Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, 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.Assume instead that the remaining inventory was sold for $10,000 in the second month.What payments will be made to Dennis and Lilly at the end of the second month?

Question

Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, 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.Assume instead that the remaining inventory was sold for $10,000 in the second month.What payments will be made to Dennis and Lilly at the end of the second month?

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The Answer of Partners Dennis and Lilly have decided to liquidate their business. The following information is available:
Dennis and Lilly share profits and losses in a 3:2 ratio. During the first month of liquidation, half the inventory is sold for $60,000, and $60,000 of the accounts payable is paid. During the second month, the rest of the inventory is sold for $45,000, 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.Assume instead that the remaining inventory was sold for $10,000 in the second month.What payments will be made to Dennis and Lilly at the end of the second month?

Partners Dennis and Lilly Have Decided to Liquidate Their Business