Round: 3

Dec. 31, 2016

C58866

Andrews
Congsi JIAO
Ning Li
kai liu
Hao Lu
Qingshao Sui
Junyi Wu

Baldwin
Wan Ying Chai
Wai Chak Billy Chun
Ru Ann Chung
Ho Fung Ronald Mak
Mandy Teo
Wing Sze Yau

Chester
Kaiyin Lian

Digby
Dung Doan
Meihua Kwong
Ninh Nguyen
Hiep Nguyen
Binh Hoang Nguyen
Immanuel Polii

Erie
jiang he
Ke Li
Tian TANG
cheng ZHANG
Jie Zhang
Yu Zhao

Ferris
Xueqing Li
Huy Nguyen
Yuhao Wang
JUE WANG
Yuan Xu
Yuan Yue

Shuyi Sun
Yudi Sun
ZHAO YING
Rui Zhang
JIREN ZHOU

Selected Financial Statistics
ROS
Asset Turnover
ROA
Leverage
(Assets/Equity)
ROE
Emergency Loan
Sales
EBIT
Profits
Cumulative Profit
SG&A / Sales
Contrib. Margin %

CAPSTONE® COURIER

Andrews
2.7%
1.21
3.3%

Baldwin
3.6%
1.29
4.6%

Chester
-5.2%
1.02
-5.3%

Digby
-1.8%
1.03
-1.9%

Erie
-10.0%
1.01
-10.1%

Ferris
-2.9%
0.80
-2.4%

3.2

2.4

5.6

3.8

2.6

2.5

10.3%
$0
$208,493,398
$20,667,072
$5,649,976
($7,747,608)
15.6%
36.8%

10.9%
$0
$138,255,017
$14,204,626
$4,928,040
($12,450,278)
16.1%
32.6%

-29.6%
$0
$177,709,026
$2,465,742
($9,225,989)
($29,421,870)
23.9%
38.3%

-7.1%
$4,889,491
$103,055,935
$5,901,299
($1,863,385)
($17,486,647)
21.2%
37.0%

-26.4%
$0
$105,266,899
($8,758,835)
($10,513,968)
($19,393,079)
20.4%
36.5%

-5.9%
$0
$94,399,826
$3,897,566
($2,778,382)
($16,592,028)
14.4%
37.8%

Page 1

Stock & Bonds

Round: 3
Dec. 31, 2016

C58866
Stock Market Summary

Company
Andrews
Baldwin
Chester
Digby
Erie
Ferris

Close

Change

Shares

$21.30
$21.22
$1.00
$1.00
$1.00
$4.56

$20.14
$20.22
$0.00
$0.00
($3.45)
$3.56

2,879,966
2,279,973
2,879,966
2,000,000
3,189,919
3,455,929

MarketCap
($M)
$61
$48
$3
$2
$3
$16

Book Value

EPS

Dividend

Yield

P/E

$18.97
$19.74
$10.83
$13.13
$12.48
$13.56

$1.96
$2.16
($3.20)
($0.93)
($3.30)
($0.80)

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

0.0%
0.0%
0.0%
0.0%
0.0%
0.0%

10.8
9.8
-0.3
-1.1
-0.3
-5.7

Bond Market Summary
Company
Andrews

Series#

Face

Yield

Close$

S&P Company
Digby
C
C
C
C
C Erie

11.9S2017
13.4S2019
10.7S2024
12.2S2025
13.3S2026

$13,900,000
$20,850,000
$18,800,000
$25,564,000
$14,000,000

12.1%
13.5%
12.5%
13.2%
13.6%

98.42
99.30
85.94
92.50
97.89

11.9S2017
13.4S2019
10.7S2024
12.1S2025

$10,748,249
$20,850,000
$18,994,000
$3,000,000

12.0%
13.3%
12.0%
12.7%

99.03
100.94
88.96
95.38

CC
CC
CC
CC

11.9S2017
13.4S2019
10.7S2024
12.5S2025
13.5S2026

$13,900,000
$20,850,000
$18,994,000
$25,766,000
$13,664,000

12.1%
13.6%
12.7%
13.6%
13.9%

98.07
98.38
84.28
92.11
96.88

DDD
DDD
DDD
DDD
DDD

Baldwin

Chester

Series#

Face

Yield

Close$

S&P

11.9S2017
13.4S2019
10.7S2024
12.0S2025

$13,900,000
$20,850,000
$10,000,000
$20,000,000

12.1%
13.6%
12.6%
13.3%

98.16
98.61
84.69
90.11

DDD
DDD
DDD
DDD

11.9S2017
13.4S2019
10.7S2024
12.1S2025
12.5S2026

$13,900,000
$20,850,000
$6,500,000
$13,000,000
$5,600,000

12.0%
13.4%
12.2%
12.9%
13.1%

98.76
100.23
87.65
93.91
95.71

CC
CC
CC
CC
CC

11.9S2017
13.4S2019
10.7S2024
11.9S2025

$13,900,000
$20,850,000
$7,000,000
$25,000,000

12.0%
13.3%
12.1%
12.7%

98.85
100.47
88.08
93.38

CC
CC
CC
CC

Ferris

Next Year's Prime Rate 7.90%
CAPSTONE® COURIER

Page 2

Financial Summary
Cash Flow Statement Survey
CashFlows from operating activities
Net Income(Loss)
Adjustment for non-cash items:
Depreciation
Extraordinary gains/losses/writeoffs
Changes in current assets and liablilities
Acounts payable
Inventory
Accounts Receivable
Net cash from operations

C58866

Round: 3
Dec. 31, 2016

Andrews

Baldwin

Chester

Digby

Erie

Ferris

$5,650

$4,928

($9,226)

($1,863)

($10,514)

($2,778)

$12,832
$0

$8,744
($269)

$12,529
$0

$10,453
$0

$9,489
$824

$9,244
($101)

$3,844
($673)
($5,500)
$16,152

($767)
$6,191
($2,342)
$16,486

($223)
$10,320
($7,612)
$5,789

($1,637)
$11,338
($79)
$18,211

$99
$8,199
$189
$8,286

($567)
$11,960
($32)
$17,726

($15,516)

($2,982)

($14,200)

$0

($358)

($7,438)

$0
$0
$0
$14,000
$0
($13,950)
$3,000
$0

$0
$0
($120)
$0
($3,000)
$0
$0
$0

$0
$0
$0
$13,664
$0
($34,701)
$42,263
$0

$0
$0
$0
$0
$0
($23,101)
$0
$4,889

$0
$2,364
$0
$5,600
$0
($6,950)
$0
$0

$0
$576
$0
$0
$0
($6,950)
$0
$0

$3,050

($3,120)

$21,226

($18,211)

$1,014

($6,374)

Net change in cash position
Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

$3,686
Andrews
$16,292
$34,273
$1,790
$52,355

$10,384
Baldwin
$24,719
$13,257
$0
$37,976

$12,815
Chester
$12,815
$43,819
$0
$56,634

$0
Digby
$0
$8,470
$2,809
$11,279

$8,942
Erie
$9,536
$8,652
$389
$18,577

$3,914
Ferris
$28,444
$7,759
$0
$36,203

Plant and equipment
Accumulated Depreciation
Total Fixed Assets

$192,484
($72,337)
$120,147

$131,160
($62,189)
$68,971

$187,940
($69,801)
$118,139

$156,800
($67,800)
$89,000

$142,342
($56,431)
$85,911

$138,654
($57,415)
$81,239

Total Assets

$172,502

$106,948

$174,772

$100,279

$104,488

$117,442

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$21,751
$3,000
$93,114
$117,865

$8,344
$0
$53,592
$61,937

$8,158
$42,263
$93,174
$143,595

$4,373
$4,889
$64,750
$74,013

$4,814
$0
$59,850
$64,664

$3,841
$0
$66,750
$70,591

$36,992
$17,646
$54,638

$32,092
$12,919
$45,011

$35,205
($4,028)
$31,177

$18,360
$7,907
$26,267

$33,824
$6,001
$39,824

$38,049
$8,802
$46,850

Total Liabilities & Owners'' Equity

$172,502

$106,948

$174,772

$100,279

$104,488

$117,442

Income Statement Survey
Sales
Variable Costs(Labor,Material,Carry)
Depreciation
SGA(R&D,Promo,Sales,Admin)
Other(Fees,Writeoffs,TQM,Bonuses)
EBIT
Interest(Short term,Long term)
Taxes
Profit Sharing
Net Profit

Andrews
$208,493
$131,858
$12,832
$32,436
$10,700
$20,667
$11,797
$3,104
$115
$5,650

Baldwin
$138,255
$93,210
$8,744
$22,318
($222)
$14,205
$6,468
$2,708
$101
$4,928

Chester
$177,709
$109,579
$12,529
$42,452
$10,683
$2,466
$16,660
($4,968)
$0
($9,226)

Digby
$103,056
$64,880
$10,453
$21,821
$0
$5,901
$8,768
($1,003)
$0
($1,863)

Erie
$105,267
$66,815
$9,489
$21,499
$16,222
($8,759)
$7,417
($5,661)
$0
($10,514)

Ferris
$94,400
$58,696
$9,244
$13,634
$8,928
$3,898
$8,172
($1,496)
$0
($2,778)

Cash flows from investing activities
Plant improvements(net)
Cash flows from financing activities
Dividends paid
Sales of common stock
Purchase of common stock
Cash from long term debt issued
Early retirement of long term debt
Retirement of current debt
Cash from current debt borrowing
Cash from emergency loan
Net cash from financing activities

Common Stock
Retained Earnings
Total Equity

CAPSTONE® COURIER

Page 3

Primary
Segment
Trad
Low
High
Pfmn
Size
Low

Units
Sold
2,263
2,658
951
914
914
291
0

Unit
Inven
tory
0
0
80
0
0
0
0

Baker
Bead
Bid
Bold
Buddy

Trad
Low
High
Pfmn
Size

1,377
1,589
774
735
774

Cake
Cedar
Cid
Coat
Cure
Coffee
Cheese
Cookie

Trad
Low
High
Pfmn
Size
Low
High
Trad

Daze
Dell
Dixie
Dot
Dune

Price
$26.00
$19.00
$37.00
$32.00
$32.00
$19.00
$26.00

Material
Cost
$9.63
$6.06
$14.73
$13.89
$12.30
$6.06
$0.00

Labor
Cost
$6.63
$5.63
$7.68
$8.05
$8.05
$5.40
$0.00

Contr.
Marg.
37%
38%
39%
32%
37%
39%
0%

2nd
Shift
&
Overtime
50%
95%
33%
57%
57%
61%
0%

13.5
17.6
9.0
14.5
8.2

$23.00
$17.49
$38.00
$32.49
$32.99

$9.27
$5.13
$14.79
$13.95
$12.36

$7.26
$6.82
$8.16
$8.52
$8.92

28%
30%
40%
31%
35%

0%
29%
11%
36%
44%

4.3
5.3
3.8
4.0
3.8

1,700 68%
1,400 99%
900 86%
800 105%
800 112%

6.8
2.7
11.3
12.1
5.8
2.9
11.3
8.0

13.5
17.6
9.0
14.5
8.2
17.4
9.0
12.4

$25.00
$17.00
$37.00
$33.00
$33.00
$17.00
$38.00
$25.00

$9.63
$5.90
$14.73
$13.89
$12.30
$6.06
$14.73
$10.53

$4.88
$3.46
$8.19
$8.27
$8.56
$5.57
$6.89
$5.31

41%
44%
38%
33%
37%
31%
43%
36%

0%
62%
11%
14%
25%
0%
59%
23%

7.0
8.0
3.0
3.0
3.0
7.0
5.0
8.0

2,000
1,400
700
600
600
900
60
10

62%
160%
110%
113%
124%
99%
99%
99%

17500
15000
23000
27000
19000

6.1
2.7
10.4
11.1
5.1

14.2
17.6
9.9
15.2
9.2

$27.00
$18.60
$39.00
$34.00
$34.00

$9.58
$5.93
$14.89
$14.59
$12.26

$6.60
$4.99
$8.25
$8.80
$8.80

39%
38%
39%
30%
35%

0%
2%
0%
0%
0%

5.0
6.5
3.5
3.0
3.0

1,800
2,200
900
600
600

50%
78%
29%
49%
48%

1.7
4.2
1.3
2.9
1.6
0.6

17500
14000
24448
28000
19000
26000

6.8
2.9
11.7
10.8
5.8
12.2

13.5
17.6
9.0
15.5
8.2
12.0

$26.00
$19.50
$34.00
$32.00
$33.50
$36.50

$9.73 $6.96
$5.47 $5.80
$15.53
$6.96
$0.00 $0.00
$12.40
$8.12
$15.10 $10.56

37%
41%
35%
23%
38%
29%

0%
0%
0%
0%
0%
74%

5.0
6.0
5.0
1.0
4.0
6.0

1,400
1,400
900
1
750
800

89%
89%
27%
0%
54%
83%

1.8
4.7
1.5
5.5
5.6

17000
14000
25000
25000
19000

6.8
2.4
11.3
9.1
3.7

13.5
17.9
9.0
16.1
11.6

$26.00
$18.00
$38.00
$26.00
$31.00

$9.11
$4.88
$14.74
$11.50
$0.00

39%
34%
40%
22%
31%

0%
0%
0%
0%
0%

6.0
5.0
3.0
3.0
3.0

2,000
2,400
900
2
1

67%
35%
79%
42%
0%

Revision Date
6/13/2016
4/16/2016
7/7/2016
6/29/2016
6/29/2016
2/1/2015
3/10/2016

Age
Dec.31
1.8
4.2
1.4
1.6
1.6
1.9
0.8

0
0
0
0
0

5/10/2016
5/25/2009
6/14/2016
6/9/2016
6/7/2016

1,549
2,247
772
833
744
1,042
59
10

0
0
0
0
0
0
0
0

Trad
Low
High
Pfmn
Size

899
2,038
414
399
329

Eat
Ebb
Echo
Edge
Egg
Estar

Trad
Low
High
Pfmn
Size
Pfmn

Fast
Feat
Fist
Foam
Fume

Trad
Low
High
Pfmn
Trad

Name
Able
Acre
Adam
Aft
Agape
Acl
Abt

MTBF
19000
17000
25000
27000
21000
17000
19000

Pfmn
Coord
6.8
2.9
11.3
12.1
5.8
2.9
6.8

Size
Coord
13.5
17.4
9.0
14.5
8.2
17.4
13.5

1.8
7.6
1.5
1.7
1.7

17500
14000
25000
27000
21000

6.8
2.7
11.3
12.1
5.8

9/1/2015
1/26/2016
6/16/2016
7/21/2016
7/21/2016
6/1/2016
5/13/2016
3/7/2016

2.8
7.6
1.4
1.6
1.6
1.3
0.6
0.8

19000
17000
25000
27000
21000
17000
25000
19000

0
0
42
0
84

6/6/2015
1/15/2014
12/24/2015
6/29/2015
9/18/2015

3.0
7.6
2.2
2.7
2.6

1,317
1,252
371
80
488
413

0
0
0
0
19
0

9/16/2016
3/14/2016
12/14/2016
4/8/2015
8/14/2016
6/2/2016

1,510
1,448
708
1
69

0
0
0
0
0

6/4/2016
3/22/2015
7/7/2016
6/30/2011
5/25/2011

CAPSTONE® COURIER

Round: 3
Dec. 31, 2016

C58866

Production Analysis

$6.43
$6.43
$8.57
$8.57
$0.00

Auto
mation
Next
Round
6.0
7.0
5.0
5.0
5.0
7.0
6.0

Capacity
Next
Round
1,900
1,700
900
700
700
301
255

Plant
Utiliz.
125%
162%
111%
130%
130%
134%
0%

Page 4

Traditional Segment Analysis

C58866

Round: 3
Dec. 31, 2016

Traditional Statistics
Total Industry Unit Demand

9,756

Actual Industry Unit Sales

8,923

Segment % of Total Industry

29.2%

Next Year's Segment Growth Rate

9.9%

Traditional Customer Buying Criteria
Expectations

Importance

1. Age

Ideal Age = 2.0

47%

2. Price

$18.50 - 28.50

23%

3. Ideal Position

Pfmn 6.8 Size 13.5

21%

4. Reliability

MTBF 14000-19000

9%

Top Products in Traditional Segment
Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Date

Out

Coord

Coord

Name

Share

Seg

Able

25%

2,259

6/13/2016

YES

6.8

Cake

17%

1,545

9/1/2015

YES

6.8

Fast

17%

1,507

6/4/2016

YES

Baker

15%

1,374

5/10/2016

Eat

14%

1,281

Daze

10%

894

Fume

1%

Cookie

0%

CAPSTONE® COURIER

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

13.5

$26.00

19000

1.78

$1,400

100%

$3,000

84%

83

13.5

$25.00

19000

2.85

$1,400

100%

$2,250

72%

56

6.8

13.5

$26.00

17000

1.80

$1,800

100%

$2,500

71%

66

YES

6.8

13.5

$23.00

17500

1.85

$1,800

93%

$1,800

58%

70

9/16/2016

YES

6.8

13.5

$26.00

17500

1.72

$1,500

86%

$1,500

43%

49

6/6/2015

YES

6.1

14.2

$27.00

17500

3.00

$2,500

100%

$2,500

70%

29

53

5/25/2011

YES

3.7

11.6

$31.00

19000

5.60

$0

14%

$0

71%

0

9

3/7/2016

YES

8.0

12.4

$25.00

19000

0.81

$1,500

61%

$2,250

72%

24

Page 5

Low End Segment Analysis

C58866

Round: 3
Dec. 31, 2016

Low End Statistics
Total Industry Unit Demand

12,766

Actual Industry Unit Sales

12,610

Segment % of Total Industry

38.2%

Next Year's Segment Growth Rate

12.2%

Low End Customer Buying Criteria
Expectations

Importance

1. Price

$13.50 - 23.50

53%

2. Age

Ideal Age = 7.0

24%

3. Ideal Position

Pfmn 2.9 Size 17.4

16%

4. Reliability

MTBF 12000-17000

7%

Top Products in Low End Segment
Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Date

Out

Coord

Coord

Name

Share

Seg

Acre

21%

2,658

4/16/2016

YES

2.9

Cedar

18%

2,247

1/26/2016

YES

2.7

Dell

16%

2,038

1/15/2014

YES

Bead

13%

1,589

5/25/2009

Feat

11%

1,448

Ebb

10%

1,252

Coffee

8%

Acl

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

17.4

$19.00

17000

4.15

$1,400

100%

$1,500

80%

44

17.6

$17.00

17000

7.60

$1,400

100%

$2,250

71%

74

2.7

17.6

$18.60

15000

7.60

$2,500

100%

$2,500

66%

48

YES

2.7

17.6

$17.49

14000

7.60

$1,200

78%

$1,300

53%

46

3/22/2015

YES

2.4

17.9

$18.00

14000

4.69

$1,800

98%

$2,000

62%

38

3/14/2016

YES

2.9

17.6

$19.50

14000

4.20

$1,500

85%

$2,000

59%

28

1,042

6/1/2016

YES

2.9

17.4

$17.00

17000

1.28

$3,000

100%

$2,250

71%

44

2%

291

2/1/2015

YES

2.9

17.4

$19.00

17000

1.91

$3,000

67%

$1,500

80%

28

Eat

0%

36

9/16/2016

YES

6.8

13.5

$26.00

17500

1.72

$1,500

86%

$1,500

59%

0

Daze

0%

4

6/6/2015

YES

6.1

14.2

$27.00

17500

3.00

$2,500

100%

$2,500

66%

0

Able

0%

3

6/13/2016

YES

6.8

13.5

$26.00

19000

1.78

$1,400

100%

$3,000

80%

0

Baker

0%

2

5/10/2016

YES

6.8

13.5

$23.00

17500

1.85

$1,800

93%

$1,800

53%

0

CAPSTONE® COURIER

Page 6

High End Segment Analysis

C58866

Round: 3
Dec. 31, 2016

High End Statistics
Total Industry Unit Demand

4,217

Actual Industry Unit Sales

4,217

Segment % of Total Industry

12.6%

Next Year's Segment Growth Rate

14.4%

High End Customer Buying Criteria
Expectations
1. Ideal Position

43%

Ideal Age = 0.0

29%

MTBF 20000-25000

19%

2. Age
3. Reliability

Importance

Pfmn 11.3 Size 9.0

4. Price

$28.50 - 38.50

9%

Top Products in High End Segment
Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Adam

23%

951

7/7/2016

11.3

Bid

18%

774

6/14/2016

YES

11.3

Cid

18%

772

6/16/2016

YES

Fist

17%

708

7/7/2016

YES

Dixie

10%

414

12/24/2015

Echo

9%

371

12/14/2016

YES

Estar

4%

162

6/2/2016

Cheese

1%

59

Cake

0%

Able

0%

CAPSTONE® COURIER

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

9.0

$37.00

25000

1.41

$1,500

100%

$3,000

81%

79

9.0

$38.00

25000

1.47

$1,500

100%

$3,000

76%

70

11.3

9.0

$37.00

25000

1.45

$2,900

100%

$2,250

73%

73

11.3

9.0

$38.00

25000

1.46

$1,400

100%

$2,500

76%

67

10.4

9.9

$39.00

23000

2.22

$2,000

100%

$2,000

57%

24

11.7

9.0

$34.00

24448

1.27

$1,500

90%

$2,000

76%

67

YES

12.2

12.0

$36.50

26000

0.57

$2,000

70%

$2,500

76%

25

5/13/2016

YES

11.3

9.0

$38.00

25000

0.63

$1,500

61%

$2,250

73%

71

4

9/1/2015

YES

6.8

13.5

$25.00

19000

2.85

$1,400

100%

$2,250

73%

0

2

6/13/2016

YES

6.8

13.5

$26.00

19000

1.78

$1,400

100%

$3,000

81%

0

Page 7

Performance Segment Analysis

C58866

Round: 3
Dec. 31, 2016

Performance Statistics
Total Industry Unit Demand

3,421

Actual Industry Unit Sales

3,212

Segment % of Total Industry

10.2%

Next Year's Segment Growth Rate

20.3%

Performance Customer Buying Criteria
Expectations

Importance

1. Reliability

MTBF 22000-27000

43%

2. Ideal Position

Pfmn 12.1 Size 14.5

29%

3. Price

$23.50 - 33.50

19%

4. Age

Ideal Age = 1.0

9%

Top Products in Performance Segment
Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Name

Share

Seg

Date

Out

Coord

Coord

Aft

28%

914

6/29/2016

YES

12.1

Coat

26%

833

7/21/2016

YES

12.1

Bold

23%

735

6/9/2016

YES

Dot

12%

399

6/29/2015

Estar

8%

251

Edge

2%

80

CAPSTONE® COURIER

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.5

$32.00

27000

1.64

$1,400

100%

$3,000

74%

81

14.5

$33.00

27000

1.63

$2,900

100%

$3,000

63%

73

12.1

14.5

$32.49

27000

1.67

$1,700

100%

$3,000

70%

73

YES

11.1

15.2

$34.00

27000

2.73

$1,500

83%

$1,500

38%

31

6/2/2016

YES

12.2

12.0

$36.50

26000

0.57

$2,000

70%

$2,500

33%

1

4/8/2015

YES

10.8

15.5

$32.00

28000

2.87

$0

60%

$0

33%

27

Page 8

Size Segment Analysis

C58866

Round: 3
Dec. 31, 2016

Size Statistics
Total Industry Unit Demand

3,264

Actual Industry Unit Sales

3,264

Segment % of Total Industry

9.8%

Next Year's Segment Growth Rate

23.7%

Size Customer Buying Criteria
Expectations
1. Ideal Position

43%

Ideal Age = 1.5

29%

MTBF 16000-21000

19%

2. Age
3. Reliability

Importance

Pfmn 5.8 Size 8.2

4. Price

$23.50 - 33.50

9%

Top Products in Size Segment
Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Name

Share

Seg

Date

Out

Coord

Coord

Agape

28%

914

6/29/2016

YES

5.8

Buddy

24%

774

6/7/2016

YES

5.8

Cure

23%

744

7/21/2016

YES

Egg

15%

488

8/14/2016

Dune

10%

329

9/18/2015

Fume

0%

16

5/25/2011

CAPSTONE® COURIER

YES

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

8.2

$32.00

21000

1.62

$1,400

100%

$3,000

78%

100

8.2

$32.99

21000

1.65

$1,700

100%

$3,000

72%

91

5.8

8.2

$33.00

21000

1.62

$2,900

100%

$3,000

67%

94

5.8

8.2

$33.50

19000

1.59

$2,000

100%

$1,500

45%

60

5.1

9.2

$34.00

19000

2.65

$1,500

83%

$1,500

40%

18

3.7

11.6

$31.00

19000

5.60

$0

14%

$0

13%

2

Page 9

Market Share

C58866

Actual Market Share in Units
Industry Unit Sales
% of Market

Trad
8,923
27.7%

Low
12,610
39.1%

Able
Acre
Adam
Aft
Agape
Acl
Total

25.3%

Baker
Bead
Bid
Bold
Buddy
Total

15.4%

Cake
Cedar
Cid
Coat
Cure
Coffee
Cheese
Cookie
Total

17.3%

Daze
Dell
Dixie
Dot
Dune
Total

10.0%

10.0%

16.2%

Eat
Ebb
Echo
Edge
Egg
Estar
Total

14.4%

0.3%
9.9%

Fast
Feat
Fist
Foam
Fume
Total

16.9%

High
4,217
13.1%

Pfmn
3,212
10.0%

Size
3,264
10.1%

20.7%

28.0%

Baker
Bead
Bid
Bold
Buddy
Total

17.0%

23.7%
23.7%

4.3%
4.9%
2.4%
2.3%
2.4%
16.3%

28.4%
28.0%
25.3%

22.6%

28.4%

12.6%
18.3%
22.9%
15.4%

12.6%

18.3%

22.9%

19.8%

25.9%

9.8%

12.4%

Eat
Ebb
Echo
Edge
Egg
Estar
Total

10.5%

0.2%
8.1%

4.7% Fast
4.5% Feat
2.2% Fist
Foam
0.2% Fume
11.6% Total

16.3%

2.5%
15.0%
14.4%

10.2%

7.8%
10.3%

15.0%

11.5%
16.8%
0.6%
17.5%

CAPSTONE® COURIER

11.5%

16.8%

13.3%

4.1%
3.9%
1.1%
0.3%
1.5%
1.3%
12.2%

8.8%

3.8%
12.6%

17.0%

14.1%

12.4%

0.5%
0.5%

27.3%

25.0%
25.1%

5.0%
5.1%
2.1%
2.5%
2.4%
17.1%

24.2%

12.6%

9.8%

26.3%

17.0%

10.1%
10.1%

16.2%

18.8%

13.3%

12.6%

1.4%
26.1%

20.7%

17.0%

24.2%

24.1%

5.6%
8.2%
2.2%
2.4%
2.3%
4.4%
1.3%
1.1%
27.6%

9.6%
9.6%

3.7%
5.4%
1.1%
1.2%
0.9%
12.3%

21.6%
17.6%
23.5%
24.1%
11.4%
3.5%
22.6%

33.0%

10.4%
0.8%
28.9%

23.5%

14.0%
8.4%
11.9%
8.4%

11.9%

9.0%
11.0%
13.5%
10.5%

8.3%

3.3%
12.3%

11.0%

13.5%

14.5%

16.7%

3.1%
10.8%

14.5%

3.1%

3.2%
3.1%
1.1%
1.1%
1.3%
0.4%
10.2%
4.8%
4.1%
1.8%
0.4%

10.8%
0.3%

Total
33,425
100.0%
6.0%
5.0%
2.4%
2.7%
2.7%
2.8%
21.6%

27.3%
7.4%
20.5%

Daze
Dell
Dixie
Dot
Dune
Total

8.3%

Size
3,264
9.8%

26.3%

2.8%
6.3%
1.3%
1.2%
1.0%
12.7%

22.8%

Pfmn
3,421
10.2%

18.8%

22.8%

25.9%

High
4,217
12.6%

13.0%

19.0%

18.3%

4.8%
7.0%
2.4%
2.6%
2.3%
3.2%
0.2%

Low
12,766
38.2%

Cake
Cedar
Cid
Coat
Cure
Coffee
Cheese
Cookie
22.5% Total

17.8%

17.4%

Trad
9,756
29.2%

Able
Acre
Adam
Aft
Agape
Acl
Total

22.5%

2.3%
23.4%

Potential Market Share in Units
Total
32,227 Units Demanded
100.0% % of Market
7.0%
8.3%
2.9%
2.8%
2.8%
0.9%
24.8%

21.1%

Round: 3
Dec. 31, 2016

0.5%
0.5%

11.2%

Page 10

Perceptual Map

C58866

Andrews
Name
Able
Acre
Adam
Aft
Agape
Acl
Abt

Pfmn
6.8
2.9
11.3
12.1
5.8
2.9
6.8

Name
Daze
Dell
Dixie
Dot
Dune

Pfmn
6.1
2.7
10.4
11.1
5.1

Size
13.5
17.4
9.0
14.5
8.2
17.4
13.5

Baldwin
Revised
6/13/2016
4/16/2016
7/7/2016
6/29/2016
6/29/2016
2/1/2015
3/10/2016

Name
Baker
Bead
Bid
Bold
Buddy

Pfmn
6.8
2.7
11.3
12.1
5.8

Revised
6/6/2015
1/15/2014
12/24/2015
6/29/2015
9/18/2015

Name
Eat
Ebb
Echo
Edge
Egg
Estar

Pfmn
6.8
2.9
11.7
10.8
5.8
12.2

Digby

CAPSTONE® COURIER

Size
14.2
17.6
9.9
15.2
9.2

Size
13.5
17.6
9.0
14.5
8.2

Chester
Revised
5/10/2016
5/25/2009
6/14/2016
6/9/2016
6/7/2016

Name
Cake
Cedar
Cid
Coat
Cure
Coffee
Cheese
Cookie

Pfmn
6.8
2.7
11.3
12.1
5.8
2.9
11.3
8.0

Name
Fast
Feat
Fist
Foam
Fume

Pfmn
6.8
2.4
11.3
9.1
3.7

Erie
Size
13.5
17.6
9.0
15.5
8.2
12.0

Round: 3
Dec. 31, 2016

Size
13.5
17.6
9.0
14.5
8.2
17.4
9.0
12.4

Revised
9/1/2015
1/26/2016
6/16/2016
7/21/2016
7/21/2016
6/1/2016
5/13/2016
3/7/2016

Ferris
Revised
9/16/2016
3/14/2016
12/14/2016
4/8/2015
8/14/2016
6/2/2016

Size
13.5
17.9
9.0
16.1
11.6

Revised
6/4/2016
3/22/2015
7/7/2016
6/30/2011
5/25/2011

Page 11

HR/TQM Report

C58866

Round: 3
Dec. 31, 2016

HUMAN RESOURCES SUMMARY
Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
1,034
1,034
650
384

Baldwin
859
859
714
145

Chester
720
720
616
104

Digby
562
562
558
4

Erie
534
534
500
34

Ferris
468
468
468
0

Overtime Percent
Turnover Rate
New Employees
Separated Employees
Recruiting Spend
Training Hours
Productivity Index

0.0%
9.5%
271
0
$5,000
80
102.6%

0.0%
15.6%
187
0
$0
0
100.0%

0.0%
6.5%
47
175
$5,000
80
113.7%

0.0%
16.0%
90
49
$1,000
60
102.8%

0.0%
12.5%
132
0
$0
0
100.0%

0.0%
13.5%
63
24
$1,000
15
100.0%

Recruiting Cost
Separation Cost
Training Cost
Total HR Admin Cost

$1,628
$0
$1,654
$3,283

$187
$0
$0
$187

$281
$875
$1,152
$2,308

$180
$245
$674
$1,100

$132
$0
$0
$132

$127
$120
$140
$387

Labor Contract Next Year
Wages
Benefits
Profit Sharing
Annual Raise

$33.36
3,675
2.8%
6.8%

$31.37
3,388
2.7%
6.8%

$34.72
3,750
3.0%
7.5%

$29.49
3,250
2.6%
6.5%

$34.41
3,388
2.7%
6.8%

$32.82
3,388
2.7%
6.8%

Starting Negotiation Position
Wages
Benefits
Profit Sharing
Annual Raise

$29.09
3,273
2.3%
5.5%

$25.46
2,750
2.2%
5.5%

$34.72
3,750
3.0%
7.5%

$22.05
2,500
2.0%
5.0%

$31.00
2,750
2.2%
5.5%

$28.10
2,750
2.2%
5.5%

Ceiling Negotiation Position
Wages
Benefits
Profit Sharing
Annual Raise

$32.00
3,600
2.5%
6.1%

$28.01
3,025
2.4%
6.1%

$38.20
4,125
3.3%
8.2%

$24.26
2,750
2.2%
5.5%

$34.10
3,025
2.4%
6.1%

$30.91
3,025
2.4%
6.1%

Adjusted Labor Demands
Wages
Benefits
Profit Sharing
Annual Raise

$34.72
3,750
3.0%
7.5%

$34.72
3,750
3.0%
7.5%

$34.72
3,750
3.0%
7.5%

$34.72
3,750
3.0%
7.5%

$34.72
3,750
3.0%
7.5%

$34.72
3,750
3.0%
7.5%

36

78

0

84

35

58

Strike Days

TQM SUMMARY
Andrews

Baldwin

Chester

Digby

Erie

Ferris

$1,000
$1,000
$1,000
$1,000
$1,000
$1,000

$0
$0
$0
$0
$0
$0

$1,000
$1,000
$1,000
$1,000
$1,000
$1,000

$0
$0
$0
$0
$0
$0

$1,500
$1,500
$1,500
$1,500
$1,500
$1,500

$1,500
$1,500
$1,500
$1,500
$0
$1,500

TQM Budgets Last Year
Benchmarking
Quality Function Deployment Effort
CCE/6 Sigma Training
GEMI TQEM Sustainability Initiatives
Total Expenditures

$1,000
$1,000
$1,000
$1,000
$10,000

$0
$0
$0
$0
$0

$1,000
$1,000
$1,000
$1,000
$10,000

$0
$0
$0
$0
$0

$1,500
$1,500
$1,500
$1,500
$15,000

$0
$0
$0
$1,500
$9,000

Cumulative Impacts
Material Cost Reduction
Labor Cost Reduction
Reduction R&D Cycle Time
Reduction Admin Costs
Demand Increase

11.80%
14.00%
40.01%
60.02%
14.40%

11.42%
13.64%
36.85%
56.48%
14.11%

11.80%
14.00%
40.01%
60.02%
14.40%

2.74%
8.14%
29.78%
0.00%
6.23%

7.09%
6.21%
40.01%
43.11%
14.40%

11.73%
13.81%
29.25%
55.78%
13.69%

Process Mgt Budgets Last Year
CPI Systems
Vendor/JIT
Quality Initiative Training
Channel Support Systems
Concurrent Engineering
UNEP Green Programs

CAPSTONE® COURIER

Page 12

Annual Report
Annual Report

Andrews

C58866

Round: 3
Dec. 31, 2016

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

Cash
Account Receivable
Inventory
Total Current Assets

$52,355

2016
Common
Size
9.4%
19.9%
1.0%
30.4%

$12,606
$28,773
$1,117
$42,496

$120,147
$172,502

112.0%
-41.9%
69.6%
100.0%

$176,968
($59,505)
$117,463
$159,958

$117,865

12.6%
1.7%
54.0%
68.3%

$17,907
$13,950
$79,114
$110,971

$54,638
$172,502

21.4%
10.2%
31.7%
100.0%

$36,992
$11,996
$48,988
$159,958

$16,292
$34,273
$1,790

Plant & Equipment
Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY

$192,484
($72,337)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$21,751
$3,000
$93,114

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$36,992
$17,646

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash
Account during the year. Cash injections appear as positive numbers and
cash withdrawals as negative numbers. The Cash Flow Statement is an
excellent tool for diagnosing emergency loans. When negative cash flows
exceed positives, you are forced to seek emergency funding. For example,
if sales are bad and you find yourself carrying an abundance of excess
inventory, the report would show the increase in inventory as a huge
negative cash flow. Too much unexpected inventory could outstrip your
inflows, exhaust your starting cash and force you to beg for money to keep
your company afloat.

Cash Flows from Operating Activities

2015

2016

2015

$5,650

($5,127)

$12,832

$11,798

$0

$0

Accounts Payable

$3,844

$2,625

Inventory

($673)

$3,707

Accounts Receivable

($5,500)

($5,940)

Net cash from operation

$16,152

$7,063

($15,516)

($30,368)

NetIncome(Loss)
Depreciation
Extraordinary gains/losses/writeoffs

Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities
Dividends Paid

$0

$0

Sales of Common Stock

$0

$4,804

Purchase of Common Stock
Cash from long term debt
Retirement of long term debt
Change in current debt(net)
Net Cash from financing activities
Net Change in cash position
Closing cash position

Annual Report

$0

$0

$14,000

$25,564

$0

($6,950)

($10,950)

$12,493

$3,050

$35,911

$3,686

$12,606

$16,292

$12,606

Page 14

Annual Report

Andrews

Round: 3
Dec. 31, 2016

C58866

2016 Income Statement
(Product Name)

$0

2016
Total
$208,493

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$53,561
$78,082
$215
$131,858

25.7%
37.5%
0.1%
63.2%

$2,124

$0

$0

$76,636

36.8%

$1,213
$501
$1,400
$3,000
$542
$6,656

$682
$0
$3,000
$1,500
$102
$5,285

$510
$193
$0
$0
$0
$703

$0
$1,000
$0
$0
$0
$1,000

$12,832
$3,470
$10,100
$15,000
$3,866
$45,269

6.2%
1.7%
4.8%
7.2%
1.9%
21.7%

$4,038

($3,161)

($703)

($1,000)

$31,367

15.0%

$10,700
$20,667
$357
$11,440
$3,104
$115
$5,650

5.1%
9.9%
0.2%
5.5%
1.5%
0.1%
2.7%

Able

Acre

Adam

Aft

Agape

Acl

Abt

Adh

Sales

$58,839

$50,493

$35,173

$29,233

$29,233

$5,523

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$15,003
$21,872
$0
$36,875

$14,973
$16,601
$0
$31,574

$7,308
$13,960
$215
$21,482

$7,354
$12,636
$0
$19,989

$7,354
$11,185
$0
$18,539

$1,570
$1,829
$0
$3,399

Contribution Margin

$21,964

$18,920

$13,691

$9,244

$10,694

$3,800
$457
$1,400
$3,000
$1,091
$9,748

$3,853
$296
$1,400
$1,500
$936
$7,986

$1,560
$523
$1,500
$3,000
$652
$7,235

$1,213
$501
$1,400
$3,000
$542
$6,656

$12,216

$10,934

$6,455

$2,588

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period
Net Margin

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the
product that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:
Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D department
expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales.
Promotions: The promotion budget for each product. Sales: The sales force budget for each
product. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The fees
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting
fees your instructor might assess. Write-offs include the loss you 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 the liquidation of capacity or inventory. EBIT: Earnings Before Interest
and Taxes. Short Term 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
with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

Page 15

Annual Report
Annual Report

Baldwin

C58866

Round: 3
Dec. 31, 2016

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

Cash
Account Receivable
Inventory
Total Current Assets

$37,976

2016
Common
Size
23.1%
12.4%
0.0%
35.5%

$14,335
$10,915
$6,191
$31,441

$68,971
$106,948

123.0%
-58.1%
64.5%
100.0%

$128,990
($54,479)
$74,511
$105,952

$61,936

7.8%
0.0%
50.1%
57.9%

$9,111
$0
$56,638
$65,749

$45,011
$106,948

30.0%
12.1%
42.1%
100.0%

$32,188
$8,015
$40,203
$105,952

$24,719
$13,257
$0

Plant & Equipment
Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY

$131,160
($62,189)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$8,344
$0
$53,592

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$32,092
$12,919

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash
Account during the year. Cash injections appear as positive numbers and
cash withdrawals as negative numbers. The Cash Flow Statement is an
excellent tool for diagnosing emergency loans. When negative cash flows
exceed positives, you are forced to seek emergency funding. For example,
if sales are bad and you find yourself carrying an abundance of excess
inventory, the report would show the increase in inventory as a huge
negative cash flow. Too much unexpected inventory could outstrip your
inflows, exhaust your starting cash and force you to beg for money to keep
your company afloat.

Cash Flows from Operating Activities

2015

2016

2015

NetIncome(Loss)

$4,928

($6,011)

Depreciation

$8,744

$8,599

Extraordinary gains/losses/writeoffs

($269)

($106)

Accounts Payable

($767)

$2,996

Inventory

$6,191

($4,648)

Accounts Receivable

($2,342)

($2,682)

Net cash from operation

$16,486

($1,852)

($2,982)

($9,790)

Dividends Paid

$0

$0

Sales of Common Stock

$0

$0

Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities

Purchase of Common Stock
Cash from long term debt
Retirement of long term debt
Change in current debt(net)

Annual Report

($120)

$0

$0

$3,000

($3,000)

($6,950)

$0

$0

Net Cash from financing activities

($3,120)

($3,950)

Net Change in cash position

$10,384

($15,592)

Closing cash position

$24,719

$14,335

Page 16

Annual Report

Baldwin

Round: 3
Dec. 31, 2016

C58866

2016 Income Statement
(Product Name)

$0

2016
Total
$138,255

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$40,368
$52,843
$0
$93,210

29.2%
38.2%
0.0%
67.4%

$0

$0

$0

$45,045

32.6%

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$8,744
$1,710
$7,900
$12,100
$608
$31,062

6.3%
1.2%
5.7%
8.8%
0.4%
22.5%

$0

$0

$0

$13,983

10.1%

($222)
$14,205
$0
$6,468
$2,708
$101
$4,928

-0.2%
10.3%
0.0%
4.7%
2.0%
0.1%
3.6%

Baker

Bead

Bid

Bold

Buddy

NA

NA

NA

Sales

$31,667

$27,788

$29,399

$23,879

$25,523

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$10,006
$12,923
$0
$22,929

$10,883
$8,658
$0
$19,541

$6,316
$11,458
$0
$17,774

$6,262
$10,249
$0
$16,511

$6,901
$9,555
$0
$16,455

$0
$0
$0
$0

Contribution Margin

$8,738

$8,246

$11,624

$7,368

$9,067

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period

$2,629
$363
$1,800
$1,800
$139
$6,732

$2,539
$0
$1,200
$1,300
$122
$5,161

$1,272
$461
$1,500
$3,000
$129
$6,362

$1,173
$446
$1,700
$3,000
$105
$6,424

$1,131
$440
$1,700
$3,000
$112
$6,383

Net Margin

$2,006

$3,085

$5,262

$945

$2,685

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the
product that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:
Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D department
expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales.
Promotions: The promotion budget for each product. Sales: The sales force budget for each
product. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The fees
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting
fees your instructor might assess. Write-offs include the loss you 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 the liquidation of capacity or inventory. EBIT: Earnings Before Interest
and Taxes. Short Term 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
with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

Page 17

Annual Report
Annual Report

Chester

C58866

Round: 3
Dec. 31, 2016

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

Cash
Account Receivable
Inventory
Total Current Assets

$56,634

2016
Common
Size
7.3%
25.1%
0.0%
32.4%

$0
$36,207
$10,320
$46,527

$118,139
$174,772

108.0%
-39.9%
67.6%
100.0%

$173,740
($57,272)
$116,468
$162,995

$143,595

4.7%
24.2%
53.3%
82.2%

$8,381
$34,701
$79,510
$122,592

$31,177
$174,772

20.1%
-2.3%
17.8%
100.0%

$35,205
$5,198
$40,403
$162,995

$12,815
$43,819
$0

Plant & Equipment
Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY

$187,940
($69,801)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$8,158
$42,263
$93,174

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$35,205
($4,028)

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash
Account during the year. Cash injections appear as positive numbers and
cash withdrawals as negative numbers. The Cash Flow Statement is an
excellent tool for diagnosing emergency loans. When negative cash flows
exceed positives, you are forced to seek emergency funding. For example,
if sales are bad and you find yourself carrying an abundance of excess
inventory, the report would show the increase in inventory as a huge
negative cash flow. Too much unexpected inventory could outstrip your
inflows, exhaust your starting cash and force you to beg for money to keep
your company afloat.

Cash Flows from Operating Activities

2015

2016

2015

NetIncome(Loss)

($9,226)

($9,025)

Depreciation

$12,529

$11,459

$0

$0

Extraordinary gains/losses/writeoffs
Accounts Payable

($223)

$1,952

Inventory

$10,320

($9,316)

Accounts Receivable

($7,612)

($5,038)

$5,789

($9,969)

($14,200)

($28,540)

Net cash from operation
Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities
Dividends Paid

$0

$0

Sales of Common Stock

$0

$3,018

Purchase of Common Stock
Cash from long term debt
Retirement of long term debt

$0
$25,766

$0

($6,950)

$7,562

$14,359

Net Cash from financing activities

$21,226

$36,193

Net Change in cash position

$12,815

($2,316)

Closing cash position

$12,815

$0

Change in current debt(net)

Annual Report

$0
$13,664

Page 18

Annual Report

Chester

Round: 3
Dec. 31, 2016

C58866

2016 Income Statement
(Product Name)

$248

2016
Total
$177,709

Common
Size
100.0%

$410
$887
$0
$1,297

$53
$106
$0
$159

$41,880
$67,698
$0
$109,579

23.6%
38.1%
0.0%
61.7%

$5,535

$961

$88

$68,130

38.3%

$720
$564
$2,900
$3,000
$387
$7,571

$2,040
$425
$3,000
$2,250
$279
$7,994

$104
$372
$1,500
$2,250
$36
$4,262

$25
$186
$1,500
$2,250
$4
$3,965

$12,529
$2,647
$17,500
$19,500
$2,805
$54,981

7.1%
1.5%
9.8%
11.0%
1.6%
30.9%

$1,550

($2,459)

($3,301)

($3,877)

$13,149

7.4%

$10,683
$2,466
$5,114
$11,546
($4,968)
$0
($9,226)

6.0%
1.4%
2.9%
6.5%
-2.8%
0.0%
-5.2%

Cake

Cedar

Cid

Coat

Cure

Coffee

Cheese

Cookie

Sales

$38,717

$38,193

$28,567

$27,482

$24,539

$17,706

$2,258

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$7,591
$15,322
$0
$22,913

$7,778
$13,728
$0
$21,505

$6,319
$11,390
$0
$17,709

$6,909
$11,497
$0
$18,407

$6,364
$9,054
$0
$15,418

$6,457
$5,713
$0
$12,170

Contribution Margin

$15,804

$16,688

$10,857

$9,076

$9,121

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period

$4,533
$0
$1,400
$2,250
$611
$8,794

$3,547
$72
$1,400
$2,250
$603
$7,872

$840
$464
$2,900
$2,250
$451
$6,905

$720
$564
$2,900
$3,000
$434
$7,618

Net Margin

$7,010

$8,817

$3,952

$1,458

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the
product that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:
Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D department
expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales.
Promotions: The promotion budget for each product. Sales: The sales force budget for each
product. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The fees
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting
fees your instructor might assess. Write-offs include the loss you 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 the liquidation of capacity or inventory. EBIT: Earnings Before Interest
and Taxes. Short Term 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
with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

Page 19

Annual Report
Annual Report

Digby

C58866

Round: 3
Dec. 31, 2016

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

Cash
Account Receivable
Inventory
Total Current Assets

$11,279

2016
Common
Size
0.0%
8.4%
2.8%
11.2%

$0
$8,391
$14,147
$22,538

$89,000
$100,279

156.0%
-67.6%
88.8%
100.0%

$156,800
($57,347)
$99,453
$121,991

$74,012

4.4%
4.9%
64.6%
73.8%

$6,010
$23,101
$64,750
$93,861

$26,267
$100,279

18.3%
7.9%
26.2%
100.0%

$18,360
$9,770
$28,130
$121,991

$0
$8,470
$2,809

Plant & Equipment
Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY

$156,800
($67,800)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$4,373
$4,889
$64,750

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$18,360
$7,907

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash
Account during the year. Cash injections appear as positive numbers and
cash withdrawals as negative numbers. The Cash Flow Statement is an
excellent tool for diagnosing emergency loans. When negative cash flows
exceed positives, you are forced to seek emergency funding. For example,
if sales are bad and you find yourself carrying an abundance of excess
inventory, the report would show the increase in inventory as a huge
negative cash flow. Too much unexpected inventory could outstrip your
inflows, exhaust your starting cash and force you to beg for money to keep
your company afloat.

Cash Flows from Operating Activities

2015

2016

2015

NetIncome(Loss)

($1,863)

($15,880)

Depreciation

$10,453

$10,453

$0

$0

Extraordinary gains/losses/writeoffs
Accounts Payable

($1,637)

($130)

Inventory

$11,338

($6,159)

($79)

$117

$18,211

($11,597)

$0

($22,400)

Dividends Paid

$0

$0

Sales of Common Stock

$0

$0

Purchase of Common Stock

$0

$0

Cash from long term debt

$0

$20,000

Accounts Receivable
Net cash from operation
Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities

Retirement of long term debt

Annual Report

$0

($6,950)

Change in current debt(net)

($18,211)

$18,101

Net Cash from financing activities

($18,211)

$31,151

Net Change in cash position

$0

($2,846)

Closing cash position

$0

$0

Page 20

Annual Report

Digby

Round: 3
Dec. 31, 2016

C58866

2016 Income Statement
(Product Name)

$0

2016
Total
$103,056

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$26,279
$38,264
$337
$64,880

25.5%
37.1%
0.3%
63.0%

$0

$0

$0

$38,176

37.0%

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$10,453
$0
$10,000
$10,000
$1,821
$32,274

10.1%
0.0%
9.7%
9.7%
1.8%
31.3%

$0

$0

$0

$5,901

5.7%

$0
$5,901
$850
$7,918
($1,003)
$0
($1,863)

0.0%
5.7%
0.8%
7.7%
-1.0%
0.0%
-1.8%

Daze

Dell

Dixie

Dot

Dune

NA

NA

NA

Sales

$24,267

$37,902

$16,127

$13,565

$11,196

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$5,930
$8,925
$0
$14,855

$10,543
$12,839
$0
$23,382

$3,429
$6,294
$120
$9,843

$3,495
$6,024
$0
$9,519

$2,883
$4,182
$217
$7,282

$0
$0
$0
$0

Contribution Margin

$9,411

$14,520

$6,284

$4,046

$3,914

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period

$3,120
$0
$2,500
$2,500
$429
$8,549

$4,693
$0
$2,500
$2,500
$670
$10,363

$1,200
$0
$2,000
$2,000
$285
$5,485

$720
$0
$1,500
$1,500
$240
$3,960

$720
$0
$1,500
$1,500
$198
$3,918

$863

$4,157

$799

$87

($4)

Net Margin

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the
product that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:
Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D department
expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales.
Promotions: The promotion budget for each product. Sales: The sales force budget for each
product. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The fees
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting
fees your instructor might assess. Write-offs include the loss you 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 the liquidation of capacity or inventory. EBIT: Earnings Before Interest
and Taxes. Short Term 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
with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

Page 21

Annual Report
Annual Report

Erie

C58866

Round: 3
Dec. 31, 2016

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

Cash
Account Receivable
Inventory
Total Current Assets

$18,577

2016
Common
Size
9.1%
8.3%
0.4%
17.8%

$594
$8,841
$8,587
$18,022

$85,911
$104,488

136.0%
-54.0%
82.2%
100.0%

$148,800
($52,933)
$95,867
$113,889

$64,664

4.6%
0.0%
57.3%
61.9%

$4,715
$6,950
$54,250
$65,915

$39,825
$104,488

32.4%
5.7%
38.1%
100.0%

$31,460
$16,514
$47,974
$113,889

$9,536
$8,652
$389

Plant & Equipment
Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY

$142,342
($56,431)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$4,814
$0
$59,850

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$33,824
$6,001

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash
Account during the year. Cash injections appear as positive numbers and
cash withdrawals as negative numbers. The Cash Flow Statement is an
excellent tool for diagnosing emergency loans. When negative cash flows
exceed positives, you are forced to seek emergency funding. For example,
if sales are bad and you find yourself carrying an abundance of excess
inventory, the report would show the increase in inventory as a huge
negative cash flow. Too much unexpected inventory could outstrip your
inflows, exhaust your starting cash and force you to beg for money to keep
your company afloat.

Cash Flows from Operating Activities
NetIncome(Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable
Inventory
Accounts Receivable
Net cash from operation

2015

2016

2015

($10,514)

($7,367)

$9,489

$9,187

$824

$7

$99

($2,954)

$8,199

$15,058

$189

$389

$8,286

$14,320

($358)

($14,220)

Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities
Dividends Paid
Sales of Common Stock
Purchase of Common Stock
Cash from long term debt
Retirement of long term debt

$0
$5,600

$0

$0

$5,600

$13,000

$0

($6,950)

($6,950)

($11,155)

Net Cash from financing activities

$1,014

$495

Net Change in cash position

$8,942

$594

Closing cash position

$9,536

$594

Change in current debt(net)

Annual Report

$0
$2,364

Page 22

Annual Report

Erie

Round: 3
Dec. 31, 2016

C58866

2016 Income Statement
(Product Name)

$0

2016
Total
$105,267

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$28,289
$38,480
$47
$66,815

26.9%
36.6%
0.0%
63.5%

$4,388

$0

$0

$38,452

36.5%

$1,100
$631
$2,000
$1,500
$86
$5,316

$1,600
$425
$2,000
$2,500
$79
$6,604

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$9,489
$2,948
$8,500
$9,500
$551
$30,989

9.0%
2.8%
8.1%
9.0%
0.5%
29.4%

$930

($2,216)

$0

$0

Eat

Ebb

Echo

Edge

Egg

Estar

NA

NA

Sales

$34,248

$24,411

$12,628

$2,558

$16,356

$15,067

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$9,188
$12,243
$0
$21,430

$7,262
$7,127
$0
$14,389

$2,779
$5,450
$0
$8,228

$696
$1,284
$0
$1,980

$4,004
$6,058
$47
$10,109

$4,360
$6,319
$0
$10,679

Contribution Margin

$12,818

$10,022

$4,400

$578

$6,246

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period

$2,427
$720
$1,500
$1,500
$179
$6,326

$2,800
$204
$1,500
$2,000
$128
$6,632

$1,560
$968
$1,500
$2,000
$66
$6,094

$3
$0
$0
$0
$13
$16

Net Margin

$6,491

$3,390

($1,694)

$562

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the
product that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:
Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D department
expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales.
Promotions: The promotion budget for each product. Sales: The sales force budget for each
product. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The fees
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting
fees your instructor might assess. Write-offs include the loss you 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 the liquidation of capacity or inventory. EBIT: Earnings Before Interest
and Taxes. Short Term 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
with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

$7,463

7.1%

$16,222
($8,759)
$0
$7,417
($5,661)
$0
($10,514)

15.4%
-8.3%
0.0%
7.0%
-5.4%
0.0%
-10.0%

Page 23

Annual Report
Annual Report

Ferris

C58866

Round: 3
Dec. 31, 2016

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

Cash
Account Receivable
Inventory
Total Current Assets

$36,203

2016
Common
Size
24.2%
6.6%
0.0%
30.8%

$24,531
$7,727
$11,960
$44,218

$81,239
$117,442

118.0%
-48.9%
69.2%
100.0%

$131,518
($48,575)
$82,943
$127,161

$70,591

3.3%
0.0%
56.8%
60.1%

$4,408
$6,950
$66,750
$78,108

$46,851
$117,442

32.4%
7.5%
39.9%
100.0%

$37,473
$11,580
$49,053
$127,161

$28,444
$7,759
$0

Plant & Equipment
Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY

$138,654
($57,415)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$3,841
$0
$66,750

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$38,049
$8,802

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash
Account during the year. Cash injections appear as positive numbers and
cash withdrawals as negative numbers. The Cash Flow Statement is an
excellent tool for diagnosing emergency loans. When negative cash flows
exceed positives, you are forced to seek emergency funding. For example,
if sales are bad and you find yourself carrying an abundance of excess
inventory, the report would show the increase in inventory as a huge
negative cash flow. Too much unexpected inventory could outstrip your
inflows, exhaust your starting cash and force you to beg for money to keep
your company afloat.

Cash Flows from Operating Activities

2015

2016

2015

($2,778)

($9,480)

Depreciation

$9,244

$8,768

Extraordinary gains/losses/writeoffs

($101)

($494)

NetIncome(Loss)

Accounts Payable
Inventory
Accounts Receivable
Net cash from operation

($567)

($1,740)

$11,960

$6,760

($32)

$22

$17,726

$3,835

($7,438)

$6,423

Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities
Dividends Paid
Sales of Common Stock

$0
$5,285

Purchase of Common Stock

$0

$0

Cash from long term debt

$0

$25,000

Retirement of long term debt

$0

($6,950)

Change in current debt(net)

($6,950)

($9,063)

Net Cash from financing activities

($6,374)

$14,272

$3,914

$24,531

$28,444

$24,531

Net Change in cash position
Closing cash position

Annual Report

$0
$576

Page 24

Annual Report

Ferris

Round: 3
Dec. 31, 2016

C58866

2016 Income Statement
(Product Name)

$0

2016
Total
$94,400

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$25,658
$33,039
$0
$58,696

27.2%
35.0%
0.0%
62.2%

$0

$0

$0

$35,703

37.8%

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$9,244
$955
$5,000
$7,000
$679
$22,878

9.8%
1.0%
5.3%
7.4%
0.7%
24.2%

$0

$0

$0

$12,826

13.6%

$8,928
$3,898
$0
$8,172
($1,496)
$0
($2,778)

9.5%
4.1%
0.0%
8.7%
-1.6%
0.0%
-2.9%

Fast

Feat

Fist

Foam

Fume

NA

NA

NA

Sales

$39,256

$26,062

$26,919

$22

$2,140

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$9,738
$14,053
$0
$23,790

$9,260
$7,905
$0
$17,165

$6,070
$10,186
$0
$16,255

$7
$10
$0
$17

$583
$885
$0
$1,469

$0
$0
$0
$0

Contribution Margin

$15,466

$8,897

$10,664

$5

$672

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period

$4,000
$432
$1,800
$2,500
$283
$9,015

$4,160
$0
$1,800
$2,000
$188
$8,148

$1,080
$523
$1,400
$2,500
$194
$5,697

$2
$0
$0
$0
$0
$3

$1
$0
$0
$0
$15
$17

Net Margin

$6,451

$749

$4,967

$2

$655

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the
product that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:
Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D department
expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales.
Promotions: The promotion budget for each product. Sales: The sales force budget for each
product. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The fees
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting
fees your instructor might assess. Write-offs include the loss you 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 the liquidation of capacity or inventory. EBIT: Earnings Before Interest
and Taxes. Short Term 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
with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

Page 25

Overall C58866 Champion
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Andrews
Overall
Score

Baldwin

Andrews
6.00

Chester

Baldwin
5.10

Chester
3.00

Digby
Digby
2.55

Erie
Erie
2.65

Ferris
Ferris
2.40

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