Asked by Spencer James on Jul 14, 2024

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Susan, Lynda, and Monica opened a consignment dress shop. The partnership agreement states that the responsibilities for the provision of capital are in the ratio of 2.5: 3.75: 4.5. If the total investment in the business was $365,500, how much did each partner invest?

A) $153,000; $85,000; $127,500
B) $175,000; $150,000; $40,500
C) $150,000; $175,000; $40,500
D) $85,000; $127,500; $153,000
E) $210,000; $115,000; $35,500

Partnership Agreement

A legally binding contract between partners that outlines the terms of the business relationship, roles, and responsibilities.

Total Investment

The complete amount of money invested in a particular project, asset, or portfolio, including all forms of investment such as stocks, bonds, and real estate.

Responsibilities

Duties or tasks that one is required or expected to perform as part of a job or role.

  • Compute the allocation of investments and the distribution of profits in partnerships based on predetermined ratios.
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KP
Katiá PatrickJul 16, 2024
Final Answer :
D
Explanation :
The total ratio is 2.5 + 3.75 + 4.5 = 10.75. The amount each partner invested is calculated by dividing their individual ratio by the total ratio and then multiplying by the total investment. Susan invested (2.5/10.75) * $365,500 = $85,000, Lynda invested (3.75/10.75) * $365,500 = $127,500, and Monica invested (4.5/10.75) * $365,500 = $153,000.