Mucho Tacos, Inc., sells franchises. Mucho Tacos imposes on its
franchisees standards of operation and personnel...
Mucho Tacos, Inc., sells franchises. Mucho Tacos imposes on its
franchisees standards of operation and personnel training methods.
What is the potential pitfall to Mucho Tacos if it exercises too
much control over its franchisees?
Caffeine Coffee Shops, Inc., sells franchises. Caffeine imposes
on its franchisees standards of operation and personnel training
methods. What is the potential pitfall to Caffeine if it exercises
too much control over its franchisees?
Please explain in detail.
Shamrock Burrito Inc. sells franchises to independent operators
throughout the northwestern part of the United States. The contract
with the franchisee includes the following provisions.
1.
The franchisee is charged an
initial fee of $120,000. Of this amount, $20,000 is payable when
the agreement is signed, and a $100,000 zero-interest-bearing note
is payable with a $20,000 payment at the end of each of the 5
subsequent years. The present value of an ordinary annuity of five
annual receipts of $20,000,...
The Subway Sandwich Shop, Inc. is seeking to sell new franchises
for its business. The company is in the process of developing a
business plan to present to potential investors. Following are
various projected cost data for a typical sandwich shop:
Lease of store space
$500/month
Equipment lease
$500/month
License
$240/year
Advertising
2.5% gross sales revenue
Royalty
8% of gross sales revenue
Salaries
$2,000/month
Utilities
$400/month
Insurance
$1,500/year
The average order (sandwich) sells for $4, with food cost of
$2....
Bronco, Inc., imposes a payback cutoff of three years for its
international investment projects.
Year
Cash Flow (A)
Cash Flow (B)
0
–$
54,000
–$
64,000
1
20,000
12,000
2
22,000
15,000
3
18,000
20,000
4
5,000
224,000
What is the payback period for both projects? (Round
your answers to 2 decimal places, e.g., 32.16.)
Buy Coastal, Inc., imposes a payback cutoff of 3 years for its
international investment projects. Suppose the company has the
following two projects available. Project A has payback period of
years, while project B has a payback period of years. Therefore, it
should project A and project B. (Round your answers to 3 decimal
places. (e.g., 32.162))
Year Cash Flow (A) Cash Flow (B)
0 −$43,000 −$59,000
1 21,000 10,000
2 31,000 16,000
3 10,000 26,000
4 2,000 268,000 References
Wine Glass Inc. produces and sells
wine glasses.
Per the Standards, for the months of
May, each wine glass takes 2 pounds of material at $2.50 per
pound.
For the Month of May, Wine Glass Inc.
planned on producing and selling 200 wine glasses. They actually
produced and sold 210 wine glasses, using 525 pounds of material
costing $1,181.25 in actual total cost.
What is the Materials Activity Variance for the Month of
May:
What is the Materials Spending Variance...
AB Distribution, Inc., employed QY, Inc., to run its tire
mounting and distribution operation in Mount Valley, Ohio. Robert
Chase worked for QY as a second-shift supervisor at Titan. He
suffered a heart attack in 2000 and underwent heart bypass surgery
in 2001. He also had arthritis. In July 2006, AB Distribution
decided to terminate QY. Chase applied to work at AB Distribution,
Inc. On his application, he described himself as having a
disability. After a physical exam, AB’s doctor...
Teton Inc sells its only product for 50 per unit
Teton, Inc. sells its only product for $50 per unit. Fixed expenses total $800,000 per year. Variable expenses are $1,000,000 when 40,000 units are sold. How many units must be sold to earn a net operating income of $75,000?
Economics, Inc. has started its operation in late 2016. At the
beginning it was generating revenue from sales commission and after
it expanded its operation by providing management services. By the
end of 2017 the company has hired you as independent consultant to
help with comprising final balance sheet and income statement.
Required:
Provide ALL adjustments by the end of 2017.
Fill in the worksheet.
Prepare closing entries, income statement, statement of
retained earnings, and balance sheet for 2017.
The...
64-Larkspur, Inc. disposes of an unprofitable segment of its
business. The operation of the segment suffered a $224000 loss in
the year of disposal. The loss on disposal of the segment was
$124000. If the tax rate is 31%, and income before income taxes was
$1624000,
net income is $1276000.
the losses from discontinued operations are reported net of
income taxes at $348000.
the income tax expense on the income before discontinued
operations is $455880.
the income from continuing operations...