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 $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true?

Select all 3 that apply. I NEED THE 3 CORRECT ANSWERS

1. Baldwins long-term debt will rise by $9,000,000

2. Total liabilities will be $135,096,131

3. Total Assets will rise to $220,978,543

4. The total investment for Baldwin will be $206,940,036

5. Working capital will remain the same at $16,065,409

(below chart in 000's)

Cash Flow Statement Survey	Andrews	Baldwin	Chester	Digby
Cash flows from operating activities
Net Income (Loss)	$14,714	$2,051	$15,889	($1,942)
Adjustment for non-cash items:
Depreciation	$8,486	$13,251	$8,011	$15,590
Extraordinary gains/losses/writeoffs	$0	$0	$0	$0
Changes in current assets and liabilities:
Accounts payable	($3,659)	$922	$1,279	($1,053)
Inventory	$38,421	$3,539	($1,578)	$5,830
Accounts receivable	($1,908)	($2,009)	($1,868)	$450
Net cash from operations	$56,053	$17,754	$21,732	$18,875
Cash flows from investing activities
Plant improvements (net)	($13,106)	($53,860)	($26,200)	($56,296)
Cash flows from financing activities
Dividends paid	($2,615)	$0	$0	$0
Sales of common stock	$1,500	$17,179	$2,431	$14,327
Purchase of common stock	$0	$0	$0	$0
Cash from long term debt issued	$7,000	$35,098	$17,936	$34,685
Early retirement of long term debt	$0	$0	$0	$0
Retirement of current debt	$0	($21,710)	($13,971)	($25,277)
Cash from current debt borrowing	$0	$23,228	$17,889	$32,703
Cash from emergency loan	$0	$0	$0	$0
Net cash from financing activities	$5,885	$53,795	$24,284	$56,438
Net change in cash position	$48,832	$17,689	$19,817	$19,017

Balance Sheet Survey	Andrews	Baldwin	Chester	Digby
Cash	$61,331	$38,983	$35,763	$48,894
Accounts Receivable	$13,552	$12,176	$14,071	$13,040
Inventory	$6,118	$7,047	$16,119	$3,394
Total Current Assets	$81,001	$58,206	$65,953	$65,328
Plant and equipment	$127,288	$219,160	$120,160	$233,856
Accumulated Depreciation	($60,507)	($70,426)	($49,297)	($78,695)
Total Fixed Assets	$66,781	$148,734	$70,863	$155,161
Total Assets	$147,781	$206,940	$136,816	$220,489
Accounts Payable	$5,523	$7,613	$9,206	$8,273
Current Debt	$11,300	$34,528	$29,189	$44,003
Long Term Debt	$37,631	$82,955	$27,486	$91,565
Total Liabilities	$54,454	$125,096	$65,881	$143,840
Common Stock	$15,581	$35,923	$11,231	$41,836
Retained Earnings	$77,746	$45,921	$59,704	$34,813
Total Equity	$93,327	$81,844	$70,935	$76,649
Total Liabilities & Owners' Equity	$147,781	$206,940	$136,816	$220,489

Income Statement Survey	Andrews	Baldwin	Chester	Digby
Sales	$164,883	$148,146	$171,196	$158,650
Variable Costs (Labor, Material, Carry)	$106,357	$97,012	$112,362	$106,887
Depreciation	$8,486	$13,251	$8,011	$15,590
SGA (R&D, Promo, Sales, Admin)	$18,792	$17,171	$12,193	$13,775
Other (Fees, Writeoffs, TQM, Bonuses)	$2,675	$2,614	$7,268	$7,951
EBIT	$28,573	$18,099	$31,362	$14,447
Interest (Short term, Long term)	$5,474	$14,878	$6,419	$17,435
Taxes	$8,084	$1,127	$8,730	($1,046)
Profit Sharing	$300	$42	$324	$0
Net Profit	$14,714	$2,051	$15,889	($1,942)