Answer:
market net operating profit per square foot = $8.80
Explanation:
total investment = $145 per square foot
the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot
total revenue per square foot = $11
proportional market vacancy and credit loss = $11 x 5% = ($0.55)
<u>other expenses = $11 x 15% = ($1.65) </u>
market net operating profit per square foot = $8.80
The project should be carried out since the net operating profit is larger than the investor's required rate of return.
Answer:
Diluted earnings per share is $1.7 per share
Explanation:
The number of diluted shares from the options is calculated thus
Total number of shares from options 34,500
Actual number of shares that can be purchased
(options shares*option price/share market price)
(34,500*$11/$15) (25,300)
Diluted shares 9,200
Diluted earnings per share=net income/(outstanding common stock + diluted common stock)
net income is $331,840
outstanding common stock is 186,000
diluted common stock is 9200
diluted earnings per share=$331,840/(186,000+9200)
=$1.7 per share
Answer:
No, it will not be classified on cash flow statement.
Explanation:
In the given case, stocks are issued in exchange of equipment. Assuming no cash is involved even for the balancing amount.
Since, cash flow statement records all transactions involving cash the exchange of stock issued for equipment, is nowhere involving cash thus, it will not be depicted on cash flow statement.
Final Answer
No it will not be classified on cash flow statement.
Answer:
Net Income is $17,000
Explanation:
A sole proprietor is not taxed as a business entity but all the income and expenses should be reported on the income tax return. On schedule C all the details of profit and loss should be submitted with Form 1040.
Net profit calculation to report on Schedule C is as follow:
Net sales - $80,000
Cost of goods sold <u>($40,000)</u>
Gross Income $40,000
Operating expenses <u>($20,000)</u>
Operating Income $20,000
Employee payroll taxes <u>($3,000)</u>
Net Income <u> $17,000 </u>
Answer:
Entrepeneur
Explanation:
The entrepeneur is the person that is willing to take the financial risk linked to open up a business with the desire of obtain a profit.
