8 00 Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:35. When they decide to liquidate, the balance sheet is as follows: 10 points Assets labilities and Capital Cash $44,000 Adams, Loan Other Assets 10,000 208,000 Liabilities Adams, Capital $ 48,000 59,400 Peters, Capital 81,000 Blake, Capital eBook Total Assets $ 262,800 Total Liabilities and Equities References 74,400 $262,000 Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business Required: Prepare a cash distribution plan for the APB Partnership. Please follow the practical guidelines when completing this worksheet APB PARTNERSHIP Cash Distribution Plan Profit and loss percentages Preliquidation capital balances Loan to Adams Adams Loss Absorption Potential Peters Capital Accounts Blake Adams 20 $ 59.400 Peters 30 % S61,000 Blake 50 $74,400 (10.000) Check m 8 00 APB PARTNERSHIP Cash Distribution Plan Luss Absorption Potential Return to question 10 points Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest Capital Accounts Adams Peters Blaks Adams Puters Blake 20 % 30% 50% $ 59,400 (10.000) 48,600 $ 81,000 $ 74,400 00 100 $ 81,000 14,400 297,000 270,000 148,800 $ 00 00 00 Adams (27,000) $270,000 00 (5.400) O 00 00 $270,000 $148.800 43.200 $ 81,000 $ 74,400 Decrease LAPs to next highest Adams Peters 00 (121,200) 00 00 00 (121,200) O 00 (24240) O 00 00 00 5 148,800 $ 148,300 $145,000 $ 18.960 (36,360) O 44,640 00 00 3 74,400