Annual Report

Round: 2
Annual Report Digby F119192
Dec. 31, 2022
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2022 2021
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 $16,054 58.6% $12,083
current value of your inventory across all products. A zero
Account Receivable $3,650 13.3% $3,841
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $0 0.0% $0
Equipment: The current value of your plant. Accum Total Current Assets $19,704 72.0% $15,924
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $14,400 52.6% $14,400
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($6,720) -24.5% ($5,760)
of operations. It includes emergency loans used to keep Total Fixed Assets $7,680 28.0% $8,640
your company solvent should you run out of cash during Total Assets $27,384 100.0% $24,564
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 $2,654 9.7% $2,747
instead of paying to shareholders as dividends.
Current Debt $867 3.2% $0
Long Term Debt $4,533 16.6% $5,400
Total Liabilities $8,054 29.4% $8,147

Common Stock $2,323 8.5% $2,323

Retained Earnings $17,007 62.1% $14,094
Total Equity $19,330 70.6% $16,417
Total Liab. & O. Equity $27,384 100.0% $24,564

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2022 2021
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) $2,913 $3,563
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $960 $960
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs $0 $0
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable ($93) ($106)
are bad and you find yourself carrying an abundance of excess inventory,
Inventory $0 $2,352
the report would show the increase in inventory as a huge negative cash
Accounts Receivable $191 ($487)
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 $3,971 $6,282
afloat. Cash Flows from Investing Activities
Plant Improvements $0 $0
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $0 $0
Purchase of common stock $0 $0
Cash from long term debt $0 $200
Retirement of long term debt ($867) $0
Change in current debt(net) $867 $0
Net cash from financing activities $0 $200
Net change in cash position $3,971 $6,482
Closing cash position $16,054 $12,083

Annual Report Page 1

 Round: 2
Annual Report Digby F119192
Dec. 31, 2022
2022 Income Statement
2022 Common
(Product Name) Daze Doze
Total Size
฀
Sales $44,409 $0 $0 $0 $0 $0 $0 $0 $44,409 100.0%
Variable Costs:
Direct Labor $14,296 $0 $0 $0 $0 $0 $0 $0 $14,296 32.2%
Direct Material $17,998 $0 $0 $0 $0 $0 $0 $0 $17,998 40.5%
Inventory Carry $0 $0 $0 $0 $0 $0 $0 $0 $0 0.0%
Total Variable $32,294 $0 $0 $0 $0 $0 $0 $0 $32,294 72.7%
Contribution Margin $12,115 $0 $0 $0 $0 $0 $0 $0 $12,115 27.3%
Period Costs:
Depreciation $960 $0 $0 $0 $0 $0 $0 $0 $960 2.2%
SG&A: R&D $0 $155 $0 $0 $0 $0 $0 $0 $155 0.4%
Promotions $1,200 $1,100 $0 $0 $0 $0 $0 $0 $2,300 5.2%
Sales $1,500 $1,300 $0 $0 $0 $0 $0 $0 $2,800 6.3%
Admin $691 $0 $0 $0 $0 $0 $0 $0 $691 1.6%
Total Period $4,351 $2,555 $0 $0 $0 $0 $0 $0 $6,906 15.6%
Net Margin $7,764 ($2,555) $0 $0 $0 $0 $0 $0 $5,209 11.7%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $0 0.0%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $5,209 11.7%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $70 0.2%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $566 1.3%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes $1,600 3.6%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $59 0.1%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit $2,913 6.6%
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