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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

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 $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 Digby will be $200,316,072
Total liabilities will be $131,477,896
Working capital will remain the same at $14,682,423
Digbys long-term debt will rise by $9,000,000
Total Assets will rise to $212,863,076

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Financial Summary COMP. XM INOUIRER Tubassam Abbasi Round: 2 December 31, 2021 Andrews Baldwin Chester Digby $6,547 $13,406 ($456) $99 $6,488 $8,117 $13,024 Cash Flow Statement Survey Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations $0 $14,367 $0 ($1,066) ($18,449) ($1,802) ($8,282) $861 ($4,608) ($1,049) $16,727 ($672) $7,069 ($515) $19,792 $929 $1,398 ($1,979) $13,471 ($27,800) ($37,940) ($50,460) $0 $18,118 $3,592 Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Cash from long term debt issued Early retirement of long term debt Retirement of current debt Cash from current debt borrowing Cash from emergency loan $0 $0 $10,115 $0 $28,580 $0 $6,510 $18,447 $33,565 $0 $0 ($36,703) $30,000 $8,475 ($14,271) $17,908 ($25,182) $29,940 $0 ($21,757) $21,478 $0 $0 Net cash from financing activities $8,282 $25,675 $43,453 $51,404 Andrews Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets $14,602 Baldwin $30,940 $13,234 $18,767 $62,941 $25,305 Chester $49,907 $12,900 $5,537 $68,344 $14,415 Digby $33,085 $11,399 $10,271 $54,756 $15,178 $80,203 $95,381 Plant and equipment Accumulated Depreciation Total Fixed Assets $97,324 ($57,386) $39,938 $121,760 ($49,404) $72,356 $215,500 ($77,469) $138,031 $215,760 ($70,200) $145,560 Total Assets $135,320 $135,297 $206,375 $200,316 Accounts Payable Current Debt Total Current Liabilities $11,125 $49,775 $60,900 $8,900 $29,208 $38,108 $8,074 $41,240 $49,314 $7,295 $32,778 $40,073 Long Term Debt Total Liabilities $37,141 $98,041 $27,937 $66,044 $85,542 $134,857 $81,405 $121,478 Common Stock Retained Earnings Total Equity $10,551 $26,728 $37,278 $12,396 $56,857 $69,254 $37,787 $33,731 $71,518 $36,666 $42,172 $78,838 Total Liabilities & Owners' Equity $135,320 $135,297 $206,375 $200,316 Income Statement Survey Sales Variable Costs (Labor, Material, Carry) ontribution Margin Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit Andrews $184,668 $126,534 $58,134 $6,488 $20,382 $9,526 $21,739 $11,462 $3,597 $134 $6,547 Baldwin $161,010 $105,925 $55,085 $8,117 $12,096 $7,352 $27,521 $6,476 $7,366 $274 $13,406 Chester $156,951 $105,969 $50,982 $14,367 $13,630 $7,435 $15,551 $16,253 ($245) Digby $138,689 $91,385 $47,304 $13,024 $17,053 $2,584 $14,642 $14,487 $54 $0 $2 ($456) $99

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