Annual Report

Round: 3
Annual Report Chester C128574
Dec. 31, 2024
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2024 2023
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 $4,174 3.6% $4,167
current value of your inventory across all products. A zero
Account Receivable $10,499 9.0% $9,041
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $12,647 10.8% $10,400
Equipment: The current value of your plant. Accum Total Current Assets $27,320 23.3% $23,608
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $147,300 126.0% $137,536
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($57,413) -49.0% ($47,610)
of operations. It includes emergency loans used to keep Total Fixed Assets $89,887 76.7% $89,926
your company solvent should you run out of cash during Total Assets $117,207 100.0% $113,534
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 $7,165 6.1% $4,290
instead of paying to shareholders as dividends.
Current Debt $0 0.0% $6,950
Long Term Debt $40,750 34.8% $40,750
Total Liabilities $47,915 40.9% $51,990

Common Stock $29,360 25.0% $29,360

Retained Earnings $39,933 34.1% $32,184
Total Equity $69,293 59.1% $61,544
Total Liab. & O. Equity $117,207 100.0% $113,534

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2024 2023
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) $7,749 $1,234
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $9,820 $9,169
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs $570 ($438)
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable $2,874 ($4,310)
are bad and you find yourself carrying an abundance of excess inventory,
Inventory ($2,247) $23,615
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($1,459) $340
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 $17,308 $29,610
afloat. Cash Flows from Investing Activities
Plant Improvements ($10,351) ($7,902)
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 $0
Retirement of long term debt $0 ($6,950)
Change in current debt(net) ($6,950) ($10,590)
Net cash from financing activities ($6,950) ($17,540)
Net change in cash position $7 $4,167
Closing cash position $4,174 $4,167

Annual Report Page 1

 Round: 3
Annual Report Chester C128574
Dec. 31, 2024
2024 Income Statement
2024 Common
(Product Name) Cake Cedar Cid Cut
Total
Size
Sales $39,877 $41,412 $16,792 $0 $0 $29,661 $0 $0 $127,741 100.0%
Variable Costs:
Direct Labor $11,953 $17,457 $3,630 $0 $0 $4,166 $0 $0 $37,207 29.1%
Direct Material $15,584 $11,208 $7,774 $0 $0 $11,999 $0 $0 $46,565 36.5%
Inventory Carry $1,022 $391 $0 $0 $0 $105 $0 $0 $1,518 1.2%
Total Variable $28,559 $29,056 $11,405 $0 $0 $16,270 $0 $0 $85,290 66.8%
Contribution Margin $11,317 $12,357 $5,387 $0 $0 $13,391 $0 $0 $42,452 33.2%
Period Costs:
Depreciation $4,000 $2,427 $1,920 $0 $0 $1,473 $0 $0 $9,820 7.7%
SG&A: R&D $0 $0 $0 $0 $0 $975 $0 $0 $975 0.8%
Promotions $1,500 $1,500 $1,500 $0 $0 $2,000 $0 $0 $6,500 5.1%
Sales $1,500 $1,500 $500 $0 $0 $2,000 $0 $0 $5,500 4.3%
Admin $495 $515 $209 $0 $0 $369 $0 $0 $1,587 1.2%
Total Period $7,495 $5,941 $4,129 $0 $0 $6,817 $0 $0 $24,382 19.1%
Net Margin $3,822 $6,416 $1,258 $0 $0 $6,574 $0 $0 $18,069 14.1%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $570 0.4%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $17,499 13.7%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $0 0.0%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $5,335 4.2%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes $4,258 3.3%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $158 0.1%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit $7,749 6.1%
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