Cash Distribution Plan At the time they decided to liquidate their partnership, Whitehead, Ellis and Riley had capital balances of $65,000, $45,000 and $80,000 respectively. Liabilities were $50,000 and the balance sheet showed a note receivable from Ellis in the amount of $30,000. The partners share income in a 5:3:2 ratio. Required Prepare a schedule showing how cash is to be distributed as it becomes available during the liquidation process. Remember to use negative signs with answers that reduce the capital balances. Whitehead Ellis Riley Capital balances per books $Answer 65,000 Correct $Answer 45,000 Correct $Answer 80,000 Correct Deduct loan receivable Answer 0 Correct Answer (30,000) Correct Answer 0 Correct Pre-liquidation balances $Answer 65,000 Correct $Answer 15,000 Correct $Answer 80,000 Correct Divide by income-sharing % Answer 75,000 Incorrect Answer (9,000) Incorrect Answer (6,000) Incorrect Standardized capital balances $Answer 15,000 Incorrect $Answer 0 Incorrect $Answer 0 Incorrect a. Equalize Whitehead and Riley Answer 0 Correct Answer 0 Correct Answer 0 Incorrect $Answer 0 Incorrect $Answer 0 Incorrect $Answer 0 Incorrect b. Equalize Whitehead, Ellis & Riley Answer 0 Incorrect Answer 0 Correct Answer 0 Incorrect $Answer 0 Incorrect $Answer 0 Incorrect $Answer 0 Incorrect Convert equalization balances back to actual balances: Whitehead Ellis Riley a. $Answer 0 Correct $Answer 0 Correct $Answer 0 Incorrect b. Answer 0 Incorrect Answer 0 Correct Answer 0 Incorrect Cash Distribution Plan: First $Answer 0 Incorrect AnswerCorrect Next $Answer 0 Incorrect AnswerCorrect Next $Answer 0 Incorrect AnswerCorrect Cash over $Answer 0 Incorrect AnswerCorrect