A,B and C Have a Partnership as Follows Partner C Retires and the Partnership Pays Him $45,000

question 2

Multiple Choice

A,B and C have a partnership as follows:
$$\begin{array} { | l | l | l | l | } \hline & \text { A } & \text { B } & \text { C } \\\hline \text { Capital balances } & \$ 60,000 & \$ 150,000 & \$ 40,000 \\\hline \text { Profit/Loss percent } & 30 \% & 40 \% & 30 \% \\\hline\end{array}$$
Partner C retires and the partnership pays him $45,000.what is the balance is Partner A Capital account after the sale and assuming Goodwill is recognized by all of the partners

• A)$100,000
• B)$72,000
• C)$65,000
• D)$75,000

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Definitions:

Total Assets

The sum of all owned resources (assets) that have economic value which a company or individual possesses.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its price.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for sales made on credit.