The total investment for Baldwin will be $19,867,257 It is January 2nd and senio
ID: 2556230 • Letter: T
Question
The total investment for Baldwin will be $19,867,257
It is January 2nd and senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.7. Which of the following statements are true? Select all that apply. Select: 3 Baldwin’s long-term debt will rise by $10,000,000 Working capital will remain the same at $17,914,101 Total Assets will rise to $225,718,743 Total liabilities will be $138,464,707The total investment for Baldwin will be $19,867,257
Annual Report Baldwin C59559 Round: 2Dec. 31, 2019 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS 2019 2018 Common
Size Cash $43,734 20.3% $22,028 Accounts Receivable $14,358 6.7% $10,299 Inventory $5,720 2.7% $10,117 Total Current Assets $63,812 29.6% $42,444 Plant & Equipment $222,560 103.2% $165,300 Accumulated Depreciation ($70,653) -32.8% ($57,176) Total Fixed Assets $151,907 70.4% $108,124 Total Assets $215,719 100.0% $150,568 LIABILITIES & OWNERS' EQUITY Accounts Payable $9,066 4.2% $6,818 Current Debt $34,841 16.2% $21,740 Long Term Debt $84,558 39.2% $59,153 Total Liabilities $128,465 59.6% $87,711 Common Stock $36,697 17.0% $18,647 Retained Earnings $50,558 23.4% $44,210 Total Equity $87,255 40.4% $62,857 Total Liab. & O. Equity $215,719 100.0% $150,568
Explanation / Answer
total of assets
215719+10000
225719
new bond issued
10000
total of liabilities = total of liabilities before stock issue+ bond issued
128465+10000
138465
Answer is 1, 3 & 4
138465
total of assets
215719+10000
225719
new bond issued
10000
total of liabilities = total of liabilities before stock issue+ bond issued
128465+10000
138465
Answer is 1, 3 & 4
138465
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