Sam and Dave's company is organized as a partnership. At the prior year-end, Sam's equity balance was $258,000 and Dave's was $212,000. For the current year, partnership net income is $125,000 ($75,000 allocated to Sam and $50,000 allocated to Dave); withdrawals are $77,000 ($40,000 for Sam and $37,000 for Dave). Compute the total partnership return on equity and the individual partner return on equity ratios.

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The Answer of Sam and Dave's company is organized as a partnership. At the prior year-end, Sam's equity balance was $258,000 and Dave's was $212,000. For the current year, partnership net income is $125,000 ($75,000 allocated to Sam and $50,000 allocated to Dave); withdrawals are $77,000 ($40,000 for Sam and $37,000 for Dave). Compute the total partnership return on equity and the individual partner return on equity ratios.

Sam and Dave's Company Is Organized as a Partnership