Finance Multiple Choice Questions
All else constant, what would Baldwin’s SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Buddy’s promotional budget and $750,000 for Buddy’s sales budget?
The Chester’s balance sheet has $106,417,000 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year?
Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. How much will the company pay in separation costs if each worker receives $5,000 when separated?
In the Month of March, Baldwin Corporation received orders of 162 units at a price of $15.00 for their product Bold. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 108 units in March and the balance of 54 units in April. They received payment for 54 units in March, 54 units in April, and 54 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)
$2,430 , 0
0 , $2,430
$1,620 , $810
$810 , $810
Your Competitive Intelligence team is predicting that the Baldwin Company will invest in adding capacity to their Baker product this year. Assume Baldwin’s product Baker 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).
Assume Andrews is paying a dividend of $1.38 (per share). If this dividend was raised by 15%, given its current stock price, what would be the Dividend Yield?
Last year Abby charged $2,753,867 Depreciation on the Income Statement of Andrews. If Abby sold a fully depreciated piece of equipment at a loss, the effect on Andrews’s financial statements would be (all other items remaining equal):
Decrease Net Cash from operations on the Cash Flow Statement
No impact on Net Cash from operations
Increase Net Cash from operations
Just impact the Balance Sheet
The Baldwin company wants to decrease its plant utilization for Buddy 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.