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    Installment Liquidation

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    Vivienne Rozenn Layto
    The document summarizes the cash flows and asset liquidation of the AA BB CC Partnership from January to March 20x14. In January, the partnership collected accounts receivable and sold assets, paid down liabilities, and distributed $45,000 to partners with $10,000 remaining. In February, additional liquidation expenses were paid, leaving $6,000. In March, the final non-cash assets were sold for $146,000, expenses were paid, and the remaining $147,000 was distributed to partners, fully liquidating the partnership.

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    Installment Liquidation

    Uploaded by

    Vivienne Rozenn Layto
    49 views4 pages
    The document summarizes the cash flows and asset liquidation of the AA BB CC Partnership from January to March 20x14. In January, the partnership collected accounts receivable and sold assets, paid down liabilities, and distributed $45,000 to partners with $10,000 remaining. In February, additional liquidation expenses were paid, leaving $6,000. In March, the final non-cash assets were sold for $146,000, expenses were paid, and the remaining $147,000 was distributed to partners, fully liquidating the partnership.

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    Installment

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    Installment liquidation

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    The document summarizes the cash flows and asset liquidation of the AA BB CC Partnership from January to March 20x14. In January, the partnership collected accounts receivable and sold assets, paid down liabilities, and distributed $45,000 to partners with $10,000 remaining. In February, additional liquidation expenses were paid, leaving $6,000. In March, the final non-cash assets were sold for $146,000, expenses were paid, and the remaining $147,000 was distributed to partners, fully liquidating the partnership.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    49 views4 pages

    Installment Liquidation

    Uploaded by

    Vivienne Rozenn Layto
    The document summarizes the cash flows and asset liquidation of the AA BB CC Partnership from January to March 20x14. In January, the partnership collected accounts receivable and sold assets, paid down liabilities, and distributed $45,000 to partners with $10,000 remaining. In February, additional liquidation expenses were paid, leaving $6,000. In March, the final non-cash assets were sold for $146,000, expenses were paid, and the remaining $147,000 was distributed to partners, fully liquidating the partnership.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    of 4

    AA BB CC Partnership

    Statement of Partnership Realization and Liquidation


    January 1 to March 31, 20x14

    Cash Noncash Assets


    January
    Beginning Balance 18,000 307,000
    Collection of accounts receivable 51,000 (66,000)
    Sale of Asset 38,000 (52,000)
    Liquidation Expense (2,000) -
    Payment of liabilities (50,000) -
    Credit memorandum - -
    Balance 55,000 189,000
    Payment to partners (45,000) -
    Balance 10,000 189,000
    February
    Liquidation Expense (4,000) -
    Balance 6,000 189,000
    March
    Sale of Noncash asset 146,000 (189,000)
    Liquidation Expense (5,000) -
    Balance 147,000 -
    Payment to partners (147,000) -

    Schedule of Safe Payment


    January AA BB
    Capital balance 74,000.00 101,600.00
    Add (deduct) - -
    Total interest 74,000.00 101,600.00
    Possible Loss (99,500.00) (59,700.00)
    Balance (25,500.00) 41,900.00
    Additional Loss 25,500.00 (15,300.00)
    Balance - 26,600.00

    February
    Capital balance 72,000.00 73,800.00
    Add (deduct) - -
    Total interest 72,000.00 73,800.00
    Possible Loss (97,500.00) (58,500.00)
    Balance (25,500.00) 15,300.00
    Additional Loss 25,500.00 (15,300.00)
    Balance - -

    March
    Capital balance 48,000.00 59,400.00
    Add (deduct) - -
    Total interest 48,000.00 59,400.00

    Cash Priority Program


    AA BB
    Capital 88,000 110,000
    P&L Ratio 50% 30%
    Loss absorption balance 176,000 366,667
    Priority 1 - -
    Balance 176,000 366,667
    Priority 2 - 190,667
    Balance 176,000 176,000

    Cash Available AA
    January
    to CC 18,400
    to BB 26,600
    February - -
    March 51,000
    Balance 96,000 48,000
    Payment to partners 48,000
    Total 48,000
    CC Partnership
    hip Realization and Liquidation
    to March 31, 20x14
    Capital Balances
    50% 30% 20%
    Liabilities AA BB CC

    53,000 88,000 110,000 74,000


    - (7,500) (4,500) (3,000)
    - (7,000) (4,200) (2,800)
    - (1,000) (600) (400)
    (50,000) - - -
    (3,000) 1,500 900 600
    - 74,000 101,600 68,400
    - - (26,600) (18,400)
    - 74,000 75,000 50,000

    - (2,000) (1,200) (800)


    - 72,000 73,800 49,200

    (21,500) (12,900) (8,600)


    - (2,500) (1,500) (1,000)
    - 48,000 59,400 39,600
    - (48,000) (59,400) (39,600)

    CC
    68,400.00
    -
    68,400.00
    (39,800.00)
    28,600.00
    (10,200.00)
    18,400.00

    49,200.00
    -
    49,200.00
    (39,000.00)
    10,200.00
    (10,200.00)
    -

    39,600.00
    -
    39,600.00

    Cash Priority Program


    CC AA BB CC Total
    74,000 666.67 667
    20% -
    370,000 - 57,200 38,133.33 95,333
    3,333 - 57,200 38,800.00 96,000
    366,667
    190,667
    176,000

    BB CC

    18,400
    26,600
    - -
    30,600 20,400
    28,800 19,200
    59,400 39,600
    86,000 58,000

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