Jake Owns the Corner Market Which He Is Trying to Sell

question 12

Multiple Choice

Jake owns The Corner Market which he is trying to sell so that he can retire and travel.The Corner Market owns the building in which it is located.This building was built at a cost of $647,000 and is currently appraised at $819,000.The counters and fixtures originally cost $148,000 and are currently valued at $65,000.The inventory is valued on the balance sheet at $319,000 and has a retail market value equal to 1.2 times its cost.Jake expects the store to collect 98 percent of the $21,700 in accounts receivable.The firm has $26,800 in cash and has total debt of $414,700.What is the market value of this firm?

• A)$857,634
• B)$900,166
• C)$919,000
• D)$1,314,866
• E)$1,333,700

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Definitions:

Competitive Parity

A marketing strategy where companies set their levels of spending to match competitors, aiming to prevent market share loss.

Objective and Task

A method in marketing where specific objectives set the foundation for determining the strategies and tasks needed to achieve those marketing goals.

Linear Forecast

A prediction method that assumes a straight-line relationship between variables over time, typically used to estimate future values based on past data.

All-You-Can-Afford

A budgeting approach where spending on marketing or other business activities is based on what a company can afford rather than strategic planning or revenue projections.