The RAM Company at December 31 has cash $100,000, noncash assets $280,000, liabilities $138,000, and the following capital balances: Rami $112,000, Ahmed $ 80,000 and Maher $50,000. The firm is liquidated, and $265,000 in cash is received for the noncash assets. Rami, Ahmed, and Maher income sharing ratios are 50%, 30%, and 20%, respectively. Required: At the end of the liquidation process, how much cash will Rami receive?
The RAM Company at December 31 has cash $100,000, noncash assets $280,000, liabilities $138,000, and the following capital balances: Rami $112,000, Ahmed $ 80,000 and Maher $50,000. The firm is liquidated, and $265,000 in cash is received for the noncash assets. Rami, Ahmed, and Maher income sharing ratios are 50%, 30%, and 20%, respectively. Required: At the end of the liquidation process, how much cash will Rami receive?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The RAM Company at December 31 has cash $100,000, noncash assets $280,000, liabilities $138,000, and the following capital balances: Rami $112,000, Ahmed $ 80,000 and Maher $50,000. The firm is liquidated, and $265,000 in cash is received for the noncash assets. Rami, Ahmed, and Maher income sharing ratios are 50%, 30%, and 20%, respectively.
Required: At the end of the liquidation process, how much cash will Rami receive?
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