A philanthropist is looking to invest in new start-up companies. She has decided toinvest $200,000 in a company started by two inventors. It is decided thephilanthropist will earn a 10% return on her investment and then the profits of thenew company will be divided into the ratio 1:2:2. The philanthropist is representedby the first person in the ratio. Determine the amount the philanthropist receivesand the amount each inventor receives if the profit is $78,000

Philanthropist's Share of profit of new company= $78,000*1/5= $15,600 As remaining two investors'…

Answered: A philanthropist is looking to invest…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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