Hardin, Sutton, and Williams have operated a local business as a partnership for several years. All profits and losses have beenallocated in a 3:2:1 ratio, respectively. Recently, Williams has undergone personal financial problems, and is insolvent. To satisfyWilliams' creditors, the partnership has decided to liquidate.The following balance sheet has been produced:$ 10,000$ 80,000CashLiabilitiesNoncash assets227,000Hardin, capitalSutton, capital96,00045,00016,000williams, capitalTotal liabilities andTotal assets$237,000$237,000capitalDuring the liquidation process, the following transactions take place:- Noncash assets are sold for $116,000.Liquidation expenses of $12,000 are paid. No further expenses are expected.- Safe capital distributions are made to the partners.- Payment is made of all business liabilities.- Any deficit capital account balances are deemed to be uncollectible.Compute safe cash payments after the noncash assets have been sold and the liquidation expenses have been paid.Short AnswerToolbar navigationBI U S : E EA>!!

In case of liquidation of partnership business, the gains/losses arising on liquidation need to be…

Hardin, Sutton, and Williams have operated a local business as a partnership for several years. All profits and losses have been allocated in a 3:2:1 ratio, respectively. Recently, Williams has undergone personal financial problems, and is insolvent. To satisfy Williams' creditors, the partnership has decided to liquidate. The following balance sheet has been produced: $ 10,000 Liabilities $ 80,000 96,000 Cash Noncash assets 227,000 Hardin, capital Sutton, capital williams, capital Total liabilities and capital 45,000 16,000 Total assets $237,000 $237,000 During the liquidation process, the following transactions take place: - Noncash assets are sold for $116,000. - Liquidation expenses of $12,000 are paid. No further expenses are expected. - Safe capital distributions are made to the partners. - Payment is made of all business liabilities. - Any deficit capital account balances are deemed to be uncollectible. Compute safe cash payments after the noncash assets have been sold and the liquidation expenses have been paid. Short Answer Toolbar navigation

Hardin, Sutton, and Williams have operated a local business as a partnership for several years. All profits and losses have been allocated in a 3:2:1 ratio, respectively. Recently, Williams has undergone personal financial problems, and is insolvent. To satisfy Williams' creditors, the partnership has decided to liquidate. The following balance sheet has been produced: $ 10,000 Liabilities $ 80,000 96,000 Cash Noncash assets 227,000 Hardin, capital Sutton, capital williams, capital Total liabilities and capital 45,000 16,000 Total assets $237,000 $237,000 During the liquidation process, the following transactions take place: - Noncash assets are sold for $116,000. - Liquidation expenses of $12,000 are paid. No further expenses are expected. - Safe capital distributions are made to the partners. - Payment is made of all business liabilities. - Any deficit capital account balances are deemed to be uncollectible. Compute safe cash payments after the noncash assets have been sold and the liquidation expenses have been paid. Short Answer Toolbar navigation

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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