P 17-7 Installment liquidation The after-closing trial balance of the Lin, Mae, and Nel partnership at December 31, 2016, was as follows:

Debit Credit Cash $ 47,000 Receivables—net 25,000 Inventories 20,000 Plant assets—net 50,000 Accounts payable $ 55,000 Lin capital (50%) 55,000 Mae capital (30%) 12,000 Nel capital (20%) 20,000 Total $142,000 $142,000 ADDITIONAL INFORMATION 1. The partnership is to be liquidated as soon as the assets can be converted into cash. Cash realized on conversion of assets is to be distributed as it becomes available, except that $10,000 is to be held to provide for contingencies during the liquidation period.

2. Profits and losses on liquidation are to be divided in the percentages indicated in the trial balance.

590 CHAPTER 17 REQuIRED 1. Prepare a cash distribution plan for the Lin, Mae, and Nel partnership.