1) If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be:

Select: 1

	Equity would decrease by $6,468
	Equity would increase by $64,679
	Retained earnings would increase by $6,468
	Retained earnings would increase by $64,679

2) The Andrews Company has just purchased $49,500,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,950,000. What will the depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use? (Use FASB GAAP)

Select: 1

	$5,940,000
	$6,600,000
	$3,300,000
	$2,970,000

3)

Baldwin has an asset turnover of 1.55 (Asset Turnover = Sales/Assets). That means:

Select: 1

	Every $1.55 of assets in the firm generates $1.00 of sales.
	Every $1.55 of profit in the firm comes from each $1.00 of sales.
	Each $1.00 of assets in the firm generates $1.55 of sales revenue.
	Every $1.00 of assets in the firm generates $1.55 of profit.

4) Which mission statement best represents the Baldwin company?

Select: 1

	Consistency and affordability are our goals. Our central mission is to offer dependable, low-price products that our customers can count on.
	Lasting innovation is our motivation. We build premium products that are elegantly designed to meet the needs of a variety of market segments.
	Innovation meets revolution. We create value for our customers through breakthrough designs that lead to unique high-performance products.
	Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide variety of market segments.

5) Review the Inquirer to determine Chester's current strategy. How will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Chester would be most likely to pursue.

Select: 5

	Seek the lowest price in their target market while maintaining a competitive contribution margin
	Seek high automation levels
	Reduce labor costs through training and recruitment
	Increase demand through TQM initiatives
	Offer attractive credit terms
	Reduce cost of goods through TQM initiatives
	Seek high plant utilization, even if it risks occasional small stockouts
	Seek excellent product designs, high awareness, and high accessibility
	Add additional products
	Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand

6) What is the Working Capital of Chester?

	-$19,593
	$31,245
	$19,593
	-$11,652

7) on July 31st, the Chester Corporation's balance sheet reported: Total Assets of $252.893 million Total Common Stock of $7.620 million Cash of $12.060 million Retained Earnings of $57.252 million. What were the Chester Corporation's total liabilities?

Select: 1

	$175.961 million.
	$195.641 million.
	$200.081 million.
	$188.021 million.