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 $ 40, eee 1e, eee 2e2,eee Liabilities and capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities & Equities $ 50,000 55,800 75,880 70,000 $250,000 Total Assets $250, eee 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 20% 30 % $ 55,000 $ 75,000 (10,000) $ 45,000 $ 75,000 Blake 50 % $70,000 Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest: $70,000 S 0 S 0 S 0 $ 45,000 $ 75,000 $70,000 Decrease LAPs to next highest: S 0 S 0 s 0 $ 45,000 $ 75,000 $70,000