Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show your work You have the following projections about the costs in a family restaurant for next year: Net income required: 22% after income tax

image text in transcribedimage text in transcribedshow your work

You have the following projections about the costs in a family restaurant for next year: Net income required: 22% after income tax on the owner's present investment of $80,000, income tax rate is 28%. Depreciation: Present book value (consolidated) of furniture and equipment is $76,000, depreciation rate is 20%. Interest: Interest on a loan outstanding of $35,000 is 8%. o. What is the required average check needed to achieve the annual sales revenue objective if the restaurant is open 365 days, had 60 seats, and had an average seat turnover of 2.5 times per day

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Earl K. Stice, James D. Stice

18th edition

538479736, 978-1111534783, 1111534780, 978-0538479738

More Books

Students also viewed these Accounting questions