User Account

All Pages

What is the net income to be recognized by pizza inc

Assignment Help Financial Accounting
Reference no: EM133098522

Question - Mr. Villa is about to purchase a franchise from Pizza, Inc. the standard contract provides for a 10-year term and an initial franchise fee of P450,000 a payable as follows: P150,000 at the date of signing. The expected date of signing is January 1, 2013. A continuing fee of 2% of gross sale is also to be paid to the franchisor. Monthly gross sales are expected to be P200,000 for the first four years and P375,000 for the remainders of the contract. An additional of P50,000 for initial services are incurred on January 17, 2013. There are no associated continuing costs.

What is the net income to be recognized by Pizza Inc. for the fiscal year ending December 31, 2013 assuming that the franchisor started operations on February 1, 2013?

Reference no: EM133098522

Questions Cloud

Basic financial statements : What are the four basic financial statements? What is their purpose and what does each one tell you about a company?
National occupation classification : Using the National Occupation Classification (NOC), select a job that you are familiar with and create two situational and two behavioral descriptive interview
Arranging beneficial for organizational culture : Why is picnic arranging beneficial for organizational culture or the workplace in general
Determine what is purpose of organization : It is important to understand the philosophy of the business and its culture and the aim is to determine what is the purpose of organization.
What is the net income to be recognized by pizza inc : What is the net income to be recognized by Pizza Inc. for the fiscal year ending December 31, 2013 assuming that the franchisor started operations on February
Analyze the impact of change upon the organization : Q: Analyze the impact of change upon the organization's strategy and operations. (Around 600 words).
Preparing a career development plan : Mike Scott was a high school graduate who worked as a receptionist at the headquarters of a large corporation. Scott did not have any particular plan for career
Determine the amount of construction costs incurred : The company entered into a fixed-price contract to construct a building for Richman Company for $30,000,000. Determine the amount of construction costs
Experience successes and challenges leading to growth : The learning objectives achieved during the course, review your internship experience successes and challenges leading to growth.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss the purpose of stock markets

Discuss the purpose of stock markets and provide an examples of markets that exist today. What does it mean to be a stockholder?

  The city purchased new computer equipment costing 19000 by

the city purchased new computer equipment costing 19000 by paying 3000 in cash and signing a long-term note payable for

  Recommendations based on the above analysis to improve

recommendations based on the above analysis to improve profitability.downes consolidated industries international uses

  Monthly break-even point in unit sales and in dollar sales

Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Total Per Unit Sales $ 308,000 $ 20 Variable expenses 215,600 14 Contribution margin 92,400 $ 6 Fixed expenses 73,800 Net operating income $ 18,600. W..

  Marketing department prepared first-quarter sales forecast

Tim's Temple Tools sells small eyeglass repair tools for $1.25 each. Tim's marketing department prepared the following first-quarter sales forecast (in units): Required: Prepare Tim's sales budget for each month of the quarter. January February March..

  What is the amount of the firm net working capital

What is the amount of the firm's net working capital? Scare Train, Inc. has the balance sheet statement items current liabilities of $787,249

  Explain the weightages

Weight the individual capital source costs by their percentage in the company's total capital structure. Explain your weightages.

  What was supplies expense for carolina mills

The supplies account increased by $17,000 during the year to an ending balance of $56,000. What was supplies expense for Carolina Mills during the year

  Briefly discuss how interest cost are treated

Question - Briefly discuss how interest cost are treated when a building is constructed. Do you agree with this method. Why or why not

  Company amount of misstatement overstatement

During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,000 instead of the correct amount of $554,000. Almond Supplies Company Amount of Misstatement Overstatement (Understatement)..

  Shares of common stock issued and outstanding

Long had 100,000 shares of common stock issued and outstanding at January 1, 2013. During 2013, Long took the following actions: March 15 declared a 2 for 1 stock split when the fair value of the stock was $80 per share

  Demonstrate how much is the stock worth

Demonstrate how much is this stock worth to you? Riverhawk Sport Authority (RSA) will pay a dividend of $7 for each of the next 3 years, $8 for each of the year

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd