Question: **See question below. If you could please clearly show how the calculations and ratios are done so that I can understand and know how to
**See question below. If you could please clearly show how the calculations and ratios are done so that I can understand and know how to do it for myself. Thank you!
The following condensed balance sheet is for the partnership of Miller, Tyson, and Watson, who share profits and losses in the ratio of 6:2:2, respectively:
Cash $ 58,000 Liabilities $ 41,000
Other assets 118,000 Miller, capital 60,000
Tyson, capital 60,000
Watson, capital 15,000
Total assets $ 176,000 Total liabilities and capital $ 176,000
a. Assuming no liquidation expenses, calculate the safe payments that can be made to partners at this point in time.
b. For how much money must the other assets be sold so that each partner receives some amount of cash in a liquidation?
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