Let the sisters have dollars in the amounts of a,b,c. 
After the youngest splits half of hers with the others, they have 
a/2, b+a/4, c+a/4 
After the middle gives each of the others 4, they have 
a/2 + 4, b+a/4 - 8, c+a/4 + 4 
After the eldest splits half of hers with the others, they have 
a/2 + 4 + (c+a/4 + 4)/4, b+a/4 - 8 + (c+a/4 + 4)/4, (c+a/4 + 4)/2 
Now they all have 16. 
a/2 + 4 + (c+a/4 + 4)/4 = 16 
b+a/4 - 8 + (c+a/4 + 4)/4 = 16 
(c+a/4 + 4)/2 = 16 
substituting in the last expression, we have 
a/2 + 4 + 8 = 16 
b + a/4 - 8 + 8 = 16 
c/2 + a/8 + 2 = 16 
a = 8 
b = 14 
c = 26