The answer i think is rejected because the cash flow is not stable
I have the same question if anyone can help please let me know
An organized group of people with a particular purpose, such as a business or government department.
Answer:
The amount is $4,000 and Brain character reflects the capital gain.
Explanation:
Partnership: In partnership, there are two or more partners who are ready to share the profit or losses in their profit-loss sharing ratio.
The computation is shown below:
= Brain's basis - the inside basis
= $16,000 - ($20,000 - $8,000)
Since the brain basis show excess amount than inside basis which reflects the capital gain
.
The inside basis is not relevant in the computation part. Hence, it is ignored.
<span>Return on equity = 11.28 percent = 11.28/100 = 0.1128
debt-equity ratio =1.03
total asset turnover = 0.87
return on assets = ?
we can find return on assets by using the formula
= return on equity / (1 + debt equity ratio)
= 0.1128 / (1 + 1.03)
= 0.1128 / 2.03
= 0.0556 = 0.0556 x 100 = 5.56%
So, the return on assets is 5.56%</span>
