Solved

Active Sports LP Is Organized as a Limited Partnership Consisting

Question 89

Essay

Active Sports LP is organized as a limited partnership consisting of two partners: Basketball Products LP and Hockey Products LP.Each of the partners sell sporting equipment for their respective sports.Compute the partner return on equity for each limited partnership and for the total limited partnership for the year ended September 30,2013,using the following data:
 Basketball  Products L.P  Hockey  Products Lp  Active  Sports Lp  Capital balance at 10/1/12$870,000$580,000$1,450,000 Net ircome 65,00035,000100,000 Cash distribution (40,000)(25,000)(65,000) Capital balance at 9/30/13$895,000$590,000$1,485,000\begin{array} { | l | r | r | r | } \hline & \begin{array} { l } \text { Basketball } \\\text { Products L.P }\end{array} & { \begin{array} { l } \text { Hockey } \\\text { Products Lp }\end{array} } & \begin{array} { l } \text { Active } \\\text { Sports Lp }\end{array} \\\hline \text { Capital balance at } 10 / 1 / 12 & \$ 870,000 & \$ 580,000 & \$ 1,450,000 \\\hline \text { Net ircome } & 65,000 & 35,000 & 100,000 \\\hline \text { Cash distribution } & ( 40,000 ) & ( 25,000 ) & ( 65,000 ) \\\hline \text { Capital balance at } 9 / 30 / 13 & \$ 895,000 & \$ 590,000 & \$ 1,485,000 \\\hline\end{array}

Correct Answer:

verifed

Verified

Partner return on equity = Partner net i...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents