The after-closing trial balance of the Lin, Mary, and Nell partnership at December 31, 2011, was as follows:

ADDITIONAL INFORMATION1. 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.REQUIRED1. Prepare a cash distribution plan for the Lin, Mary, and Nell partnership.2. If $25,000 cash is realized from the receivables and inventories during January 2012, how should the cash be distributed at the end of January? (Assume that this is the first distribution of cash during the liquidationperiod.)

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Debit Credit S 47,000 25,000 Cash Receivables-net Inventories 20.000 Plant assets-net Accounts payable Lin capital (50%) Mary capital (30%) Nell capital (20%) 50,000 $ 55,000 55.000 12,000 20.000 $142,000 Total $142,000