The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information:

1. The partnerships trial balance on June 30, 20X1, is

	Debit				Credit
Cash		$	7,400
Accounts Receivable (net)			42,000
Inventory			29,000
Plant and Equipment (net)			98,200
Accounts Payable						$	11,100
Pen, Capital							69,000
Evan, Capital							58,500
Torves, Capital							38,000
Total		$	176,600			$	176,600

2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 25 percent; and Torves, 25 percent.
3. The partners are considering an offer of $114,000 for the firms accounts receivable, inventory, and plant and equipment as of June 30. The $114,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.

Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell the assets.

The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information: 1. The partnership's trial balance on June 30, 20x1, is Credit Debit $ 7,400 42,000 29,000 98,200 Cash Accounts Receivable (net) Inventory Plant and Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total $ 11,100 69,000 58,500 38,000 $176,600 $176,600 2. The partners share profits and losses as follows: Pen, 50 percent: Evan. 25 percent; and Torves, 25 percent. 3. The partners are considering an offer of $114.000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $114.000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. Required: Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offer to sell the assets. PET PARTNERSHIP Cash Distribution Plan June 30, 20X1 Loss Absorption Potential Pen Evan Torves Capital Accounts Evan Pen Torves 96 FR %6 Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances / loss percent) Decrease highest LAP to next highest: $ 0 $ 0 $ 0 $ 0 $ 0 $ Decrease LAPs to next highest $ 0 S 0 $ 0 0 S 0 $