Reference no: EM132483493
Sabio, Sinad, and Triguero each receive a P100,000 salary, as well as 10% interest on their respective average investments of P600,000, P1,000,000, and P200,000. They share remaining profits and losses in a 2:1:3 ratio, respectively.
Question 1: By how much would Sinad's account increase or decrease (indicate a decrease by placing parenthesis), assuming a:
(a) profit of P720,000
(b) profit of P360,000 or
(c) loss of P360,000.
In addition, calculate (d) Sinad's share of a P2,700,000 profit if profit or loss distributions were based instead solely on the ratio of average capital investments.
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