Sedgwick Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Floyd $45,000 and DeWitt $20,000. the firm is liquidated, and $105,000 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 60% and 40%, respectively.
Instructions
Prepare a schedule of cash payments
Solution
Sedgwick Company
Schedule of Cash Payments
Schedule of Cash Payments
