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
Maslowich
2 years ago
12

Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of $60,000 and $40,000, respectivel

y. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is Benson’s capital balance after admitting Ramsey?
Business
1 answer:
hjlf2 years ago
6 0

Answer:

$48,800

Explanation:

Ratio = 2:3

Total investment:

= Benson capital + Orton capital + Ramsey capital

= $60,000 + $40,000 + $20,000

= $120,000

Total Equity of Ramsey:

= 40% of  Total investment

= 0.4 × $120,000

= $48,000

Old partners contribution:

= Equity of Ramsey - Ramsey capital

= $48,000 - $20,000

= $28,000

Benson’s capital balance after admitting Ramsey:

= Benson’s capital - Old partners contribution(2 ÷ 5)

= $60,000 - [$28,000 × (2 ÷ 5)]

= $60,000 - $11,200

= $48,800

You might be interested in
how do free cash flows available for debt and equity stakeholders differ from free cash flows available for common equity shareh
Alik [6]

The value of free cash flows for common due to the fact that they are made up of funds available for distribution to shareholders as dividends. Alternatively, this is Distributable Cash.

Financing operations are excluded from the calculation of free cash flows to common equity owners if: the capital expenditures adjustments .Investors and business analysts value free cash flow because it indicates how much available cash your organisation has. They frequently evaluate your free cash flow to determine whether your business has the money to pay down debt, distribute dividends, and repurchase shares.Because it affects a company’s capacity to generate cash from operations, a company’s net income has a significant impact on its free cash flow.After all required capital investments and distributions to shareholders have been made, the remaining cash flow is known as free cash flow.Cash flow from operations less capital outlays is known as free cash flow to equity.The maximum amount that may be distributed to shareholders as a dividend is represented by FCFE.

To know more about Cash Flow visit:

brainly.com/question/22712257

#SPJ4

4 0
9 months ago
For each of the following pairs of firms, explain which firm would be more likely to engage in advertising.
lions [1.4K]

Answer:

The correct answers are:

a) Family owned restaurant

b) A manufacturer of cars

c) A company that invented a very comfortable razor

Explanation:

First of all, the family who owned a restaurant will be the one that would most likely engaged in advertising due to the fact that they provide a service that has to be known for the people of the community around the place and all the tourists that go that area, meanwhile the other familiy would obviously just sell its products to the better buyer that they could find.

Secondly, the manufacturer of cars would be the one that most likely engaged in advertising due to the fact that they found themselfs in a very competitive and oligopoly market that is the car market and therefore that they highly need to stand out their making them better than the ones from the competitors.

Finally, the company who invented a very comfortable razor would be the one who engaged more in advertising due to the fact that they known they have a better product that the rest of the competitors so they need to take advantage of that and make sure that the consumers know about it and with that they would sell more and therefore invest more in advertising as well.

7 0
3 years ago
Stephanie is the wage earner in a "typical family" with $36,000 gross annual income. Use the easy method to determine how much i
MA_775_DIABLO [31]

Answer:

$176,400

Explanation:

Life insurance need = 0.70 × Salary amount × 7

= 0.70 × $36,000 × 7

= $176,400

Therefore using the easy method the amountof insurance that Stephanie should carry is $176,400

6 0
3 years ago
Read 2 more answers
Who wants to talk to me? (NO POLITICS) PLZ :(
vampirchik [111]

Answer:

if no politics why u put category as business xD

Explanation:

8 0
2 years ago
Read 2 more answers
What are the remains after the costs of running a business have been paidA. stockB. taxesC. profits
Vlad [161]
The answer is C. Profits.
Hope this helped!
3 0
3 years ago
Other questions:
  • You must drive at a speed
    15·1 answer
  • Burpee Company sells seeds to garden stores. Sales are expected to be $2,038,635 in January, $2,581,891 in February and $2,913,3
    5·1 answer
  • Lars thinks he might like to be self-employed. He is thinking about owning and operating a restaurant as a possible career. What
    5·1 answer
  • On March 18, James Smith purchased $5,000 of furniture from Home Furnishings on account. The cost of the goods was $3,000. On Ma
    11·1 answer
  • Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 per month). Emp
    7·1 answer
  • Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The co
    7·1 answer
  • Rice Industries owns a manufacturing plant in a foreign country. Political unrest in the country indicates that Rice should inve
    9·1 answer
  • The following table gives the number of pints of type A blood used at Damascus Hospital in the past 6​ weeks:
    8·1 answer
  • Kawamura, a careful utility maximizer, consumes peanut butter and ice cream. Assume that both peanut butter and ice cream are no
    8·1 answer
  • A homebuyer took out a $350,000 30-year fixed rate loan at 4.5% interest with a monthly payment of $1,773.40. After making two m
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!