Table 12-15
Martha, Queen and Stuart Are in the Process

question 104

Essay

Table 12-15
Martha, Queen and Stuart are in the process of liquidating their partnership. They share profits and losses in a 2:3:1 ratio. Following is the current balance sheet for the partnership:
$\begin{array}{llll}\text { Cash } & \$ 90,000 & \text { Liabilities } & \$ 80,000 \\\text { Other assets } & 200,000 & \text { Martha, capital } & 60,000\\&&\text { Queen, capital }&110,000\\&&\text { Stuart, capital }&40,000\end{array}$ Total assets $~~~~~~~~~~ \underline{\$290.000} ~~~~~~~~~~~~$ Total liabilities and canital $~~~~~~~~~~~~~ \underline{\$290.000}$
-Refer to Table 12-15 If the other assets are sold for $191,000 calculate the amount that will be received by each of the partners upon the liquidation of the partnership.

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Definitions:

Equilibrium

Equilibrium is a state in which all forces or influences are balanced, in economic terms, it refers to the point where supply equals demand, resulting in market stability.

Spending Multiplier

The ratio of the change in total output induced by an autonomous change in aggregate spending to the size of that autonomous change.

Output Changes

This term refers to variations in the level of production or output in an economy over a specific period.

Aggregate Demand Curve

A graphical representation showing the relationship between the total demand for all goods and services in an economy and the overall price level.