Question

4. You have invested in a limited partnership that has purchased a property for $20 million. The partnership was fortunate to sell the property for $25 million after one year. The property also generated $1 million in income during the year. The general partner contributed 20% of the initial property investment and the limited partners contributed 80% of the initial investment. a. Assuming that the profits are split pro rata, how much cash flow will the general partner receive? How much cash flow will the limited partners receive? 

          4. You have invested in a limited partnership that has purchased a property for $20 million. The partnership was fortunate to sell the property for $25 million after one year.
The property also generated $1 million in income during the year. The general partner contributed 20% of the initial property investment and the limited partners
contributed 80% of the initial investment.
a. Assuming that the profits are split pro rata, how much cash flow will the general partner receive? How much cash flow will the limited partners receive?
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4. You have invested in a limited partnership that has purchased a property for 20 million. The partnership was fortunate to sell the property for25 million after one year. The property also generated 1 million in income during the year. The general partner contributed 20% of the initial property investment and the limited partners contributed 80% of the initial investment. a. Assuming that the profits are split pro rata, how much cash flow will the general partner receive? How much cash flow will the limited partners receive?

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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You have invested in a limited partnership that has purchased a property for $20 million. The partnership was fortunate to sell the property for $25 million after one year. The property also generated $1 million in income during the year. The general partner contributed 20% of the initial property investment, and the limited partners contributed 80% of the initial investment. a. Assuming that the profits are split pro rata, how much cash flow will the general partner receive? How much cash flow will the limited partners receive?
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Transcript

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00:01 Hi, in this question, given that gross income equals $125 ,000 and here less vacancy is $6 ,250 and also given that less operating expenses equals $27 ,000, we need to assume that the straight line 10 year description scheduled $70 ,000 per year.
00:49 We need to find the capital amount of investor of b.
00:54 So here first we need to add income which is 12 ,125 ,000 plus 6 ,250 plus less operating expenses 27 ,000 plus interest on mortgage which is here interest on mortgage is 6 % so we can write it as 550000 into 6 % because here given that the mortgage amount is 550000 which is equal to on further simplifying we get 58750, 6 % can be written as 6 by 100...
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