LLL 22 Bob Strongarm and Phil Hannock are partners in a consulting business. In the last three years, Bob's share of partnership profits has been $15000, $20000 and $30 000. He has been offered $80000 for his share of the partnership. Bob decides that if his total share of profits over the next three years is less than $100 000 he will sell. The following schedule sets out some estimates of profits for the next three years SCHEDULE TOTAL PARTNERSHIP PROFITS YEAR YEAR 2 Optimistic estimate 75000 85 000 95 000 65 000 75 000 Mast probable estimate 55 000 Pessimistic estimate 45 000 55.000 65 000 Bob and Phil currently share profits as follows: Bob reccives a salary of $20000, Phil's salary is $15000, and the renainder is split with Bob getting 60 per cent Required f hie otimistic estimate is corect probable estimate 55 000 Pessimistic estimate 45 000 55 000 65 000 Bob and Phil currently share profits as falows: Bob receives a salary of $20000, Phil's salary is $15000, and the remainder is split with Bob getting 60 per cent Required Calculate Bob's share of the profits over the next three years if his optimistic estimate is correct Calculate Bob's share of the profits over the next three years if his most probable estimate is a correct. b Calculate Bob's share of the profits over the next three years if his pessimistic estimate is carrect. c If the probabilities are 20 per cent that the optimistic estirmate will be correct, 60 per cont that the most probable estimate will be correct, and 20 per cent that the pessimistic estimate will be correct, should Bob sell for $80000? Discuss the other factors Bob should consider when deciding whether or not to sell 23 Tom has been employed at New Incentives Ltd for six months, after recently graduating from university with a degree in accounting lt is his first job after trying to find employment for six months Tom's boss has asked him for a favour in preparing the income statement for the year She d