# What will the accumulated depreciation expense for this purchase

he 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 accumulated depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use? (Use FASB GAAP)
Select: 1[removed]
[removed] \$4,908,000
[removed] \$2,454,000
[removed] \$5,453,333
[removed]

\$2,726,667

2.

The Chester Company has just issued \$7,169,042 in dividends last year. The effect of this payment on the balance sheet is:
Select: 1[removed]
[removed] Liabilities will increase \$7,169,042
[removed] Expenses will increase \$7,169,042
[removed] Net Profit will decrease \$7,169,042
[removed]

Equity will decrease \$7,169,042

3.

What is the Quick Ratio of Chester?
Select: 1[removed]
[removed] 1.4%
[removed] 0.5%
[removed] 2.0%
[removed]

2.1%

4.

Chester has a ROS of 0.08 (ROS = Net income/Sales). That means:
Select: 1[removed]
[removed] There is a 8% profit on each dollar of sales.
[removed] There are sales of \$92 for every dollar of profit.
[removed] For every \$8 of sales there is a profit of 1%.
[removed]

There are sales of \$8 for every dollar of profit.

5.

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

Total Liabilities of \$51.432 million
Total Common Stock of \$2.540 million
Cash of \$4.020 million
Retained Earnings of \$18.537 million.

What were the Digby Corporation’s total assets?

Select: 1[removed]
[removed] \$34.375 million
[removed] \$36.915 million
[removed] \$68.489 million
[removed]

\$72.509 million

6.

Which mission statement best represents the Digby company?
Select: 1[removed]
[removed] Innovation meets revolution. We create value for our customers through breakthrough designs that lead to unique high-performance products.
[removed] Consistency and affordability are our goals. Our central mission is to offer dependable, low-price products that our customers can count on.
[removed] Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide variety of market segments.
[removed]

Lasting innovation is our motivation. We build premium products that are elegantly designed to meet the needs of a variety of market segments.

7.

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[removed]
 [removed] Increase demand through TQM initiatives [removed] Seek high automation levels [removed] Seek high plant utilization, even if it risks occasional small stockouts [removed] Add additional products [removed] Reduce cost of goods through TQM initiatives [removed] Offer attractive credit terms [removed] Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand [removed] Seek excellent product designs, high awareness, and high accessibility [removed] Seek the lowest price in their target market while maintaining a competitive contribution margin [removed] Reduce labor costs through training and recruitment