The partnership of W, X, Y, and Z has the following balance sheet: Cash $ 40,000 Liabilities $ 47,000 Other assets 257,000 W, capital (50% of profits and losses) 70,000 X, capital (30%) 90,000 Y, capital (10%) 50,000 Z, capital (10%) 40,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $15,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $15,000 would be available from Z’s portion of the business? Liquidation expenses are expected to be $25,000. (Do not round intermediate calculations.) Minimum amount:?????? I got 110,000. What is the answer?
The partnership of W, X, Y, and Z has the following balance sheet: Cash $ 40,000 Liabilities $ 47,000 Other assets 257,000 W, capital (50% of profits and losses) 70,000 X, capital (30%) 90,000 Y, capital (10%) 50,000 Z, capital (10%) 40,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $15,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $15,000 would be available from Z’s portion of the business? Liquidation expenses are expected to be $25,000. (Do not round intermediate calculations.) Minimum amount:?????? I got 110,000. What is the answer?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
| The |
| Cash | $ 40,000 | Liabilities | $ 47,000 |
| Other assets | 257,000 | W, capital (50% of |
70,000 |
| X, capital (30%) | 90,000 | ||
| Y, capital (10%) | 50,000 | ||
| Z, capital (10%) | 40,000 | ||
|
Z is personally insolvent, and one of his creditors is considering suing the partnership for the $15,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $15,000 would be available from Z’s portion of the business? Liquidation expenses are expected to be $25,000. (Do not round intermediate calculations.) |
|
Minimum amount:?????? I got 110,000. What is the answer? |
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