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3 years ago

The value of an asset is determined by discounting the future cash flows generated by the asset using the:

1 answer:

Nadusha1986 [10]3 years ago

5 0

The value of an asset is determined by discounting the future cash flows generated by the assets using the DISCOUNTED CASH FLOW ANALYSIS. Dis counted cash flow analysis is used to value projects, assets or companies using the concept of the time value of money. This method is used to determine the attractiveness of an investment.

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Pop Consulting leased machinery to Red Inc. on July 1, 2018. The lease was recorded as a sales type lease. The present value of

labwork [276]

Answer:

The increase in earnings is $136511.56

Explanation:

Since the lease is a sale type of lease,it means that as soon as the machinery is delivered to the lessee,profit should be recognized on the lease transaction,which is computed below:

Profit on lease=present value of lease payments-costs

=$274149-$156000

=$118149

However,every six months interest is charged on the lease,which clearly indicates another source of earnings,the interest in the first six months is given below:

Interest=($274149-$44617)*8%

=$18362.56

Please note that interest is charged after lease payment as lease payment is made in advance not in arrears.

Conclusively, the increase in earnings is $118149+$18362.56

That is $136511.56

5 0

3 years ago

Zeitler's Department Stores sells its products online and through traditional brick-and-mortar stores. The following parallel co

irakobra [83]

Question Completion:

Choose the correct answer below

(1) in-store customers appear to be middle aged, have higher annual income and live further distance away from a store

(2) in-store customers appear to be generally younger, have lower annual income and live near a store

(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store

(4) Online customers appear to be middle aged, have lower annual income and live near a store

Answer:

Zeitler's Department Stores

Online and In-store Customers:

According to the parallel coordinates plot, online customers are differentiated from in-store customers in the following ways:

(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store

Explanation:

Younger persons tend to embrace technology more than their older counterparts. Based on this, they also engage on online purchasing of goods and services instead of visiting the traditional brick-and-mortar stores. With online purchase, a customer is in better control because she can search for the best deals from any location.

7 0

2 years ago

You have a franchised planet fitness gym. you began the business by paying your initial franchise fees and now you pay royalties

sdas [7]

You have a franchised planet fitness gym. you began the business by paying your initial franchise fees and now you pay royalties on a regular basis. this typical fee structure for a franchise is an Example Of an advantage For An Franchisor.

In the aforementioned scenario, we first pay the initial franchise fees and then we are required to pay royalties on a regular basis. As a result, it is obvious that the franchisor benefits financially and that overall growth also benefits because the franchisor does not assume any risk in the Planet Fitness Gym; instead, they merely provide their franchises and receive regular basis income.

Additionally, they lower market and gym startup costs, among other things. They also gain from the fact that opening a new gym raises the value of their brand in the marketplace, which helps the franchisor long-term and accelerates their overall growth.

A franchise is a kind of license that gives a franchisee access to a franchisor's confidential company information, operational procedures, and trade names, enabling the franchisee to conduct business under the franchisor's brand.

Learn more about franchise here

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3 0

2 years ago

at the end of the current year, using the aging of accounts receivable method, management estimated that $16,500 of the accounts

Furkat [3]

The adjusting entry that the company should pass at the end of the current year to record the bad debts expense:

Bad Debts Expense 16,900

Allowance for Doubtful Accounts 16,900

<h3>What is an allowance for doubtful accounts?</h3>

A contra account called an allowance for doubtful accounts nets against the total receivables shown on the balance sheet to only show the amounts anticipated to be paid. The percentage of accounts receivable that are anticipated to be uncollectible is estimated by the allowance for doubtful accounts.

A negative balance in the allowance for doubtful accounts means that more accounts than anticipated have been written off. A contra asset account with a typical credit balance is the allowance for doubtful accounts.

Under the aging method, the adjusting entry for bad debt expense is calculated using the following formula:

Estimate of uncollectible accounts - (+) Current credit (debit) balance in the allowance for doubtful accounts = Bad debt expense

Hence, The adjusting entry that the company should pass at the end of the current year to record the bad debts expense is given above.

Learn more about the allowance for doubtful accounts:

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"Your question is incomplete, probably the complete question/missing part is:"

Bad Debts Expense 16,500

Allowance for Doubtful Accounts 16,500

Bad Debts Expense 16,100

Allowance for Doubtful Accounts 16,100

Bad Debts Expense 16,900

Allowance for Doubtful Accounts 16,900

Accounts Receivable 16,500

Bad Debts Expense 400

Sales 16,900

Accounts Receivable 16,900

Allowance for Doubtful Accounts 16,900

8 0

1 year ago

Starbucks is known for understanding its customers. As such, it has developed multiple varieties of products that match the need

Art [367]

Based on the things Starbucks is doing to attract customers, we can say that this is the <u>C. Positioning strategy. </u>

<h3>What is the positioning strategy?</h3>

A marketing strategy that involves placing yourself in the market in such a way that you attract more customers.
Involves knowing the needs and wants of the market to be able to exploit them.

Starbucks is trying to exploit the needs of the market by positioning itself in various ways to match those needs so this is a positioning strategy.

In conclusion, option C is correct.

Find out more on the positioning strategy at brainly.com/question/3130023.

3 0

2 years ago