early this year Attic purchased a new depreciable asset, the effect on Andrews's financial
statements would be (all other items remaining equal):
Select: 1
Increase Net Cash from operations
Decrease Net Cash from operations on the Cash Flow Statement
No impact on Net Cash from operations
Just impact the Balance Sheet
Assume Baldwin Corp. is downsizing the size of their workforce by 15% (to the nearest
person) next year from various strategic initiatives. Baldwin is planning to conduct exit
interviews to learn more about how they can improve in processes and increase
productivity. The exit interviews are estimated to cost $100 per employee in additional to
normal separation costs of $5000. How much will the company pay in separation costs if
these exit interviews are implemented next year?
Select: 1
$2,297,550
$946,050
$405,450
$166,950
Solution:
Size of workforce existing complement * 10% = 530*10% = 79.5
New workforce = 530 – 79.5 = 450.5
Separation costs = New workforce*cost per employee = 450.5*($100 + $5000) =
$2,297,550
The Baldwin company wants to decrease its plant utilization for Boat by 15%. How many
units would need to be produced next year to meet this production goal? Ignore impact of
accounts payable on plant utilization.
Select: 1
1,107
1,767
1,302
1,535
Solution:
Current plant utilization = 99%
Decrease to = 99%*(1 – 15%) = 0.8415
Units = 1550*0.8415 = 1302