Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows: Assets Cash Adams, Loan Other Assets Total Assets Liabilities and Capital $40,000 10,000 200,000 Liabilities Adams, Capital $50,000 55,000 Peters, Capital 75,000 Blake, Capital 70,000 $250,000 Total Liabilities & Equities $250,000 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. Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest: Decrease LAPs to next highest: Adams APB PARTNERSHIP Cash Distribution Plan Loss Absorption Potential Peters Blake Adams Capital Accounts Peters Blake