35,000 215,000 $40,000 120,000 90,000 50,000 $300,000 $300,000 The partners share profits and losses as follows: Robbi, 50 percent; Alex, 30 percent, and Ned, 20 percent. The partners are considering an offer in which the cash will be paid to creditors and then to the partners in installments. The partners wish to keep $5,000 on hand to pay for potential liquidation expenses. Required: (6 pts) Prepare a cash distribution plan as of September 30, 20x9, showing how much cash each partner will receive if the offer to sell the assets is accepted.

Explanation / Answer

Cash available for distribution to partners Cash 20000 Accounts Receivable(Net) 30000 Inventory 35000 Plant & Equipment 215000 Less : Accounts payable -40000 260000 Less : Potential liquidation expenses -5000 Cash available for distribution to partners 255000 To be divided in the ratio of 50:30:20 Rachel Robbie 50 127500 Adams Alex 30 76500 Nixon Ned 20 51000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.