Hardin, Sutton, and Williams Have Operated a Local Business as a Partnership

question 62

Essay

Hardin, Sutton, and Williams have operated a local business as a partnership for several years. All profits and losses have been allocated in a 3:2:1 ratio, respectively. Recently, Williams has undergone personal financial problems, and is insolvent. To satisfy Williams' creditors, the partnership has decided to liquidate.
The following balance sheet has been produced:

During the liquidation process, the following transactions take place:
- Noncash assets are sold for $116,000.
- Liquidation expenses of $12,000 are paid. No further expenses are expected.
- Safe capital distributions are made to the partners.
- Payment is made of all business liabilities.
- Any deficit capital balances are deemed to be uncollectible.
Compute safe cash payments after the noncash assets have been sold and the liquidation expenses have been paid.

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Definitions:

Organization

A structured group of people who come together to achieve common goals through a coordinated effort.

Manager

A manager is someone responsible for directing and controlling the work and staff of a business, or a part of a business, to achieve set objectives.

Management Functions

The core roles and activities undertaken by managers, including planning, organizing, leading, and controlling, to achieve organizational goals.

Mintzberg's Managerial Roles

A framework that categorizes a manager's job into ten roles divided into three categories: interpersonal, informational, and decisional.