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 $28,200 Torres 65,200 Hearst 40,500 Total $133,900 In winding up operations during the month of August, noncash assets with a book value of $176,200 are sold for $218,500, and liabilities of $57,400 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $15,100. 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 Equity Torres (2/5) + Member Equity Hearst (1/5) Member Equity Lester (2/5) + $ 28,200 Cash + 15,100 218,500 Liabilities + $ 57,400 Balances before realization $ Noncash Assets = 176,200 176,200 $ $ 65,200 $ 40,500 Sale of assets and division of gain + Balances after realization 57,400 233,600 -57,400 Payment of liabilities -57,400 -57, Balances after payment of liabilities $ 176,200 Distribution of cash to members -176,200 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. Lester, Member Equity Torres, Member Equity Hearst, Member Equity Cash c. What is the role of the income- and loss-sharing ratio in liquidating a LLC? The income- and loss-sharing ratio is only used to determine the amount of cash to distribute on the realization of asset sales. It is used for the final distribution