Partners David and Goliath Have Decided to Liquidate Their Business

question 14

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.Using a safe payment schedule,how much cash will be distributed to Goliath at the end of the first month?

• A)$7,500
• B)$25,000
• C)$47,500
• D)$72,500

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Definitions:

Antitrust Activities

Actions or practices that stifle competition, violate antitrust laws, and are aimed at establishing or maintaining a monopoly.

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