It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to It is January 2nd and senior mot urchase by issuing $10,000,000 in bonds leverage changes to 2.8. Which of the following statements are true? Select all that apply. Select: 3 Save Answer Rose Aserte ene bande care se conteran Total Assets will rise to $205,944, 104 The total investment for Baldwin will be $15,508,896 Total liabilities will be $130,425,311 Baldwin's long-term debt will rise by $10,000,000 Working capital will remain the same at $11,647,994 Top Annual Report Baldwin C59559 Round: 2 Dec. 31, 2021 Balance Sheet 2020 2021 Common Size $31,884 $10.208 $8,292 16.396 5.2% 4.2% S16,795 $8,774 $12.253 $50,384 25.796 $37,822 ($70,200) $70.200 110.1% -35.89 $165,300 ($57,176) 74.39 DEFINITIONS: Common Size: The common ASSETS size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Cash Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company Total Current Assets stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment Plant & Equipment The current value of your plant. Accum Deprec: Accumulated Depreciation ciation The total accumulated depreciation from your plant. Accts Payable: What the company Total Fixed Assets currently owes suppliers for materials and services. Current Debt: The debt the company Total Assets is obligated to pay during the next year of operations. It includes emergency loans used to LIABILITIES & OWNERS' keep your company solvent should you run out EQUITY of cash during the year. Long Term Debt: The company's long term debt is in the form of Accounts Payable ponds, and this represents the total value of Current Debt your bonds. Common Stock: The amount of Long Term Debt capital invested by shareholders in the company. Retained Earnings: The profits that the Total Liabilities company chose to keep instead of paying to shareholders as dividends. Common Stock Retained Earnings $145,560 $195,944 $108,124 $145,946 100.0% $6,194 $31,247 $82,984 3.2% 15.9% 42.496 $5,980 $21,740 $59,153 $120,425 81.5% $86,873 $18,647 S40,427 $36.958 $38,561 18.9% 19.796 Total Equity $75,519 38.5% 100.0% $59,074 $145,946 Total Liab. & O. Equity $195,944 Cash Flow Statement 2021 ($1.886) $13,024 2020 $1,624 $9,887 5214 $3,981 ($1.435) S183 ($5.805) The Cash Flow Statement examines what happened in the Cash Cash Flows from Operating Acti' Account during the year. Cash injections appear as positive numbers and Net Income (Loss) cash withdrawals as negative numbers. The Cash Flow Statement is an Depreciation excellent tool for diagnosing emergency loans. When negative cash Extraordinary gains/losses/writeoffs flows exceed positives, you are forced to seek emergency funding. For Accounts Payable example, if sales are bad and you find yourself carrying an abundance of inventory excess inventory, the report would show the increase in inventory as a Accounts Receivable huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money Net cash from operations to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flow Summary Cash Flows from Financing Activities: Dividends Paid Baldwin Sales of Common Stock Purchase of Common Stock Cash from long term debt 40,000 Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position -20,000 Closing cash position - 40,000 Operations Finance Chg. Cash Operations Investment Finance Chg. Cash $13,899 $6,379 (550.480) (540,000) SOSO $18.311 54.258 SO $35,131 $17,784 ($11.300) $9,507 ($3.749) SO 20,000 S51,649 $15,088 $31,884 $18.293 ($15.728) 516,795 Annual Report Page 1 Annual Report Round: 2 Dec. 31, 2021 Baldwin C59559 2021 Income Statement Bit Bolt Buzz Brat $27.214 $26,064 $15,598 Na (Product Name:) Sales Bam $21,299 Bell S34,029 2021 Common Total Size $124,202 100.0% $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $4,275 $7.281 $2,853 $7,789 $242 $10,884 $8,380 $15.880 $220 $24.480 $5,515 $11,598 $289 $17,400 $5,339 $10.415 $244 $15.998 $26,362 $52,961 8995 $80,318 21.29 42.6% 0.896 64.7% SO $11,558 Contribution Margin $10,415 $9,549 $9,814 $10,067 $4,039 SO S43,884 35.39 $0 $1,000 Period Costs: Depreciation SG.A: R&D Promotions Sales Admin Total Period $3,667 $1,000 $1,050 $1,000 $307 $7,024 $3,800 SO $1,050 $1,000 S491 $8,341 $1,600 S973 $1,050 S900 $393 $4,916 $1,600 S977 $1,050 $1,500 $376 $5,503 $2.357 $250 $1,050 S900 $225 $4,782 $13,024 $4,200 $5,250 $5,300 $1,793 $29,567 10.5% 3.49 4.2% 4.3% 1.4% 23.8% SO $1,000 SO Net Margin $3.391 $3,208 $4,893 $4,564 (5743) ($1.000) SO $14,317 11.5% 2.2% 9.496 3.196 8.6% -0.896 0.0% -1.596 SO Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost the cost to carry unsold goods in inventory Other $2,672 Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D | $11,645 department expenditures for each product. Admin: Administration overhead is estimated at 1.5% Short Term Interest $3.843 of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Long Term Interest $10,672 Taxes each product. Other Charges not included in other categories such as Fees, Write Offs, and ($1,005) TQM. The fees include money paid to investment bankers and brokerage firms to issue new Profit Sharing stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit ($1.886) might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on Variable Margins the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term 2008 Baldwin Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared 40.0% with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit 30.0% sharing. 20.0% 10.0% 0.0% Bam Bell