Annual Report

Round: 2
Annual Report Erie C131469
Dec. 31, 2023
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2023 2022
assets for that year. Cash: Your end-of-year cash Common
position. Accounts Receivable: Reflects the lag between
Size
delivery and payment of your products. Inventories: The Cash $0 0.0% $14,248
current value of your inventory across all products. A zero
Account Receivable $8,892 6.9% $9,646
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $8,107 6.3% $0
Equipment: The current value of your plant. Accum Total Current Assets $16,999 13.1% $23,894
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $160,800 124.0% $136,000
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($48,453) -37.5% ($37,733)
of operations. It includes emergency loans used to keep Total Fixed Assets $112,347 86.9% $98,267
your company solvent should you run out of cash during Total Assets $129,345 100.0% $122,161
the year. Long Term Debt: The companys long term debt
is in the form of bonds, and this represents the total value LIABILITIES & OWNERS
of your bonds. Common Stock: The amount of capital
EQUITY
invested by shareholders in the company. Retained
Earnings: The profits that the company chose to keep Accounts Payable $6,116 4.7% $6,131
instead of paying to shareholders as dividends.
Current Debt $23,741 18.4% $12,000
Long Term Debt $50,750 39.2% $57,700
Total Liabilities $80,607 62.3% $75,831

Common Stock $33,360 25.8% $28,360

Retained Earnings $15,379 11.9% $17,970
Total Equity $48,739 37.7% $46,330
Total Liab. & O. Equity $129,345 100.0% $122,161

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2023 2022
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($2,591) ($11,612)
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $10,720 $8,800
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs $0 $450
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable ($15) ($452)
are bad and you find yourself carrying an abundance of excess inventory,
Inventory ($8,107) $8,617
the report would show the increase in inventory as a huge negative cash
Accounts Receivable $754 ($1,338)
flow. Too much unexpected inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money to keep your company Net cash from operation $761 $4,465
afloat. Cash Flows from Investing Activities
Plant Improvements ($24,800) ($31,650)
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $5,000 $10,000
Purchase of common stock $0 $0
Cash from long term debt $0 $16,000
Retirement of long term debt ($6,950) $0
Change in current debt(net) $11,741 $12,000
Net cash from financing activities $9,791 $38,000
Net change in cash position ($14,248) $10,815
Closing cash position $0 $14,248

Annual Report Page 1

 Round: 2
Annual Report Erie C131469
Dec. 31, 2023
2023 Income Statement
2023 Common
(Product Name) Eat Ebb Echo Edge Egg Eno
Total
Size
Sales $30,796 $20,793 $19,556 $19,213 $13,918 $3,911 $0 $0 $108,188 100.0%
Variable Costs:
Direct Labor $5,726 $4,185 $3,488 $3,958 $2,783 $1,383 $0 $0 $21,522 19.9%
Direct Material $11,800 $8,965 $7,920 $8,954 $5,453 $1,686 $0 $0 $44,777 41.4%
Inventory Carry $495 $0 $0 $32 $446 $0 $0 $0 $973 0.9%
Total Variable $18,021 $13,151 $11,407 $12,943 $8,682 $3,069 $0 $0 $67,273 62.2%
Contribution Margin $12,775 $7,643 $8,148 $6,270 $5,236 $842 $0 $0 $40,915 37.8%
Period Costs:
Depreciation $3,640 $3,680 $1,213 $800 $907 $480 $0 $0 $10,720 9.9%
SG&A: R&D $80 $1,000 $749 $453 $641 $850 $0 $0 $3,773 3.5%
Promotions $1,100 $1,500 $1,500 $1,100 $1,100 $200 $0 $0 $6,500 6.0%
Sales $2,500 $2,500 $2,000 $2,900 $2,000 $200 $0 $0 $12,100 11.2%
Admin $486 $328 $309 $303 $220 $62 $0 $0 $1,709 1.6%
Total Period $7,806 $9,008 $5,771 $5,557 $4,867 $1,792 $0 $0 $34,802 32.2%
Net Margin $4,969 ($1,366) $2,377 $713 $369 ($949) $0 $0 $6,113 5.7%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $250 0.2%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $5,863 5.4%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $3,384 3.1%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $6,465 6.0%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($1,395) -1.3%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($2,591) -2.4%
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 years 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 Page 2