knowledge check 01\nbeginning partner equity $ 375,000\nending partner equity 465,000\nnet sales…

knowledge check 01\nbeginning partner equity $ 375,000\nending partner equity 465,000\nnet sales 850,000\nnet income 140,000\ncash distributions 50,000\nthe return on equity for the total partnership is:\n3.0%\n11.9%\n16.5%\n202.3%\n33.3%

knowledge check 01\nbeginning partner equity $ 375,000\nending partner equity 465,000\nnet sales 850,000\nnet income 140,000\ncash distributions 50,000\nthe return on equity for the total partnership is:\n3.0%\n11.9%\n16.5%\n202.3%\n33.3%

Answer

Explanation:

Step1: Calculate average partner equity

Average partner equity = ($375,000 + $465,000)/2 = $420,000

Step2: Calculate return on equity

Return on equity = (Net income / Average partner equity) * 100% = ($140,000 / $420,000) * 100% ≈ 33.3%

Answer:

33.3%