Partners David and Goliath Have Decided to Liquidate Their Business

question 29

Multiple Choice

Partners David and Goliath have decided to liquidate their business.The following information is available:
David and Goliath share profits and losses in a 3:1 ratio,respectively.During the first month of liquidation,half the inventory is sold for $70,000,and $50,000 of the accounts payable are paid.During the second month,the rest of the inventory is sold for $55,000,and the remaining accounts payable are paid.Cash is distributed at the end of each month,and the liquidation is completed at the end of the second month.
-Refer to the information provided above.How much cash will be distributed to David at the end of the second month?

• A)$75,000
• B)$60,000
• C)$41,250
• D)$33,750