Statement of LLC Liquidation 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 $12,400 Torres 28,800 Hearst 17,900 Total $59,100 In winding up operations during the month of August, noncash assets with a book value of $77,800 are sold for $96,500, and liabilities of $25,900 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $7,200. 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 "O". 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 Cash + Assets = Liabilities + Balances before realization 7,200 77,800 $ 25,900 12,400 28,800 17,900 Sale of assets and division of gain 96,500 -77,800 Balances after realization $ 103,700 $ 0 $ $ Payment of liabilities Balances after payment of liabilities $ $ Distribution of cash to members goo Final balances Feedback Check My Work 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. Feedback Check My Work b. Record the cash and adjust the appropriate capital accounts. 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 on the realization of asset sales. It used for the final distribution