D1. Required:Prepare a cash distribution plan as of June 30, 20X1, showing how much cash each partner will receive if the partners accept the offerto sell the assets.Profit and loss percentagesPreliquidation capital balancesLoss absorption potential (capital balances/loss percent)Decrease highest LAP to next highestDecrease LAPs to next highestPETPARTNERSHIPCash Distribution PlanJune 30, 20X1Loss Absorption PotentialEvanPenTorvesPen%Capital AccountsEvan%Torves 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, IsDebit$ 6,20020,00016,00099,100CashAccounts Receivable (net)InventoryPlant and Equipment (net)Accounts PayablePen, CapitalEvan, CapitalTorves, CapitalTotal$141,300Credit$ 11,20057,00047,10026,000$141,3002. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent.3. The partners are considering an offer of $102,000 for the firm's accounts receivable, inventory, and plant and equipment as of June30. The $102,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.

Calculation of Loss absorption potential Capital Balance Loss Percent Calculation of Loss absorption…

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. Profit and loss percentages Preliquidation capital balances Loss absorption potential (capital balances/loss percent) Decrease highest LAP to next highest PET PARTNERSHIP Cash Distribution Plan June 30, 20X1 Loss Absorption Potential Evan Pen Torves Pen Capital Accounts Evan Torves