Cash Distribution Plan At the time they decided to liquidate their partnership, Whitehead, Ellis and Riley had capital balances of $120,000, $96,000 and $160,000, respectively. Liabilities were $76,800 and the balance sheet showed a note receivable from Ellis in the amount of $64,000. The partners share income in a 5:3:2 ratio. X X X 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 $ x $ x $ Deduct loan receivable 0 0 Pre-liquidation balances $ X $ x $ Standardized capital balances $ X $ X (a) Equalize Whitehead and Riley 0 0 $ X $ x $ (b) Equalize Whitehead, Ellis & Riley X 0 $ * $ x $ X Convert equalization adjustments - (a) $ 0$ 0$ X Convert equalization adjustments - (b) $ x $ 0$ X X X X First $ Next $ Cash Distribution Plan: x to creditors x to Riley x to Whitehead and Riley in a 5:2 ratio * to Whitehead, Ellis and Riley in a 5:3:2 ratio Next $ $ Cash over $