P 17-3

[Cash distribution plan]

Rama, Chakra, and Songkhla announced the liquidation of their partnership and they distribute all cash immediately using a cash distribution plan beginning on January 1, 2017. The partnership’s financial position and profit sharing on December 31, 2016, is as follows:

Cash $25,000 Accounts payable $10,000 Accounts receivable—net 15,000 Rama capital (24%) 45,000 Inventories 40,000 Chakra capital (32%) 55,000 Plant assets—net 60,000 Songkhla capital (44%) 65,000 Other assets 25,000 Loan to Chakra 10,000

$175,000 $175,000 588 CHAPTER 17 REQuIRED: Prepare a cash distribution plan as of January 1, 2017, for the Rama, Chakra, and Songkhla partnership.