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Assume Baldwin Corp. is downsizing the size of their workforce by 15% (to the nearest person) next year from various strategic initiatives.

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Last year Attic charged $3,274,667 Depreciation on the Income Statement of Andrews. If 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 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 Digby's balance sheet has $91,231,000 in equity. Next year they expect Assets to increase by $4,000,000 and Liabilities to decrease by $2,000,000. If that happens, what will be Digby's book value? Select: 1 $97,231,000 $40,191,000 $85,231,000 $93,231,000 All else constant, what would Digby’s SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Don’s promotional budget and $750,000 for Don’s sales budget? Select: 1 9.5% 8.1% 11.3% 10.8% In the month of March the Digby Corporation received and delivered orders of 173,000 units at a price of $15.00 for revenue of $2.595mil for their product Dim. Digby uses the accrual method of accounting and offers 30 day credit terms. By the end of May Digby had collected payments of $2.595mil for the March deliveries. How much of the collected $2.595mil should Digby show on the March 31st income statement and how much on the May 31st income statement? Select: 1 $0 in March; $2.595mil in May $1.298mil in March; $1.298mil in May $2.595mil in March; $0 in May $0.856mil in March; $1.739mil in May Your Competitive Intelligence team is predicting that the Digby Company will invest in adding capacity to their Dune product this year. Assume Digby's product Dune invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000). Select: 1 5,540 7,281 8,259 14,938 4,070 9,509 8,531 Assume Andrews is paying a dividend of $1.38 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield? Select: 1 52.73% 1.52% 2.47% 1.90%

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Last year Attic charged $3,274,667 Depreciation on the Income Statement of Andrews. If
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

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