a) State two features of a partnership.

b) Using the financial information provided in Table 1, calculate the value of X (equity) for WMF (show all your working).

c) Using the financial information provided in Table 1, calculate the value of Y (salaries) for WMF (show all your working).

d) On a separate piece of paper, construct a profit and loss account for WMF for the year ending 2019.

Watch Me Flex (WMF) Watch Me Flex (WMF) is a watch retailer based in Shanghai, China. It operates as a partnership between three owners, Eric, Nicolas, and Alvin. It specializes in the distribution of luxury branded watches, such as Rolex, Patek Phillipe, and Audemars Piguet. Due to the falling economic growth in China, WMF has been facing declining sales revenue during the past year. Further, with the crackdown of corruption, The State Administration of Taxation is reviewing many businesses. To prepare for WMF's review, the owners hired a new finance manager to prepare the final accounts for the tax authority's review. Table 1: Select financial information for WMF for 2019. Figures in Chinese yuan (). Items Sales revenue Total current assets Total current liabilities Utilities Cost of goods sold (COGS) Equity Rent Salaries Long-term bank loan Depreciation (in 2019) Net fixed assets Total expenses Interest Promotion expenses () 12,000,000 2,570,500 2,880.780 95,320 10,500,000 155,000 Y 970,500 77,200 1,350.500 1,218,400 123,500 30,780 The State Administration of Taxation in China stipulates a standard corporate tax rate of 25%. The fiscal year ends on 31 December for WMF