Problem:
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, 00 in cash is received for the noncash assets. Floyd and DeWitt income ratios are 60% and 40%, respectively.
Requirement:
Question: Prepare a schedule of cash payments.
Note: Explain all steps comprehensively.