Jell and dell were partners with capital balances of 600 and 800 and an income sharing ratio of 2:3. They admitted zell with a 30% interest in the partnershipand the total amount of goodwill credited to the original partners was 700. What amount did zell contribute to the business?

$900

Explanation:

The Total Capital of the company before Zell was admitted was;

= Capital balances + Goodwill

= 600 + 800 + 700

= $2,100

If they admitted Zell in with a 30% interest, this means that the $2,100 is equivalent to 70% of the company's capital.

If that is the case then Total capital is;

= 2,100/ 70%

= $3,000

Zell's contribution is;

= 30% * 3,000

= $900

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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