Question: PROBLEM 5 -20 points The following balance sheet was prepared for ABC Partnership, whose partner's share net income and losses in the ratio of 3:1:1

PROBLEM 5 -20 points The following balance sheet was prepared for ABC Partnership, whose partner's share net income and losses in the ratio of 3:1:1 respectively: Cash $ 40,000 Liabilities $ 70,000 Other assets 140,000 Abe, Capital 50,000 Ben, Capital 50,000 Cher, Capital 10,000 Totals $180,000 $180,000 The partners liquidate the partnership. Other assets are realized for $80,000. Prepare a working paper to compute the amount of cash that may be paid to creditors and to partners at this time assuming that all partners are a) Solvent b) Insolvent

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