Illustrative problem:

NON CASH ASSETS 151,500.00

LIABILITIES 70,000.00
TIC, LOAN 5,000.00
TAR, LOAN 2,500.00
TIC, CAPITAL 22,000.00 40%
TAC, CAPITAL 21,500.00 20%
TOE, CAPITAL 20,500.00 20%
TAR, CAPITAL 10,000.00 20%
151,500.00

4T PARNERSHIP
CASH PRIORITY PROGRAM
JULY 1, 2019 PAYMENT TO
TIC TAC TOE TAR TIC
CAPITAL BALANCES 22,000.00 21,500.00 20,500.00 10,000.00
LOAN 5,000.00 2,500.00
TOTAL INTEREST 27,000.00 21,500.00 20,500.00 12,500.00
DIVIDED BY P/L RATIO 40% 20% 20% 20%
LOSS ABSORPTION CAPACITY 67,500.00 107,500.00 102,500.00 62,500.00
PRIORITY I - 5,000.00
BALANCES 67,500.00 102,500.00 102,500.00 62,500.00
PRIORITY II - 35,000.00 - 35,000.00
BALANCES 67,500.00 67,500.00 67,500.00 62,500.00
PRIORITY III - 5,000.00 - 5,000.00 - 5,000.00 2,000.00
TOTAL 62,500.00 62,500.00 62,500.00 62,500.00 2,000.00

Priority IV further cash

distribution will be made in the
p/l ratio 40% 20% 20% 20%

AUGUST
CASH BALANCE 5,000
CASH TIC TAC TOE TAR
CASH BALANCE available 5,000.00
PRIORITY 1 - 1,000.00 1,000.00
PRIORITY II-PARTIAL PAYMENT - 4,000.00 2,000.00 2,000.00
3,000.00 2,000.00 -

SEPT. CASH AVAILABLE 15K

CASH TIC TAC TOE TAR
CASH BALANCE 15,000.00
PRIORITY II-FULL PAYMENT - 10,000.00 5,000.00 5,000.00
PRIORITY III-FULL PAYMENT - 4,000.00 2,000.00 1,000.00 1,000.00
FURTHER DISTRIBUTION-P/L
RATIO - 1,000.00 400.00 200.00 200.00 200.00
2,400.00 6,200.00 6,200.00 200.00
PAYMENT TO PARTNERS
LOAN 2,400.00
CAPITAL 6,200.00 6,200.00

OCT -25,000
CASH TIC TAC TOE TAR
CASH BALANCE 25,000.00
BASED ON P/L RATIO - 25,000.00 10,000.00 5,000.00 5,000.00 5,000.00

PAYMENT TO PARTNERS 10,000.00 5,000.00 5,000.00 5,000.00

PAYMENT TO
TAC TOE TAR TOTAL

1,000.00 1,000.00

7,000.00 7,000.00 14,000.00

1,000.00 1,000.00 4,000.00

9,000.00 8,000.00 - 19,000.00