1.he Baldwin Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years....

1.

he 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

2. 

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

Equity will decrease $7,169,042

3. 

What is the Quick Ratio of Chester?Select: 11.4%0.5%2.0%

2.1%

4.

Chester has a ROS of 0.08 (ROS = Net income/Sales). That means:Select: 1There 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.

5.

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

6.

Which mission statement best represents the Digby company?Select: 1Innovation 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.

7.

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: 5Increase demand through TQM initiativesSeek high automation levelsSeek high plant utilization, even if it risks occasional small stockoutsAdd additional productsReduce cost of goods through TQM initiativesOffer attractive credit termsAccept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demandSeek excellent product designs, high awareness, and high accessibilitySeek the lowest price in their target market while maintaining a competitive contribution marginReduce labor costs through training and recruitment