Question
Please help to answer question3 Today is 1 December 2021. A new range of smart running shoes is currently being developed by TreadCushy. These smart
Please help to answer question3
Today is 1 December 2021. A new range of smart running shoes is currently being developed by TreadCushy. These smart running shoes in have tech in the sole which connects to an app to monitor metrics such as run speed, distance and terrain. It is expected that the range will launch in the first half of 2022. You receive the following email:
From: Ben Numa, Finance Manager
To: Finance Officer
Subject: Forecasting sales and lease for new laptops
I had a meeting with Harry Blanc, Product Development & IT Director, yesterday. He wants to understand more about the size of the potential market for smart running shoes in Europe for the first 2 quarters of 2022. He has found some information based on past sales volumes (Chart 1 and Table attached) but would like to know how this could be used. Please prepare a briefing note for Harry which explains:
Harry also told me at our meeting that he is arranging a lease for a laptop that can be used by a member of the shoe development team for homeworking. I mentioned to him that, because of the nature of the underlying asset, there are two ways that this lease could be treated in the financial statements. I didn't have time to explain any further though. The details of the lease are attached (Table 2).
Please include in your briefing note an explanation of:
Question 3
The two ways in which the laptop lease could be reflected in our financial statements for the year ending 30 June 2022.
*The chart shows the last three trend lines for sales of digtal smart running shoes in Europe. Q1 each yearis the period January to March. Table 1: Average seasonal variations. Table 2: Information about the leaseStep by Step Solution
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