Harding, Jones, and Sandy are in the process of liquidating and the partners have the following capital balances; $24,000, $24,000, and ($9,000) respectively.

Harding, Jones, and Sandy are in the process of liquidating and the partners have the following capital balances; $24,000, $24,000, and ($9,000) respectively. The partners share all profits and losses 16%, 48%, and 36%, respectively. Sandy has indicated that the ($9,000) deficit will be covered with a forthcoming contribution. The remaining partners have requested to immediately receive $20,000 in cash that is available. How should this cash be distributed?

Solutions

Expert Solution

Hanson	James	Smith
24,000	24,000	-9000
16%	48%	36%
		-9000
20,000

16/(16+48%)=25.00%	48/(16+48%)=75.00%
24,000 + 24,000 + 20,000 =68,000
68,00025%=17,000*	68,000*75%=51,000
	24,000+24,000= 48,000
	51,000-48,000=3,000

ekkarill92 answered 2 years ago

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