Partnership : Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio. Partner Return on equity: Partner Return on equity is the profitability measure to determine the % of return earned on the partner’s investment in the partnership. Partner Return on equity is calculated by dividing the Partner net income by Average Partner equity. The formula to calculate Partner Return on equity is as follows: P a r t n e r R e t u r n o n e q u i t y = P a r t n e r n e t i n c o m e A v e r a g e P a r t n e r e q u i t y The formula to calculate the Average Partner equity is as follows: A v e r a g e P a r t n e r e q u i t y = ( B e g i n n i n g P a r t n e r e q u i t y + E n d i n g P a r t n e r e q u i t y ) 2 To determine: The partner return on equity for each partner and partnership for the year ended June 30, 2017

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13E

To determine

Concept introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Partner Return on equity: Partner Return on equity is the profitability measure to determine the % of return earned on the partner’s investment in the partnership. Partner Return on equity is calculated by dividing the Partner net income by Average Partner equity. The formula to calculate Partner Return on equity is as follows:

$P a r t n e r R e t u r n o n e q u i t y = \frac{P a r t n e r n e t i n c o m e}{A v e r a g e P a r t n e r e q u i t y}$

The formula to calculate the Average Partner equity is as follows:

$A v e r a g e P a r t n e r e q u i t y = \frac{(B e g i n n i n g P a r t n e r e q u i t y + E n d i n g P a r t n e r e q u i t y)}{2}$

To determine: The partner return on equity for each partner and partnership for the year ended June 30, 2017

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Caddy Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows: Direct material of 4 yards at $5.75 per yard. Direct labor of 3 hours at $19 per hour. Overhead applied per sleeping bag at $20. In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $5.10 per yard. The labor used was 11,700 hours at an average rate of $18.50 per hour. The actual overhead spending was $96,200. Determine the total materials variance.

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Provide correct cash conversion cycle of this financial accounting question

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13E

To determine

Concept introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Partner Return on equity: Partner Return on equity is the profitability measure to determine the % of return earned on the partner’s investment in the partnership. Partner Return on equity is calculated by dividing the Partner net income by Average Partner equity. The formula to calculate Partner Return on equity is as follows:

$P a r t n e r R e t u r n o n e q u i t y = \frac{P a r t n e r n e t i n c o m e}{A v e r a g e P a r t n e r e q u i t y}$

The formula to calculate the Average Partner equity is as follows:

$A v e r a g e P a r t n e r e q u i t y = \frac{(B e g i n n i n g P a r t n e r e q u i t y + E n d i n g P a r t n e r e q u i t y)}{2}$

To determine: The partner return on equity for each partner and partnership for the year ended June 30, 2017

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13E

To determine

Concept introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Partner Return on equity: Partner Return on equity is the profitability measure to determine the % of return earned on the partner’s investment in the partnership. Partner Return on equity is calculated by dividing the Partner net income by Average Partner equity. The formula to calculate Partner Return on equity is as follows:

$P a r t n e r R e t u r n o n e q u i t y = \frac{P a r t n e r n e t i n c o m e}{A v e r a g e P a r t n e r e q u i t y}$

The formula to calculate the Average Partner equity is as follows:

$A v e r a g e P a r t n e r e q u i t y = \frac{(B e g i n n i n g P a r t n e r e q u i t y + E n d i n g P a r t n e r e q u i t y)}{2}$

To determine: The partner return on equity for each partner and partnership for the year ended June 30, 2017

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 12, Problem 13E

To determine