Problem
Foster, Gabriel and Harper are in business as FGH Partnership. The partnership has the following balance sheet:
|
Assets
|
|
Liabilities
|
|
|
Cash
|
$ 10,000
|
Accounts payable
|
$ 20,000
|
|
Inventory
|
25,000
|
Bank loan payable
|
80,000
|
|
Equipment
|
365,000
|
Total liabilities
|
100,000
|
|
|
|
Capital
|
|
|
|
|
Foster
|
60,000
|
|
|
|
Gabriel
|
120,000
|
|
|
|
Harper
|
120,000
|
|
|
|
Total capital
|
300,000
|
|
Total
|
$400,000
|
Total
|
$400,000
|
The partners share income in a 2:2:1 ratio. In liquidation, what total amount of cash must be distributed to Gabriel and Harper before Foster receives a distribution?