1Cash78,000Liabilities 256,000** Liabilities are greater than the cash Other Assets580,000Nixon190,00050%658,000Cleveland 130,00030%Pierce 82,00020%658,000

Step 1Cap BalanceP/L RatioMax. LossNixonClevelandPierce Nixon190,00050%380,000Balance190,000130,00082,000Cleveland130,00030%433,333Ass. Loss (380)-190,000-114,000-76,000-380,000Pierce 82,00020%410,000Step 1 Bal. 016,0006,000Step 2Cap BalanceP/L RatioMax. LossNixonClevelandPierce Cleveland16,00060%26,667Balance016,0006,000Pierce 6,00040%15,000Ass. Loss (15)0-9,000-6,000-15,000Step 2 Bal. 07,0000$$$$$$$$$$Who is PaidFirst 256,000Liabilities Next7,000Cleveland Next15,000Cleveland 60%6,30013,300Pierce40%4,20017,50010,500

2Cash60,000Liabilities 50,000Non Cash120,000Babb, Cap60,00040%Whitaker, Cap20,00020%180,000Edwards, Cap50,00040%180,000Liquid Exp8,000CashNon CashLiabilities BabbWhitakerEdwards CheckBeg. Balance60,000120,00050,00060,00020,00050,0000Loss on NC0-120,0000-48,000-24,000-48,0000Liquidatoin Exp.-8,00000-3,200-1,600-3,2000Payment of Liab.-50,0000-50,0000000Potential Balance2,000008,800-5,600-1,2000W&E insolvent 000-6,8005,6001,2000Potential Balance2,000002,000000

3Cash100,000Liabilities 80,000Non Cash200,000Fred, Cap100,00060%300,000George, Cap120,00040%300,000Liquid. Exp10,000CashNon CashLiabilities Fred, CapGeorge, CapChecka.George, Cap10,000Beg. Balance100,000200,00080,000100,000120,0000Cash10,000Loss on Non$0-200,0000-120,000-80,0000Liquid Exp.-10,00000-6,000-4,0000b.Liabiliites 40,000Liabilities -80,0000-80,000000Cash40,000Pot. Balance10,00000-26,00036,0000Fred Insolvent 00026,000-26,0000c.Cash220,000Pot. Balance10,00000010,0000Non-Cash200,000Fred, Cap12,000CashNon CashLiabilities Fred, CapGeorge, CapCheckGeorge, Cap8,000Beg. Balance50,000200,00040,000100,000110,0000Gain on Non$220,000-200,000012,0008,0000Adj. Balance270,000040,000112,000118,0000Liquidation Exp.-10,00000-6,000-4,000Liabilities -40,0000-40,00000Pot. Balance220,00000106,000114,000

Maximum Liq. Exp.-8,00000-4,800-3,2000Fred, Cap106,000Potential Balance2,00000-4,8006,8000d. George, Cap114,000Fred Insolvent0004,800-4,8000Cash220,000Safe Balance 2,0000002,0000e.Liabiliites 40,000Cash40,000CashNon CashLiabilities Fred, CapGeorge, CapCheckBeg. Balance100,000200,00080,000100,000120,0000f. Fred,Cap4,800Distribution-10,000000-10,0000George, Cap3,200Paid Liabilities -40,0000-40,000000CashSold Non Cash220,000-200,000012,0008,0000g.8,000Updated Bal.270,000040,000112,000118,0000Fred, Cap-1,200Distribution -220,00000-106,000-114,0000George, Cap-800Updated Bal.50,000040,0006,0004,0000CashPaid Liabilities-40,0000-40,000000-2,000Paid Liq. Exp-8,00000-4,800-3,2000Updated Bal.2,000001,2008000Distribution-2,00000-1,200-8000Closing Balance000000

4Cash38,000Liabilities 49,000Other Assets255,000W, Cap68,00050%293,000X, Cap90,00030%Z needs 13,000Y, Cap48,00010%Creditors/Liquidation Exp72,000Z, Cap38,00010%Only Y10,000Y ZZ Needs 293,000Y and Z50/5016,0008,0008,0005,000X,Y,Z60/20/2092,000Collect 25,000WXYZRem.50/30/10/10Beg. Balance68,00090,00048,00038,000Minimum123,000Ass. Loss-68,000-40,800-13,600-13,600-136,000Step 1 Bal.049,20034,40024,400108,000Ass. Loss0-49,200-16,400-16,400-82,000Current cash goest to CreditorsSetp 2 Bal.0018,0008,00026,000Ass. Loss00-8,000-8,000-16,000Next 34 goes to creditors/Liq. Exp.Step 3 Bal0010,000010,00010 Y16 y/z8Step 1PartnerCap Bal.P/L %Max. LossW68,00050%136,000X90,00030%300,000Y48,00010%480,000Z38,00010%380,000Step 2PartnerCap Bal.P/L %Max. LossX49,20060%82,000Y34,40020%172,000Z24,40020%122,000Step 3PartnerCap Bal.P/L %Max. LossY18,00050%36,000Z8,00050%16,000

5Cash67,000Liabilities 41,000Non Cash267,000Frick, Cap159,00060%Total Assets334,000Wilson, Cap43,00020%Clarke, Cap91,00020%Total L&E334,000Frick, CapWilson, CapClarke, CapCashNoncashLiabilitiesFrickWilsonClarkeBeg. Bal159,00043,00091,000Beg. Bal67,000267,00041,000159,00043,00091,0000Ass. Loss-129,000-43,000-43,000-215,000Non Cash0-267,0000-160,200-53,400-53,400Step 1 Bal30,000048,000Paid Liab.-41,000-41,000Ass. Loss-30,0000-10,000-40,000Paid Liq. Exp-9,000-5,400-1,800-1,800Step 2 Bal0038,000-6,600-12,20035,800Ass. Loss00-38,000-38,000Step 3 Bal000PartnerCap BalP/L %Max. LossFrick159,00060%265,000Wilson 43,00020%215,000Clarke 91,00020%455,000PartnerCap BalP/L %Max. LossFrick30,00075%40,000Clarke 48,00025%192,000CashNon CashLiabilities FrickWilsonClarkeCheck1Beg. Balance67,000267,00041,000159,00043,00091,0000Distribution-17,000-17,0000Updated Bal50,000267,00041,000159,00043,00074,0000Non$ Sold 67,000-110,000-25,800-8,600-8,6000Updated117,000157,00041,000133,20034,40065,40002Cash67,000Liabilities Pd.-41,000-41,0000Frick25,800Updated Bal76,000157,0000133,20034,40065,4000Wilson8,600First-21,000-21,0000Clarke8,600Next-40,000-30,000-10,0000Non$ Assets110,000Next-6,000-3,600-1,200-1,2000Updated Bal9,000157,000099,60033,20033,20003Liabilities 41,000Non$ Sold59,000-157,000-58,800-19,600-19,6000Cash41,000Updated Bal68,0000040,80013,60013,6000Liquid Paid-7,000-4,200-1,400-1,40004Updated Bal61,0000036,60012,20012,2000Final Dist-61,000-36,600-12,200-12,2000End Balance 0000000

5Cash59,000Frick58,800Wilson19,600Clarke19,600Non$ Assets157,0006Liq. Exp.7,000Cash7,000

7Frick39,600Wilson13,200Clarke13,200Cash66,000

SIM

Cash40,000A/P340,000Inventory240,000H, Capital200,00050%Plant Assets600,000J, Capital180,00030%S, Capital160,00020%880,000880,000

H, CapJ, CapS, CapBeg. Bal200,000180,000160,000Ass. Loss (400K)-200,000-120,000-80,000Step 1 Bal060,00080,000Ass. Loss (100K)0-60,000-40,000Step 2 Bal0040,000

Step 1 PartnerCap BalP/L %Max. LossH200,00050%400,000J180,00030%600,000S160,00020%800,000

PartnerCap BalP/L %Max. LossJ60,00060%100,000S80,00040%200,000