On january 1, year 1, bear company leased an asset to cub company and appropriately accounted for the lease as a direct financing lease. the asset has a fair value of $36,000 and a carrying amount of $30,000. the lease has an implicit rate of 6% and a third-party guaranteed residual value of $5,000. the lease term is three years, and the asset has a five-year useful life. lease payments of $11,897 are due at the end of the year, and the present value factor of an ordinary annuity at 6% for three years is 2.67301. the present value of a single sum at 6% and three years is .83962. assume a rate of 15.85% amortizes the net lease receivable to zero over the lease term. what amount should bear record as the amortization of deferred gross profit associated with the first lease payment made december 31, year 1?

The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?

Acompany that adapts its product mix to meet the needs of a new market is using which of the following global marketing strategies market development diversification strategy product development undiversified

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?