Windl, Houghton, and Pesowski decided to liquidate their partnership on October 1. Before the noncash assets were sold, the capital account balances were Windl, $86,250; Houghton, $34,500; and Pesowski, $51,750. The partners divide profits and losses equally. After the noncash assets are sold and the liabilities are paid, the partnership has $172,500 of cash.
Instructions
(a) How much cash will each partner receive in the final liquidation?
(b) Assume instead that there is $139,500 of cash after the noncash assets are sold and the liabilities are paid. How much cash will each partner receive?