Question

Each of the four independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year. The lessee is aware of the lessor's implicit rate of return. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) situation 1 2 3 4 lease term (years) 5 8 6 9 lessor's rate of return 10 % 11 % 9 % 12 % fair value of lease asset $ 67,000 $ 367,000 $ 92,000 $ 482,000 lessor's cost of lease asset $ 67,000 $ 367,000 $ 62,000 $ 482,000 residual value: estimated fair value 0 $ 67,000 $ 24,000 $ 36,000 guaranteed fair value 0 0 $ 24

Answer 1

Answer:

Net sales is what remains after all returns, allowances and sales discounts have been subtracted from gross sales.

For example, if a company has gross sales of $100,000, sales returns of $5,000, sales allowances of $3,000 and discounts of $2,000, the net sales are calculated like this:

$100,000 Gross Sales – $5,000 Sales Returns – 3,000 Sales Allowances – $2,000 Discounts = $90,000 Net Sales

Answer 2

Answer:

Net sales are the portion of a firm’s revenues that remain after deducting the allowances for any missing or damaged goods, returns, and the sales discounts. In other words, it’s the remaining sales after all returns, discounts, and allowances are removed from the gross number