1. Baldwin Corp. ended the year carrying $24,239,000 worth of inventory. Had the
ID: 2413371 • Letter: 1
Question
1. Baldwin Corp. ended the year carrying $24,239,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Baldwin Corp.?
$50,923,040
$24,239,000
$38,288,000
$13,915,000
2. It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday’s stock price ($33.61) and leverage changes to 2.8. Which of the following statements are true?
Select all that apply
Equity will be $80,726,008
The total investment for Digby will be $207,925,114
Working capital will remain the same at $10,234,523
Total Assets will rise to $218,974,723
Digby will issue stock totaling $2,520,750
Total liabilities will be $124,678,356
Annual Report BaldwinExplanation / Answer
Solution :-1
Solution:-2
Totla Asset will rise to $218974723 as the fixed asset value increased through the Purchasing of Plant and Equipment
`Contribution margin it would have brought to the company if entire inventory was sold at the current prices = AMount the inventory is worth = $24239000Related Questions
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