The after-closing trial balance of the Lin, Mae, and Nel partnership at December 31, 2016, was as follows:

ADDITIONAL INFORMATION
1. The partnership is to be liquidated as soon as the assets can be converted into cash. Cash realized on conversion of assets is to be distributed as it becomes available, except that $10,000 is to be held to provide for contingencies during the liquidation period.
2. Profits and losses on liquidation are to be divided in the percentages indicated in the trial balance.
REQUIRED
1. Prepare a cash distribution plan for the Lin, Mae, and Nel partnership.
2. If $25,000 cash is realized from the receivables and inventories during January 2017, how should the cash be distributed at the end of January? (Assume that this is the first distribution of cash during the liquidation period.)

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Debit Credit Cash Receivables-net Inventories Plant assets-net Accounts payable Lin capital (50%) Mae capital (30%) Nel capital (20%) $ 47,000 25,000 20,000 50,000 55,000 55,000 12,000 20,000 $142,000 Total $142,000