Chester Company

1) The Chester 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 book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP)

Select: 1

2) What is the Quick Ratio of Chester?

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3) Digby has a ROS of 0.09 (ROS = Net income/Sales). That means:

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4) Midyear on July 31st, the Baldwin Corporation’s balance sheet reported:

Total Liabilities of $103.453 million
Cash of $8.040 million
Total Assets of $172.520 million
Total Common Stock of $5.080 million.

What were the Baldwin Corporation’s retained earnings?

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5) 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

6) Rank the following companies from high to low cumulative profit, (in descending order, 1=highest, 4=lowest).

Rank in order from 1 to 4

7) 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

8) If Baldwin issued 1000 shares of common stock at last year’s end price, the effect on the balance sheet would be:

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