Cinema Products LP Is Organized as a Limited Partnership That

Essay

Cinema Products LP is organized as a limited partnership that sells movie props. Information related to capital balances is given below. Compute the partner return on equity for each limited partner. How would each partner evaluate the success of the partnership? What would you recommend the partners do with respect to additional investments or withdrawals?
$$\begin{array} { l r r r } & \text { Turner } & \text { Kelly } & \text { Total } \\\text { Capital balance, beginning of year } & 890,000 & 570,000 & 1,460,000 \\\text { Net income for current year } & 85,000 & 65,000 & 150,000 \\\text { Withdrawals for current year } & 40,000 & 25,000 & 65,000\end{array}$$