Last year the Chester company increased their equity. In 2013 their equity was $49,468. Last year (2014) it increased to $51,008

Last year the Chester company increased their equity. In 2013 their equity was $49,468. Last year (2014) it increased to $51,008. 

What are causes of change in equity? Check all that apply.
Select: 3

A change in short term debt of-$4,147.

Change in inventory of-$818.

Plant Improvements of $9,580

Dividend payment of$7,169.

A change in cash of -$4,318.

Depreciation of -$41,287

A change of plant and equipment of$9,580.

Profits of $10,248

An accounts payable change of$1,218.

A bond issue of$1,308.

Issue and retirement of stock .



The Baldwin 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 depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use? (Use FASB GAAP)
Select: 1

$5,453,333

$4,908,000

$2,726,667

$2,454,000



What is the Liability to Equity ratio of Chester?
Select: 1

1.20

.99

.84

1.01



Chester has an asset turnover of 1.50 (Asset Turnover = Sales/Assets). That means:
Select: 1

Every $1.50 of assets in the firm generates $1.00 of sales.

Every $1.00 of assets in the firm generates $1.50 of profit.

Each $1.00 of assets in the firm generates $1.50 of sales revenue.

Every $1.50 of profit in the firm comes from each $1.00 of sales.

Midyear on July 31st, the Digby Corporation's balance sheet reported:

Total Liabilities of $102.472 million
Total Common Stock of $5.080 million
Cash of $8.040 million
Retained Earnings of $35.488 million. 

What were the Digby Corporation's total assets?
Select: 1

$135.000 million

$75.024 million

$69.944 million

$143.040 million



Review the Inquirer to determine Digby's current strategy. How will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Digby would be most likely to pursue.
Select: 5

Seek the lowest price in their target market while maintaining a competitive contribution margin

Increase demand through TQM initiatives

Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand

Add additional products

Offer attractive credit terms

Seek high automation levels

Seek excellent product designs, high awareness, and high accessibility

Reduce cost of goods through TQM initiatives

Seek high plant utilization, even if it risks occasional small stockouts

Reduce labor costs through training and recruitment

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

Digby

Andrews

Baldwin



Which description best fits Baldwin 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