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, 2016, are as follows: Lester $ 49,000 Torres 61,000 Hearst 27,000 Total $137,000 In winding up operations during the month of August, noncash assets with a book value of $146,000 are sold for $158,000, and liabilities of $35,000 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $26,000. Required: a. Prepare a statement of LLC liquidation. b. Provide the journal entry for the final cash distribution to members. 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?