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 $19,100 Torres 44,100 Hearst 27,400 Total $90,600 In winding up operations during the month of August, noncash assets with a book value of $119,300 are sold for $147,900, and liabilities of $39,800 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $11,100. a. Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter "0". Arcadia Sales, LLC Statement of LLC Liquidation For the Period August 1-31 Member Member Member Equity Equity Equity Lester (2/5) + Torres (2/5) + Hearst (1/5) Noncash Assets = Cash + Liabilities + Balances before realization Sale of assets and division of gain + + + Balances after realization $ $ Payment of liabilities Balances after payment of liabilities $ $ $ Distribution of cash to members Final balances b. Provide the journal entry for the final cash distribution to members. For a compound transaction, if an amount box does not require an entry, leave it blank. 1110 c. What is the role of the income- and loss-sharing ratio in liquidating a LLC? on the realization of asset sales. It used for the final The income- and loss-sharing ratio is only used to distribution