Complete/Correct Question:
An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?
a. Effective gross income
b. Gross income multiplier
c. Gross rent multiplier
d. Potential gross income
Answer:
c, gross rent multiplier
Explanation:
Gross rent multiplier can be defined as the ratio of the price of a real estate investment to the annual income before the calculation of expenses.
It can simply be said to be the number of years it would take a property for pay for itself through rent collection.
Gross rent multiplier is very useful when deciding or trying to select properties to invest in to ensure that factors such as depreciation, periodical cost, etc affects the property/investment drastically.
in the case of the investor in the question above, gross rent multiplier will be used to determine what the future holds for the property.
Cheers
Answer:
D. 34.00%
Explanation:
The computation of the new contribution margin is shown below:
As we know that
Contribution Margin = Net Sales Revenue - Variable Expenses
where,
Net sales revenue is
= 604 units × $32.5
= $19,630
The variable expense = Total material cost + total labor cost
Total Material Cost = 604 units × $14.36 = $8,673.44
Total Labor Cost = 604 units × $7.09 = $4,282.36
So, the variable expense is
= $8,673.44 + $4,282.36
= $12,955.8
Now
Contribution margin = $19,630 - $12,955.8 = $6,674.2
And,
Contribution margin ratio = Contribution margin ÷ net sales
So, Contribution margin = $6,674.2 ÷ $19,630
= 34.00%
B. Serena should focus on a certain amount and track her spending
Answer:
40 days.
Explanation:
In the absence of the information about opening receivables, the closing figure is assumed to be the average accounts receivables,
Hence,
Debtors Turnover Ratio for Reagan:
= Sales ÷ Average Accounts Receivables
= $608,000 ÷ $73,922
= 8.22 times
Assuming that the number of days in a year as 365,
the firm's days sales uncollected for the year works out to:
= 365 days ÷ Debtors Turnover Ratio
= 365 ÷ 8.22
= 40.40 or 40 days.
Answer:
$555,000
Explanation:
Calculation for the amount that will be reported for consolidated cash after the acquisition is completed
Cash at Kirkwood Inc $475,000
(900-400-15-10)
Add Cash at Soufflot Company $80,000
Consolidated cash after acquisition is completed $555,000
Therefore the amount that will be reported for consolidated cash after the acquisition is completed will be $555,000
