INSTALLMENT SALES

1,236,000.00 DP 216,000.00
300,000.00
720,000.00 60,000.00
78,000.00

a Selling Price 400,000.00

Reconditioning 50,000.00
Cost to Sell -
Normal Profit 40,000.00 90,000.00
Trade In 310,000.00

b Alllowance 300,000.00
Trade In 310,000.00
Underallowace 10,000.00
Original Selling Price 1,236,000.00
Adjusted Sales 1,246,000.00

c Installment Sales 1,246,000.00

Interest Revenue 19,468.92
Total Revenue 1,265,468.92
COS 747,600.00
GP / Net Income 517,868.92

d 10/1/2020 Cash 216,000.00

Trade In 310,000.00
Installment Receivable 720,000.00
Installment Sales 1,246,000.00

Cost of Sales 747,600.00

Inventory 747,600.00

10/31/2020 Cash 78,000.00

Installment Receivable 70,800.00
Interest Revenue 7,200.00

11/30/2020 Cash 78,000.00

Installment Receivable 71,508.00
Interest Revenue 6,492.00
 12/31/2020 Cash 78,000.00
Installment Receivable 72,223.08
Interest Revenue 5,776.92

FRANCHISING

PROBLEM 1

750,000.00 DP 500,000.00
250,000.00 50,000.00

Market study
Suitable location
Train Employees 716,475.00

7/1/2020 Cash 500,000.00

Franchise Fee Receivable 250,000.00
Deferred Franchise Revenue
Discount on FFR

12/31/2020 Deferred Cost of Sales 150,000.00

Cash

Cash 50,000.00
Discount on FFR 10,823.75
Franchise Fee Receivable
Interest Revenue

1/31/2021 Deferred Cost of Sales 75,000.00

Cash

2/15/2021 Deferred Franchise Revenue 716,475.00

Franchise Revenue

Cost of Sales 225,000.00

Deferred Cost of Sales

6/30/2021 Cash 50,000.00

Discount on FFR 8,864.94
Franchise Fee Receivable
 Interest Revenue

12/31/2021 Cash 50,000.00

Discount on FFR 6,808.18
Franchise Fee Receivable
Interest Revenue

a Franchise Revenue
Interest Revenue
Total Revenue - 202

Franchise Revenue
Interest Revenue
Total Revenue - 2021

b Net Income - 2020

Total Revenue
COS
GP / Net Income - 2021

PROBLEM 2
a Downpayment
Balance
Franchise Revenue

b Downpayment
Balance
Franchise Revenue

c Downpayment
Balance
Franchise Revenue

d Downpayment
Balance
Franchise Revenue

PROBLEM 3

950,000.00 DP 150,000.00
 800,000.00 200,000.00

1/1/2020 Cash 150,000.00

Franchise Fee Receivable 800,000.00
Deferred Franchise Revenue
Discount on FFR

6/30/2020 Deferred Franchise Revenue 860,000.00

Franchise Revenue

12/31/2020 Cash 200,000.00

Discount on FFR 35,500.00
Franchise Fee Receivable
Interest Revenue

Cost of Sales 372,600.00

Cash

Cash 24,000.00
Royalty Fee

Cost of Sales 82,800.00

Cash

a Franchise Revenue
Interest Revenue
Royalty Fee
Total Revenue

b Unearned Franchise Revenue

c Total Revenue
COS
GP / Net Income

PROBLEM 5
SAP Ratio Allocation
Franchise Stall 300,000.00 0.19 270,000.00
Cooking Equipment 240,000.00 0.15 216,000.00
Raw Materials 460,000.00 0.29 414,000.00
 Trade Name 600,000.00 0.38 540,000.00
1,600,000.00 1,440,000.00

a Franchise Fee Revenue 779,400.00

Interest Revenue -
Royalty Fee 36,000.00
Total Revenue 815,400.00

b Total Revenue 815,400.00

COS 500,000.00
GP / Net Income 315,400.00

c 3/1/2020 Cash 1,440,000.00

Deferred Franchise Revenue

12/31/2020 Deferred Franchise Revenue 779,400.00

Franchise Revenue

Cost of Sales 500,000.00

Cash

Cash 36,000.00
Royalty Fee

LONGTERM CONSTRUCTION CONTRACT

5-storey 3 years 10,000,000.00

1.00 2.00

x x
 Present Value
216,000.00
300,000.00
720,000.00
1,236,000.00

Original Adjusted
Sales 1,236,000.00 1,246,000.00
DP 216,000.00 216,000.00
300,000.00 310,000.00
Balance 720,000.00 720,000.00

Date Payament Interest Principal Balance

10/1/2020 - - - 1,246,000.00
10/1/2020 526,000.00 - 526,000.00 720,000.00
10/31/2020 78,000.00 7,200.00 70,800.00 649,200.00
11/20/2020 78,000.00 6,492.00 71,508.00 577,692.00
12/31/2020 78,000.00 5,776.92 72,223.08 505,468.92
1/31/2021 78,000.00 5,054.69 72,945.31 432,523.61
 Present Value
500,000.00
non interest 4.33 216,475.00
716,475.00

Date Payament Interest Principal

7/1/2020 - - -
716,475.00 7/1/2020 500,000.00 - 500,000.00
33,525.00 12/31/2020 50,000.00 10,823.75 39,176.25
6/30/2021 50,000.00 8,864.94 41,135.06
12/31/2021 50,000.00 6,808.18 43,191.82
150,000.00 6/30/2022 50,000.00 4,648.59 45,351.41
12/31/2022 50,000.00 2,381.02 47,618.98

50,000.00
10,823.75

75,000.00

716,475.00

225,000.00

50,000.00
 8,864.94

50,000.00
6,808.18

-
10,823.75
10,823.75

716,475.00
15,673.12
732,148.12

10,823.75

732,148.12
225,000.00
507,148.12

500,000.00
216,475.00
716,475.00

500,000.00
- 216,475.00 deferred
500,000.00

500,000.00
- 216,475.00 not recorded
500,000.00

- 500,000.00 deferred
- 216,475.00 not recorded
-

Present Value
150,000.00
 3.55 710,000.00
860,000.00

Date Payament Interest Principal

1/1/2020 - - -
860,000.00 1/1/2020 150,000.00 - 150,000.00
90,000.00 12/31/2020 200,000.00 35,500.00 164,500.00
12/31/2021 200,000.00 27,275.00 172,725.00
12/31/2022 200,000.00 18,638.75 181,361.25
860,000.00 12/31/2023 200,000.00 9,570.69 190,429.31

200,000.00
35,500.00

372,600.00

24,000.00

82,800.00

860,000.00
35,500.00
24,000.00
919,500.00

919,500.00
455,400.00
464,100.00

1.00 270,000.00
1.00 216,000.00
0.60 248,400.00
 0.08 45,000.00
779,400.00

1,440,000.00

779,400.00 660,600.00

500,000.00

36,000.00

8,000,000.00 DM
DL
3.00 FOH

2,000,000.00
0.25

x
Balance
716,475.00
216,475.00
177,298.75
136,163.69
92,971.87
47,620.47
1.49
Balance
860,000.00
710,000.00
545,500.00
372,775.00
191,413.75
984.44