• Review the Inquirer to determine Digbys current strategy. Where will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Digby would be most likely to pursue.

Select: 5

Reduce labor costs through training and recruitment

Seek high automation levels

Reduce cost of goods through TQM initiatives

Seek the lowest price in their target market while maintaining a competitive contribution margin

Seek excellent product designs, high awareness, and high accessibility

Increase demand through TQM initiatives

Offer attractive credit terms

Add additional products

Seek high plant utilization, even if it risks occasional small stockouts

Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand

• The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for $4,090,000 (1/10th of its original cost). What will be the book value of this purchase (excluding all other Plant and Equipment) after its first year of use? Use generally accepted (FASB) accounting principles.

Select: 1

$34,356,000

$38,446,000

$38,173,333

$36,810,000

• What is the Current Ratio of Chester?

Select: 1

1.85

2.70

4.54

1.43

4. Midyear on July 31st, the Baldwin Corporation's balance sheet reported:

Total Liabilities of $102.281 million

Total Common Stock of $5.080 million

Cash of $8.040 million

Retained Earnings of $35.709 million.

What were the Baldwin Corporation's total assets?

Select: 1

$135.030 million

$69.532 million

$74.612 million

$143.070 million

• Which mission statement best represents the Digby company?

Select: 1

Consistency and affordability are our goals. Our central mission is to offer dependable, low-price products that our customers can count on.

Lasting innovation is our motivation. We build premium products that are elegantly designed to meet the needs of a variety of market segments.

Innovation meets revolution. We create value for our customers through breakthrough designs that lead to unique high-performance products.

Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide variety of market segments.

• Digby has a leverage of 1.84 This means that:

(Assume leverage is calculated as Assets/Equity)

Select: 1

Assets are funded with 84% debt.

Assets are funded with 84% equity.

$1.84 of assets is funded with $1.00 of equity and $0.84 of debt.

$1.84 of assets is funded with $1.00 of debt and $0.84 of equity.

• Last year the Digby company increased their equity. In 2015 their equity was $49,417. Last year (2016) it increased to $50,892.

What are causes of change in equity? Check all that apply.

Select: 3

An accounts payable change of$1,312.

A change in short term debt of-$3,761.

A change of plant and equipment of$9,580.

Change in inventory of-$844.

Plant Improvements of $9,580

Dividend payment of$7,236.

A change in cash of -$3,975.

A bond issue of$1,211.

Issue and retirement of stock .

Profits of $10,240

Depreciation of -$41,287