1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ivenika [448]
3 years ago
8

Steve Queen and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Stevens of $117,150.

Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Queen and Stevens, 1:2. Queen and Stevens had $75,000 and $105,000, respectively, in their January 1 capital balances. Net income for the year was $213,000. How much is distributed to Queen and Stevens?\
Business
1 answer:
Dmitriy789 [7]3 years ago
5 0

Answer:

Queen $32,850

Stevens $180,150

Explanation:

                                             Queen        Stevens           Net Income

                                                                                      available (distributed)

Net Income                                                                          $213,000

Interest on Capital (6%)       $4,500         $6,300              <u>($10,800)</u>

                                                                                             $202,200

Salary Allowance                                      $117,150             <u>($117,150)</u>

                                                                                              $85,050

Remaining $85,050            $28,350        $56,700           ($65,050)

(in ratio 1:2)

Total Net Income                $32,850         $180,150              ($0)

distributed

You might be interested in
American​ Exploration, Inc., a natural gas​ producer, is trying to decide whether to revise its target capital structure. Curren
Marat540 [252]

Answer:

a) 9.00 %

b) 7.80 %

c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough

d) 9.00  %

e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs

Explanation:

a)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.5

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight = 0.5

WACC = 0.12(0.5) + 0.06(0.5)

WACC 9.00000%

c)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.12

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.12(0.3) + 0.06(0.7)

WACC 7.80000%

d)

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

<em>Ke 0.16</em>

Equity weight 0.3

Kd(1-t) = after tax cost of debt = 0.06

Debt Weight 0.7

WACC = 0.16(0.3) + 0.06(0.7)

WACC 9.00000%

3 0
3 years ago
When using the needs approach, several "special needs" should be considered. One special need is money to cover unexpected event
12345 [234]

Answer:

Emergency fund.

Explanation:

Emergency funds are money that we keep on hand in case of unforeseen events. It may cover car repairs, unforeseen buying, medical bills and so on.

It is important to hold some emergency funds so as to avoid being stranded with no access touch needed resources.

Also emergency funds can be saved over time in case of job loss, having some back-up funds to use in the meantime will be a wise strategy.

3 0
3 years ago
1. The planned effort to present a unique image through newspapers, community events, and other visible
Alexus [3.1K]
Five is C four is C threes is B two is D one is C
6 0
3 years ago
Read 2 more answers
The physical flow reconciliation is a report that:
Diano4ka-milaya [45]

Answer: The correct answer is "A. reconciles the physical units started in a period with the physical units completed in that period.".

Explanation: The physical flow reconciliation: reconciles the physical units started in a period with the physical units completed in that period.

Through this process it is possible to control, how many units are started in a period and how many are finished in that period.

5 0
3 years ago
Which of these is the concept that a unit's sales will follow an approximate bell-shaped curve versus a steady sales life?
zhannawk [14.2K]

Answer: Product Life cycle

Explanation: Product Life cycle is a concept used to describe the various stages which a product will have to undergo from the time of introduction into the market till the time it will eventually be out of the market. Different products have different life cycle,the life cycle is determined by different factors. The shape of a product's life cycle is that of a BELL SHAPE

The stages include Introductory stage, Growth stage, Stabilization stage and decline stage.

8 0
3 years ago
Other questions:
  • Which of the following is a measure of liquidity?
    11·1 answer
  • Wexler, Inc.’s income statement showed total expenses for the year to be $50,000. If the company’s revenues for the year were $1
    10·1 answer
  • Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (20,000 uni
    15·1 answer
  • Taking a self-assessment test is a good way to learn about your self and careers that are suitable for you answer.
    14·1 answer
  • The following data is available for Box Corporation: Common stock, par $10 (authorized 30,000 shares) $250,000 Treasury stock (a
    5·1 answer
  • Ralph Lauren sells suits and ties. Suits sell for $1000 each, and cost $300 in variable expenses to make each. Ties sell for $10
    15·1 answer
  • Dobbs Company issues 6%, two-year bonds, on December 31, 2018, with a par value of $106,000 and semi-annual interest payments.
    11·1 answer
  • The annual global growth rate of the human population peaked in the ________ and has been declining ever since.
    13·1 answer
  • If a broker receives a due diligence fee from a buyer under the north carolina standard offer to purchase and contract, when can
    15·1 answer
  • an employee is taking cash and making up the difference by holding the deposit until the next cash receipts are received. the be
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!