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

Assets Cash Adams, Loan Other Assets $ 42,000 10,400 204,000 Liabilities and Capital Liabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities & Equities $ 49,000 57,200 78,000 72,200 $256,400 Total Assets $256,400 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 $ 0 $ 0 $ Loss absorption potential Decrease highest LAP to next highest: $ 0 $ 0 $ 0 $ 0 $ 0 Decrease LAPs to next highest: $ 0 $ 0 $ 0 $ 0 $ 0