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 $14,700 34,100 Torres Hearst 21,200 Total $70,000 In winding up operations during the month of August, noncash assets with a book value of $92,100 are sold for $114,200, and liabilities of $30,800 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $8,700. 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 Liabilities Member Member Member Equity Equity Equity Lester Torres Hearst (2/5) + (2/5) + (1/5) Cash + Assets = 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. 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