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				Liabilities and Capital
Cash	$	54,000		Liabilities	$	46,200
Adams, Loan		12,800		Adams, Capital		70,400
Other Assets		228,000		Peters, Capital		96,000
				Blake, Capital		82,200
Total Assets	$	294,800		Total Liabilities & Equities	$	294,800

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 Loss Absorption Potential Adams Peters Blake Capital Accounts Adams Peters % % Blake % Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest: S 0 S 0 S 0 S 0 S 0 S 0 S 0 S 0 $ 0 Decrease LAPs to next highest: S 0 S 0 S 0 0 S 0 S 0