Paul swanson has an opportunity to acquire a franchise from the yogurt place, inc., to dispense frozen yogurt products under the yogurt place name. mr. swanson has assembled the following information relating to the franchise: a suitable location in a large shopping mall can be rented for $3,000 per month. remodeling and necessary equipment would cost $288,000. the equipment would have a 15-year life and a $19,200 salvage value. straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. based on similar outlets elsewhere, mr. swanson estimates that sales would total $330,000 per year. ingredients would cost 20% of sales. operating costs would include $73,000 per year for salaries, $3,800 per year for insurance, and $30,000 per year for utilities. in addition, mr. swanson would have to pay a commission to the yogurt place, inc., of 14.0% of sales. required: 1. prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. 2-a. compute the simple rate of return promised by the outlet. 2-b. if mr. swanson requires a simple rate of return of at least 17%, should he acquire the franchise? 3-a. compute the payback period on the outlet. 3-b. if mr. swanson wants a payback of three years or less, will he acquire the franchise?

What is the most important factor that affects the value of a company? a) cash flow b) earnings c) supply and demand d) number of employees

Which of the following is not a consideration when determining your asset allocation

Instructions: use the following information to construct the 2000 balance sheet and income statement for carolina business machines. round all numbers to the nearest whole dollar. all numbers are in thousands of dollars. be sure to read the whole problem before you jump in and get started. at the end of 1999 the firm had $43,000 in gross fixed assets. in 2000 they purchased an additional $14,000 of fixed asset equipment. accumulated depreciation at the end of 1999 was $21,000. the depreciation expense in 2000 is $4,620. at the end of 2000 the firm had $3,000 in cash and $3,000 in accounts payable. in 2000 the firm extended a total of $9,000 in credit to a number of their customers in the form of accounts receivable. the firm generated $60,000 in sales revenue in 2000. their cost of goods sold was 60 percent of sales. they also incurred salaries and wages expense of $10,000. to date the firm has $1,000 in accrued salaries and wages. they borrowed $10,000 from their local bank to finance the $15,000 in inventory they now have on hand. the firm also has $7,120 invested in marketable securities. the firm currently has $20,000 in long-term debt outstanding and paid $2,000 in interest on their outstanding debt. over the firm's life, shareholders have put up $30,000. eighty percent of the shareholder's funds are in the form of retained earnings. the par value per share of carolina business machines stock is