Exercise 9: Beth, Steph, and Linda have been operating a small gift shop for several years. The partners concluded that the business needed to expand in order to provide an adequate return to the partners. The following balance sheet is for the partnership prior to the admission of a new partner, Mary. Cash $160,000 Other Assets 640,000 $800,000 Liabilities $200,000 Beth, Capital (40%) 265,000 Steph, Capital (40%) 215,000 Linda, Capital (20%) 120,000 $800,000 Figures shown parenthetically reflect profit-loss percentages.
Exercise 9: Beth, Steph, and Linda have been operating a small gift shop for several years. The partners concluded that the business needed to expand in order to provide an adequate return to the partners. The following balance sheet is for the partnership prior to the admission of a new partner, Mary. Cash $160,000 Other Assets 640,000 $800,000 Liabilities $200,000 Beth, Capital (40%) 265,000 Steph, Capital (40%) 215,000 Linda, Capital (20%) 120,000 $800,000 Figures shown parenthetically reflect profit-loss percentages.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Exercise 9: Beth, Steph, and Linda have been operating a small gift shop
for several years. The partners concluded that the business needed to expand
in order to provide an adequate return to the partners. The following balance
sheet is for the partnership prior to the admission of a new partner, Mary.
Cash
$160,000
Other Assets
640,000
$800,000
Liabilities
$200,000
Beth, Capital (40%)
265,000
Steph, Capital (40%)
215,000
Linda, Capital (20%)
120,000
$800,000
Figures shown parenthetically reflect profit-loss percentages.
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