Roberta Invests $16,000 for a 10% Interest in Bowie Partnership

question 61

Multiple Choice

Roberta invests $16,000 for a 10% interest in Bowie Partnership. In the first year of operations, Bowie reports net income from operations of $80,000 and distributes $6,000 cash to Roberta. How much gross income must Roberta recognize from her investment in Bowie?

• A)$2,000
• B)$6,000
• C)$8,000
• D)$80,000

Describe the use and management of user-generated content for business advantage.

Analyze and draft effective business messages using appropriate digital communication mediums.

Identify key elements of effective email and IM communication strategies in business.

Understand the importance of content structuring in digital communication for clarity and engagement.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year with its current assets.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.