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 Torres Hearst $26,000 60,200 37,400 Total $123,600 In winding up operations during the month of August, noncash assets with a book value of $162,800 are sold for $201,900, and liabilities of $54,400 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $15,200. 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 "0". Arcadia Sales, LLC Statement of LLC Liquidation For the Period August 1-31 Balances before realization Sale of assets and division of gain Balances after realization Member Member Member Equity Equity Equity Noncash Cash + Assets Liabilities + Lester (2/5)+ Torres (2/5)+ Hearst (1/5) 000 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 Arcadia Sales, LLC Statement of LLC Liquidation For the Period August 1-31 Noncash Cash + Assets Liabilities + Member Equity Member Member Equity Equity Lester (2/5)+ Torres (2/5)+ Hearst (1/5). b. Provide the journal entry for the final cash distribution to members. If an amount box does not require an entry, leave it blank. c. What is the role of the income- and loss-sharing ratio in liquidating an LLC? 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 Noncash Cash + Assets Liabilities + Equity Equity Equity Lester (2/5)+ Torres (2/5) + Hearst (1/5) b. Provide the journal entry for the final cash distribution to members. If an amount box does not require an entry, leave it blank. c. What is the role of the income- and loss-sharing ratio in liquidating an LLC? The income- and loss-sharing ratio is only used to the final distribution. on the realization of asset sales. It used for