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Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Bat entirely off the

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Bat entirely off the market this year. Assume Baldwin scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Baldwin or other companies. Without Baldwin's product Bat how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).
Select: 1
A) 7,807
B) 11,210
C) 8,556
D) 8,678
E) 5,605
F) 7,578
G) 9,656

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Balance Sheet SSETS 2020 DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash Your end-of-year cash position. Accounts Receivable: Reflects the lag bet and payment of your products. Inventories: The nventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course fall to your competitors. Plant & Equipment The current value of your plant. Accum Deprec: Accumulated Depreciation (109,929) The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company Total Assets is obligated to pay during the next year of operations. It includes emergency loans used to LIABILITIES& OWNERS keep your company solvent should you run out EQUITY of cash during the year. Long Term Deb: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends Common $35,930 31.678 ween delivery Accounts Receivable S61,226 S238,400 (594,036 otal Current Assets $62,550 32.7% lant & Equipment $238,400 124.8% $128471 Total Fixed Assets $191,021 100.0% S205,590 ccounts Payable urrent Debt ong Term Debt $25,745 $78,872 7974 $28,855 $88,538 otal Liabilities 125,367 $45,738 $34,064 $45,738 $34,484 ommon Stock Retained Earnings $79,802 $80,222 Total Liab. & O. Equity $191,021 S205,590 Cash Flow Statement 2020 $7,986($331) $15,893 $15,893 Cash Flows from Operating Activities The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Net Income (Loss) cash withdrawals as negative numbers. The Cash Flow Statement is an Depreciation excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For Accounts Payable example, if sales are bad and you find yourself carrying an abundance of Inventory excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money Net cash from operations to keep your company afloat Extraordinary gains/losses/writeoffs 5840) (575 (S1,373 ($702) $3,753 ($10,846) S860 Accounts Receivable ($825) Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities $24,594$4,800 ($12.800) S0 S7,478 Cash Flow Summary Baldwin (S8,406) Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt 20,000 10,000 hange in current debt (net) (S3,110) ($14,557) Net cash from financing activities Net change in cash position Closing cash position ($20,342) ($7,761) $4,253 (S15,761) $35,930 $31,678 10,000 20,000 Operations Finance Chg. Cash Operations Investment Finance O Chg Balance Sheet SSETS 2020 DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash Your end-of-year cash position. Accounts Receivable: Reflects the lag bet and payment of your products. Inventories: The nventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course fall to your competitors. Plant & Equipment The current value of your plant. Accum Deprec: Accumulated Depreciation (109,929) The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company Total Assets is obligated to pay during the next year of operations. It includes emergency loans used to LIABILITIES& OWNERS keep your company solvent should you run out EQUITY of cash during the year. Long Term Deb: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends Common $35,930 31.678 ween delivery Accounts Receivable S61,226 S238,400 (594,036 otal Current Assets $62,550 32.7% lant & Equipment $238,400 124.8% $128471 Total Fixed Assets $191,021 100.0% S205,590 ccounts Payable urrent Debt ong Term Debt $25,745 $78,872 7974 $28,855 $88,538 otal Liabilities 125,367 $45,738 $34,064 $45,738 $34,484 ommon Stock Retained Earnings $79,802 $80,222 Total Liab. & O. Equity $191,021 S205,590 Cash Flow Statement 2020 $7,986($331) $15,893 $15,893 Cash Flows from Operating Activities The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Net Income (Loss) cash withdrawals as negative numbers. The Cash Flow Statement is an Depreciation excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For Accounts Payable example, if sales are bad and you find yourself carrying an abundance of Inventory excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money Net cash from operations to keep your company afloat Extraordinary gains/losses/writeoffs 5840) (575 (S1,373 ($702) $3,753 ($10,846) S860 Accounts Receivable ($825) Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities $24,594$4,800 ($12.800) S0 S7,478 Cash Flow Summary Baldwin (S8,406) Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt 20,000 10,000 hange in current debt (net) (S3,110) ($14,557) Net cash from financing activities Net change in cash position Closing cash position ($20,342) ($7,761) $4,253 (S15,761) $35,930 $31,678 10,000 20,000 Operations Finance Chg. Cash Operations Investment Finance O Chg

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