Andrews Corp. ended the year carrying $55,135,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Andrews Corp.?

Select: 1

$84,287,000

$108,730,230

$52,364,000

$55,135,000

Last year, Baldwin Corp paid their workers $26.81 per hour. How much will they be paying them 2 rounds from then?

Select: 1

$29.56

$28.29

$28.15

$31.04

Company Baldwin invested $27,800,000 in plant and equipment last year. The plant investment was funded with bonds at a face value of $18,468,448 at 11.7% interest, and equity of $9,331,552. Depreciation is 15 years straight line. For this transaction alone which of the following statements are true?

Select: 5

Cash went up when the Bond was issued by $18,468,448.

Cash was pulled from retained earnings to cover the $9,331,552 difference between the plant purchase and bond issue.

Depreciation increased by $1,853,333.

On the Balance sheet, Plant & Equipment increased by $27,800,000.

Cash went down by $27,800,000 when the plant was purchased.

Buying the plant had no net effect on the Cash account, because the plant was paid for by the bond plus retained earnings.

On the Balance sheet, Long Term Debt changed by $18,468,448.

Since the new plant was funded with debt and equity, on the Balance sheet Retained Earnings decreased by $9,331,552, the difference between the investment $27,800,000 and the bond $18,468,448.

This year Baldwin achieved an ROE of 23.2%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Baldwin's ROE?

Select: 1

Baldwin ROE will increase.

Baldwin ROE will remain the same.

Baldwin ROE will decrease.

On the income statement, which of the following would be classified as a Period cost?

Select: 1

Inventory Carry Expense

Direct Labor Expense

Promotion Expense

Direct Material Expense

It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterdays stock price ($39.35) and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Select: 3

Total liabilities will be 146,218,351

Total assets will rise to $229,592,422

The total investment for Digby will be $22,873,691

Digby will issue stock totaling $2,951,250

Working capital will remain the same at $14,966,214