Pays a $5.00 per share dividend

Sells $10,000 (000) of their long-term assets

Purchases assets at a cost of $25,000 (000)

Pays a $5.00 per share dividend

Sells $10,000 (000) of their long-term assets

Purchases assets at a cost of $25,000 (000)

1) Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,405,682. Assuming similar sales next year, the 3.0% increase in demand will provide $4,902,170 of additional revenue.With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,671,640 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?

10months

5months

14monts

no financial impact

2)Looking forward to next year, if Digbys current cash balance is $19,743 (000) and cash flows from operations next period are unchanged from this period, and Digby takes ONLY the following actions relating to cash flows from investing and financing activities: Issues 100 (000) shares of stock at the current stock price Issues $400 (000) in bonds Retires $10,000 (000) in debt Which of the following activities will expose Digby to the most risk of needing an emergency loan?

a) Liquidate the entire inventory

b) pay 5.00 per share dividend

c) sell $10,000(000) of their long term assets

d)purchase assets at cost of $25,000(000)