Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

these are options for all of the questions they are real assets, finacial liabilty, finacial assets or real liability except the fourth question the options

image text in transcribed
these are options for all of the questions they are real assets, finacial liabilty, finacial assets or real liability
except the fourth question the options are created or destroyed
image text in transcribed
image text in transcribed
of Menu-Einstein Bros. B BA 7080 Strategic Ant Fred's Hamburgers is a start-up fast-food restaurant. It currently owns fryers and grills worth $240,000 and has cash on hand of $52,000 contributed by Fred's owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction? a. Fred takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over 3 years. The bank loan is a [Select] for Fred, and a [Select) for the bank. The cash Fred receives is a [Select] The new financial asset Select is Fred's promissory note to repay the loan. b. Fred uses the cash from the bank plus $25,000 of its own funds to construct a new drive thru window. Fred transfers Select] * (cash) to the contractors. In return, Fred receives the new drive thru window, which is a [Select] a. Fred takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over 3 years. The bank loan is a [Select] for Fred, and a [Select] for the bank. The cash Fred receives is a [Select The new financial asset [Select] is Fred's promissory note to repay the loan. b. Fred uses the cash from the bank plus $25,000 of its own funds to construct a new drive thru window. Fred transfers Select] (cash) to the contractors. In return. Fred receives the new drive thru window, which is a Select of Fred's Hamburgers is a start-up fast-food restaurant. It currently owns fryers and grills worth $240,000 and has cash on hand of $52,000 contributed by Fred's owners For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction? a. Fred takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over 3 years. The bank loan is a [Select] for Fred, and a [Select] for the bank. The cash Fred receives is a [Select] The new financial asset] [Select] is Fred's promissory note to repay the loan. b. Fred uses the cash from the bank plus $25,000 of its own funds to construct a new drive thru window. Fred transfers | Select] (cash) to the contractors. In return. Fred receives the new drive thru window, which is a [Select] +

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

Step: 3

blur-text-image

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

Corporate And Project Finance Modeling Theory And Practice

Authors: Edward Bodmer

1st Edition

1118854365, 9781118854365

More Books

Students also viewed these Finance questions