Table 12-14
Sammy, Davis, and Junior Are in the Process

question 78

Essay

Table 12-14
Sammy, Davis, and Junior are in the process of liquidating their partnership. They share profits and losses in a 4:3:1 ratio. Following is the current balance sheet for the partnership:
$\begin{array}{lcll}\text { Cash } & \$ 290,000 & \text { Liabilities } & \$ 65,000 \\\text { Other assets } & 335,000 & \text { Sammv, capital } & 100,000\\&&\text { Davis, capital } & 400,000 \\&&\text { Iunior, capital } & 60,000\end{array}$ Total assets $\quad \$ 625,000 \quad\quad$ Total liabilities and capital $\quad\$ 625,000$
-Refer to Table 12-14 If the other assets are sold for $385,000 calculate the amount that will be received by each of the partners upon the liquidation of the partnership.

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Definitions:

Invoice

A document issued by a seller to a buyer that lists the products or services sold, their quantities, and the prices charged.

Supplier

A supplier is an entity or person that provides products or services to another business, often a key component in the supply chain of manufacturing and retail operations.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs of goods sold, such as rent, salaries, and utilities.

Sales Discounts

Price reductions offered by sellers to encourage prompt payment by buyers.