Down payment

Substantial
Performance
fulfilled in:
Collectability of
Balance

conf
f
cost of f
dp

Assumption 1
Refundable
1st Year
Not Assured

1200000
5%
500000
125000
100000

Cash
Notes Receivable
Discount on Notes Receivable
Defered FF

100000
400000

DEFFF COST
CASH/AP

125000

Defered FF
DEFFF COST
DEFFERED GP

431586.666666667

CASH
NR

133333.333333333

discount on nr
int inc

33158.6666666667

dgp
rgp

142198.284943413

cash

60000

revfccf
1st yer income

235356.95161008

Assumption 2
Not Refundable

Assumption 3
Not Refundable

1st year

2nd year

Cost of Franchise: 25% of FF

Balance Payable in 3 annual in

If not given:

Assured

Not Assured

DP = 20% of FF
Continuing FF: 5% of monthly
Effective Interest: 10%

2.4869

Required

Give Entries on 1st year and 2nd ye

Total Income on 1st and 2nd year

assumption 2 y1
68413.3333333333
431586.666666667

399745.3
83141.2

125000

125000
306586.666666667
133333.33
133333.333333333

133333.3
23141.2

33158.6666666667

23141.2
78277.3

142198.284943413

78277.3
60000

60000

60000
161418.5

nchise: 25% of FF

yable in 3 annual installments

FF: 5% of monthly gross sales

terest: 10%

on 1st year and 2nd year

on 1st and 2nd year

ssumption 2 y1