Case 1 Requirement a.

a) Collection on accounts receivable

b) Sale of inventory
c) Sale of equipment
d) Liquidation expenses
Net Cash Proceeds
Carrying Amount of Non-cash assets
Total Loss on Sale

Case 2 Requirment a.

a) Collection on accounts receivable

b) Sale of Inventory
c) Sale of equipment
d) Actual liquidation expenses
e) Estimated liquidation expense
f) Cash retained for future expenses
Net cash proceeds
Carrying amount of all non-cash assets
Total Loss

Case 3 Requirement a.

a) Collection on accounts receivable

b) Sale of Inventory
c) Sale of equipment
d) Actual liquidation expenses
e) Estimated liquidation expense
f) Cash retained for future expenses
Net cash proceeds
Carrying amount of all non-cash assets
Total Loss

Case 4 Requirement a.
 a) Collection on accounts receivable
b) Sale of Inventory
c) Sale of equipment
d) Actual liquidation expenses
e) Estimated liquidation expense
f) Cash retained for future expenses
Net cash proceeds
Carrying amount of all non-cash assets
Total Loss

Case 5 Requirement a.

Partner A Partner B
Capital balances 400,000.00 450,000.00
Payable to A (right to offset) 50,000.00
Total 450,000.00 450,000.00
P/L Ratios 40% 40%
Maximum loss absorption capacity 1,125,000.00 1,125,000.00
Rankings 2nd 2nd

Requirment b.

Partner A Partner B
MLAC 1,125,000.00 1,125,000.00
Difference between 1st and 2nd
Total 1,125,000.00 1,125,000.00
Difference between 1st, 2nd, and 3rd 0.00
Equal balance of MLAC 1,125,000.00 1,125,000.00

Case 6 Requirement a.

a) Collection on accounts receivable

b) Sale of Inventory
c) Sale of equipment
d) Actual liquidation expenses
e) Estimated liquidation expense
f) Cash retained for future expenses
Net cash proceeds
Cash, beg.
Accounts Payable
Cash Available for distribution to partners
 Requirement b.
Ratio 40:40:20
130,000.00
200,000.00 Partner A Partner B
590,000.00 Capital balances 400,000.00 450,000.00
(5,000.00) Payable to A (right to offset) 50,000.00
915,000.00 Total 450,000.00 450,000.00
(1,200,000.00) Allocation of loss (114,000.00) (114,000.00)
(285,000.00) Amt.received by the partners 336,000.00 336,000.00

Requirment b.

60,000.00
40,000.00 Partner A Partner B
220,000.00 Capital balances 400,000.00 450,000.00
(2,000.00) Payable to A (right to offset) 50,000.00
(3,000.00) Total 450,000.00 450,000.00
(10,000.00) Allocation of loss (358,000.00) (358,000.00)
305,000.00 Amt.received by the partners 92,000.00 92,000.00
(1,200,000.00)
(895,000.00)

Requirment b.
Ratio 40:40:20
20,000.00
10,000.00 Partner A Partner B
50,000.00 Capital balances 400,000.00 450,000.00
(2,000.00) Payable to A (right to offset) 50,000.00
(3,000.00) Total 450,000.00 450,000.00
(10,000.00) Allocation of loss (454,000.00) (454,000.00)
65,000.00 Total (4,000.00) (4,000.00)
(1,200,000.00) Additional investment by
(1,135,000.00) solvent partner 4,000.00 4,000.00
Amt.received by the partners 0.00 0.00

Requirment b.
 20,000.00 Partner A Partner B
10,000.00 Capital balances 400,000.00 450,000.00
50,000.00 Payable to A (right to offset) 50,000.00
(2,000.00) Total 450,000.00 450,000.00
(3,000.00) Allocation of loss (454,000.00) (454,000.00)
(10,000.00) Total (4,000.00) (4,000.00)
65,000.00 Allocation of capital deficiency to
(1,200,000.00) solvent partner 4,000.00 4,000.00
(1,135,000.00) Amt.received by the partners 0.00 0.00

Requirement c.
Cash Priority Program
Partner C
250,000.00 Partner A Partner B
Rank of Payment 2nd 2rd
250,000.00 1st Priority
20%
1,250,000.00 Totals 0.00 0.00
1st

Partner C
1,250,000.00
(125,000.00)
1,125,000.00
0.00
1,125,000.00

Requirement b.
Ratio: 50:40:10
60,000.00 Partner A Partner B
40,000.00 Available cash
220,000.00 Allocation:
(2,000.00) 1st priority:
(3,000.00) Balance
(10,000.00) 2nd priority
305,000.00 Balance
 50,000.00 Payment after priority 92,000.00 92,000.00
(100,000.00) 1st Installment payment 92,000.00 92,000.00
255,000.00
 Partner C Totals
250,000.00 1,100,000.00
50,000.00
250,000.00 1,150,000.00
(57,000.00) (285,000.00)
193,000.00 865,000.00

Partner C Totals
250,000.00 1,100,000.00
50,000.00
250,000.00 1,150,000.00
(179,000.00) (895,000.00)
71,000.00 255,000.00

Partner C Totals
250,000.00 1,100,000.00
50,000.00
250,000.00 1,150,000.00
(227,000.00) (1,135,000.00)
23,000.00 15,000.00

8,000.00
23,000.00 23,000.00
 Partner C Totals
250,000.00 1,100,000.00
50,000.00
250,000.00 1,150,000.00
(227,000.00) (1,135,000.00)
23,000.00 15,000.00

(8,000.00)
15,000.00 15,000.00

Partner C
1st
25,000.00

25,000.00

Partner C Total
255,000.00

25,000.00 (25,000.00)
230,000.00
0.00 0.00
230,000.00
46,000.00 (230,000.00)
71,000.00 0.00