When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a liquidator was appointed to wind up their business. the accounts showed cash, P70,000; other assets, P220,000; liabilities, P40,000; Conde's Capital, P142,000; and Dalmacio's Capital, P108,000. Because of the highly speacialized nature of the non cash assets, the liquidator anticipated that considerable time would be required to dispose them. the expenses of the liquidating business (advertising, rent, travel, etc) are estimated at P20,000 Determine the amoint of cash that can be distributed safely to each partner using the Safe Cash Distribution Method.
When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a liquidator was appointed to wind up their business. the accounts showed cash, P70,000; other assets, P220,000; liabilities, P40,000; Conde's Capital, P142,000; and Dalmacio's Capital, P108,000. Because of the highly speacialized nature of the non cash assets, the liquidator anticipated that considerable time would be required to dispose them. the expenses of the liquidating business (advertising, rent, travel, etc) are estimated at P20,000 Determine the amoint of cash that can be distributed safely to each partner using the Safe Cash Distribution Method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When Conde and Dalmacio, partners who share earnings equally, were incapacitated in an airplane accident, a liquidator was appointed to wind up their business. the accounts showed cash, P70,000; other assets, P220,000; liabilities, P40,000; Conde's Capital, P142,000; and Dalmacio's Capital, P108,000. Because of the highly speacialized nature of the non cash assets, the liquidator anticipated that considerable time would be required to dispose them. the expenses of the liquidating business (advertising, rent, travel, etc) are estimated at P20,000
Determine the amoint of cash that can be distributed safely to each partner using the Safe Cash Distribution Method.
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