Dailey Company at December 31 has cash $40,000, noncash assets $200,000, liabilities $110,000, and the following capital balances: Dickinson $90,000 and Meierhoff $40,000. The firm is liquidated, and $240,000 in cash is received for the noncash assets. Dickinson and Meierhoff income ratios are 60% and 40%, respectively.
Instructions
Prepare a cash distribution schedule.

Question

Quizplus · Accepted Answer

The Answer of Dailey Company at December 31 has cash $40,000, noncash assets $200,000, liabilities $110,000, and the following capital balances: Dickinson $90,000 and Meierhoff $40,000. The firm is liquidated, and $240,000 in cash is received for the noncash assets. Dickinson and Meierhoff income ratios are 60% and 40%, respectively.
Instructions
Prepare a cash distribution schedule.

Dailey Company at December 31 Has Cash $40,000, Noncash Assets