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
Anni [7]
3 years ago
5

On November 30, capital balances are Roses $299000, Ellis $258000 and Gise $258000. The income ratios are 20%, 20% and 60%, resp

ectively. Roses decides to retire from the partnership. The partnership pays Roses $342000 cash for her partnership interest. After Rose’s retirement, what is the balance of Ellis’s capital account?
Business
1 answer:
zmey [24]3 years ago
8 0

Answer:

$118,250

Explanation:

Provided Capital Balances

Roses $299,000

Ellis $258,000

Gise $258,000

Total Capital = $815,000

Cash paid to Roses on Retirement = $342,000

Balance of capital = $815,000 - $342,000 = $473,000

Ratio of sharing between Ellis and Gise will be

Rose's share = 20% will be divided in 20:60 i.e. 1:3

Ellis = 20 \times 1/4 = 5

Therefore, Ellis Share = 20 + 5 = 25%

Gise = 60 + 20 - 5 = 75%

Balance of capital = $473,000

Share of Ellis = 25% of $473,000 = $118,250

You might be interested in
Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rate
gayaneshka [121]

Answer:

The correct answer is C

Explanation:

Covered interest arbitrage (CIA), it is an strategy or tool of arbitrage trading, where the investor capitalizes on the rate of interest which is differential among two countries through using the forward contract for eliminate the exposure or cover to exchange the rate risk.

So, because of covered interest arbitrage, the market forces realign the cross exchange rate among two countries grounded on spot exchange rates of two currencies.

8 0
3 years ago
You have received a proposal for an RFP that was sent to suppliers. One of the vendors has proposed doing the project for $12,50
Ber [7]

Answer:

FIXED PRICE CONTRACT

Explanation:

The type of contract that is most suitable if the type of work is predictable and the requirements are well-defined and not likely to change is FIXED PRICE CONTRACT because it looks as if the vendor is asking for a cost-plus-fixed-fee contract. However, by asking for a fixed $12,500, the vendor is actually asking for a FIXED PRICE CONTRACT. The cost and fee are just the components the vendor has estimated to come up with a final price.

6 0
3 years ago
Making a down payment reduces the
levacccp [35]
<span>d. loan principle amount

The loan principle amount is the amount of money borrowed for the loan. Making the down payment 1) proves the creditworthiness and capability of the buyer and 2) the overall amount of money to payback.</span>
5 0
3 years ago
In what situations is top-down planning likely to be superior to bottom-up emergent strategy development
Marianna [84]

Answer is given below :

Explanation:

  • Both strategies aim to convey and process knowledge between and within the organization. The top-down approach for sub-categories to gain insights at the senior management level breaks down a system.
  • This is a great tool to help managers identify areas of improvement using quota and monthly matrix goals. There are flaws in this strategy, employees are not involved in the process and managers do not understand the full impact of the changes made.
  • Morality can be affected because this strategy is motivated by fear and encouragement. The bottom line is that in some cases it is more complex, although employees feel motivated to provide more authority and quality work. The information is processed to a minimum and communicated to management.
  • This may help in some areas because administrators may not fully understand the process. I should use the military as an example for a top down strategy.
  • It works on the battlefield when there is no time to discuss or motivate employees. Top down is used when there is a slight change in environmental factors.
5 0
3 years ago
Furnco sells secretarial chairs. Annual demand is normally distributed, with mean of 1,040 chairs and standard deviation of 50.9
kaheart [24]

Answer:

Reorder point is 40

Explanation:

Reorder point is the level of inventory which trigger the purchase of new inventory.

The formula for Reorder point is

Annual demand * Leadtime + Safety Stock

Reorder Point = 1040 / 365 * 14 days + 0

= 40.

The lost sales cost is $50 in goodwill, Furnco should keep a safety stock of at least 30 chairs in order to meet demand level.

7 0
2 years ago
Other questions:
  • Over a certain period, large-company stocks had an average return of 12.59 percent, the average risk-free rate was 2.58 percent,
    13·1 answer
  • Fill in the blanks air comes from over the ocean is very
    11·1 answer
  • The following items were among those reported on Lee Co.'s Income Statement for the year ended December 31, 20x5:
    11·1 answer
  • Suppose that consumption is $500 and that the marginal propensity to consume is 0.6. If disposable income increases by $1,000, c
    11·1 answer
  • Which of the following does NOT increase food intake?a) serotoninb) beta-endorphinsc) decreased blood glucose levelsd) neuropept
    7·1 answer
  • Margin of Safety The Ira Company has sales of $800,000, and the break-even point in sales dollars is $664,000. Determine the Ira
    13·1 answer
  • What is the Internet?
    15·2 answers
  • Two countries, cadmia and palladia, have formed a free trade agreement. this has resulted in cadmia importing sugar from palladi
    5·1 answer
  • Robert owns a $214,000 town house and still has an unpaid mortgage of $150,000. In addition to his mortgage, he has the followin
    10·1 answer
  • The general ledger journal entry in the General Fund to record actual expenditures and reversal of the associated encumbrance wo
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!