CASE 2 Nori Restaurant sold a fast-food restaurant franchise to Irish. The sale agreement, signed on January 20x1, called for a P200,000 down payment plus two (2) P100,000 annual payments representing the value of initial franchise services rendered by Nori Restaurant. In addition, the agreement requires the franchisee to pay 10% of its gross revenues to the franchisor. The restaurant opened early in 20x1 and its sales for the year amounted to P1,250,000. The prevailing rate for a similar note was 12%. REQUIRED: Compute the following: (Round off PV factor in four (4) decimal places) 5. Total franchise fee revenue 6. Total revenue
CASE 2 Nori Restaurant sold a fast-food restaurant franchise to Irish. The sale agreement, signed on January 20x1, called for a P200,000 down payment plus two (2) P100,000 annual payments representing the value of initial franchise services rendered by Nori Restaurant. In addition, the agreement requires the franchisee to pay 10% of its gross revenues to the franchisor. The restaurant opened early in 20x1 and its sales for the year amounted to P1,250,000. The prevailing rate for a similar note was 12%. REQUIRED: Compute the following: (Round off PV factor in four (4) decimal places) 5. Total franchise fee revenue 6. Total revenue
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter8: Revenue Recognition, Receivables, And Advances From Customers
Section: Chapter Questions
Problem 52P
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