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Question - 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 $240 and $360 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $960 in cash.
Use the minus sign to indicate any deficiency for the capital accounts.
For those boxes in which you must enter subtractive or negative numbers use a minus sign.
Required -
a. How much net income was earned from the venture?
b. How should the money be distributed?
c. Assume that the partnership has only $510 instead of $960. Do any of the three partners have a capital deficiency?
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