Bray, Lincoln, and Mapes arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Bray and Lincoln advanced $390 and $600 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,590 in cash.

Use the minus sign to indicate any deficiency for the capital accounts.

a. How much net income was earned from the venture? $fill in the blank 1

b. How should the $1,590 be distributed?

	Bray	Lincoln	Mapes	Total
Capital balances and cash distribution	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4	$fill in the blank 5

c. Assume that the partnership has only $840 instead of $1,590. Complete the following table to determine if any of the three partners have a capital deficiency?

	Bray	Lincoln	Mapes	Total
Capital balances	$fill in the blank 6	$fill in the blank 7	$fill in the blank 8	$fill in the blank 9

Dylan Howell and Demond Nickles have decided to form a partnership. They have agreed that Howell is to invest $50,000 and that Nickles is to invest $75,000. Howell is to devote full time to the business, and Nickles is to devote one-half time. The following plans for the division of income are being considered:

1. Equal division.
2. In the ratio of original investments.
3. In the ratio of time devoted to the business.
4. Interest of 10% on original investments and the remainder in the ratio of 3:2.
5. Interest of 10% on original investments, salary allowances of $38,000 to Howell and $19,000 to Nickles, and the remainder equally.
6. Plan (e), except that Howell is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the total salary allowances.

Required:

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $420,000 and (2) net income of $150,000.

	(1)				(2)
	$420,000				$150,000
Plan		Howell		Nickles		Howell		Nickles
a.		$fill in the blank 1		$fill in the blank 2		$fill in the blank 3		$fill in the blank 4
b.		$fill in the blank 5		$fill in the blank 6		$fill in the blank 7		$fill in the blank 8
c.		$fill in the blank 9		$fill in the blank 10		$fill in the blank 11		$fill in the blank 12
d.		$fill in the blank 13		$fill in the blank 14		$fill in the blank 15		$fill in the blank 16
e.		$fill in the blank 17		$fill in the blank 18		$fill in the blank 19		$fill in the blank 20
f.		$fill in the blank 21		$fill in the blank 22		$fill in the blank 23		$fill in the blank 24