The DSV Partnership decided to liquidate as of June 30, 20X5. Its balance sheet as of this date follows: Assets Cash Accounts Receivable (net) Inventories DSV PARTNERSHIP Balance Sheet At June 30, 20X5 Property, Plant and Equipment (net) Total Assets Liabilities and Partners' Capital Liabilities: Accounts Payable Partners' Capital: D, Capital S, Capital V, Capital Total Capital $ 50,000 95,000 75,000 500,000 $ 720,000 $ 405,000 $ 100,000 140,000 75,000 315,000 Total Liabilities and Capital Additional Information $ 720,000 1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, follow: Personal assets Personal liabilities Personal net worth D $ 250,000 (270,000) $ (20,000) S $ 450,000 (420,000) $ 300,000 (240,000) $ 30,000 $ 60,000 2. The DSV Partnership was liquidated during the months of July, August, and September. The assets sold and the amounts realized follow: Month July Assets Sold Inventories Accounts receivable (net) August September Property, plant and equipment Inventories Accounts receivable (net) $ 25,000 10,000 Accounts receivable (net) $ 25,000 Property, plant and equipment 100,000 Carrying Amount $ 50,000 60,000 400,000 Amount Realized $ 45,000 40,000 305,000 $ 18,000 4,000 $ 10,000 45,000 3. The accounts payable of $405,000 was paid in July. Assume the following cash amounts were received during the months of July, August, and September from the sale of DSV Partnership's noncash assets: July August September $ 390,000 22,000 55,000 The partnership wishes to keep $10,000 of cash on hand at the end of both July and August to pay for unexpected liquidation expenses. It paid liquidation expenses of $2,500 at the end of each month, July, August, and September. D, S, and V share profits and losses in the ratio 50:30:20, respectively. Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. D Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highest LAP: Decrease S Decrease LAP to next highest level: Decrease S Decrease V Decrease LAPS by distributing cash in the Profit and Loss sharing ratio DSV PARTNERSHIP Cash Distribution Plan June 30, 20X5 Loss Absorption Power S Capital Balances V D S 50% 30% 20% $ $ 100,000 $ 75,000 140,000 0 $ $ 0 $100,000 $ 75,000 140,000 $ 0 $ 0 $ 0 $ 100,000 $ 75,000 140,000 % % < Required A Required B Prepare schedules showing how cash is distributed at the end of July, August, and September 20X5. Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar. DSV PARTNERSHIP Capital Account Balances June 30, 20X5, through September 30, 20X5 D S V Profit and loss ratio 50% 30% 20 % Preliquidation balances, June 30 $ 100,000 $ 140,000 $ 75,000 July loss on disposal of assets and payment of liquidation costs $ 100,000 $ 140,000 $ 75,000 July 31 distribution of available cash to partners (Schedule 1) in First layer: $ 100,000 $ 140,000 $ 75,000 August loss on disposal of assets and payment of liquidation costs $ 100,000 $ 140,000 $ 75,000 August 31 distribution of available cash to partners (Schedule 2) Remaining layer of which paid on July 31 Next layer: S V $ 100,000 $ 140,000 $ 75,000 September loss on disposal of assets and payment of liquidation costs $ 100,000 $ 140,000 $ 75,000 Distribution of D's deficit $ 100,000 $ 140,000 $ 75,000 September 30 distribution of available cash to partners (Schedule 3) Next layer of which paid on August 31 S V Postliquidation balances $ 100,000 $ 140,000 $ 75,000