=+c. The income-sharing ratio of Rao, Sails, and Hancock is to be 2:1:1.

The post-closing trial balance of Rao and Sails as of April 30 is as follows:

Rao and Sails Post-Closing Trial Balance April 30, 2010 Debit Credit Balances Balances Cash 7,500 Accounts Receivable 38,400 Allowance for Doubtful Accounts 1,400 Merchandise Inventory 59,000 Prepaid Insurance 2,200 Equipment 165,000 Accumulated Depreciation—Equipment 51,700 Accounts Payable 9,000 Notes Payable 10,000 Sadhil Rao, Capital 110,000 Lauren Sails, Capital 90,000 _______ _______ 272,100 272,100 _______ _______ _______ _______ Instructions