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mr Goodwill [35]
3 years ago
14

The threat of new competitors will enter your market is _________ when entry is easy and _________ when there are significant ba

rriers to entry.
Business
1 answer:
Rzqust [24]3 years ago
4 0

Answer:

higher

lower

Explanation:

The easier it is to enter a market the higher the threat of new competitors and the more difficult it is to enter a market, the lower the threat of new competitors.

For example, it is pretty easy to set up a lemonade stand as the cost of doing so is quite low. So, it is easier for anyone to decide to set up a lemonade stand. So, we can say it is easy to enter the lemonade market and the threat of new competitors is high.

On the other hand, a research lab that produces medicine is pretty difficult to enter. the cost of setting up a lab is high, in addition one has to be approved by the government. so, it is difficult to enter this market and the threat of new competitors is low.

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Silver Co. has a $400 petty cash fund. At the end of the first month the accumulated receipts represent $63 for delivery expense
lutik1710 [3]

Answer:

Credit to cash for $302

Explanation:

Account Titles and Explanation                        Debit       Credit

Delivery expenses                                               $63

Miscellaneous inventory                                      $207

Miscellaneous expense                                       $32

Cash                                                                                   $302

(To record petty cash reimbursement)

3 0
3 years ago
Coffee bean merchants notice that coffee prices are at a historic low today but they expect the price of coffee beans to increas
d1i1m1o1n [39]

Answer:

1. Supply will decrease

Explanation:

Due to the basic economic principle that when supply superceeds the demand for goods and services, the prices of such goods and services fall. As a result of this, and an expected increase in future prices, the supply of coffee beans by coffee merchants to the markets will decrease.

This is because the merchants want to receive higher profits and to do so, they will withhold supply to sell in the next six months when the price is higher.

6 0
3 years ago
Read 2 more answers
The Signal Company has operating income (EBIT) before depreciation expense of $1,500,000. The company’s depreciation expense is
ANEK [815]

Answer:

A. Net income is $825,000; and Net cash flow is $1,225,000.

B. Net income is $750,000; and Net cash flow is $1,150,000.

C. Parts A net cash flow will equal part B net cash flow by deducting $75,000 difference, or Parts B net cash flow will equal part A net cash flow by addiing $75,000 difference.

Explanation:

The following are given:

Operating income (EBIT) before depreciation expense = $1,500,000

Depreciation expense = $400,000

Tax rate = 25%

We therefore proceed as follows:

A. If the company is 100% equity financed (zero debt), calculate its net income and net cash flow.

<u>Calculation of net income</u>

Income after depreciation but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense = $1,500,000 - $400,000 = $1,100,000

Tax expense = Income after depreciation but before tax * Tax rate = $1,100,000 * 25% = $275,000

Net income = Income after depreciation but before tax - Tax expenses = $1,100,000 - $275,000 = $825,000

<u>Calculation of net cash flow</u>

Net cash flow = Net income + Depreciation expense = $825,000 - $400,000 = $1,225,000

B. If the company (instead) has $100,000 in annual interest expense, recalculate the net income and net cash flow.

<u>Calculation of net income</u>

Income after depreciation and interest expenses but before tax = Operating income (EBIT) before depreciation expense - Depreciation expense - Interest expense = $1,500,000 - $400,000 - $100,000 = $1,000,000

Tax expense = Income after depreciation and interest expense but before tax * Tax rate = $1,000,000 * 25% = $250,000

Net income = Income after depreciation and interest expense but before tax - Tax expenses = $1,000,000 - $250,000 = $750,000

<u>Calculation of net cash flow</u>

Net cash flow = Net income + Depreciation expenses = $750,000 + $400,000 = $1,150,000

C. Explain the difference in your answers to parts A & B – specifically, reconcile the change in net cash flow that occurred.

Difference in net income = Part A net income - Part B net income = $825,000 - $750,000 = $75,000

Difference in net cash flow = Part A net cash flow - Part B net cash flow = $1,225,000 - $1,150,000 = $75,000

Each of Part A net income and net cash flow is $75,000 greater than part B because part A is an 100% equity financed with the need to pay annual interest expense on debt of $100,000 like in Part B before calculating the Tax expense and the net income.

The $75,000 diffence is as a result of additional tax that Part A has to paid on $100,000. That is,

Additional tax expense in part A = Interest expense not paid in Part A * Tax rate = $100,000 * 25% = $25,000

Diffrenrence = Intererest expense not paid in part A - Additional tax expense = $100,000 - $25,000 = $75,000

For example, if there is no annual interest of $100,000 to be paid in part B, we can then reconcile by just addinf back the difference as follows:

Part B new net cash flow = Part B initial cash flow + Difference in net cash flow = $1,150,000 + $75,000 =  $1,225,000 = Part A net cash flow

Also, if annual interest expense has to be paid in part A as a result of being now financed by debt, we will just deduct the difference as follows:

Part A new net cash flow = Part A initial cash flow - Difference in net cash flow = $1,225,000 -  $75,000 =  $1,150,000 = Part B initial net cash flow.

5 0
3 years ago
Which one of the following statements is true?A) The current yield on a par value bond will exceed the bond's yield to maturityB
Tems11 [23]

Answer:

E) A discount bond has a coupon rate that is less than the bond's yield to maturity

Explanation:

A discount bond has a coupon rate that is below the bond's YTM this means that the bonds coupons or payments are lower than the Interest rate.

4 0
3 years ago
Before the 1930s, most government involvement in day-to-day 4 was aimed at __________.
Sliva [168]
Before the 1930's most government involvement in day-to-day 4 was aimed at the free market system. Hope this helps.
7 0
3 years ago
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