Ivey and Balzac Had a Partnership That Distributed Profits in a Ratio

question 18

Multiple Choice

Ivey and Balzac had a partnership that distributed profits in a ratio of 1:3 respectively. At the end of 2013, they agreed to liquidate the partnership. Prior to liquidation, the partnership had Cash of $50 000, Inventory of $75 000, Equipment (net) of $235 000, and no payables. Partner capital balances were: Ivey: $100 000 Balzac: $260 000
The inventory was sold for $59 000 and the equipment was sold for $243 000. How much cash was paid to Ivey in the final settlement?

• A)$98 000
• B)$254 000
• C)$176 000
• D)$106 000

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Definitions:

Holt's Model

A forecasting technique that extends exponential smoothing to allow the data to exhibit a trend.

Observable Trend

A pattern or movement in data over time that can be identified and analyzed to understand current movements and predict future developments.

Seasonality

Regular fluctuations in demand or supply that occur at certain times of the year, often influenced by weather, holidays, or cultural events.

Deseasonalizing

The process of adjusting economic or financial data to eliminate the effects of seasonal variations, facilitating a clearer comprehension of underlying trends.