Answer:
$1,241
Explanation:
For computing the net advantage to leasing first we have to determine the total cash flow from leasing and total cash flow from buying which is shown below:
For leasing:
Year Lease payment PVF at 5.8% Present value
1 $6,500 0.9452 $6,144
2 $6,500 0.8934 $5,807
3 $6,500 0.8444 $5,489
Total outflow $17,440
For buy:
Year Outflow or inflow PVF at 5.8% Present value
0 ($23,000) 1 ($23,000)
1 $1,610 0.9452 $1,522
2 $1,610 0.8934 $1,438
3 $1,610 0.8444 $1,359
Total outflow $18,681
Now the net advantage to leasing is
= Buy outflow - leasing outflow
= $18,681 - $17,440
= $1,241
Answer:
a) $234,000 of net cash used.
Explanation:
Investing activities: It records those activities which include purchase and sale of the long term assets
. The purchase of long term assets is an outflow of cash and the sale of long term assets is an inflow of cash
The computation of the Net cash flows from investing activities is shown below:
Cash flow from Investing activities
Purchase of equipment - $225,000
Proceeds from the sale of equipment $106,000
Purchase of land - $115,000
Net Cash flow from Investing activities - $234,000
Answer: The correct answer is a corporate chain store.
Explanation: A corporate chain store is defined as two or more outlets owned and controlled, employing central buying and merchandising, and selling similar lines or merchandise. This is exactly what Gap and Pottery barn do - they are basically operating two different, but very similar, retailers under the same corporate umbrella.