25. The ACD partnership has decided to liquidate. At the time, the profit and loss ratios for Apple, Candy and Donut were 1:1:3. The balance sheet is below Cash Other assets S 50,000 Liabilities 150,000 A, Capital C, Capital D, Capital $ 55,000 40,000 60,000 45,000 A. Using the loss absorption potential system, determine how the partners will share in the distribution of cash Loss Absorption Potential ital P & L ratio LAP (capital/P&L) Loss Absorption Potential Asset Distribution P & L ratio LAP Net capital interest Distribution to C 100 x 0.2) Distribution to A & C 150 x 0.2) B. Prepare an advance plan for the distribution of cash Advance Cash Distribution Plan Liabilities Order of cash distribution