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The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:
cash- 100,000
non cash assets- 210,000
total-310,000
liabilities-40,000
keaton capital-90,000
lewis-60,000
meador-120,000
Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. The partnership feels confident it will be able to eventually sell the noncash assets and wants to distribute some cash before paying liabilities. How much would each partner receive of a total $60,000 distribution of cash?
Answer should be KEATON (40,000) LEWIS 0, MEADOR-20,000
Please explain and show your work.
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