How much cash should lola receive in the first distribution

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Reference no: EM133921810

Problem

Lola, Melvin, and Nettie are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available cash immediately, except for $12,000 that is set aside for contingent expenses. Get the instant assignment help. The balance sheet and residual profit and loss sharing percentages are as follows:

Cash                         $ 500,000 Accounts payable                    $ 225,000
Other assets             225,000                     Lola, capital (20%)                  168,000
                                                                Melvin, capital (30%)               270,000
                               ___________             Nettie, capital (50%)               62,000
Total assets              $ 725,000                  Total liab./equity                     $ 725,000

Using a safe payment schedule, how much cash should Lola receive in the first distribution?

Reference no: EM133921810

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