Comp-Xm Final Questions

Digby’s balance sheet has $94,680,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, what will be Digby’s book value?

Select: 1

$92,679,000   $96,680,000   $38,651,000   $88,679,000

 

 

Which company has the least efficient SG&A/Sales ratio?

Select: 1

Chester   Baldwin   Andrews   Digby

 

 

 

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the product Drum entirely off the market this year. Assume Digby scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Digby or other companies. Without Digby’s product Drum how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).

Select: 1

7,278   3,886   8,528   8,256   9,506   9,236   4,618

 

 

 

In the month of March the Digby Corporation received and delivered orders of 178,000 units at a price of $15.00 for revenue of $2.670mil 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 $2.670mil for the March deliveries. How much of the collected $2.670mil should Digby show on the March 31st income statement and how much on the May 31st income statement?

Select: 1

$0 in March; $2.670mil in May   $0.881mil in March; $1.789mil in May   $1.335mil in March; $1.335mil in May   $2.670mil in March; $0 in May

 

 

 

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?

Select: 1

$122,000   $1,094,000   $305,000   $2,735,000

 

 

 

Assume Andrews is paying a dividend of $1.50 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield?

Select: 1

109.09%   177.27%   .73%   136.36%

 

 

 

Last year Ark charged $3,040,000 Depreciation on the Income Statement of Andrews. If Ark sold a fully depreciated piece of equipment at a loss, 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   Just impact the Balance Sheet   No impact on Net Cash from operations

 

 

 

Assume Baldwin is producing 1,568 units of Bolt next year. What would Bolt’s plant utilization be?

Select: 1

96.90%   93.10%   95.00%   96.02%