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Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows: Lester $19,900 Torres 46,000 Hearst 28,600 Total $94,500 In winding up operations during the month of August, noncash assets with a book value of $124,200 are sold for $154,000, and liabilities of $40,900 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $11,200. Question Content Area a. Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter "0". Arcadia Sales, LLC Statement of LLC Liquidation For the Period August 1-31 Cash + Noncash Assets = Liabilities + Member Equity Lester (2/5) + Member Equity Torres (2/5) + Member Equity Hearst (1/5) Balances before realization $fill in the blank 24b59afde04202d_1 $fill in the blank 24b59afde04202d_2 $fill in the blank 24b59afde04202d_3 $fill in the blank 24b59afde04202d_4 $fill in the blank 24b59afde04202d_5 $fill in the blank 24b59afde04202d_6 Sale of assets and division of gain fill in the blank 24b59afde04202d_7 fill in the blank 24b59afde04202d_8 fill in the blank 24b59afde04202d_9 fill in the blank 24b59afde04202d_10 fill in the blank 24b59afde04202d_11 fill in the blank 24b59afde04202d_12 Balances after realization $fill in the blank 24b59afde04202d_13 $fill in the blank 24b59afde04202d_14 $fill in the blank 24b59afde04202d_15 $fill in the blank 24b59afde04202d_16 $fill in the blank 24b59afde04202d_17 $fill in the blank 24b59afde04202d_18 Payment of liabilities fill in the blank 24b59afde04202d_19 fill in the blank 24b59afde04202d_20 fill in the blank 24b59afde04202d_21 fill in the blank 24b59afde04202d_22 fill in the blank 24b59afde04202d_23 fill in the blank 24b59afde04202d_24 Balances after payment of liabilities $fill in the blank 24b59afde04202d_25 $fill in the blank 24b59afde04202d_26 $fill in the blank 24b59afde04202d_27 $fill in the blank 24b59afde04202d_28 $fill in the blank 24b59afde04202d_29 $fill in the blank 24b59afde04202d_30 Distribution of cash to members fill in the blank 24b59afde04202d_31 fill in the blank 24b59afde04202d_32 fill in the blank 24b59afde04202d_33 fill in the blank 24b59afde04202d_34 fill in the blank 24b59afde04202d_35 fill in the blank 24b59afde04202d_36 Final balances $fill in the blank 24b59afde04202d_37 $fill in the blank 24b59afde04202d_38 $fill in the blank 24b59afde04202d_39 $fill in the blank 24b59afde04202d_40 $fill in the blank 24b59afde04202d_41 $fill in the blank 24b59afde04202d_42 Question Content Area b. Provide the journal entry for the final cash distribution to members. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area c. What is the role of the income- and loss-sharing ratio in liquidating an LLC? The income- and loss-sharing ratio is only used to on the realization of asset sales. It used for the final distribution.

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