Answer:
FV= $1,259.71
Explanation:
Giving the following information:
Initial deposit (PV)= $1,000
Number of periods (n)= 3 biannual years
Interest rate (i)= 8% = 0.08
<u>To calculate the future value (FV), we need to use the following formula:</u>
FV= PV*(1+i)^n
FV= 1,000*(1.08^3)
FV= $1,259.71
In a franchise, the franchisor allows the franchisee to trade under its name and see its products for a fee The franchisee pays an original fee to franchisor and a
percentage of its profit for the privilege.So,since, Dunkin' Doughnuts is sharing its' brand name and image with David Ungar(his franchisee) it would definately want to improve it...at the least maintain it...David too is right on the other hand as there can be a possibility that he wants to use ingredients of a much higher quality than that provided.But dunkin' doughnuts can't still allow to do that as it has other franchisees to look after.Imagine that=>all the franchisees of dunkin' doughnuts use different ingredients with different quality..wouldn't this affects the image of the franchisor...also all the food items they sell will have a different taste depending on the ingredients.And if one of the franchisee buys cheap ingredients... thereby producing low quality out put ..the customers will not be satisfied...this will not only affect that franchisee but also the Brand image of the whole business worldwide.
To conclude,David may not be wrong with his idea but since dunkin' doughnuts is a big business with a good brand image...it has its' terms and requirements.
Answer:
9.6 times ; 37.9 days
Explanation:
The computation of the accounts receivable turnover and the average collection period is shown below:
Accounts receivable turnover ratio = Credit sales ÷ average accounts receivable
where,
Average accounts receivable = (Opening balance of Accounts receivable + ending balance of Accounts receivable) ÷ 2
= ($4,350 + $3,150) ÷ 2
= $3,750 million
And, the net credit sale is $36,100 million
Now put these values to the above formula
So, the answer would be equal to
= $36,100 million ÷ $3,750 million
= 9.6 times
And, the Average collection period in days = Total number of days in a year ÷ accounts receivable turnover ratio
= 365 days ÷ 9.63 times
= 37.9 days
Answer:
Option (B) is correct.
Explanation:
A recessionary gap is a situation in which the equilibrium level of real GDP is less than the full employment level. In this condition, the aggregate demand is lower and there is a shortage of aggregate demand. This shortage of aggregate demand will be corrected if there is an increase in the government spending or decrease in the taxes. This would increase the aggregate demand in the economy, and therefore, increase the real GDP and achieve the full employment level.
An inflationary gap occurs when the equilibrium level of real GDP is greater than the full employment level. There is a higher level of aggregate demand in the economy, so there is a need to lower down the government spending or to raise taxes in order to reduce the aggregate demand. This lower level of aggregate demand reduces the real GDP and achieve the full employment level.
Answer:
The hypothetical tax expense =$340,000 with assumption that tax rate is 34%.
Explanation:
The above figure is worked out like this=$1,000,000*34%=$340,000
The hypothetical tax expense is pretax income multiplied with statutory income tax rate.
In our scenario pretax book income is $1,000,000 and tax rate is 34%
Please note that 34% tax rate is assumed as the said rate is not given in question.
