How much cash can safely be paid out to the partners

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The ABC Partnership has the following trial balance:

Cash 50,000

Inventory 60,000

PPE, net 400,000

Goodwill 90,000

Accounts payable 30,000

A, capital 300,000

B, capital 100,000

C, capital 170,000

A, B, and C share profits and losses in a 5:3:2 ratio.

Problem 1) How much cash can safely be paid out to the partners at the present time?

Problem 2) Refer to the previous question and create schedule of safe payments for answering questions 2 through 4. How much cash would "A" get at this time? If zero, write "0"

Problem 3) Refer to the previous question. How much cash would "B" get at this time? If zero, write "0"

Problem 4) Refer to the previous question. How much cash would "C" get at this time? If zero, write "0"

Reference no: EM132754377

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