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1. Bianca Houston, Jana Alsup, and KeKe Cross arranged to import and sell orchid corsages for a university dance. They agreed to share equally the net income or net loss of the venture. Houston and Alsup advanced $250 and $380 of their own respective funds to pay for advertising and other expenses. After collecting for all sales and paying creditors, the partnership has $1,020 in cash.
(a) How should the money be distributed?
(b) Assuming that the partnership has only $540 instead of $1,020, do any of the three partners have a capital deficiency? If so, how much?
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