It is January 2nd and senior management of Baldwin 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 ($37.42) and leverage changes to 2.7. Which of the following statements are true? Select all(3) that apply. Show Work.

total liabilities will be $120,841,490

total assets will rise to $221,334,498

Working Capital will remain the same at $17,205,106

Equity will be $84,782,240

The total investment for Baldwin will be $208,430,231

Baldwin will issue stock totaling $2,806,500

Annual Report Baldwin C59559 Round: 2 Dec. 31, 2021 Balance Sheet 2020 Accounts Receivable $12,399 $40,196 $12,371 $6,097 2021 Common Size 19.5% 6.0% 3.0% $19,230 $9,865 $11,851 $58,664 28.5% $40,946 $217,260 ($70,300) 105.7% -34.2% $165,300 ($57,176) 71.5% $108,124 DEFINITIONS: Common Size: The common ASSETS size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Cash Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company Total Current Assets stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: Plant & Equipment The current value of your plant. Accum Deprec: Accumulated Depreciation The total accumulated depreciation from your plant. Accts Payable: What the company Total Fixed Assets currently owes suppliers for materials and services. Current Debt: The debt the company Total Assets is obligated to pay during the next year of loperations. It includes emergency loans used to LIABILITIES & OWNERS' keep your company solvent should you run out EQUITY of cash during the year. Long Term Debt: The company's long term debt is in the form of Accounts Payable bonds, and this represents the total value of current Debt your bonds. Common Stock: The amount of Long Term Debt capital invested by shareholders in the company. Retained Earnings: The profits that the Total Liabilities company chose to keep instead of paying to shareholders as dividends. Common Stock Retained Earnings $146,960 $205,624 100.0% $149,069 $7,593 $33,865 $82,190 3.7% 16.5% 40.0% $6,694 $21,740 $59,153 $123,648 60.1% $87,587 $18,647 $42,836 $36,546 $45,430 17.8% 22.1% $81,976 39.9% $61,483 Total Equity Total Liab. & O. Equity $205,624 100.0% $149,069 Cash Flow Statement 2021 $2,594 $13,124 $0 2020 $4,032 $9,887 $0 $897 ($5,403) ($100) $899 $5,754 ($2,506) $19,865 $9,314 ($51.960) ($40,900) The Cash Flow Statement examines what happened in the Cash Cash Flows from Operating Activities: Account during the year. Cash injections appear as positive numbers and Net Income (Loss) cash withdrawals as negative numbers. The Cash Flow Statement is an Depreciation excellent tool for diagnosing emergency loans. When negative cash Extraordinary gains/losses/writeoffs flows exceed positives, you are forced to seek emergency funding. For Accounts Payable example, if sales are bad and you find yourself carrying an abundance of Inventory excess inventory, the report would show the increase in inventory as a Accounts Receivable |huge negative cash flow. Too much unexpected inventory could outstrip lyour inflows, exhaust your starting cash and force you to beg for money Net cash from operations to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flow Summary Cash Flows from Financing Activities: Dividends Paid Baldwin Sales of Common Stock Purchase of Common Stock Cash from long term debt 40,000 Retirement of long term debt 20,000 Change in current debt (net) Net cash from financing activities Net change in cash position -20,000 Closing cash position -40.000 $0 $17,899 $4,258 $0 SO $17,784 $34,337 ($11,300) $12,125 ($3,749) $53,061 $18,293 $20,966 ($13,294) $40,196 $19,230 Operations Finance Chg. Cash Investment Finance Operations O Chg. Cash Annual Report Page 11 Annual Report Baldwin C59559 Round: 2 Dec. 31, 2021 Balance Sheet 2020 Accounts Receivable $12,399 $40,196 $12,371 $6,097 2021 Common Size 19.5% 6.0% 3.0% $19,230 $9,865 $11,851 $58,664 28.5% $40,946 $217,260 ($70,300) 105.7% -34.2% $165,300 ($57,176) 71.5% $108,124 DEFINITIONS: Common Size: The common ASSETS size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Cash Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company Total Current Assets stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: Plant & Equipment The current value of your plant. Accum Deprec: Accumulated Depreciation The total accumulated depreciation from your plant. Accts Payable: What the company Total Fixed Assets currently owes suppliers for materials and services. Current Debt: The debt the company Total Assets is obligated to pay during the next year of loperations. It includes emergency loans used to LIABILITIES & OWNERS' keep your company solvent should you run out EQUITY of cash during the year. Long Term Debt: The company's long term debt is in the form of Accounts Payable bonds, and this represents the total value of current Debt your bonds. Common Stock: The amount of Long Term Debt capital invested by shareholders in the company. Retained Earnings: The profits that the Total Liabilities company chose to keep instead of paying to shareholders as dividends. Common Stock Retained Earnings $146,960 $205,624 100.0% $149,069 $7,593 $33,865 $82,190 3.7% 16.5% 40.0% $6,694 $21,740 $59,153 $123,648 60.1% $87,587 $18,647 $42,836 $36,546 $45,430 17.8% 22.1% $81,976 39.9% $61,483 Total Equity Total Liab. & O. Equity $205,624 100.0% $149,069 Cash Flow Statement 2021 $2,594 $13,124 $0 2020 $4,032 $9,887 $0 $897 ($5,403) ($100) $899 $5,754 ($2,506) $19,865 $9,314 ($51.960) ($40,900) The Cash Flow Statement examines what happened in the Cash Cash Flows from Operating Activities: Account during the year. Cash injections appear as positive numbers and Net Income (Loss) cash withdrawals as negative numbers. The Cash Flow Statement is an Depreciation excellent tool for diagnosing emergency loans. When negative cash Extraordinary gains/losses/writeoffs flows exceed positives, you are forced to seek emergency funding. For Accounts Payable example, if sales are bad and you find yourself carrying an abundance of Inventory excess inventory, the report would show the increase in inventory as a Accounts Receivable |huge negative cash flow. Too much unexpected inventory could outstrip lyour inflows, exhaust your starting cash and force you to beg for money Net cash from operations to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flow Summary Cash Flows from Financing Activities: Dividends Paid Baldwin Sales of Common Stock Purchase of Common Stock Cash from long term debt 40,000 Retirement of long term debt 20,000 Change in current debt (net) Net cash from financing activities Net change in cash position -20,000 Closing cash position -40.000 $0 $17,899 $4,258 $0 SO $17,784 $34,337 ($11,300) $12,125 ($3,749) $53,061 $18,293 $20,966 ($13,294) $40,196 $19,230 Operations Finance Chg. Cash Investment Finance Operations O Chg. Cash Annual Report Page 11