The Chester Company has just issued $7,169,042 in dividends last year. The effect of this payment on the balance sheet is:

The Chester Company has just issued $7,169,042 in dividends last year. The effect of this payment on the balance sheet is:

There is 7 questions

 

The Baldwin Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the accumulated depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use? (Use FASB GAAP)
Select: 1
  $4,908,000
  $2,454,000
  $5,453,333
  $2,726,667

 

 

 

 

The Chester Company has just issued $7,169,042 in dividends last year. The effect of this payment on the balance sheet is:
Select: 1
  Liabilities will increase $7,169,042
  Expenses will increase $7,169,042
  Net Profit will decrease $7,169,042
  Equity will decrease $7,169,042

 

 

 

 

What is the Quick Ratio of Chester?Select: 1

  1.4%
  0.5%
  2.0%
  2.1%

 

 

Chester has a ROS of 0.08 (ROS = Net income/Sales). That means:
Select: 1
  There is a 8% profit on each dollar of sales.
  There are sales of $92 for every dollar of profit.
  For every $8 of sales there is a profit of 1%.
  There are sales of $8 for every dollar of profit.

 

 

 

 

Midyear on July 31st, the Digby Corporation’s balance sheet reported: Total Liabilities of $51.432 million Total Common Stock of $2.540 million Cash of $4.020 million Retained Earnings of $18.537 million. What were the Digby Corporation’s total assets?
Select: 1
  $34.375 million
  $36.915 million
  $68.489 million
  $72.509 million

 

 

 

 

 

Which mission statement best represents the Digby company?
Select: 1
  Innovation meets revolution. We create value for our customers through breakthrough designs that lead to unique high-performance products.
  Consistency and affordability are our goals. Our central mission is to offer dependable, low-price products that our customers can count on.
  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.
  Lasting innovation is our motivation. We build premium products that are elegantly designed to meet the needs of a variety of market segments.

 

 

 

 

 

Review the Inquirer to determine Baldwin’s current strategy. How will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Baldwin would be most likely to pursue.
Select: 5
  Increase demand through TQM initiatives
  Seek high automation levels
  Seek high plant utilization, even if it risks occasional small stockouts
  Add additional products
  Reduce cost of goods through TQM initiatives
  Offer attractive credit terms
  Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand
  Seek excellent product designs, high awareness, and high accessibility
  Seek the lowest price in their target market while maintaining a competitive contribution margin
  Reduce labor costs through training and recruitment

 

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