Sally and Andy are partners in Just Hats, LLC. Andy works in the business for an agreed salary draw of $4,000 per month. Sally has invested $200,000 in the business and Andy invested $100,000. THe net income of the business is $168,000 for the year. Income is distributed based on the investment of each partner after allocation for salary. How much net income is allocated to Sally?

Sally invested $200000 and Andy invested $100000, which means Andy's investment is half of Sally's investment. So he will receive the half of what Sally will get.

Let

Sally's pay be x

Andy's pay be x/2

Total Net income is 168000 dollars.

So, putting it in an equation, we get

(x+x/2)=168000

x(1+0.5)=168000

x(1.5)=168000

x= 168000/1.5

x=112000

So Sally's share will be $112000

Andy's share will be x/2

=112000/2

=56000

So Andy share will be $56000

andromache andromache · Answer 2 · 2022-02-22T13:40:56+01:00

The Net income allocated to sally is $112000

Calculation of the allocation of the net income:

Since Sally invested $200000 and Andy invested $100000, which means Andy's investment is half of Sally's investment.

Let us assume Sally's pay be x

So, Andy's pay be x/2

And,

Total Net income is 168000 dollars.

Now the equation is

(x+x/2)=$168000

x(1+0.5)=$168000

x(1.5)=$168000

x= $168000/1.5

x=$112000

So Sally's share will be $112000

Now

Andy's share will be x/2

=$112000/2

=$56000

Hence, the Net income allocated to sally is $112000".

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