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3 years ago

Explain why it might be difficult for a new,

Business

1 answer:

statuscvo [17]3 years ago

3 0

Answer:

The Threat of New Entrants exerts a significant influence on the ability of current companies to generate a profit Gross Profit Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin

Explanation:

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ABC Construction enters into a contract to build two homes for brothers Jack and John. The contract specifies that the homes mus

Volgvan

Answer:

performance

Explanation:

This is an example of performance of the contract. In the context of Law, this refers to the act of doing exactly what was required by the contract that the party has agreed to, which effectively discharges the individual bound to do the act from any future contractual liability. Which in this scenario, since ABC Construction finished building the homes before the due date, they met their obligations and are free from the contract.

7 0

3 years ago

Whispering Inc. had pretax financial income of $166,600 in 2020. Included in the computation of that amount is insurance expense

Sonja [21]

Answer:

The Journal Entry with narrations is shown below:-

Explanation:

The Journal entry is shown below:-

1. Income tax expenses Dr, $42,575

To Income tax payable $40,175

To Deferred tax liability $2,400

(Being income tax expenses for the year is recorded)

Working note 1

Pretax financial income $166,600

Add: Permanent differences

Disallowed insurance expense $3,700

Less: Timing difference

Excess depreciation allowed $9,600

Income as per tax purpose $160,700

Working note 2

Income tax payable = Income tax rate × Income as per tax purposes

= 25% × $160,700

= $40,175

Working note 3

Deferred tax liability = Timing difference × Tax rate

= $9,600 × 25%

= $2,400

4 0

3 years ago

The difference between positive economic statements and normative economic statements is that______.

Trava [24]

Answer:

Positive economic statements refers to the statements which are normally fact based, precise and easily measurable. For example, education facilities provided by the government increases the public expenditure. This is a fact based statement and the value of this statement is not judged. It can be proven by researching about the education facilities provided by the government.

Normative economic statements refers to the statements which are value based and opinion oriented. These statements includes the people desirability, feelings, situations, economic development. The basic aim of these statements is summarize the people's wants into the programs and the economic development by asking various questions.

8 0

4 years ago

The Drogon Co. just issued a dividend of $2.96 per share on its common stock. The company is expected to maintain a constant 5 p

dybincka [34]

Answer: 13.88%

Explanation:

The cost of equity can be used along with the variables given to calculate the price of a share using the Gordon Growth model so this can be remodeled to solve for the cost of equity.

Price of stock = (Dividend * (1 + growth rate)) / (cost of equity - growth rate)

35 = (2.96 * (1 + 5%)) / (cost of equity - 5%)

35 = 3.108 / (cost of equity - 5%)

(cost of equity - 5%) * 35 = 3.108

Cost of equity - 5% = 3.108 / 35

Cost of Equity = (3.108 / 35) + 5%

= 13.88%

4 0

3 years ago

Martinville, Inc. earned revenues of $10,000 and incurred expenses of $7,500. The company declared and paid cash dividends of $

Illusion [34]

Answer:

credit balance of $2,500.

Explanation:

Martinville, Inc. has earned revenue if $10,000. This will be reflected on credit side when journal entry is made and cash or accounts receivable are debited as per transaction. The company has now incurred expense of $7,500. These expenses are deducted from revenue amount to identify operating income of the company. The balance in the income summary will be reported. Income summary is a temporary account where all revenue and expense are accounted to identify net loss or gain during a certain period.

The calculation will be as follows,

$10,000 - $7,500 = $2,500.

3 0

3 years ago