M9 PARTNERSHIP: DIVISION OF NET INCOME MacDuff and MacBeth recently formed a partnership called Inverness Ltd. MacDuff invested $30,000 cash, and MacBeth invested $30,000 of plant assets and $15,000 cash. The partners are trying to find an equitable way of splitting the income to take into account that MacBeth invested more capital, but MacDuff will spend twice as much time as MacBeth in running the business. They have asked you to develop a workshoot (file name PSHIP) to allow them to see the effect of: various interest rates on invested capital various salary allowances for time spent various levels of partnership net income The easiest way to achieve this flexibility is to use a Data Section. Use the following information as input for your model: Net income $125,000 Division of net income: Interest on original investments at 15% Salary allowances: MacDuft $50,000 MacBeth $25,000 Remainder shared equally Review the Model-Building Problem Checklist on page 154 to ensure that your worksheet is complete. Print the worksheet when done. Check figure: MacDuff's share of income, $73,875. To test your model, use the following profit-sharing scenario: Net income $75,000 Division of net income: Interest on original investments at 10% Salary allowances: MacDuff $60,000 MacBeth $30,000 Remainder shared equally Print the worksheet when done. Check figure: MacDuff's share of income, $51,750. CHART (optional) Using the test data provided, prepare a 3-D stacked column chart showing the division of net income (salary, interest, and remainder) to each partner. Print the chart when done. PSHIP Partnership: Division of Net Income Data Section Original investment - MacDuff Original investment - MacBeth Interest on original investment Salary - MacDuff Salary - MacBeth Net income Answer Section Division of Net Income MacDuff MacBeth Total Salary allowance Interest allowance Total Excess of income over allowances Net income Chart Data Table MacDuff MacBeth Salary Interest Excess 0 0 0 0 0 0