Based on the problem in picture, get the distribution of profits and losses by;60%; 40% ratio for Jack and Poy, respectively and1:5 ratio for Jack and Poy, respectively |Jack and Poy are partners in their Circus Show business. Poy is the managing partner.As of December 31, 2020 their capital account showed the followingA partner's equity account is debited or credited for the following:Jack CapitalPoy CapitalDebitCreditDebitCreditJul-01 15,000.00 | Jan-01Dec. 01 10,000.00 April 130,000.00 Jan-0135,000.00 Jun-0165,000.00100,000.00Apr-01150,000.0010,000.00Dec. 0150,000.00Nov. 135,000.00Dec. 01The partnership earned a net profit of P120,000 for the year ending December 31, 2020.

In partnership accounts the profit and losses are shared by the partners in predetermined ratio, if…

Answered: The partnership earned a net profit of…

Business

Accounting

The partnership earned a net profit of P120,000 for the year ending December 31, 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: ntly trading at a forward P/D ratio of 25, a forward P/E ratio of 20, a P/B ratio of 4 and P/S ratio…

A: Ratios are very important in valuation of company and the stock and comparing the companies.

Q: Provide answer

A: Step 1:To find Philips' Return on Assets (ROA), we need to understand the relationship between ROA,…

Q: Company X is competing with company Y. These are their ratios: x y Profit Margin .144 .172 ROA…

A: Profit margin is the margin calculated by comparing the sale value with the cost associated with it.…

Q: What will be the operating profit ratio, if operating ratio is 88.34%?

A: We have the following information: Operating Ratio: 88.34%

Q: Average Inventory, Inventory Turnover Ratio, Inventory Turnover in Days Delater Company had sales of…

A: Step 1: Calculate Average Inventory:Average Inventory = (Beginning Inventory + Ending Inventory) /…

Q: What is Walkeshewar's WACC if it's equity costs 11.8 percent, the cost of it's debt is 6.3 percent,…

A: WACC (weighted average cost of capital) refers to the average cost that is paid by a company to…

Q: Firm J has net income of $124,800, sales of $960,000, and average total assets of $640,000.…

A: Return on investment is calculated by dividing the Operating Income by the Average assets. Return on…

Q: Find the WACC given the following information: A firm has a cost of equity of 8% and cost of debt of…

A: Weighted average cost of capital generally referred to by its abbreviation 'WACC' is the average…

Q: h. Calculate the total return % in each of the following instances: a. Do = $2.00, dividend growth =…

A: Answer Return ={ (Dividend + Capital gain ) / P0}×100

Q: A firm has a tax burden ratio of 0.85, a leverage ratio of 1.5, an interest burden of 0.9, and a…

A: The conceptual formula is represented mathematically:

Q: A firm has sales of R23, total assets of R39 and total debt of R7. The net profit margin is 4%. What…

A: Return on equity; A measure of financial performance calculated by dividing net profit by…

Q: alculate the sustainable growth rate

A: Answer:- Sustainable growth rate = 14.05 % Explanation:- Total asset turnover = 1 / Capital…

Q: Gates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the…

A: Return on equity(or ROE) = Return on assets×Equity multiplier Equity multiplier is calculated as…

Q: 9. a. Div Yield % = 6%, Total Return % = 16%, Po = $10 b. Capital Gain% = 8%, Div Yield % = 5%, D1 =…

A: Given, Dividend Yield = 6% Total Return = 16% Po = $10 Capital Gain = 8% Dividend Yield =5% D1 = $3…

Q: f the face value of both the shres is same then which investment out of following. is more…

A: To determine which investment is more profitable, we need to calculate the dividend yield for each…

Q: QUESTION: CATHERINE'S CONSULTING HAS NET INCOME OF $4,400 AND TOTAL EQUITY OF $39,450. THE…

A: Given Data:Net Income: $4,400Total Equity: $39,450Debt-Equity Ratio: 1Step 1: Calculate Total…

Q: In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table…

A: We need to find the probability that the profit is positive x = Profit f(x) = Probability of profit

Q: regardin on how to get income po... if you'll compute it the result will turn out 63,000 but on your…

A: Financial ratios are a way of analyzing and evaluating the performance of a business by using…

Q: 4.46 percent. at is this firm's debt-equity ratio? (Do not round intermediate cald ur answer to 2…

A: Dupont equation is quite used in calculating the return on equity using three ratio and have been…

Q: If vertical analysis, using total assets as the base, shows that total liabilities have increased…

A: Vertical analysis of the financial statement means the expression of each item of the financial…

Q: Assume that the net profit margin = 9%, assets are 95 cents for every dollar of sales, and equity is…

A: ROE (DuPont Model) = Net Profit Margin x Asset Turnover x Equity Multiplier Where, Net Profit…

Q: You are given the following information on Kayla's Heavy Equipment: Profit margin 5.4% Capital…

A: Solution:Sustainable growth rate means the constant rate at which the firm is growing.We know, g = b…

Q: f the cost of equity is 25%, the WACC is 16% and cost of debt is 10%, what will be the implied D/E…

A: WACC is the weighted average cost of debt and weighted average cost of equity and is the benchmark…

Q: Henderson's Hardware has an ROA of 14%, a 6% profit margin, and an ROE of 19%. What is its total…

A: The objective of the question is to calculate the total assets turnover and the equity multiplier…

Q: What is the WACC for the following company with: Debt rate: 7% Cost of Equity: 11% Percentage…

A: WACC WACC shows the after-tax cost of the capital raised from all sources by a company. It shows…

Q: A firm has sales of $4,790, costs of $2,590, interest paid of $174, and depreciation of $483. The…

A: Calculating the Earnings before Interest and taxes ( EBIT )Earnings before Interest and taxes…

Q: Red Company's book value per share is P25, the market to book value ratio is 1.5. If the earnings…

A: Answer - Step 1 - Calculation of Market Value of Shares - Market to book value ratio = Market Price…

Q: Calculating Profitability Ratios. Aorangiwai River Boats has sales of $15 million, total assets of…

A: RETURN ON ASSETSReturn on Assets is the Ratio between Net Operating Income & Average Total…

Q: The Merriam Company has determined that its return on equity is 15 percent. Management is interested…

A: Profit margin is the ratio between net income and sales revenue. It is calculated by dividing net…

Q: l companies should have at least a 1.5 to 1 current ratio. T/F?

A: Current ratio is a measure of short term solvency.

Q: What is the dividend you expect Yum! Brand can pay in FY T+1? Multiple Choice $1,295,139 $1,375,236…

A: We can see the ‘retained earnings’ line in the balance sheet under the equity section in the balance…

Q: ive typing answer with explanation and conclusion Fama's Llamas has a weighted average cost of…

A: Weighted average cost of capital is total cost of financing the capital of the company. It includes…

Q: 10 percent b. 25 percent c. 60 percent d. 80 percent

Q: 3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity?…

A: Weighted Average Cost of Capital = WACC = 20% Cost of debt = 4% Debt equity Ratio = 1.6

Q: Suppose TRF = 5%, M = 12%, and b;= 0.75, what is the cost of equity? 5.00% 10.25% 12.00% 6.00%

A: CAPM refers to the model that uses the risk factor and the returns prevalent in the market to…

Q: Henderson's Hardware has an ROA of 15%, a 4.5% profit margin, and an ROE of 25%. What is its total…

A: Given, ROA is 15% Profit margin is 4.5% ROE is 25%

Q: Help me

A: Explanation of Return on Asset:Return on Assets (ROA) measures a company's ability to generate…

Q: From the PW, AW, and FW values below, the conventional B/C ratio is closest to:a. 1.27b. 1.33c.…

A: Conventional benefit-cost analysis (B/C ratio) is the ratio that depicts the relationship between…

Q: Goodwill arises when one firm acquires the net assets of another firm and pays more for those net…

Q: the operating profitability ratio of company a is 2%. the return on invested capital is 10%. what is…

A: Return on invested capital refers to income generated from the business activity or project out of…

Q: 1.Compute the price to net income ratio for both Kohl's and Wal-Mart. Round your answers to two…

A: Financial ratios are those ratios which simplify the financial information and it is useful for the…

Question

Based on the problem in picture, get the distribution of profits and losses by;

60%; 40% ratio for Jack and Poy, respectively and
1:5 ratio for Jack and Poy, respectively

|Jack and Poy are partners in their Circus Show business. Poy is the managing partner.
As of December 31, 2020 their capital account showed the following
A partner's equity account is debited or credited for the following:
Jack Capital
Poy Capital
Debit
Credit
Debit
Credit
Jul-01 15,000.00 | Jan-01
Dec. 01 10,000.00 April 1
30,000.00 Jan-01
35,000.00 Jun-01
65,000.00
100,000.00
Apr-01
150,000.00
10,000.00
Dec. 01
50,000.00
Nov. 1
35,000.00
Dec. 01
The partnership earned a net profit of P120,000 for the year ending December 31, 2020.

Definition Definition Amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Right Answer?
Consider the following income statement for Larry & Harry drug stores: Revenue - 90mm Variable costs- 48mm Interest on debt- 6mm Depreciation- 0 mm It’s tax rate is 25% and the book value of its equity is 150mm. What is L&H’s coverage ratio? A) 0.18 B) 5.25 C) 6 D) 7 E) 8 F)15
a company debt/ total assesses ratio of 25% and b company 20% with return on total assets of 10% and 7% respectively, which firm has a greater return on equity?? could find it for me?
h. Calculate the total return % in each of the following instances: a. Do = $2.00, dividend growth = 4%, Po = $50, P: = $60 b. Po = $32, Dividend yield % = 5%, P1 = $30 c. Dividend Yield = 4%; Capital Gain = %3D $20; DI = $4
When the income that is Y = 1300 and consumption is C = 900 + 0.3Y find level of the consumption
In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) x = profit -100 0.01 f(x) = probability -200 0.04 0 100 0.26 200 0.54 300 0.05 400 0.02 10 On average, profit (loss) amounts deviate from the expected profit by ______ thousand. a $114.77 thousand b $112.52 thousand c $110.31 thousand d $108.15 thousand
Give typing answer with explanation and conclusion _____ 2.) A company has a tax burden ratio of 0.4, a compound leverage factor of 0.6, a return on sales of 0.9, a leverage ratio of 0.7, and an asset turnover of 0.3. What is the ROE for the company? A.) 2.90% B.) 4.54% C.) 6.48% D.) 11.4% E.) None of the above
There are five financial measures as follows. (1) ROA (2) ROE (3) Leverage (4) Book value per share (5) Profit margin What of the following correctly reveals the two components of EPS? (2) + (4) O(1)+(4) (3)+(5) (1)+(3) O (2) + (5)
The price-earnings per share of A, B, C, D and E is P6.00, P6.25, P6.80, P6.90 and P6.20. If A has earnings per share of P1,200.00, it would currently be ____ by ____ compared to the group average. a. Overvalued by P516 b. Undervalued by P540 c. Undervalued by P516 d. Overvalued by P550
Firm K has a margin of 9%, turnover of 1.4, and sales of $1,610,000. Required: Calculate Firm K's net Income, average total assets, and return on Investment (ROI). Choose Factors: Choose Numerator: Net Income * Choose Factors: X Average Total Assets /Choose Denominator: = 1 Return on Investment Choose Numerator: /Choose Denominator: 1 1 Net Income Net Income Average Total Assets Average Total Assets 0 Return on Investment Return on Investment 0
Loreto Inc. has the following financial ratios: asset turnover = 2.40; net profit margin (i.e., net income/sales) = 5%; payout ratio = 30%; equity/assets = 0.40. a. What is Loreto's sustainable growth rate? b. What is its internal growth rate?
If financial leverage of a firm is 4, Interest 6,00,000, Operating Leverage is 3, Variable cost to sales is 66.66%, Income tax rate is 30%, Number of Equity Shares 1, 00, 000. Calculate fixed cost and EPS of the firms. (For your reference, OL = Contribution/EBIT; FL = EBIT/EBT and CL = OL*FL)