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Andrews Corp. ended the year carrying $17,122,000 worth of inventory

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1. Andrews Corp. ended the year carrying $17,122,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Andrews Corp.?;2. Which description best fits Andrews? For clarity;- A differentiator competes through good designs, high awareness, and easy accessibility.;- A cost leader competes on price by reducing costs and passing the savings to customers.;- A broad player competes in all parts of the market.;- A niche player competes in selected parts of the market.;Which of these four statements best describes your company's current strategy?;Select: 1;Andrews is a broad cost leader;Andrews is a broad differentiator;Andrews is a niche differentiator;Andrews is a niche cost leader;3. The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin issues bonds;Select: 1;It is a source of cash, and will be shown in the investing section as an addition.;It is a use of cash, and will be shown in the financing section as a subtraction;It is a use of cash, and will be shown in the investing section as a subtraction.;It is a source of cash and will be shown in the financing section as an addition;4. This year Andrews achieved an ROE of 24.9%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Andrews's ROE?;Select: 1;Andrews ROE will increase.;Andrews ROE will remain the same.;Andrews ROE will decrease.;5. It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday?s stock price ($32.26) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.;Select: 3;Total Assets will rise to $218,095,180;Baldwin will issue stock totaling $2,419,500;The total investment for Baldwin will be $203,188,250;Total liabilities will be $120,458,113;Equity will be $80,310,636;Working capital will remain the same at $12,971,459;Attachments;COMP-XM?_INQUIRER.pdf (1104.11 KB)

 

Paper#35090 | Written in 18-Jul-2015

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