3 The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20X1, is 33.34 points Credit Skipped Debit $ 7,500 44,000 30,000 98,100 Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total eBook $ 11,100 70,000 59,500 39,000 $179,600 $179,600 Print Referencer 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent 3. The partners are considering an offer of $115,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $115,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. References Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell the assets. PET PARTNERSHIP Cash Distribution Plan June 30, 20X1 Loss Absorption Potential Pen Evan Torves Capital Accounts Evan Pen Torves % Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest: $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Decrease LAPs to next highest $ 0 $ 0 $ 0 $ 0 $ 0 $