Analysis 1 Homework

Name: _________________________________

Assignment

1. Rank all the companies from high to low cumulative profit (in descending order).

2. Currently Cure is charged $2,261,333 Depreciation on the Income Statement of Chester. Chester is planning for an increase in this depreciation. On the financial statements of Chester will this?

( ) Decrease Net Cash from Operations on the Cash Flow Statement.
( ) Increase Net Cash from Operations on the Cash Flow Statement.
( ) Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement.
( ) Just impact the Balance Sheet.

3. What will the Performance segment's demand be two years from now?

4. Midyear on July 31st, the Digby Corporation's balance sheet reported:
      Total Assets of $104.818 million
      Total Common Stock of $5.080 million
      Cash of $8.040 million
      Retained Earnings of $16.323 million.
  What were the Digby Corporation's total liabilities?

5. Digby Corporation uses the accrual method of accounting. When it sells the first unit of inventory for its product called Dast during the year, it also matches which of these expenses with that sale:

( ) The promotion budget for the Dast product.
( ) The R&D on the Dast product.
( ) The material cost and labor cost of the Dast unit.
( ) The depreciation on the Dast production line.

6. On the Income Statement, which of the following would be classified as a fixed cost?
        ( ) Income Tax
        ( ) Labor Cost
        ( ) Material cost
        ( ) Promotion Expense

7. On the Income Statement, which of the following would be classified as a variable cost?

( ) Direct Labor Expense
( ) R&D Expense
( ) Promotion Expense
( ) Depreciation Expense

8. If Ferris had sold it's entire inventory last year, how much more revenue would it have received?

9. Dell is a product of the Digby company. Digby's sales forecast for Dell is 513 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Dell's Production After Adjustment have to be in order to have a 10% reserve of units available for sale?

10. Forecast demand for Able next year. Assume all competitors maintain their policies towards R&D, pricing, and marketing budgets so that all products will maintain their relative competitive positions as of year end. What will Able's demand be next year (in 000's)?

Deliverables

1. Answers to the above problems