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1) The Chester 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 book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP);Select: 1;$33,538,000;$35,446,667;$29,448,000;$32,720,000;2) What is the Quick Ratio of Chester?;Select: 1;1.39;1.61;.62;.72;3) Digby has a ROS of 0.09 (ROS = Net income/Sales). That means;Select: 1;There are sales of $9 for every dollar of profit.;There is a 9% profit on each dollar of sales.;There are sales of $91 for every dollar of profit.;For every $9 of sales there is a profit of 1%.;4) Midyear on July 31st, the Baldwin Corporation's balance sheet reported;Total Liabilities of $103.453 million;Cash of $8.040 million;Total Assets of $172.520 million;Total Common Stock of $5.080 million.;What were the Baldwin Corporation's retained earnings?;Select: 1;$74.147 million;$63.987 million;$72.027 million;$82.187 million;5) 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;Seek high plant utilization, even if it risks occasional small stockouts;Increase demand through TQM initiatives;Add additional products;Seek high automation levels;Offer attractive credit terms;Seek the lowest price in their target market while maintaining a competitive contribution margin;Reduce cost of goods through TQM initiatives;Seek excellent product designs, high awareness, and high accessibility;Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand;Reduce labor costs through training and recruitment;6) Rank the following companies from high to low cumulative profit, (in descending order, 1=highest, 4=lowest).;Rank in order from 1 to 4;Chester;Baldwin;Andrews;Digby;7) Which description best fits Chester in your industry? 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 this competitor?;Select: 1;Chester is a niche cost leader;Chester is a broad differentiator;Chester is a broad cost leader;Chester is a niche differentiator;8) If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be;Select: 1;Retained earnings would increase by $4,804;Retained earnings would increase by $48,039;Equity would decrease by $4,804;Equity would increase by $48,039

 

Paper#35783 | Written in 18-Jul-2015

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