Note answer is not $124,500 Chapter 15 Homework G Help Save & Exit Submit Saved

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Note answer is not $124,500

Chapter 15 Homework G Help Save & Exit Submit Saved my work 9 The partnership of Winn, Xie, Yang, and Zed has the following balance sheet: Cash Other assets $ 40,000 Liabilities $ 66,000 108,080 84,080 50,000 48,000 10 points 300,000 Winn, capital (5e% of profits and losses) Xie, capital (38%) Yang, capital (1e%) Zed, capital (10%) eBook References Zed is personally insolvent, and one of his creditors is considering suing the partnership for the $10,000 that is currently owed. The creditor realizes that this litigation could result in partnership liquidation and does not wish to force such an extreme action unless Zed is reasonably sure of obtaining at least $10,000 from the liquidation. Determine the amount for which the partnership must sell the other assets to ensure that Zed recelves $10,000 from the liquidation? Liquidation expenses are expected to be $30,000. (Do not round intermediate calculations.) Reference links Mc

Explanation / Answer

TOTAL AMOUNT REQUIRED

LIABILITY PAYMENTS : $66000

LIQUIDATION EXPENSE : $30000

TOTAL : $96000

LESS: CASH AVAILABLE : $40000

NET CASH REQUIRED : $56000.

IT IS ASSUMED THAT AMOUNT $10000 OF THAT PARTICULAR CREDITOR IS ALREADY INCLUDED IN THE LIABILITIES MENTIONED IN THE QUESTION.

IF ASSUMED OTHERWISE

THEN REQUIRED AMOUNT = $56000+$10000 = 66000.

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