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

Debit

Credit

Cash

$

7,200

Accounts Receivable (net)

38,000

Inventory

27,000

Plant and Equipment (net)

98,400

Accounts Payable

$

10,600

Pen, Capital

67,000

Evan, Capital

57,000

Torves, Capital

36,000

Total

$

170,600

$

170,600

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 $112,000 for the firm's accounts receivable, inventory, and plant and equipment as of June 30. The $112,000 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.