Sunday, August 7, 2011

What share does each person receive in this following statement?

The salary that Shelby receives should be for services provided and thus are independent of the investment side of the business. The net income at the end of the year has included Shelby's salary, so the $135,000 disbursement should be made in direct proportion to the original investment percentages. Therefore, Since Shelby owns roughly 43% and Mortonson owns about 57%, the pay out should be $57,857 to Shelby and $77,143 to Mortonson. Hope this helps!

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