27 Jul Financial Report Analysis
Read this report to help answer the following questions : http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1060349&simid=C59559&Round=8&Report=CapCourier|AnnReport#production
Assume Andrews is paying a dividend of $1.38 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield?
Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. Digby is planning to conduct exit interviews to learn more about how they can improve in processes and increase productivity. The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of $5000. How much will the company pay in separation costs if these exit interviews are implemented next year?
Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Chester to pull the product Cure entirely off the market this year. Assume Chester scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Chester or other companies. Without Chester’s product Cure how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).
In the month of March the Chester Corporation received and delivered orders of 201,000 units at a price of $15.00 for revenue of $3.015mil for their product Clack. Chester uses the accrual method of accounting and offers 30 day credit terms. By the end of May Chester had collected payments of $3.015mil for the March deliveries. How much of the collected $3.015mil should Chester show on the March 31st income statement and how much on the May 31st income statement?
$0.995mil in March;
$2.020mil in May
$1.508mil in March;
$1.508mil in May
$0 in March;
$3.015mil in May
$3.015mil in March;
$0 in May