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 Equities Cash $ 44,000 Liabilities $ 48,000 Adams, 10,800 Adams, Capital 59,400 Loan Other 208,000 Peters, Capital 81,000 Assets Blake, Capital 74,400 Total Assets $262,800 Total Liabilities & Equities $262.800 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. Profit and loss percentages Preliquidation capital balances Loan to Adams Loss Absorption Potential Capital Accounts Adams Peters Blake Adams Peters Blake 20% 30% 50% $ $ 59,400 81,000 74,400 |(10,800) $ T $ 48,600 81,000 74,400 297,000 270,000 148,800 Total Loss absorption potential Decrease highest LAP to next highest: Adams 27,000 15,400 $ $ $ 270,000 270,000|148.800 43,200 | 81,000| 74,400 Decrease LAPs to next highest: Adams Peters 121,200 1 24.2401 121,200 40,560 $ $ $ $ $ ||$ | | 148.800l 148.800l 148.800l 18.9601 | 40.4401 1 74.4001