Joy Alyssa $220 000 $315 000 Joy put forward two proposals to attempt to solve the problem. Proposal 1 The following is a summary of the first option of a new proposed income ratio: a. The fixed salary allowance would be changed, Joy and Alyssa would receive $35 000 and $50 000, respectively; b. Interest of 6% would be allowed on the capital balances at the beginning of each year. The fiscal year of the partnership ends on December 31 of each year; c. Any excess profits would be split equally. Proposal 2 The following is a summary of the second option of a new proposed income ratio: a. There would be no fixed drawings, and the profits would be based solely on a percentage. Joy would receive 40% and Alyssa would receive 60% of the net income/loss. Alyssa has asked for your advice on the proposals and has suggested that net income for the next throo un uld bo 00 000 150 000 and 9200 0 00
Joy Alyssa $220 000 $315 000 Joy put forward two proposals to attempt to solve the problem. Proposal 1 The following is a summary of the first option of a new proposed income ratio: a. The fixed salary allowance would be changed, Joy and Alyssa would receive $35 000 and $50 000, respectively; b. Interest of 6% would be allowed on the capital balances at the beginning of each year. The fiscal year of the partnership ends on December 31 of each year; c. Any excess profits would be split equally. Proposal 2 The following is a summary of the second option of a new proposed income ratio: a. There would be no fixed drawings, and the profits would be based solely on a percentage. Joy would receive 40% and Alyssa would receive 60% of the net income/loss. Alyssa has asked for your advice on the proposals and has suggested that net income for the next throo un uld bo 00 000 150 000 and 9200 0 00
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 9M
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can you decide which proposal is better using the information and proposal options from the picture for my homework please
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