Options:
A. Kerry has hired a private inspector to ensure that the business is in compliance with government regulations.
B. The business is being sold and the buyer has sent an inspector to ensure the business is operated properly.
C. This is a franchise and the franchisor has sent its inspector to ensure the business is operated according to the franchise license.
D. The inspector is the father of an employee who is a minor and he wants to ensure that child labor laws will not be violated.
Answer: C.) This is a franchise and the franchisor has sent its inspector to ensure the business is operated according to the franchise license
Explanation:
The fast food business being operated by Kerry could be interpreted as a franchise, whereby a franchisor which could be an individual or company has granted Kerry who is a third party owner the license or right to use the franchisor's trademarks and right to run her business. These franchisor must have sent an inspector to Kerry's fast food to inspect in other to ascertain that the franchise is being operated in accordance to the terms in the franchise license.
Answer:
Total PV= $790,228.23
Explanation:
Giving the following information:
Annual payment= $50,000
Number of periods= 10 years
Annual payment= $100,000
Number of periods= 5 years
Discount rate= 9% = 0.09
<u>First, we need to calculate the future value of each annual payment:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual paymeny
First 10 years:
FV= {50,000*[(1.09^10) - 1]} / 0.09
FV= $759,646.49
Next 5 years:
FV= {100,000*[(1.09^5) - 1]} / 0.09
FV= $1,709,582.17
<u>Now, the present value of the prize:</u>
PV= FV/(1+i)^n
First 10 years:
PV= 759,646.49/(1.09^10)
PV= $320,882.89
Next 5 years:
PV= 1,709,582.17/(1.09^15)
PV= 469,345.34
Total PV= $790,228.23
Answer:
True
Explanation:
Since it is given in the question that the $95,000 amount is borrowed from the local bank against the purchase its first year's inventory and the same is to be repaid before the end of its fiscal year.
So if the payment is made within the one year the same is to be classified as current assets and is to be reported on the balance sheet
Answer:
$31,350
Explanation:
Calculation for Pat's accrual-basis net income
Cash receipts$42,900
Less Cash disbursements(12,800)
Cash basis net income 30,100
Less depreciation expense(1,900)
Add increase in accounts receivable1,200
Add increase in supplies 3,600
Less increase in accrued liabilities(1,650)
Accrual-basis net income$31,350
Statistics is your answer i believe