The highly successful law firm of Lie, Cheet and Steele has been serving clients for 40 years but now it is ending as the 3 lawyers are retiring. On January 1, 2022 Lie, Cheet, and Steele have the following balance sheet: Cash $40,000 a/p 200000 a/r $90,000 notes payable 100000 equipment $150,000 Land $300,000 total liabilities: 300000 building $200,000 Lie Capital 100000 total assets $780,000 Cheet Capital 80000 Steele Capital 600000 Lie Cheet and Steele distribute profits and losses Lie: 30% Cheet 45% and Steele 25% On January 1st, what safe payments can any of the partners take?

Answer rating: 100% (QA)

Calculation for availability of safe cash on April 1 Beg balance of cash Jan 12022 Proceed ... View the full answer