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It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant

It is January 2nd and senior management of Chester 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 that apply.
Select: 3
The total investment for Chester will be $13,794,904
Total liabilities will be $138,481,143
Working capital will remain the same at $13,910,399
Total Assets will rise to $222,173,096
Chesters long-term debt will rise by $10,000,000
image text in transcribed
Balance Sheet ASSETS 2019 Cash Accounts Receivable Inventory 2020 Common Size 18.2% 6.0% 3.6% $38,626 $12,630 $7,610 $23,919 $10,487 $8,734 Total Current Assets $58,866 27.7% $43,140 Plant & Equipment Accumulated Depreciation $224,060 ($70,753) 105.6% -33.3% $165,300 ($57,176) Total Fixed Assets $153,307 72.3% $108,124 Total Assets $212,173 100.0% $151,264 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,153 $35,257 $85,071 3.8% 16.6% 40.1% $6,818 $21,757 $59, 140 Total Liabilities $128,481 60.6% $87,715 Common Stock Retained Earnings $36,494 $47,198 17.2% 22.2% $18,548 $45,001 Total Equity $83,692 39.4% $63,549 Total Liab. & O. Equity $212,173 100.0% $151,264

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