Gable and Devito Share Partnership Profits and Losses in the Ratio

question 40

Short Answer

Gable and Devito share partnership profits and losses in the ratio of 6:4. Gable's Capital account balance is $160000 and Devito's Capital account balance is $100000. Nance is admitted to the partnership by investing $180000 and is to receive a one-fourth ownership interest. Gable Devito and Nance's capital balances after Nance's investment will be $\begin{array} { c c c } &&&\text { Gable }& \text { Devito } && \text { Nance } \\\end{array}$
A) $\begin{array} { c c c } & \$ 160,000 & \$ 100,000 & \$ 180,000 \\\end{array}$
B) $\begin{array} { c c c } & \$ 202,000 & \$ 128,000 & \$ 110,000 \\\end{array}$
C) $\begin{array} { c c c } & \$ 198,000 & \$ 132,000 & \$ 110,000 \\\end{array}$
D) $\begin{array} { c c c } & \$ 195,000 & \$ 135,000 & \$ 110,000\end{array}$

• A) \(\begin{array} { c c c } & \$ 160,000 & \$ 100,000 & \$ 180,000 \\\end{array}\)
• B) \(\begin{array} { c c c } & \$ 202,000 & \$ 128,000 & \$ 110,000 \\\end{array}\)
• C)\(\begin{array} { c c c } & \$ 198,000 & \$ 132,000 & \$ 110,000 \\\end{array}\)
• D)\(\begin{array} { c c c } & \$ 195,000 & \$ 135,000 & \$ 110,000
• \end{array}\)

Calculate and interpret changes and trends in financial statement items.

Calculate and analyze ratios such as acid-test, current ratio, and accounts receivable turnover for assessing financial health.

Understand and calculate working capital and its significance.

Understand the concept of personal values development and its importance.

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