Fred,Kristina,and Nick Each Receive a $14,000 Salary,as Well as 15

question 57

Essay

Fred,Kristina,and Nick each receive a $14,000 salary,as well as 15 percent interest on their respective average investments of $40,000,$20,000,and $80,000.If they share remaining income and losses in a 4:3:2 ratio,respectively,by how much would Nick's account increase or decrease (indicate a decrease by placing parentheses around the amount),assuming (a)net income of $81,000, (b)net income of $54,000,and (c)net loss of $63,000.

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Definitions:

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period of time.

Fiscal Period

A specified period of time used for financial reporting and budgeting, typically a year, quarter, or month.

Biweekly Salaries

Payments made to employees every two weeks, totaling 26 payments throughout the year.

Unearned Revenue

Money received by a company for a product or service that has yet to be delivered or performed.