PFW Co reports net income of 74600 Partner salary allowances

PFW Co. reports net income of $74,600. Partner salary allowances are Pitts $12,790, Filbert $6,610, and Witten $4,200. Indicate the division of net income to each partner, assuming the income ratio is 50 : 30 : 20, respectively.

Division of Net Income

Pitts

Filbert

Witten

Total

LINK TO TEXT

Division of Net Income
		Pitts		Filbert		Witten		Total
Salary allowance		$		$		$		$
Remaining income
Total division of net income		$		$		$		$

Solution

P & L appropriation account Particular Amount Particukals Amount Salary allowance Net profit 74600 PITT 12790 filbert 6610 witten 4200 Distribution of profit pitt 50% 25500 filbert 30% 15300 witten 20% 10200 74600 74600 Profit to be distributed= total profit less salary                                             = 74600-12790-6610-4200                                             =51000