Last year Attic charged $4,072,533 Depreciation on the Income Statement of Andrews.
If early this year Attic sold all its depreicable assets for their book value, the effect on
Andrews's financial statements would be (all other items remaining equal): - ANS-Just
impact the Balance Sheet
Assume Chester Corp. is downsizing the size of their workforce by 20% (to the nearest
person) next year from various strategic initiatives. Chester is planning to conduct exit
interviews to learn more about how they can improve in processes and increase
productivity. The exit interviews are estimated to cost $100 per employee in additional to
normal separation costs of $5000. How much will the company pay in separation costs
if these exit interviews are implemented next year? - ANS-$312,120
The Baldwin company wants to decrease its plant utilization for Boat by 15%. How
many units would need to be produced next year to meet this production goal? Ignore
impact of accounts payable on plant utilization. - ANS-1,464
Chester's balance sheet has $83,193,000 in equity. If next year, assets decrease by
$4,000,000 and liabilities increase by $2,000,000, what will be Chester's book value? -
ANS-$85,193,000
Currently Baldwin is paying a dividend of $15.45 (per share). If this dividend were raised
by $3.64, given its current stock price what would be the Dividend Yield? - ANS-12.1%
Your Competitive Intelligence team reports that a wave of product liability lawsuits is
likely to cause Chester to pull the product Cure entirely off the market this year. Assume
Chester scraps all capacity and inventory this round, completely writing off those assets
and escrowing the proceeds to a settlement fund, and assume these lawsuits will have
no effect on any other products of Chester or other companies. Without Chester's
product Cure how much can the industry currently produce in the Core segment?
Consider only products primarily in the Core segment last year. Ignore current
inventories. Figures in thousands (000). - ANS-10,560
Which company has the most efficient SG&A / Sales ratio? - ANS-Baldwin
In the Month of March, Digby received orders of 118 units at a price of $15.00 for their
product Dim. Digby uses the accrual method of accounting and offers 30 day credit
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