Cash Distribution Plan

Adams, Peters, and Blake share profits and losses for their APB Partnership in a ratio of 2:3:5. When they decide to liquidate, the balance sheet is as follows:

Assets

Liabilities and Equities

Cash

40,000

Liabilites

50,000

Adams, Loan

10,000

Peters, Capital

75,000

Blake, Capital

70,000

Total Assets

250,000

Total Liabilities and Equities

250,000

Liquidation expenses are expected to be negligible. No interest accrues on loans with partners after termination of the business.

Required

Prepare a cash distribution plan for the APB Partnership.