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	$ 36,000	Liabilities	$ 73,700
Adams, Loan	13,800	Adams, Capital	53,400
Other Assets	215,000	Peters, Capital	70,500
		Blake, Capital	67,200
Total Assets	$ 264,800	Total Liabilities and Equities	$ 264,800

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