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faltersainse [42]
2 years ago
9

Flapper Jack's Pancake Restaurants Inc. sells franchises for an initial fee of $36,000 plus operating fees of $500 per month. Th

e initial fee covers site selection, training, computer and accounting software, and on-site consulting and troubleshooting, as needed, over the first five years. On March 15, 2020, Tim Cruise signed a franchise contract, paying the standard $6,000 down with the balance due over five years with interest. Assuming that the initial services to be performed by Flapper Jack's subsequent to the signing are substantial and that collection of the receivable is reasonably assured, the journal entry required at signing would include a credit to
Business
1 answer:
Len [333]2 years ago
3 0

Answer:

The journal entry will involve the credit to Unearned franchise fee revenue which amounts to $36,000

Explanation:

The journal entry which is to be recorded for signing the substantial and the collection of note receivable is as:

March 15, 2020

Cash A/c......................................Dr    $36,000

   Unearned franchise fee revenue A/c......Cr   $36,000

As cash is received and that amounts to $6,000, the remaining balance amount of $30,000 being debited to Note receivable will be recognized during the year as and when received. And the Unearned franchise fee revenue for $36,000 is credited because signing date and the performance is yet pending.

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masha68 [24]

Answer:

The advice Lisa Marie has for people interested in a career in marketing or business is Study English and psychology, because you need skills in both areas to excel.

Explanation:

4 0
2 years ago
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High flyer, inc., wishes to maintain a growth rate of 16 percent per year and a debt-equity ratio of 0.90. the profit margin is
Xelga [282]

Answer: The dividend payout ratio is 46.19%.

We follow these steps in order to arrive at the answer:

We begin with the DuPont identity of RoE.

<u>DuPont Identity:</u>

RoE = Net Profit Margin * Asset Turnover Ratio * Equity Multiplier

Now,  

Equity Multiplier = \frac{1}{Debt Ratio}

And Debt Ratio is also expressed as:

Debt Ratio = \frac{D/E}{1+D/E}

where D/E represents the Debt-Equity Ratio.

Substituting the value of D/E ratio from the question in the debt ratio formula above we get,

Debt Ratio = \frac{0.9}{1+0.9}

Debt Ratio = \frac{0.9}{1.9}----(1)

Substituting (1) in the equity multiplier formula above we get,

Equity Multiplier = \frac{1}{\frac{0.9}{1.9}}

Equity Multiplier = \frac{1.9}{0.9}

Substituting Equity Multiplier from above and the relevant numbers from the question in the DuPont identity we get,

RoE = 0.048 * 1.08 * \frac{1.9}{0.9}

RoE = 0.10944

The relationship between RoE and earnings growth rate g is given by the following formula:

RoE = \frac{g}{(1-p)}, where p is the dividend payout ratio.

Plugging in the values in the formula above we get,

0.10944 = \frac{0.16}{(1-p)}

1-p = \frac{0.16}{0.10944}

1-p = 1.461988304

p = 0.461988304 or 46.19%

3 0
2 years ago
If the United States imports more than it exports, then this means that Group of answer choices the demand for dollars is likely
sladkih [1.3K]

Answer:

the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.

If the United States imports more than it exports, then this means that the supply of dollars is likely to exceed the demand in the foreign exchange market, ceteris paribus.

Generally, when import exceeds export there would be a deficit in the financial account of the country.

Hence, a deficit on the current account is because the value of goods and services exported is lower than the value of goods and services being imported in a particular country.

8 0
1 year ago
Last year Electric Autos had sales of $175 million and assets at the start of the year of $300 million. If its return on start-o
nalin [4]

Answer:

Operating profit margin = 25.71%

Explanation:

Amount of return on asset = Rate of return x Asset value

Amount of return on asset = 15% x $300,000,000

Amount of return on asset = $45,000,000

Operating profit margin = Amount of return on asset / Sales

Operating profit margin = $45,000,000 / $175,000,000

Operating profit margin = 0.257143

Operating profit margin = 25.71%

5 0
2 years ago
Identify each of the variables in the excel file credit approval decisions as categorical, ordinal, interval, or ratio and expla
forsale [732]
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8 0
2 years ago
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