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Posted: July 17th, 2023

The of w, x, y, and z has the following balance sheet:

the of w, x, y, and z has the following balance sheet:cash - 30,000 liabilities - 42,000other assets - 220,000 w, capital(50% of profits and losses) - 60,000 x, capital(30%) - 78,000 y, capital(10%) - 40,000 z, capital(10%) - 30,000Z is personally insolvent, and one of his creditors is considering suing the partnership for the $5,000 that is currently due. The creditor realizes that liquidations could result from this litigation and does not wish to force such an extreme action unless the creditor is reasonably sure of getting the money that is due. If the partnership sells the other assets, how much money must it receive to ensure that $5,000 would be available from Z's portion of the business? Liquidation expenses are expected to be $15,000.

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