Which component of a balance sheet includes a business’s debts, or the money that it owes to creditors for past transactions?

"Bob wants to buy a building. He computes the annual NOI for the following year to be $275,000. The seller s asking price for th

Lemur [1.5K]

Answer:

BOB should offer 4,583,333 for the building if he wants the cap rate to be the same as the similar building.

Explanation:

The cap Rate is used to to calculate how much income a building or a property generates compared to its price it is bought at, so in order to find the cap rate we divide the annual NOI by it's price. In this question we will have to calculate the cap rate of the similar building which was sold for 6,000,000 and then use that cap rate to find what should the price of the building be that BOB wants to buy.

Cap rate = Annual NOI/Price

Cap rate of similar building = 360,000/6,000,000=0.06=6%

Now we will substitute 6% in the formula to find the price of the building BOB wants to buy.

0.06=275,00/Price

Price = 275,000/0.06=4,583,333

4 0

4 years ago

A machine with a cost of $133,000 and accumulated depreciation of $86,500 is sold for $53,000 cash. The amount that should be re

adell [148]

Answer:

Zero, because the selling of fixed asset is reported as cash inflow under investing activity.

Explanation:

Cash flow from investing activities includes all the investments in the long term assets and sale of investments or individual assets. The investment items may include Property, Plant and Equipment.

So this means that it will not be included in the Cash from Operating Activities because it is a Cash from Investing Activities.

7 0

3 years ago

Suppose the U.S. GDP growth rate is faster relative to other countries' GDP growth rates. U.S. imports will therefore increase

Leni [432]

Answer:

Option (B) is correct.

Explanation:

If there is an any change in the GDP of a particular nation then as a result this will shift the demand curve. Increase in GDP or an increase in the income level of the people will shift the demand curve for goods rightwards. With the higher level of income, the consumer's demand for goods increases.

Any change in the price level of the goods will affect the quantity demanded for that goods and there is a movement along a demand curve.

5 0

4 years ago

Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset

qwelly [4]

Answer:

Manning Imports

The amount of the quarterly lease payments (beginning at the inception of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term should be:

Payment Every Quarter = $5,266.65

Explanation:

a) Data and Calculations:

Cash price of equipment = $100,000

Reasonable rate of interest = 8%

Lease period = 5 years

Payment period = 20

From an online financial calculator:

Payment Every Quarter $5,266.65

Total of 20 Payments $105,332.90

Total Interest $5,332.90

Lease Amortization Schedule with quarterly payment of $5,266.65:

Beginning Balance Interest Principal Ending Balance

1 $100,000.00 $500.00 $4,766.65 $95,233.35

2 $95,233.35 $476.17 $4,790.48 $90,442.88

3 $90,442.88 $452.21 $4,814.43 $85,628.45

4 $85,628.45 $428.14 $4,838.50 $80,789.94

Year #1 End

5 $80,789.94 $403.95 $4,862.70 $75,927.25

6 $75,927.25 $379.64 $4,887.01 $71,040.24

7 $71,040.24 $355.20 $4,911.44 $66,128.79

8 $66,128.79 $330.64 $4,936.00 $61,192.79

Year #2 End

9 $61,192.79 $305.96 $4,960.68 $56,232.11

10 $56,232.11 $281.16 $4,985.48 $51,246.63

11 $51,246.63 $256.23 $5,010.41 $46,236.21

12 $46,236.21 $231.18 $5,035.46 $41,200.75

Year #3 End

13 $41,200.75 $206.00 $5,060.64 $36,140.11

14 $36,140.11 $180.70 $5,085.94 $31,054.16

15 $31,054.16 $155.27 $5,111.37 $25,942.79

16 $25,942.79 $129.71 $5,136.93 $20,805.86

Year #4 End

17 $20,805.86 $104.03 $5,162.62 $15,643.24

18 $15,643.24 $78.22 $5,188.43 $10,454.81

19 $10,454.81 $52.27 $5,214.37 $5,240.44

20 $5,240.44 $26.20 $5,240.44 -$0.00

Year #5 End

3 0

3 years ago

Dominic is the founder of an innovative "impromptu catering" business that provides elegant, healthy party food and decorations

inysia [295]

Answer:

D. Provide free weekly catered meals for the homeless

Explanation:

7 0

4 years ago