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Round: 1

Dec. 31, 2017

C77390

Andrews
Vinay Kumar
Jayateerth Mokashi
pratik ranjan
Sruthi Viswanathan

Baldwin
Debjyoti Laha
kushal Ramani
Poulomi Sengupta
shreenivas vadiraj

Chester
Satish Bhat
Varun Nambiar
Ramesh Naidu Pydi
Sameer TN

Digby
Paul George
Nayantara Jha
AVINASH KUMAR
UMESH NAYAKA
Ambaris Purohit

Erie
Srinivasa Adithyan
karthik Hegde
Gopalakrishnan Krishnan
Vikrant Sharma
Gayathri Vittal

Ferris

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
0.0%
1.08
0.0%

Baldwin
-15.0%
0.54
-8.1%

Chester
-14.3%
0.65
-9.3%

Digby
0.0%
1.06
0.0%

Erie
-0.4%
1.11
-0.4%

Ferris
4.9%
1.22
5.9%

2.3

4.4

3.0

2.0

2.0

2.0

0.0%
$2,701,160
$119,921,691
$6,813,355
($13,460)
$4,175,047
12.0%
24.6%

-36.0%
$54,024,533
$84,625,433
($3,862,652)
($12,698,905)
($8,510,398)
13.9%
19.0%

-27.8%
$6,738,850
$93,695,481
($9,972,076)
($13,394,338)
($9,205,831)
14.9%
16.5%

0.1%
$0
$115,196,690
$6,167,341
$43,534
$4,232,041
15.4%
28.5%

-0.9%
$7,771,135
$136,208,152
$6,040,893
($525,019)
$3,663,488
8.4%
20.2%

11.7%
$0
$119,448,180
$14,388,754
$5,823,474
$10,011,981
16.6%
34.6%

Page 1

Stock & Bonds

Round: 1
Dec. 31, 2017

C77390
Stock Market Summary

Close

Change

Shares

MarketCap
($M)

Book Value

EPS

Dividend

Yield

Andrews

$27.12

($7.13)

2,000,000

$54

$23.96

($0.01)

$0.00

0.0%

Baldwin
Chester

$1.00
$6.74

($33.25)
($27.51)

2,000,000
2,399,957

$2
$16

$17.62
$20.10

($6.35)
($5.58)

$0.00
$0.00

0.0%
0.0%

Digby

$31.07

($3.19)

2,175,164

$68

$24.82

$0.02

$0.00

0.0%

Erie

$27.73

($6.52)

2,399,957

$67

$25.44

($0.22)

$0.03

0.1%

Ferris

$41.81

$7.55

2,000,000

$84

$24.97

$2.91

$1.92

4.6%

Company

P/E
-4732.7
-0.2
-1.2
1478.4
-127.3
14.3

Bond Market Summary


Company
Andrews

Series#

Face

Yield

Close$

11.0S2018
12.5S2020
14.0S2022

$6,950,000
$13,900,000
$20,850,000

11.1%
12.5%
13.3%

98.67
100.00
105.34

S&P Company
Digby
CC
CC
CC

11.0S2018
12.5S2020
14.0S2022
11.3S2027

$6,950,000
$13,900,000
$20,850,000
$16,000,000

11.3%
12.9%
13.9%
12.9%

97.63
97.20
101.04
87.33

DDD Erie
DDD
DDD
DDD

11.0S2018
12.5S2020
14.0S2022
11.3S2027

$6,950,000
$13,900,000
$20,850,000
$18,994,000

11.2%
12.7%
13.6%
12.6%

98.06
98.35
102.80
89.77

Baldwin

Chester
C Ferris
C
C
C

Series#

Face

Yield

Close$

S&P

11.0S2018
12.5S2020
14.0S2022
11.3S2027

$6,950,000
$13,900,000
$20,850,000
$6,000,000

11.1%
12.3%
13.0%
11.6%

99.28
101.69
107.97
97.15

B
B
B
B

11.0S2018
12.5S2020
14.0S2022
11.3S2027

$6,950,000
$13,900,000
$20,850,000
$1,000,000

11.1%
12.3%
13.0%
11.6%

99.28
101.69
107.97
97.15

B
B
B
B

12.5S2020
14.0S2022

$9,625,722
$20,850,000

12.3%
12.9%

101.93
108.35

B
B

Next Year's Prime Rate 7.50%


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

C77390

Round: 1
Dec. 31, 2017

Andrews

Baldwin

Chester

Digby

Erie

Ferris

($13)

($12,699)

($13,394)

$44

($525)

$5,823

$8,200
$60

$6,747
$570

$9,773
$0

$8,333
$0

$9,240
$0

$6,387
$516

$1,791
($14,163)
($1,549)
($5,675)

$3,103
($57,161)
$1,352
($58,088)

$1,882
($29,276)
$606
($30,408)

$690
($8,139)
($1,161)
($233)

$3,055
($10,915)
($2,888)
($2,033)

($421)
$2,415
($1,510)
$13,210

($10,460)

($15,370)

($32,800)

($11,200)

($24,800)

$9,740

$0
$0
$0
$0
$0
$0
$10,000
$2,701

$0
$0
$0
$16,000
$0
$0
$0
$54,025

$0
$13,700
$0
$18,994
$0
$0
$20,342
$6,739

$0
$6,000
$0
$6,000
$0
$0
$0
$0

($72)
$13,700
$0
$1,000
$0
$0
$1,000
$7,771

($3,835)
$0
$0
$0
($11,347)
$0
$11,359
$0

$12,701

$70,025

$59,775

$12,000

$23,399

($3,823)

Net change in cash position


Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

($3,434)
Andrews
$0
$9,857
$22,780
$32,637

($3,434)
Baldwin
$0
$6,956
$65,778
$72,734

($3,434)
Chester
$0
$7,701
$37,893
$45,594

$567
Digby
$4,001
$9,468
$16,756
$30,225

($3,434)
Erie
$0
$11,195
$19,532
$30,727

$19,126
Ferris
$22,560
$9,818
$6,202
$38,580

Plant and equipment


Accumulated Depreciation
Total Fixed Assets

$123,000
($44,933)
$78,067

$117,200
($33,280)
$83,920

$146,600
($47,707)
$98,893

$125,000
($46,267)
$78,733

$138,600
($47,173)
$91,427

$95,800
($36,453)
$59,347

Total Assets

$110,703

$156,654

$144,488

$108,958

$122,154

$97,926

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$8,374
$12,701
$41,700
$62,775

$9,686
$54,025
$57,700
$121,411

$8,465
$27,081
$60,694
$96,240

$7,273
$0
$47,700
$54,973

$9,638
$8,771
$42,700
$61,109

$6,162
$11,359
$30,476
$47,996

Common Stock
Retained Earnings
Total Equity

$18,360
$29,569
$47,928

$18,360
$16,883
$35,243

$32,060
$16,188
$48,248

$24,360
$29,626
$53,985

$32,060
$28,985
$61,045

$18,360
$31,570
$49,930

Total Liabilities & Owners'' Equity

$110,703

$156,654

$144,488

$108,958

$122,154

$97,926

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
$119,922
$90,452
$8,200
$14,396
$60
$6,813
$6,834
($7)
$0
($13)

Baldwin
$84,625
$68,582
$6,747
$11,790
$1,370
($3,863)
$15,674
($6,838)
$0
($12,699)

Chester
$93,695
$78,265
$9,773
$13,994
$1,635
($9,972)
$10,635
($7,212)
$0
($13,394)

Digby
$115,197
$82,359
$8,333
$17,737
$600
$6,167
$6,099
$24
$1
$44

Erie
$136,208
$108,691
$9,240
$11,502
$735
$6,041
$6,849
($283)
$0
($525)

Ferris
$119,448
$78,128
$6,387
$19,858
$686
$14,389
$5,247
$3,200
$119
$5,823

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

CAPSTONE COURIER

Page 3

Primary
Segment
Trad
Low
High
Pfmn
Size

Units
Sold
1,485
1,999
321
474
359

Unit
Inven
tory
882
70
175
0
1

Baker
Bead
Bid
Bold
Buddy
Bid-ne

Trad
Low
High
Pfmn
Size

481
1,098
488
476
442
0

Cake
Cedar
Cid
Coat
Cure

Trad
Low
High
Pfmn
Size

Daze
Dell
Dixie
Dot
Dune

Revision Date
3/25/2017
5/23/2017
4/11/2018
6/10/2017
7/1/2017

Age
Dec.31
2.4
3.1
2.7
2.0
2.0

282
0
981
661
721
0

1/22/2017
11/9/2017
10/28/2017
6/30/2017
10/12/2017
9/22/2018

1,106
1,425
473
444
451

865
0
459
228
206

Trad
Low
High
Pfmn
Size

1,367
1,900
363
375
343

Eat
Ebb
Echo
Edge
Egg

Trad
Low
High
Pfmn
Size

Fast
Feat
Fist
Foam
Fume

Trad
Low
High
Pfmn
Size

Name
Able
Acre
Adam
Aft
Agape

Labor
Cost
$8.52
$7.74
$8.97
$8.97
$8.97

Contr.
Marg.
24%
18%
34%
25%
35%

2nd
Shift
&
Overtime
22%
46%
0%
0%
0%

$28.00
$21.00
$37.50
$32.50
$32.50
$0.00

$11.10
$7.85
$7.14 $6.73
$16.36 $10.56
$15.67 $10.83
$14.06 $10.92
$0.00 $0.00

26%
33%
14%
6%
11%
0%

0%
0%
60%
78%
85%
0%

4.0
5.0
3.0
3.0
3.0
1.0

600 96%
1,100 96%
900 159%
1,200 176%
1,200 183%
1,600
0%

14.5
17.0
11.0
15.5
10.0

$20.00
$15.00
$40.00
$35.00
$35.00

$10.65
$7.05
$15.81
$15.41
$13.87

$7.85
$6.73
$8.97
$8.97
$8.97

-3%
6%
32%
25%
32%

0%
0%
0%
0%
0%

7.0
7.0
3.0
3.0
3.0

1,800
1,400
900
600
600

5.7
2.2
8.0
10.4
4.7

14.3
17.8
12.0
15.1
9.6

$28.00
$20.00
$40.00
$34.00
$34.00

$10.85
$6.24
$14.84
$15.59
$13.73

$7.85
$8.03
$8.97
$8.97
$8.97

32%
22%
37%
24%
32%

0%
69%
0%
0%
0%

4.0
7.0
3.0
3.0
3.0

1,800 65%
1,400 168%
900 50%
600 76%
600 66%

17500
14000
22000
25000
19000

5.7
3.0
8.4
9.4
4.0

14.3
17.0
11.6
15.5
11.0

$26.00
$18.00
$39.00
$29.50
$30.00

$10.85
$7.05
$14.95
$14.81
$12.60

$8.68
$8.28
$8.97
$8.97
$8.97

20%
13%
37%
14%
21%

29%
96%
0%
0%
0%

5.0
6.0
3.0
3.0
3.0

1,800 128%
1,800 194%
900 61%
600 57%
600 59%

17500
12000
25000
26000
19000

5.6
3.0
9.1
10.7
5.1

14.5
17.0
11.0
14.8
9.8

$29.50
$22.00
$39.50
$34.50
$34.50

$10.70
$8.23
$6.45 $6.73
$16.51 $10.13
$16.18
$8.97
$13.72
$8.97

34%
39%
34%
28%
35%

12%
0%
37%
0%
0%

4.0
5.0
4.0
4.0
4.0

1,300 110%
1,400 92%
400 136%
500 69%
500 69%

MTBF
18000
15000
23000
27000
17000

Pfmn
Coord
5.7
3.0
8.0
9.9
4.4

Size
Coord
14.3
16.5
12.0
15.0
10.3

Price
$28.00
$19.00
$39.00
$33.00
$34.00

4.1
2.9
1.4
2.0
1.9
0.0

19000
17000
25000
27000
21000
0

5.5
2.2
8.8
10.0
4.2
0.0

14.5
17.8
11.0
16.0
9.8
0.0

11/21/2013
5/24/2012
9/27/2017
1/29/2017
8/8/2017

4.1
5.6
1.5
3.5
2.0

17500
14000
23000
27000
21000

5.5
3.0
8.9
9.4
4.0

0
486
123
158
116

3/17/2017
9/20/2017
6/12/2018
8/3/2017
11/29/2017

2.4
2.9
2.7
2.0
1.8

17500
14000
23000
25000
19000

1,829
2,752
567
317
254

655
0
21
102
162

3/16/2017
5/24/2012
4/23/2017
6/30/2014
5/25/2014

2.4
5.6
1.7
3.5
3.6

1,536
1,326
477
397
360

88
0
108
27
49

3/3/2017
1/29/2017
12/8/2017
11/21/2017
12/14/2017

2.5
5.6
1.4
1.8
1.8

CAPSTONE COURIER

Round: 1
Dec. 31, 2017

C77390

Production Analysis

Material
Cost
$11.00
$7.62
$14.84
$15.89
$12.58

Auto
mation
Next
Round
5.0
6.0
3.0
3.0
3.0

Capacity
Next Plant
Round Utiliz.
1,800 121%
1,400 145%
900 51%
500 79%
500 59%

99%
99%
99%
99%
99%

Page 4

Traditional Segment Analysis

C77390

Round: 1
Dec. 31, 2017

Traditional Statistics
Total Industry Unit Demand

8,067

Actual Industry Unit Sales

8,067

Segment % of Total Industry

31.4%

Next Year's Segment Growth Rate

9.2%

Traditional Customer Buying Criteria


Expectations

Importance

1. Age

Ideal Age = 2.0

47%

2. Price

$19.50 - 29.50

23%

3. Ideal Position

Pfmn 5.7 Size 14.3

21%

4. Reliability

MTBF 14000-19000

9%

Top Products in Traditional Segment


Units
Market

Cust.

Sold to Revision

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Eat

22%

1,771

3/16/2017

5.7

Fast

18%

1,484

3/3/2017

5.6

Able

18%

1,419

3/25/2017

Daze

16%

1,310

3/17/2017

Cake

12%

950

Baker

6%

445

Acre

4%

Dell

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.3

$26.00

17500

2.45

$2,000

82%

$1,500

57%

45

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

63%

37

5.7

14.3

$28.00

18000

2.43

$1,200

65%

$1,200

54%

36

5.7

14.3

$28.00

17500

2.44

$1,500

73%

$1,300

59%

38

11/21/2013

5.5

14.5

$20.00

17500

4.10

$1,000

58%

$1,000

45%

18

1/22/2017

5.5

14.5

$28.00

19000

4.10

$0

37%

$0

36%

360

5/23/2017

3.0

16.5

$19.00

15000

3.10

$1,200

62%

$1,200

54%

1%

91

9/20/2017

2.2

17.8

$20.00

14000

2.94

$800

50%

$1,600

59%

Ebb

1%

88

5/24/2012

YES

3.0

17.0

$18.00

14000

5.60

$1,500

71%

$1,200

57%

Bead

1%

62

11/9/2017

YES

2.2

17.8

$21.00

17000

2.87

$0

35%

$0

36%

Feat

1%

57

1/29/2017

YES

3.0

17.0

$22.00

12000

5.60

$1,600

73%

$1,732

63%

Egg

0%

15

5/25/2014

4.0

11.0

$30.00

19000

3.60

$100

31%

$100

57%

CAPSTONE COURIER

Date

Stock

YES

Page 5

Low End Segment Analysis

C77390

Round: 1
Dec. 31, 2017

Low End Statistics


Total Industry Unit Demand

10,009

Actual Industry Unit Sales

10,009

Segment % of Total Industry

39.0%

Next Year's Segment Growth Rate

11.7%

Low End Customer Buying Criteria


Expectations

Importance

1. Price

$14.50 - 24.50

53%

2. Age

Ideal Age = 7.0

24%

3. Ideal Position

Pfmn 2.2 Size 17.8

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

YES

Name

Share

Seg

Ebb

27%

2,664

5/24/2012

3.0

Dell

18%

1,809

9/20/2017

2.2

Acre

16%

1,639

5/23/2017

Cedar

14%

1,420

5/24/2012

Feat

13%

1,269

Bead

10%

1,036

Cake

2%

155

Baker

0%

Eat
Able

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

17.0

$18.00

14000

5.60

$1,500

71%

$1,200

38%

28

17.8

$20.00

14000

2.94

$800

50%

$1,600

44%

16

3.0

16.5

$19.00

15000

3.10

$1,200

62%

$1,200

38%

14

YES

3.0

17.0

$15.00

14000

5.60

$1,000

56%

$1,000

35%

36

1/29/2017

YES

3.0

17.0

$22.00

12000

5.60

$1,600

73%

$1,732

45%

15

11/9/2017

YES

2.2

17.8

$21.00

17000

2.87

$0

35%

$0

27%

11

11/21/2013

5.5

14.5

$20.00

17500

4.10

$1,000

58%

$1,000

35%

11

1/22/2017

5.5

14.5

$28.00

19000

4.10

$0

37%

$0

27%

0%

3/16/2017

5.7

14.3

$26.00

17500

2.45

$2,000

82%

$1,500

38%

0%

3/25/2017

5.7

14.3

$28.00

18000

2.43

$1,200

65%

$1,200

38%

CAPSTONE COURIER

Page 6

High End Segment Analysis

C77390

Round: 1
Dec. 31, 2017

High End Statistics


Total Industry Unit Demand

2,967

Actual Industry Unit Sales

2,967

Segment % of Total Industry

11.6%

Next Year's Segment Growth Rate

16.2%

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 9.8 Size 10.2

4. Price

$29.50 - 39.50

9%

Top Products in High End Segment


Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Echo

19%

567

4/23/2017

8.4

Bid

16%

488

10/28/2017

8.8

Fist

16%

477

12/8/2017

Cid

16%

473

Dixie

12%

Adam

11%

Aft

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

11.6

$39.00

22000

1.69

$1,500

68%

$1,500

49%

15

11.0

$37.50

25000

1.43

$1,300

63%

$1,100

44%

30

9.1

11.0

$39.50

25000

1.38

$1,500

68%

$1,732

58%

37

9/27/2017

8.9

11.0

$40.00

23000

1.48

$1,200

60%

$1,000

41%

20

363

6/12/2018

8.0

12.0

$40.00

23000

2.70

$1,700

73%

$1,500

50%

321

4/11/2018

8.0

12.0

$39.00

23000

2.70

$800

48%

$800

42%

2%

62

6/10/2017

9.9

15.0

$33.00

27000

2.03

$1,200

58%

$1,200

42%

Foam

1%

33

11/21/2017

10.7

14.8

$34.50

26000

1.80

$1,400

64%

$1,567

58%

Edge

1%

27

6/30/2014

9.4

15.5

$29.50

25000

3.50

$100

31%

$100

49%

Dot

1%

27

8/3/2017

10.4

15.1

$34.00

25000

1.95

$1,400

64%

$1,000

50%

Coat

1%

25

1/29/2017

9.4

15.5

$35.00

27000

3.50

$1,200

58%

$1,000

41%

Fast

1%

22

3/3/2017

5.6

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

58%

CAPSTONE COURIER

YES

Page 7

Performance Segment Analysis

C77390

Round: 1
Dec. 31, 2017

Performance Statistics
Total Industry Unit Demand

2,294

Actual Industry Unit Sales

2,294

Segment % of Total Industry

8.9%

Next Year's Segment Growth Rate

19.8%

Performance Customer Buying Criteria


Expectations

Importance

1. Reliability

MTBF 22000-27000

43%

2. Ideal Position

Pfmn 10.4 Size 15.3

29%

3. Price

$24.50 - 34.50

19%

4. Age

Ideal Age = 1.0

9%

Top Products in Performance Segment


Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Bold

20%

454

6/30/2017

10.0

Coat

18%

418

1/29/2017

9.4

Aft

18%

412

6/10/2017

Foam

16%

364

Dot

15%

Edge

13%

Baker

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

16.0

$32.50

27000

2.00

$1,200

58%

$1,000

33%

34

15.5

$35.00

27000

3.50

$1,200

58%

$1,000

31%

23

9.9

15.0

$33.00

27000

2.03

$1,200

58%

$1,200

36%

35

11/21/2017

10.7

14.8

$34.50

26000

1.80

$1,400

64%

$1,567

41%

30

348

8/3/2017

10.4

15.1

$34.00

25000

1.95

$1,400

64%

$1,000

33%

23

288

6/30/2014

9.4

15.5

$29.50

25000

3.50

$100

31%

$100

25%

16

0%

1/22/2017

5.5

14.5

$28.00

19000

4.10

$0

37%

$0

33%

Able

0%

3/25/2017

5.7

14.3

$28.00

18000

2.43

$1,200

65%

$1,200

36%

Eat

0%

3/16/2017

5.7

14.3

$26.00

17500

2.45

$2,000

82%

$1,500

25%

Fast

0%

3/3/2017

5.6

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

41%

Daze

0%

3/17/2017

5.7

14.3

$28.00

17500

2.44

$1,500

73%

$1,300

33%

CAPSTONE COURIER

YES

YES

Page 8

Size Segment Analysis

C77390

Round: 1
Dec. 31, 2017

Size Statistics
Total Industry Unit Demand

2,347

Actual Industry Unit Sales

2,347

Segment % of Total Industry

9.1%

Next Year's Segment Growth Rate

18.3%

Size Customer Buying Criteria


Expectations
1. Ideal Position

43%

Ideal Age = 1.5

29%

MTBF 16000-21000

19%

2. Age
3. Reliability

Importance

Pfmn 4.7 Size 9.6

4. Price

$24.50 - 34.50

9%

Top Products in Size Segment


Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Cure

19%

450

8/8/2017

4.0

Buddy

19%

437

10/12/2017

4.2

Fume

15%

358

12/14/2017

Agape

15%

358

Dune

14%

Egg

10%

Eat

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

10.0

$35.00

21000

2.00

$1,200

58%

$1,000

35%

29

9.8

$32.50

21000

1.90

$1,200

58%

$1,000

36%

39

5.1

9.8

$34.50

19000

1.82

$1,400

64%

$1,567

49%

40

7/1/2017

4.4

10.3

$34.00

17000

2.05

$900

49%

$1,000

39%

22

340

11/29/2017

4.7

9.6

$34.00

19000

1.84

$1,500

66%

$1,000

40%

40

239

5/25/2014

4.0

11.0

$30.00

19000

3.60

$100

31%

$100

29%

2%

43

3/16/2017

5.7

14.3

$26.00

17500

2.45

$2,000

82%

$1,500

29%

Able

2%

41

3/25/2017

5.7

14.3

$28.00

18000

2.43

$1,200

65%

$1,200

39%

Daze

2%

37

3/17/2017

5.7

14.3

$28.00

17500

2.44

$1,500

73%

$1,300

40%

Fast

1%

29

3/3/2017

5.6

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

49%

Baker

1%

14

1/22/2017

5.5

14.5

$28.00

19000

4.10

$0

37%

$0

36%

Cake

0%

11/21/2013

5.5

14.5

$20.00

17500

4.10

$1,000

58%

$1,000

35%

CAPSTONE COURIER

YES

Page 9

Market Share

C77390

Actual Market Share in Units


Trad
8,067
31.4%

Low
10,009
39.0%

Able
Acre
Adam
Aft
Agape
Total

17.6%
4.5%

16.4%

22.1%

16.4%

13.6%

18.0%

15.2%
17.0%

Baker
Bead
Bid
Bold
Buddy
Total

5.5%
0.8%

0.1%
10.3%

0.3%

0.1%

0.6%

6.3%

10.5%

Cake
Cedar
Cid
Coat
Cure
Total

11.8%

1.5%
14.2%

11.8%

15.7%

Daze
Dell
Dixie
Dot
Dune
Total

16.2%
1.1%

18.1%

17.4%

18.1%

Eat
Ebb
Echo
Edge
Egg
Total

22.0%
1.1%

26.6%

0.2%
23.3%

26.7%

Fast
Feat
Fist
Foam
Fume
Total

18.4%
0.7%

12.7%

Industry Unit Sales


% of Market

High
2,967
11.6%

Pfmn
2,294
8.9%

Size
2,347
9.1%

0.7%

0.1%

1.8%

10.8%
2.1%

16.4%
0.7%
17.4%

15.9%
0.9%
16.8%
0.6%
12.2%
0.9%
13.8%

19.1%
0.9%
20.4%

19.1%

CAPSTONE COURIER

12.7%

18.0%

Baker
Bead
Bid
Bold
Buddy
Total

5.4%
0.8%

9.1%

18.6%
19.2%

1.9%
4.3%
1.9%
1.8%
1.7%
11.6%

6.2%

9.1%

Cake
Cedar
Cid
Coat
Cure
Total

11.5%

1.2%
29.3%

19.2%
19.2%

4.3%
5.6%
1.8%
1.7%
1.8%
15.2%

11.7%

30.5%

5.3%
7.4%
1.4%
1.5%
1.3%
16.9%

Daze
Dell
Dixie
Dot
Dune
Total

18.2%
1.1%

14.1%

19.4%

14.1%

7.1%
10.7%
2.2%
1.2%
1.0%
22.3%

Eat
Ebb
Echo
Edge
Egg
Total

21.4%
1.1%

22.2%

0.2%
22.7%

22.2%

6.0%
5.2%
1.9%
1.5%
1.4%
16.0%

Fast
Feat
Fist
Foam
Fume
Total

17.9%
0.7%

10.8%

14.5%
16.1%
1.8%

12.6%
12.6%

0.7%
16.1%
1.1%

13.3%

15.2%

0.3%

10.2%
12.0%
1.2%

15.9%
15.9%

13.3%

21.5%

1.6%

15.2%

Low
10,009
39.0%

17.1%
4.4%

18.2%
18.2%

Trad
8,067
31.4%

Able
Acre
Adam
Aft
Agape
Total

19.8%
19.9%

Potential Market Share in Units

Total
25,684 Units Demanded
100.0% % of Market
5.8%
7.8%
1.3%
1.8%
1.4%
18.1%

17.9%

15.3%
16.5%

Round: 1
Dec. 31, 2017

18.6%

High
2,967
11.6%

Pfmn
2,294
8.9%

0.7%
10.7%
2.3%

20.3%

13.7%

20.4%

0.3%

Total
25,684
100.0%

1.7%

5.6%
6.6%
1.2%
2.1%
1.6%
17.1%

17.9%
19.6%
0.6%

16.2%
0.7%

19.1%

17.2%

19.3%

15.6%
0.8%

17.8%

16.5%

17.8%

0.7%

17.9%
18.5%

1.8%
3.8%
1.9%
1.8%
1.7%
10.9%

18.1%
18.2%

4.1%
11.5%
1.8%
1.7%
1.7%
20.7%

1.7%

12.0%
0.9%

14.7%

13.6%

14.8%

0.3%

14.2%
15.8%
1.8%

20.1%
0.9%

12.2%

21.3%

12.3%

0.7%

10.7%

Size
2,347
9.1%

9.9%
11.7%
1.2%

15.8%
1.1%

15.4%

17.7%

15.5%

14.9%
16.1%

6.0%
5.8%
1.4%
1.4%
1.3%
15.9%
6.9%
9.0%
2.3%
1.2%
1.0%
20.4%
5.8%
4.4%
1.8%
1.5%
1.4%
14.9%

Page 10

Perceptual Map

C77390

Andrews
Name
Able
Acre
Adam
Aft
Agape

Pfmn
5.7
3.0
8.0
9.9
4.4

Name
Daze
Dell
Dixie
Dot
Dune

Pfmn
5.7
2.2
8.0
10.4
4.7

Size
14.3
16.5
12.0
15.0
10.3

Digby

CAPSTONE COURIER

Size
14.3
17.8
12.0
15.1
9.6

Baldwin
Revised
3/25/2017
5/23/2017
4/11/2018
6/10/2017
7/1/2017

Name
Baker
Bead
Bid
Bold
Buddy

Pfmn
5.5
2.2
8.8
10.0
4.2

Revised
3/17/2017
9/20/2017
6/12/2018
8/3/2017
11/29/2017

Name
Eat
Ebb
Echo
Edge
Egg

Pfmn
5.7
3.0
8.4
9.4
4.0

Size
14.5
17.8
11.0
16.0
9.8

Erie

Size
14.3
17.0
11.6
15.5
11.0

Round: 1
Dec. 31, 2017

Chester
Revised
1/22/2017
11/9/2017
10/28/2017
6/30/2017
10/12/2017

Name
Cake
Cedar
Cid
Coat
Cure

Pfmn
5.5
3.0
8.9
9.4
4.0

Revised
3/16/2017
5/24/2012
4/23/2017
6/30/2014
5/25/2014

Name
Fast
Feat
Fist
Foam
Fume

Pfmn
5.6
3.0
9.1
10.7
5.1

Size
14.5
17.0
11.0
15.5
10.0

Ferris

Size
14.5
17.0
11.0
14.8
9.8

Revised
11/21/2013
5/24/2012
9/27/2017
1/29/2017
8/8/2017

Revised
3/3/2017
1/29/2017
12/8/2017
11/21/2017
12/14/2017

Page 11

HR/TQM Report

C77390

Round: 1
Dec. 31, 2017

HUMAN RESOURCES SUMMARY


Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
889
889
728
161

Baldwin
948
948
656
292

Chester
909
909
909
0

Digby
794
794
654
140

Erie
1,027
1,027
747
280

Ferris
672
672
618
54

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

0.0%
10.0%
278
0
$0
0
100.0%

0.1%
10.0%
343
0
$0
0
100.0%

0.0%
10.0%
300
0
$0
0
100.0%

0.0%
10.0%
173
0
$0
0
100.0%

0.0%
10.0%
430
0
$0
0
100.0%

0.0%
10.0%
67
28
$0
0
100.0%

$278
$0
$0
$278

$343
$0
$0
$343

$300
$0
$0
$300

$173
$0
$0
$173

$430
$0
$0
$430

$67
$140
$0
$207

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

Baldwin

Chester

Digby

Erie

Ferris

Recruiting Cost
Separation Cost
Training Cost
Total HR Admin Cost
Labor Contract Next Year
Wages
Benefits
Profit Sharing
Annual Raise
Starting Negotiation Position
Wages
Benefits
Profit Sharing
Annual Raise
Ceiling Negotiation Position
Wages
Benefits
Profit Sharing
Annual Raise
Adjusted Labor Demands
Wages
Benefits
Profit Sharing
Annual Raise
Strike Days

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

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

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

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

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

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

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

TQM Budgets Last Year


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

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

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

CAPSTONE COURIER

Page 12

Ethics Report

Round: 1
Dec. 31, 2017

C77390
ETHICS SUMMARY

Other (Fees, Writeoffs, etc.)


Demand Factor
Material Cost Impact
Admin Cost Impact
Productivity Impact
Awareness Impact
Accessibility Impact

Total
Other (Fees, Writeoffs, etc.)
Demand Factor
Material Cost Impact
Admin Cost Impact
Productivity Impact
Awareness Impact
Accessibility Impact

CAPSTONE COURIER

The actual dollar impact. Example, $120 means Other increased by $120.
The % of normal. 98% means demand fell 2%.
The % of normal. 104% means matieral costs rose 4%.
The % of normal. 103% means admin costs rose 3%.
The % of normal. 104% means productivity increased by 4%.
The % of normal. 105% means normal awareness was multiplied by 1.05.
The % of normal. 98% means normal accessiblity was multiplied by 0.98.
Normal means the value that would have been produced if the problem had not been presented.
No Impact

Andrews

Baldwin

Chester

Digby

Erie

Ferris

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

Page 13

Annual Report
Annual Report

Erie

C77390

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

$30,727

2017
Common
Size
0.0%
9.2%
16.0%
25.2%

$3,434
$8,307
$8,617
$20,358

$91,427
$122,154

113.0%
-38.6%
74.8%
100.0%

$113,800
($37,933)
$75,867
$96,225

$61,109

7.9%
7.2%
35.0%
50.0%

$6,583
$0
$41,700
$48,283

$61,045
$122,154

26.2%
23.7%
50.0%
100.0%

$18,360
$29,582
$47,942
$96,225

$0
$11,195
$19,532

Plant & Equipment


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

$138,600
($47,173)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$9,638
$8,771
$42,700

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

$32,060
$28,985

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.

Round: 1
Dec. 31, 2017

Cash Flows from Operating Activities

2016

2017

2016

NetIncome(Loss)

($525)

$4,189

Depreciation

$9,240

$7,587

$0

$0

Extraordinary gains/losses/writeoffs
Accounts Payable

$3,055

$3,583

($10,915)

($8,617)

Accounts Receivable

($2,888)

($307)

Net cash from operation

($2,033)

$6,434

($24,800)

$0

Inventory

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
Change in current debt(net)

($4,000)
$0

$0

$0

$1,000

$0

$0

$0

$8,771

$0

Net Cash from financing activities

$23,399

($4,000)

Net Change in cash position

($3,434)

$2,434

$0

$3,434

Closing cash position

Annual Report

($72)
$13,700

Page 15

Annual Report

Erie

Round: 1
Dec. 31, 2017

C77390

2017 Income Statement


(Product Name)

$0

2017
Total
$136,208

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$48,624
$57,723
$2,344
$108,691

35.7%
42.4%
1.7%
79.8%

$0

$0

$0

$27,517

20.2%

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

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

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

$9,240
$518
$5,200
$4,400
$1,383
$20,742

6.8%
0.4%
3.8%
3.2%
1.0%
15.2%

$0

$0

$0

$6,776

5.0%

$735
$6,041
$1,315
$5,534
($283)
$0
($525)

0.5%
4.4%
1.0%
4.1%
-0.2%
0.0%
-0.4%

Eat

Ebb

Echo

Edge

Egg

NA

NA

NA

Sales

$47,550

$49,535

$22,124

$9,366

$7,633

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$15,708
$20,526
$1,558
$37,792

$22,751
$20,244
$0
$42,994

$5,074
$8,732
$60
$13,866

$2,825
$4,883
$296
$8,004

$2,267
$3,337
$429
$6,034

$0
$0
$0
$0

Contribution Margin

$9,758

$6,540

$8,258

$1,362

$1,599

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

$3,120
$206
$2,000
$1,500
$483
$7,309

$3,600
$0
$1,500
$1,200
$503
$6,803

$1,080
$313
$1,500
$1,500
$225
$4,617

$720
$0
$100
$100
$95
$1,015

$720
$0
$100
$100
$78
$998

Net Margin

$2,450

($263)

$3,641

$347

$602

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 16