Balance Sheet and Correct Answer

Topics: Balance sheet, Generally Accepted Accounting Principles, Asset Pages: 4 (806 words) Published: May 6, 2013
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1.    Currently product Axe is charged $3,635,223 depreciation on the income statement of Andrews. Andrews plans to make investment that will increase this depreciation to take advantage of changes in the tax code. Will this?a.    Decrease net cash from operations on the cash flow statementb.    Increase net cash from operations on the cash flow statementc.    Just impact the balance sheet.d.    Have no impact on the net cash from operations as depreciation appears in both cash flow and income statementAnswer | Selected Answer:|  C.  Just impact the balance sheet.| Correct Answer:|  B.    Increase net cash from operations on the cash flow statement| Response Feedback: | Since an increase in depreciation reduces net income there are less taxes to pay.  This in turn results in a slight increase in cash flow.|

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* Question 2
10 out of 10 points
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| 1.    Andrew  corporation is downsizing the size of their workforce by 10% next year from various strategic initiatives. They currently have 1031 employees. How much will the company pay in separation costs if each worker receives $6,000 in separation? Answer | | | | | Selected Answer: |  618600|

Correct Answer: |  621,000|
Answer range +/- | 3,000 (618000.0 - 624000.0)|
Response Feedback: | 10% of 1031 equal 103.1 employees.  Since you cannot layoff a fraction of an employee you will end up laying off 103 employees at $6,000 severance cost for each resulting in $618,000 total cost. |

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* Question 3
10 out of 10 points
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| What is the current leverage of Ferris? Balance Sheet Survey| Andrews| Baldwin| Chester| Digby| Erie| Ferris| Cash| $8,638| $0| $4,983| $25,000| $0| $43,641|
Accounts Receivable| $13,669| $8,504| $7,337| $25,725| $12,632| $21,247| Inventory| $21,393| $48,766| $18,250| $6,239| $42,486| $21,205| Total Current Assets| $43,699| $57,270| $30,570| $56,963| $55,118| $86,093|  |  |  |...
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