Answer case 7 use the data in case 1 as reference. Case 7: Cash priority programHalf of the accounts receivable was collected.will be liquidated on installment basis. In the first month ofDoouidation process, the non-cash assets were realized asfollows:a.Seventy-five percent of the inventory was sold at 80% of cost.Fquipment with carrying amount of P200,000 was sold forC.P185,000.P12,000 liquidation expenses were paid. Additional P5,000liquidationsubsequent periods.expenses are expected to be incurred inRequirement: Compute for the cash distributions to the partnersusing a cash priority program. Fact1. Done Partnership is undergoing liquidation. Information onDone is as follows:CashAccounts receivableReceivable from AInventoryEquipment, netTotal20,000 Accounts payable60,000 Payable to B10,000 A, Capital (60%)120,000 B, Capital (40%)290,000500,000 Total Liab. & Equity30,00020,000250,000200,000500,000Case 1: Lump-sum liquidationThe non-cash assets were realized as follows:. Only 70% of the accounts receivable was collected; the balanceis uncollectible.b. P20,000 was received for the entire inventory.c. The equipment was sold for P310,000.d. P12,000 liquidation expenses were paid.Requirement: Compute for the cash distributions to the partners.

Cash Priority Program: In a partnership liquidation, the distribution of funds to the partners is…

Case 7: Cash priority program Done will be liquidated on installment basis. In the first month of b. Seventy-five percent of the inventory was sold at 80% of cost. Half of the accounts receivable was collected. Doneidation process, the non-cash assets were realized as follows: a. * Seventy-five percent of the inventory was sold at 80% of cost. Equipment with carrying amount of P200,000 was sold for C. P185,000. P12,000 liquidation expenses were paid. Additional P5,000 liquidation expenses subsequent periods. are expected to be incurred in