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: Cash Adams, Loan Other Assets Total Assets Assets Profit and loss percentages Preliquidation capital balances Loan to Adams Total Loss absorption potential Decrease highest LAP to next highest: Adams $ 44,000 10,800 208,000 $ 262,800 Decrease LAPs to next highest: 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. Adams Loss Absorption Potential Peters 297,000 Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities and Equities Liabilities and Capital $ 297,000 APB PARTNERSHIP Cash Distribution Plan 270,000 Blake 148,000 $ $ $ 297,000 $ 270,000 $ 148,000 $ $ 270,000 $ 148,000 $ Adams 20 % 59,400 (10,800) 48,600 48,600 48,600 Capital Accounts $ 48,000 59,400 81,000 74,400 $ 262,800 Peters $ $ 81,000 $ 30 % 0 $ 81,000 81,000 81,000 > Blake 50 % $ 74,400 0 $ 74,400 $ 74,400 $ 74,400

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: 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