Partners Pat and Stacy have a coin$-$operated laundry business in a retail shopping center, PS$-2$ Laundry. The business has operated for several years with the partners sharing income equally. They employ two part$-$time workers to assist with routine operations. The part$-$time employees work alternating shifts and are only there if either Pat or Stacy is present. The laundry business is primarily a cash business. On alternate days each partner empties the coins from thelaundromats machines and deposits the money in the bank. The business was generating a healthy cash flow for several years. However, in the last $18$ months, cash flow declined precipitously. Stacy believes that the decline in cash is a result of collusion between the two part$-$time workers. Stacy assumes that the workers are somehow rigging the machines and requiring the customers to pay them directly. When Stacy shares these concerns with Pat, Pat assures Stacy that the part$-$time workers are not stealing money. Pat has been pocketing cash because of some personal financial problems related to a messy divorce and several failed investments. Pat is urging Stacy to sell out and liquidate their partnership. Pat believes that upon liquidation there will be enough cash to overcome the personal financial crisis and repay the cash that has beentaken from the business. Stacy is not aware of Pats financial problems. The following trial balance is prepared by the partners accountant.

Dr $($Cr$)$

Cash $$37,800$

Supplies and prepayments $2,500$Equipment $62,000$

Accumulated depreciation $(33,583)$Accounts payable $(4,950)$

Loan payable $(22,000)$

Sales $(23,620)$

Operating expenses $18,700$Depreciation expense $2,583$CapitalPat $(14,680)$

CapitalStacy $(24,750)$

Totals $$0$

DdD In addition, the partnership has a contractual lease on the building where the laundromat is located. The lease expires five years from now. The monthly payments of $$500$ are consistently made on time and recorded as part of operating expense. If the lease is terminated early, the lessor requires a $$2,000$ payment for early lease termination. Determine ending capital balances and prepare a cash distribution plan for the liquidation. Show calculations.