7. The partnership of Snap, Crackle, and Pop is in the process of being liquidated. The trial balance immediately after the sale of a portion of the noncash assets and full payment to outside creditors is as follows:

Cash $30,500

NR from Crackle 9,500

Non-cash assets 36,000

Loan, Snap $11,000

Capital, Snap 21,000

Capital, Crackle 12,000

Capital, Pop _______ 32,000

Totals $76,000 $76,000

A. Using the information provided, create the Schedule(s) of Safe Payments to determine how the following cash items should be distributed.

Determine who gets the $30,500 in cash.

Assume that $25,000 of the non-cash assets are sold for $20,000.

B. Using the information provided, create a Cash Distribution plan for the partnership.