Question
In: Finance
On January 1, 2019, MARIA, MARA, MARIZ, and MARLA formed 4M Trading Co., a partnership with...
On January 1, 2019, MARIA, MARA, MARIZ, and MARLA formed 4M
Trading Co., a partnership with capital contributions as follows :
MARIA, P50,000; MARA, 25,000; MARIZ, P25,000; and MARLA, P20,000.
The partnership contract provided that each partner shall receive a
5% interest on contributed capital, and that MARIA and MARA shall
receive salaries of P5,000 and P3,000, respectively. The contract
also provided that MARIZ shall receive a minimum of P2,500 per
annum, and MARLA a minimum of P6,000 per annum, which is inclusive
of amounts representing interest and share of remaining profits.
The balance of the profits shall be distributed to MARIA, MARA,
MARIZ and MARLA in 3:3:2:2 ratio.
What amount must be earned by the partnership, before any
charge for interest and salaries, so that MARIA may receive an
aggregate of P12,500 including interest,, salary and share of
profits?
Solutions
Expert Solution
1st Step is to create an equation =
Lets profit before intrest, salaries and profits be X
Proft = X
jeff jeffy answered 2 years agoRelated Solutions
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