KRE Electric is a leader in the Canadian portable power distribution industry, offering a variety of innovative and durable products that meet or exceed safety standards to meet your power distribution needs. Art Wanuch is the brain behind KRE’s industry-leading power distribution products. Since 1993, Art has been designing and overseeing the manufacturing of high-quality distribution boxes that meet or exceed the industry’s safety standards. The company has less than 25 employees (Zoominfo, n.d.).

KRE’s headquarters are in Mississauga. However, the company offers its products in several locations within Canada and the USA. 

Product: The QSC K.2 Series TM represents the best-in-class loudspeaker for today’s demanding audio professionals. With the perfect combination of elegant design, superior audio performance, high functionality, simple and intuitive operation, and genuine QSC reliability, K.2 delivers extraordinary results for users in both portable and installed applications.

The total financing needed is calculated as follows: 

Total Financing Needed = (Number of Speakers to be Purchased × Cost per Unit) + Market Entry Expenditures Total Financing Needed = (1,000 units × $1,289) + $500,000 

Total Financing Needed = $1,289,000 + $500,000 

Total Financing Needed = $1,789,000 

This calculation considers both the cost of purchasing the 1,000 speakers from the new supplier as well as the market entry expenditures.

We have excluded certain specifics from our calculation in order to concentrate only on the direct costs of acquiring the speakers and market entry expenses. 

1. Purchase of Speakers- The main portion of the financing, which amounts to $1,289,000, will be used to purchase 1,000 units of K8.2 Speakers at a unit price of $1,289.

These speakers are the core products that the company intends to import from the USA for its business operations. 2. Market Entry Expenditures- An additional amount of $500,000 will be allocated to market entry expenditures. Market entry expenditures encompass various costs associated with launching the product in the target market. These costs may include marketing and advertising expenses, market research, setting up distribution channels, legal and regulatory compliance fees, and other related expenses.

By allocating a portion of the financing to market entry expenditures, the company aims to establish a strong presence in the target market, create brand awareness, and effectively introduce the K8.2 Speakers to potential customers. The above breakdown of the USD 1,789,000 financing reflects how each component contributes to KRE Electric Ltd.'s expansion into the potential new market. By allocating funds strategically, the company can efficiently use the financing to purchase the required number of speakers, establish its presence as well as support successful operations in the new mark.

Prepare a cash flow statement