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2 years ago

Suppose you inherit an apartment building from your uncle. You anticipate making some income from the rent on

Business

1 answer:

alexira [117]2 years ago

5 0

Answer:

Would you cut back on making repairs and keeping the building in a safe and

livable condition?

No, I would maintain the building as good as posible.

How might you keep the building in good shape and still turn a profit?

the value of the building will increase over time. Then, is a matter of patience to make a profit out of the sell of it.

Is it possible to manage the building or change it to make it both livable and profitable?

yes, What usually happens with rent control properties is that the landlords use the building for commercial or create condos use to avoid the law.

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The city of Brock’s Water Enterprise Fund leases water treatment equipment. The life of the noncancellable lease is 10 years, an

Degger [83]

Solution and Explanation:

The Journal Entries in the books of Brock's water enterprise is as follows :-

Date Particulars and details Debit($) Credit($)

Jan 5, 2018 Intangible Assets - Lease 905861

Lease Payable 905861

(Being Record the Lease)

Jan 5, 2018 Lease Payable 125000

Cash 125000

(Being Record Down Payment)

Dec 31, 2018 Amortization Expenses ($905861divide 10) 90586

Accumulated Amortization 90586

(Being Record the amortization)

Jan 5, 2019 Lease Payable $(\$ 125000-\$ 62469)$ 62531

Interest Expenses $((\$ 905861-\$ 125000) * 8 \%)$ 62469

Cash 125000

(Being Record the Second Lease Payment)

3 0

2 years ago

Demers Inc. reported the following data:

elena-s [515]

Answer:

Cash Flows from Operating Activities is 555.050

Explanation:

The indirect method involves the adjustment of net income with changes in balance sheet accounts to arrive at the amount of cash generated by operating activities.

It depends on the account if it is added or subtracted to net income. Below you will find the added account with a plus (+) and the subtracted ones with a minus (-)

Notice the amounts of any decreases are in parentheses.

Net income 490.000

Adjustment to reconcile the net income to cash

+ Depreciation expense 52.000

- Gain on disposal of equipment (7.000)

+ Decrease in accounts receivable 32.400

- Decrease in accounts payable (12.350)

Net cash 555.050

7 0

1 year ago

Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding c

WINSTONCH [101]

Answer:

Kayak Co.

Cash Budget

January February March

Cash inflows: $525,000 $400,000 $450,000

Cash outflows: ($475,000) ($350,000) ($525,000)

Monthly cash flow: $50,000 $50,000 ($75,000)

Monthly interests: ($600) ($106) $0

Initial cash balance: $30,000 $30,000 $69,294

Ending cash balance: $79,400 $79,894 ($5,706)

Required bank loan: $0 $0 $35,706

Payment of bank loan: ($49,400) ($10,600) $0

Total $30,000 $69,294 $30,000

Explanation:

Cash Receipts Cash Disbursements

January $525,000 $475,000

February $400,000 $350,000

March $450,000 $525,000

A cash budget is the estimation of the business's future cash flows including estimated revenues and expenses.

6 0

1 year ago

Silver Corporation has provided the following information concerning its raw materials purchases. The budgeted cost of raw mater

kakasveta [241]

Answer:

$171,619.20

Explanation:

The computation of the budgeted accounts payable balance at the end of November is shown below:

= Budgeted cost of raw materials purchases in November × following month percentage

= $286,032 × 60%

= $171,619.20

As 40% is paid in the month of purchase whereas 60% is paid to the following month. So, we recognized 60%, not 40%

4 0

2 years ago

A firm has a P/E ratio of 12 and a ROE of 13% and a market to book value of what?

maxonik [38]

Answer:

1.56

Explanation:

Calculation for the market-to-book value

First step is to calculate for the P/E ratio

P/E ratio=1/12

P/E ratio= 0.0833

Now let find the market-to-book value using this formula

Market-to-book value = ROE percentage/P/E ratio

Let plug in the formula

Market-to-book value=0.13/0.0833

Market-to-book value= 1.56

Therefore the Market-to-book value will be 1.56

6 0

2 years ago