A partnership’s balance sheet is as follows:
Cash . . . . . . . . . . . . . . . . . $ 40,000 Liabilities . . . . . . . . . . . . . . . . . . . $ 70,000
Other assets . . . . . . . . . . . . 140,000 Miller, capital . . . . . . . . . . . . . . . 50,000
Tyson, capital . . . . . . . . . . . . . . . 50,000
Watson, capital . . . . . . . . . . . . . . 10,000
Total assets . . . . . . . . . . . $180,000 Total liabilities and capital . . . . $180,000
Cash . . . . . . . . . . . . . . . . . $ 60,000 Liabilities . . . . . . . . . . . . . . . . . . . $ 50,000
Noncash assets . . . . . . . . . . 120,000 Babb, capital . . . . . . . . . . . . . . . . 60,000
Whitaker, capital . . . . . . . . . . . . . 20,000
Edwards, capital . . . . . . . . . . . . . 50,000
Total assets . . . . . . . . . . . $180,000 Total liabilities and capital . . . . $180,000
Babb, Whitaker, and Edwards share profits and losses in the ratio of 4:2:4, respectively. This business is to be terminated, and the partners estimate that $8,000 in liquidation expenses will be incurred. How should the $2,000 in safe cash that is presently held be disbursed?