Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members equity prior to liquidation and asset realization on August 1 are as follows:

Lester	$47,790
Torres	56,410
Hearst	29,660
Total	$133,860

In winding up operations during the month of August, noncash assets with a book value of $141,110 are sold for $153,690, and liabilities of $33,840 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $26,590.

	Required:
a.	Prepare a statement of LLC liquidation.
b.	Provide the journal entry for the final cash distribution to members on August 31. Refer to the Chart of Accounts for exact wording of account titles.
c.	What is the role of the income- and loss-sharing ratio in liquidating a LLC?