Accounting question
Question # 00015878
Posted By:
Updated on: 05/23/2014 12:10 AM Due on: 05/22/2014
Looking forward to next year, if Chester’s current cash balance is $19,378 (000) and cash flows from operations next period are unchanged from this period and Chester takes ONLY the following actions relating to cash flows from investing and financing activities:
Issues 100 (000) shares of stock at the current stock price
Issues $200 (000) of long-term debt
Pays $40 (000) in dividends
Which of the following activities will expose Chester to the most risk of needing an emergency loan?
Select: 1
Purchases assets at a cost of $15,000 (000)
Sells $5,000 (000) of their Long-term assets
Retires $20,000 (000) in long-term debt
Liquidates the entire inventory
A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Assume that Digby had a productivity index of 112% and that Baldwin had a productivity index of 103%. Now refer to the Income Statements in the Annual Report for Digby and Baldwin. Using the labor costs shown in the Income Statements, how much more did Digby save in direct labor costs compared to Baldwin by having a higher productivity index?
Select: 1
$3,499
$2,863
$3,340
$3,181
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,290,917. Assuming similar sales next year, the 3.0% increase in demand will provide $4,898,727 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,670,466 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?
Select: 1
14 months
TQM investment will not have a significant financial impact
5 months
10 months
From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Ate in inventory at the end?
Select: 1
$3.17
$13.57
$6.34
$1.63
In three years, assuming the competitive environment remains unchanged, how many units of Bam will Baldwin be selling in the Nano market segment?
Select: 1
464
687
603
764
Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Bell product manager wishes to achieve a product contribution margin of 35%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?
Select: 1
$22.75
$21.00
$24.50
$23.00
Which description best fits Chester 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
Chester is a broad cost leader
Chester is a niche cost leader
Chester is a niche differentiator
Chester is a broad differentiator
Chester's Elite product Creak has an awareness of 72%. Chester's Creak product manager for the Elite segment is determined to have more awareness for Creak than Andrews' Elite product Attic. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Creak's existing awareness is lost every year. Assuming that Attic's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Chester's Elite product manager should spend in promotion to earn more awareness than Andrews' Attic product?
Select: 1
2M
Nothing
1M
3M
Select all of the following statements that are true four years from now, in the year 2016.
Select: 2
The Nano segment will demand 5,405 thousand units
The Thrift segment will demand 7,744 thousand units
The Core segment will demand 9,774 thousand units
The Elite segment will demand 5,871 thousand units
Issues 100 (000) shares of stock at the current stock price
Issues $200 (000) of long-term debt
Pays $40 (000) in dividends
Which of the following activities will expose Chester to the most risk of needing an emergency loan?
Select: 1
Purchases assets at a cost of $15,000 (000)
Sells $5,000 (000) of their Long-term assets
Retires $20,000 (000) in long-term debt
Liquidates the entire inventory
A productivity index of 110% means that a company’s labor costs would have been 10% higher if it had not made production improvements. Assume that Digby had a productivity index of 112% and that Baldwin had a productivity index of 103%. Now refer to the Income Statements in the Annual Report for Digby and Baldwin. Using the labor costs shown in the Income Statements, how much more did Digby save in direct labor costs compared to Baldwin by having a higher productivity index?
Select: 1
$3,499
$2,863
$3,340
$3,181
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,290,917. Assuming similar sales next year, the 3.0% increase in demand will provide $4,898,727 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,670,466 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month?
Select: 1
14 months
TQM investment will not have a significant financial impact
5 months
10 months
From a marginal analysis perspective, what is the inventory carry cost for Andrews if the company carries one additional unit of Ate in inventory at the end?
Select: 1
$3.17
$13.57
$6.34
$1.63
In three years, assuming the competitive environment remains unchanged, how many units of Bam will Baldwin be selling in the Nano market segment?
Select: 1
464
687
603
764
Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Bell product manager wishes to achieve a product contribution margin of 35%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?
Select: 1
$22.75
$21.00
$24.50
$23.00
Which description best fits Chester 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
Chester is a broad cost leader
Chester is a niche cost leader
Chester is a niche differentiator
Chester is a broad differentiator
Chester's Elite product Creak has an awareness of 72%. Chester's Creak product manager for the Elite segment is determined to have more awareness for Creak than Andrews' Elite product Attic. She knows that the first $1M in promotion generates 22% new awareness, the second million adds 23% more and the third million adds another 5%. She also knows one-third of Creak's existing awareness is lost every year. Assuming that Attic's awareness stays the same next year (77%), out of the promotion budgets below, what is the minimum Chester's Elite product manager should spend in promotion to earn more awareness than Andrews' Attic product?
Select: 1
2M
Nothing
1M
3M
Select all of the following statements that are true four years from now, in the year 2016.
Select: 2
The Nano segment will demand 5,405 thousand units
The Thrift segment will demand 7,744 thousand units
The Core segment will demand 9,774 thousand units
The Elite segment will demand 5,871 thousand units
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Rating:
/5
Solution: Accounting question