Industry Reports Overview

MikesBikes-Intro - Single-Player - Real Cool Cycles -------------------------------------------------------------------------------------------TO: FROM: DATE: SUBJECT: President Corporate Strategy Consultants (CSC) 31 December 2013 Industry Reports for 2013

-------------------------------------------------------------------------------------------The following key industry results have been calculated for 2013: Real Cool Cycles $7,280,000 $3,582,853 49% $1,794,087 25% $1,202,038 $1.202 $12.73 38% MountainTop Cycles $7,150,000 $3,452,853 48% $1,657,686 23% $1,110,650 $1.111 $11.72 27%

Wholesale Sales Revenue Gross Margin Gross Margin % (of sales) Profit Before Tax Profit Before Tax % (of sales) Profit After Tax Earnings per Share Shareholder Value (SHV) Cumulative Change in SHV

These results are presented in more detail in the following reports: 1. Industry Benchmark Report 2013 A summary of all firms' key results for 2013 so that you can benchmark yourself against your competitors. 2. Market Summary (All Product Details) 2013 A market research report giving a detailed side-by-side comparison of all of products in the market including their segment, sales, price, product awareness, public relations influence, distribution coverage, delivery performance and physical specifications rating. Use this report to judge the attractiveness of your product(s) and to decide which one(s) require more attention to improve their performance. 3. Multifirm Shareholder Values 2013 A line graph of all firms' shareholder values over time. 4. Multifirm Profit 2013 A line graph of all firms' profit over time. 5. Multifirm Wholesale Sales Revenue 2013 A line graph of all firms' wholesale sales revenue over time. 6. Multifirm Manufacturing Capacity 2013 A line graph of all firms' manufacturing capacity over time. 7. Market Share (based on Retail $ sales) A pie chart of market share percentages for each firm based on retail sales for the entire market (i.e. all market segments). 8. Segment Sales in Units

A line graph of total numbers of bicycles sold in each market segment. This allows you to see changes in total demand for each segment.

Industry Benchmark Report
MikesBikes-Intro - Single-Player - Period 2013 Real Cool Cycles MountainTop Cycles $11.72 $0.00 $11.72 27% 1,000,000 $11,720,000 $11,000,000 $7,150,000 $3,452,853 $1,110,650 1,000,000 $1.111 $10,127,411 $10,174,698 0.15

Financial Results
Share Price Dividend Per Share Shareholder Value (SHV) Cumulative Change in SHV Number of Shares Market SHV Capitalization Retail Sales Wholesale Sales Gross Margin Profit After Tax Number of Shares Earnings per Share Cash Net Assets D/E Ratio (book equity) $12.73 $0.00 $12.73 38% 1,000,000 $12,730,000 $11,200,000 $7,280,000 $3,582,853 $1,202,038 1,000,000 $1.202 $10,618,590 $10,620,865 0.15

Customer Satisfaction
Wholesale Sales Brand Advertising Total Product Advertising Total Product PR Average Retailer Margin Distribution Channel Support $7,280,000 $250,000 $750,000 $500,000 35% $135,225 $7,150,000 $250,000 $750,000 $500,000 35% $132,811

Internal Results
Capacity (SCU) Wastage Idle Time Quality Index No. of Products 20,000 17% 33% 0.75 1 20,000 17% 33% 0.75 1

Innovation and Learning
Production Improvement No. of Product Devpts Demand Forecast Accuracy $400,000 0 85% $400,000 0 87%

Market Summary (All Product Details)
MikesBikes-Intro - Single-Player - Period 2013 This report shows various information for all products on the market. Most values are reported as a rating between 0.00 and 1.00, where 1.00 is the highest possible rating. Every segment has different preferences, and 1.00 is rarely the optimal value to aim for.

Firm Road (No sales) Mountain RC_Rock Hopper _MT_Rock Hopper Average (Weighted ) Youth (No sales) Real Cool Cycles MountainT op Cycles

Sal es

Retail Price

Awar eness

P R

Distri bution

Qu alit y

Prev Deliver y*

Current Delivery*

Product Specs

20, 000 20, 000

$560

0.45

$550

0.45

0. 3 8 0. 3 8 0. 3 8

0.66

0.7 5 0.7 5

0.89

0.89

0.60

0.65

0.89

0.88

0.60

40, 000

$555

0.45

0.65

0.7 5

0.89

-

0.60

Notes: 1. 'Prev Delivery' refers to the Delivery rating for this product in the previous period. It is shown because the simulation used this figure when calculating product demand for the current period. Your customers' future Delivery expectations are based on your past Delivery performance, not your current Delivery performance. 2. 'Current Delivery' refers to the Delivery rating for this product in the current period. This value will be used in the demand calculations for the next rollover.

72 .15 12.86 11.28 10.76 11.73 2008 2009 2010 2011 2012 2013 9.Multifirm Shareholder Value: Real Cool Cycles2008 Real Cool Cycles2009 Real Cool Cycles2010 Real Cool Cycles2011 Real Cool Cycles2012 Real Cool Cycles2013 MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles 9.11 10.25 10.25 9.53 12.79 10.24 11.

Multifirm Profit Real Cool Cycles2008 Real Cool Cycles2009 Real Cool Cycles2010 Real Cool Cycles2011 Real Cool Cycles2012 Real Cool Cycles2013 MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles 932155 1074515 1104297 1137438 1170421 1202038 2008 2009 2010 2011 2012 2013 932155 988073 1015058 1048516 1080245 1110650 .

Multifirm Sales Revenue Real Cool Cycles2008 Real Cool Cycles2009 Real Cool Cycles2010 Real Cool Cycles2011 Real Cool Cycles2012 Real Cool Cycles2013 MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles 7119255 7306208 7285096 7280000 7280000 7280000 2008 2009 2010 2011 2012 2013 7119255 7180745 7150000 7150000 7150000 7150000 .

Multifirm Sales Revenue Real Cool Cycles11200000 MountainTop Cycles 11000000 .

Segment Sales (in units) Road Road Road Road Road Road 2008 2009 2010 2011 2012 2013 0 0 0 0 0 0 2008 2009 2010 2011 2012 2013 0 0 0 0 0 0 39828 40158 40014 40000 40000 40000 Mountain Mountain Mountain Mountain Mountain Mountain Youth 2008 Youth 2009 Youth 2010 Youth 2011 Youth 2012 Youth 2013 .

.

Income Statement 2013 Your Income Statement for the previous financial year. Decisions Made in 2013 This report lists the decisions that you made last year.853 49% $1.202. Note: This report is unavailable in the first year.280.Real Cool Cycles -------------------------------------------------------------------------------------------TO: FROM: DATE: SUBJECT: President Vice President Finance 31 December 2013 Financial Reports for 2013 -------------------------------------------------------------------------------------------The following key results have been calculated for 2013: Forecast 2013 Wholesale Sales Revenue Gross Margin Gross Margin % (of sales) Net Income (Loss) Net Income (Loss) (% of sales) $6. liabilities. 2.034. and its liabilities plus owners' equity on the other.000 $3.038 17% Variance 5% 6% 16% Good News! Your net income was $167. It's composed of three major accounts: assets. It is possible that you may not have achieved your sales forecasts but still improved your performance compared to last year. Balance Sheet 2013 Your Balance Sheet for the previous financial year. This report ignores your forecasts and compares how much your actual results changed from last year. 4.000 $3.916.Firm Results: Firm Reports Overview MikesBikes-Intro . 5. Income Statement 2013 Versus Forecast 2013 This report compares your actual results for 2013 against your forecast result. 6.Single-Player .385. Income Statement 2013 Versus 2012 This report compares your actual results for 2013 versus the year before. . A Balance Sheet is the financial statement that reports your firm's financial condition.012 49% $1.305 15% Actual 2013 $7. Cashflow Statement 2013 Your Cashflow Statement for the previous financial year.734 higher than your forecast. and owners' equity. It's called a balanced sheet because it shows a balance between two figures: the company's assets on the one hand. The purpose of this report is to review the accuracy of your forecasting so that you can evaluate and improve your forecasting technique.582. 3. These results are presented in more detail in the following reports: 1.

9. Cost of Goods Manufactured (COGM) and Gross Margin Report 2013 Your Cost of Goods Manufactured (COGM) and Gross Margin Report for the previous financial year. Emergency Equity Injection History A table recording any emergency equity injections or withdrawals that your course instructor has made to your firm. . 11. 8. Factory Overhead Allocation Rates 2013 Your Factory Overhead Allocation Rates for the previous financial year. 10. Balance Sheet History A table showing you the history of your firm's balance sheets since you took over management control.7. Income Statement History A table showing you the history of your firm's income statements since you took over management control of your firm.

476 $0 $1.147 Increase 0% Gross Margin Selling & Distribution Expenses Salaries Brand Advertising Product Advertising Product PR Distribution Channel Support Finished Goods Warehousing Product Development Projects Inventory Disposal Loss $3.087 $592.225 Production Management Expenses Unallocated Factory Overheads $0 $0 $0 $0 Administration Expenses Salaries Legal Fees Miscellaneous Expense $120.Period 2013 Actual 2012 Sales Forecast Sales Revenue Cost of Goods Sold $7.716.460 $1.225 $150.830 Actual 2013 $7.202.170.038 NET INCOME $1.000 $0 $0 $120.000 $750.280.000 $250.000 $80.000 $0 $0 $120.000 $135.746.225 $0 $0 $0 $1.000 $250.000 Financial Expenses Interest on Short Term Debt Interest on Long Term Debt $0 $80.000 $3.785.Income Statement with Previous Period Comparison MikesBikes-Intro .794.000 $500.Real Cool Cycles .000 $0 $80.038 3% .421 $1.049 $0 $1.460 $0 $196.000 $3.985.000 $500.000 $1.225 Other Income Interest on Cash in Bank Miscellaneous Cash Windfall TOTAL OTHER INCOME Profit Before Taxation Less: Income Tax Plus: Tax Credit Profit After Taxation $168.Single-Player .000 $80.697.000 $135.170 $3.785.000 $120.202.563.952 $1.225 0% TOTAL OTHER EXPENSES $1.225 $0 $0 $0 $1.582.280.170.000 $750.897 $576.853 1% $150.421 $196.985.952 $0 $168.

COMMENTS Good News! Your net income was $31. .618 higher than last year.

000 $0 $0 $120.225 $150.034.952 $1.225 (1%) TOTAL OTHER EXPENSES $2.000 $0 $0 $1.697.000 $135.147 Variance 5% Gross Margin Selling & Distribution Expenses Salaries* Brand Advertising Product Advertising Product PR Distribution Channel Support* Finished Goods Warehousing Product Development Projects Inventory Disposal Loss $3.225 $25.000 $0 $80.225 Other Income Interest on Cash in Bank* Miscellaneous Cash Windfall TOTAL OTHER INCOME Profit Before Taxation Less: Income Tax Plus: Tax Credit Profit After Taxation $168.Income Statement with Pro Forma Comparison MikesBikes-Intro .Real Cool Cycles .000 $500.038 16% .738 $509.038 NET INCOME $1.000 $3.785.952 $1 $168.225 Production Management Expenses Unallocated Factory Overheads* $0 $0 $0 $0 Administration Expenses Salaries* Legal Fees* Miscellaneous Expense $120.305 $196.000 $80.000 $135.810.543.Single-Player .794.000 $750.Period 2013 Pro Forma 2013 Sales Forecast Sales Revenue Cost of Goods Sold $6.049 $0 $1.916.305 $1.530.012 $3.280.000 $3.000 $120.582.202.985.434 $0 $1.000 $750.000 $500.000 $250.034.000 $80.087 $592.853 6% $150.010.988 Actual 2013 $7.202.385.000 $250.460 $1.000 Financial Expenses Interest on Short Term Debt* Interest on Long Term Debt* $0 $80.225 $0 $0 $0 $1.000 $0 $0 $120.000 $1.460 $0 $196.

COMMENTS Good News! Your net income was $167.734 higher than your forecast .

Period 2013 Sales Revenue Less: Cost of Goods Sold GROSS MARGIN Selling & Distribution Expenses Salaries Brand Advertising Product Advertising Product PR Distribution Channel Support Finished Goods Warehousing Product Development Projects Sales Of Obsolete Stock Cost Of Obsolete Goods Sold $7.202.225 $0 $0 $0 $0 $1.000 $135.000 $500.038 NET INCOME $1.697.000 $80.225 Production Management Expenses Unallocated Factory Overhead $0 $0 Administration Expenses Salaries Legal Fees Miscellaneous Expense $120.000 TOTAL OTHER EXPENSES $1.000 $750.Single-Player .087 $592.038 .000 Financial Expenses Interest on Short Term Debt Interest on Long Term Debt $0 $80.582.000 $3.225 Other Income Interest on Cash in Bank Miscellaneous Cash Windfall TOTAL OTHER INCOME $196.049 $0 $1.460 Profit Before Taxation Less: Income Tax Plus: Tax Credit Profit After Taxation $1.280.000 $0 $0 $120.853 $150.147 $3.202.000 $250.794.985.460 $0 $196.Income Statement (Profit & Loss) MikesBikes-Intro .Real Cool Cycles .785.

all the resources that have left the firm. and taxes. Sales Revenue is the amount of money that you received for the bikes that your firm sold this year. In MikesBikes you should be aiming for a Gross Margin % of at least 40%. and will find it difficult to make a profit. Cost of Goods sold. 6. Taking this number and dividing it by the number of shares that your firm has issued will give you your firm's earnings per share.e. 2. 5. The Income Statement is the financial statement that shows your firm's profit after costs. THEORY AND TERMINOLOGY 1. read the COGM and Gross Margin Report.HINTS AND TIPS 1.e. If it is less than this. lowering your retailer margins. 3. or using product development to reduce your manufacturing costs. and the resulting net income or loss.g. your gross margin divided by your sales revenue should be at least 40%. 4. 2. Keep control of your promotional spending. except the manufacturing costs of the bikes you sold. selling and distribution expenses such as advertising and general overheads such as management salaries and interest payments. Operating Expenses. e. i. it doesn't include advertising. This includes. expenses. To increase gross margin. then you may find it very hard to make a profit unless you are gaining a large market share. if your total Brand Advertising plus Product Advertising plus Product PR budget adds up to more than 30% of your sales revenue then you are spending an excessive amount on product promotion. consider increasing your prices. i. wholesale price x quantity of bikes sold. is all of the other costs involved in operating your firm. It excludes all other costs of operating your firm. For a more detailed report. It summarizes all of the resources that have come into the firm (revenue). Net Income or Net Loss is the revenue minus Cost of Goods Sold. Gross Margin (gross profit). . is the amount of money that it cost to make the bikes that your firm sold this year. Operating Expenses and tax. is how much your firm earned this year by making bikes and selling them.

000.01.000 $1.Real Cool Cycles .000 $2.590 $4. and your share price will fall to $0.913 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short Term Debt (Overdraft) Company Tax To Pay Total Current Liabilities Non Current Liabilities Long Term Debt Total Non Current Liabilities TOTAL LIABILITIES Equity Number of Shares Outstanding: Share Capital Retained Earnings TOTAL EQUITY LIABILITIES AND STOCKHOLDERS' EQUITY $0 $592.618.000.000.405.000 $9.049 $592.000. then you should consider returning some of that money to stockholders by paying them a dividend.049 1. If you have a lot of cash.865 $12. 2. If your total equity value is negative.212.594.865 $10.913 HINTS AND TIPS 1.049 $1.Balance Sheet MikesBikes-Intro .000. .323 $12. and your retained earnings are positive.Period 2013 ASSETS Current Assets Cash Raw Materials Inventory Finished Goods Inventory Total Current Assets Non Current Assets Plant Less: Accumulated Depreciation Total Non Current Assets TOTAL ASSETS $10. If your firm is insolvent.000 $1.590 $0 $0 $10.677 $1.618.620.Single-Player .620. which means that you owe more money to others than you have even if you sold all of your assets.212. then you will not be able to raise any more Long Term Debt.592. then that means that your firm is insolvent.000 $1.

1. sold) within one year. A Balance Sheet is the financial statement that reports your firm's financial condition. 4. your inventory and any cash you have in your bank account. 3. Assets are economic resources owned by your firm. Current assets are items that can be converted into cash (i. share capital. and its liabilities plus owners' equity on the other. The value of the things your firm owns (assets) minus the amount of money you owe to to others is called owners' equity. liabilities. Non-Current Liabilities (long-term liabilities) are payments not due for a year or longer. which is profits that your firm has reinvested back into itself. It's called a balanced sheet because it shows a balance between two figures: the company's assets on the one hand. and in MikesBikes this is your plant capacity. e. Non-current Assets (or Fixed Assets) are items that would take longer to sell. In MikesBikes owners' equity is made up of two things. Liabilites are what your firm owes to others. Current Liabilities are payments due in one year or less.g. 2. It's composed of three major accounts: assets. in MikesBikes this is any short term debt and tax that you need to pay.THEORY AND TERMINOLOGY NOTE: Owners' Equity and Stockholders' Equity are used interchangeably in MikesBikes. and owners' equity. .g. which is money that stockholders paid your firm to buy shares in it and retained earnings. e. e. in MikesBikes this is any outstanding Long Term Debt that your firm still has to repay.g.e.

000 $135.299 $0 $0 INVESTMENT CASHFLOWS Cashflows From Financing Activities Cash was provided from: Long Term Debt Raised Share Issue Emergency Equity Injection Interest on Cash in Bank Cash was disbursed to: Long Term Debt Repaid Share Repurchase Share Issue/Repurchase Cost Withdrawal of Emergency Equity Interest on Long Term Debt Interest on Short Term Debt Dividends Issued $0 $0 $0 $0 $196.280.444 $0 $0 $250.460 $0 $0 $0 $0 $80.000 $200.Real Cool Cycles .Cashflow Statement MikesBikes-Intro .000 $750.Period 2013 Cashflows from Operating Activities Cash was provided from: Sales Sales Of Obsolete Stock Miscellaneous Cash Windfall Cash was disbursed to: Marketing Admin Salaries Brand Advertising Product Advertising Product PR Distribution Design & Development Projects Prodn Admin Salaries Prodn Direct Labour Raw material purchases Raw Materials Holding Cost Finished Goods Holding Cost Efficiency Improvement Quality Systems Other Factory Overheads Admin Salaries Legal Fees (when in trouble) Company tax paid Miscellaneous Expenses $7.000 $250.476 $0 OPERATING CASHFLOWS Cashflows From Investing Activities Cash was provided from: Sale Of Plant Cash was disbursed to: Purchase of Plant $1.000 $120.556 $2.000 $500.758 .225 $0 $60.000 $635.000 $0 $0 FINANCING CASHFLOWS $116.000 $0 $0 $150.000 $0 $576.224.000 $150.Single-Player .278.394.460 Net Cash Change $1.

Beginning Cash Balance $9.590 .223.832 ENDING CASH BALANCE $10.618.

000 $250.PRODUCT DEVELOPMENT DECISIONS -----------------------------------------------------------Project Name Style Technical Specs Variable Prodn Cost Expenditure -----------------------------------------------------------FIRM MARKETING DECISIONS -----------------------------------------------------------Brand Advertising $250.000 $50.Real Cool Cycles .000 -----------------------------------------------------------PRODUCT MARKETING .Decisions Made Last Period MikesBikes-Intro .Period 2013 -----------------------------------------------------------DEBT DECISIONS -----------------------------------------------------------Debt Long Term Debt Raised Long Term Debt Repaid $0 $0 -----------------------------------------------------------EQUITY DECISIONS -----------------------------------------------------------Equity Equity Raised Equity Repurchased Dividend Per Share $0 $0 $0.000 $200.000 -----------------------------------------------------------FIRM MARKETING .MEDIA DECISIONS -----------------------------------------------------------Product Media Product Advertising Product PR RC_RockHopper TV $300.000 RC_RockHopper Magazines $375.000 RC_RockHopper Internet $75.Single-Player .000 20.DISTRIBUTION DECISIONS .000 -----------------------------------------------------------PRODUCT MARKETING .00 -----------------------------------------------------------PRODUCT MARKETING DECISIONS -----------------------------------------------------------Product State Design Project Name Retail Price Advertising Expenditure PR Expenditure ForecastSales (Units) PlannedProduction (Units) RC_RockHopper Normal RCRockHopper $560 $750.000 19.000 $500.

-----------------------------------------------------------Bike Shops $0 35% Sports Stores $0 35% Discount Stores $0 35% Extra Support Retail Margin -----------------------------------------------------------CAPACITY PLANNER DECISIONS -----------------------------------------------------------Capacity Increase Capacity Decrease Efficiency Improvement Quality Improvement 0 SCU 0 SCU $250.000 $150.000 ----------------------------------------------------------------------------------------------------------------------- .000 20.000 -----------------------------------------------------------PRODUCTION PLANNING DECISIONS -----------------------------------------------------------Product Design Project Name ForecastSales (Units) PlannedProduction (Units) RC_RockHopper RCRockHopper 19.

697.Real Cool Cycles .000 $0 $3.43 per DMachHr) TOTAL COST OF GOODS MANUFACTURED Avg Manufacturing Cost Per Unit RC_RockHopper RCRockHopper 20.00 per DMat$) Labor Costs Direct Labor Cost Labor Overhead Applied ($9.697.COGM and Gross Margin Report MikesBikes-Intro .147 $184.147 Less: Closing Finished Goods Inventory Cost of Goods Sold GROSS MARGIN Gross Margin % (of Sales) $3.86 .697.147 $0 $3.000 40.000 $560 $364 $7.147 $3.Single-Player .000 $377.582.697.224.556 $460.853 49% Cost of Goods Manufactured Report Product Prod Devpt Project Production (units) Materials Costs Direct Raw Materials Materials Overhead Applied ($0.Period 2013 Gross Margin Report Product Sales Units Retail Price Average Wholesale Price Sales Revenue Opening Finished Goods Inventory Plus: Cost of Goods Manufactured RC_RockHopper 20.05 per DLHr) Machine Costs Standard Machine Hours Machine Overhead Applied ($9.444 $0 $635.000 $2.280.147 $3.

Factory Overhead Allocation Rates MikesBikes-Intro .000 $250.444 $0.844 $9. Note that the direct costs are based on the product standards (not actuals).000 $460.05 ($ per DLHr) $177. Material Overheads Raw Materials Warehousing Cost Total Material Overheads Total Direct Material Costs Material Overhead Application Rate Labor Overheads Production Scheduling & Administration Efficiency Improvement Quality Improvement Total Labor Overheads Total Direct Labor Hours Labor Overhead Application Rate Machine Overheads Depreciation Expense Other Factory Overheads Total Machine Overheads Total Direct Machine Hours Machine Overhead Application Rate $0 $0 $2.000 $9.43 ($ per DMachHr) .Period 2013 This report lists the factory overhead costs and calculates the overhead application rates.000 $150.Single-Player .147 $200.Real Cool Cycles .224.147 40.000 $377.00 ($ per DMat$) $60.000 50.

306.000 $135.000 $750.000 $0 $0 $120.000 $750.00 0 $120.000 $500.541.716.000 $500.315.803.697.653 $7.00 0 $0 $0 $120.208 $3.000 $3.000 $3.Real Cool Cycles .454 $350 $0 $0 $0 $150.785.000 $0 $80.000 $3.738.000 $135.000 $250.500 $0 $0 $0 $150.830 $7.000 $500.Period 2013 2013 2012 2011 2010 2009 2008 $7.Single-Player .000 $0 $80.00 0 $250.2 55 $3.000 $0 $0 $120.00 0 $133.225 Production Management Expenses Unallocated Factory Overhead $1.785.000 $250.502.300 $3.803.225 $1.000 .096 $3.170 $3.435 $150.Income Statement History MikesBikes-Intro .094 $2.225 $0 $0 $0 $0 $150.785.000 $750.280.804 $1.000 $0 $0 $120.39 2 $2.000 $250.000 $750.6 81 Sales Revenue Less: Cost of Goods Sold $7.297 $0 $0 $0 $0 $150.000 $120.563.147 $7.000 $500.700 $7.000 $500.000 $135.000 $750.773 GROSS MARGIN Selling & Distribution Expenses Salaries Brand Advertising Product Advertising Product PR Distribution Channel Support Finished Goods Warehousing Product Development Projects Sales Of Obsolete Stock Cost Of Obsolete Goods Sold $3.785.000 $0 $0 $120.225 $0 $0 $0 $0 $150.000 $0 $80.519.000 $120.00 0 $500.119.000 $250.000 $133.785.443 $3.594 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Administration Expenses Salaries Legal Fees Miscellaneous Expense $120.5 42 $1.00 0 $750.765.853 $3.000 $0 $0 $120.280.000 $0 $80.150 $0 $0 $0 $1.285.000 $135.000 $120.000 $250.000 $0 $80.785.000 Financial Expenses Interest on Short Term Debt Interest on Long Term Debt $120.297 $1.582.280.5 74 $3.000 $0 $80.

897 $576.460 $0 $196. Keep control of your promotional spending.566 $0 $114. To increase gross margin. 2.137 $0 $61.697.5 42 $1.000 $80.985. consider increasing your prices.794. lowering your retailer margins.202 .137 .594 Other Income Interest on Cash in Bank Miscellaneous Cash Windfall TOTAL OTHER INCOME $196.170.908 $0 $1.297 $1.421 $1.15 5 NET INCOME HINTS AND TIPS $1.438 $1.137.952 $141.205 $543.952 $0 $168. 155 1. and will find it difficult to make a profit.985.985.231 $0 $1.170 .460 $168.104.074.e.665 $114.000 TOTAL OTHER EXPENSES $80.985.753 $529.515 $932.912 $0 $86.476 $0 $1.049 $0 $1.2 76 $459.087 $592. i.$80.038 $1. . if your total Brand Advertising plus Product Advertising plus Product PR budget adds up to more than 30% of your sales revenue then you are spending an excessive amount on product promotion. If it is less than this.669 $560. then you may find it very hard to make a profit unless you are gaining a large market share. In MikesBikes you should be aiming for a Gross Margin % of at least 40%.000 $80.391. or using product development to reduce your manufacturing costs.000 $1.297 $1.000 $80.985.000 $80.225 $1.12 1 $0 $932.985.515 $1. your gross margin divided by your sales revenue should be at least 40%.438 $1.202.074 .038 $1.566 $86.225 $1.421 $1.648.912 $61.603.239 $0 $1.297 $1.137 Profit Before Taxation Less: Income Tax Plus: Tax Credit Profit After Taxation $1.746.804 $1.104 .665 $0 $141.

418.700.543. 000 $1.0 00 $1.000.000.0 00 $2. 1. 302 $4.300.570.00 0 $1.23 1 $0 $543. 875 $0 $0 $6.535.0 00 $2.654. 231 $1.000. 300 $9.223.000. 636 $4.12 1 $459.000.560.187.Balance Sheet History MikesBikes-Intro . 000 $1. 239 $1.000.620. 1. 909 $4.000.04 9 $0 $576. 000 $1. 000 $7. 908 $1.4 76 $1. 000 $2. Share Capital Retained Earnings . 256 $0 $2.90 8 $543.592.000.529.000.000.0 00 $1.0 00 $9.000.212.47 6 $576. 276 Total Non Current Assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Short Term Debt (Overdraft) Company Tax To Pay $0 $592.Single-Player .430. 875 $5.691.4 70 $10.000.105.995.000. 000 $2.23 9 $529. 000 $1. 000 $1. 000 $8.8 32 $0 $0 $9. 000 $5. 336 $6.467.405.618.000.5 30 $1.Real Cool Cycles .000.000. 000 $3. 000 $2.031.000.000.813. 000 $7.000.0 00 $8.840.000.808.000.000.23 1 $560.3 23 $12.000. 000 $6.000.000.8 1. 850 $0 $16.000.000. 909 $3.840.459.771. 000 $1.47 6 $0 $560. 590 $9.0 00 $1.000.00 0 $1.110.23 9 $0 $459.248.391.103.0 00 $1. 913 $4. 000 $1.90 8 $0 $529.6 77 $1.000. 1.968.0 00 $1.223. 000 $1. 336 $0 $0 $7.0 00 $1. 000 $6.594. 000 $1.006.0 00 $1.0 00 $1.426 $3.467.653 $5.8 1. 000 $2.228.000. 875 $4. 276 Total Current Assets Non Current Assets Plant Less: Accumulated Depreciation $4.576.12 1 Total Current Liabilities Non Current Liabilities Long Term Debt $1. 700 $1.Period 2013 2013 2012 2011 2010 2009 2008 ASSETS Current Assets Cash Raw Materials Inventory Finished Goods Inventory $10. 000 $1.932. 590 $0 $0 $10.0 49 $1. 000 $1.04 9 $592.618.674.8 32 $7. 121 Total Non Current Liabilities TOTAL LIABILITIES Equity Number of Shares Outstanding: 1.

If you have a lot of cash. and your share price will fall to $0. in MikesBikes this is any outstanding Long Term Debt that your firm still has to repay. If your firm is insolvent. e. Non-Current Liabilities (long-term liabilities) are payments not due for a year or longer. e. which means that you owe more money to others than you have even if you sold all of your assets. 3. 875 670 $6. 909 155 $4. 302 405 $8.212.e.391. then that means that your firm is insolvent. 865 $12.932.620. 913 26 $9. If your total equity value is negative. THEORY AND TERMINOLOGY 1. in MikesBikes this is any short term debt and tax that you need to pay. 405 $9. The value of the things your firm owns (assets) minus the amount of money you owe to to others is called owners' equity.65 $10. and owners' equity.g. Assets are economic resources owned by your firm. 155 $6. .808. your inventory and any cash you have in your bank account. 4. and in MikesBikes this is your plant capacity. which is profits that your firm has reinvested back into itself. 670 $7. and its liabilities plus owners' equity on the other.g. 2. share capital.8 26 $10. e.995. sold) within one year.110. 276 TOTAL EQUITY LIABILITIES AND STOCKHOLDERS' EQUITY HINTS AND TIPS 1.006. Liabilites are what your firm owes to others.01. A Balance Sheet is the financial statement that reports your firm's financial condition. Current assets are items that can be converted into cash (i. liabilities. 967 $8.535. 636 967 $7.418. Non-current Assets (or Fixed Assets) are items that would take longer to sell. Current Liabilities are payments due in one year or less. which is money that stockholders paid your firm to buy shares in it and retained earnings. then you should consider returning some of that money to stockholders by paying them a dividend. then you will not be able to issue any more Long Term Debt.654.g. 2. and your retained earnings are positive. It's called a balanced sheet because it shows a balance between two figures: the company's assets on the one hand.248. It's composed of three major accounts: assets. In MikesBikes owners' equity is made up of two things.

421 $1.297 $1.865 .137.104.038 Balance Sheet Equity $4.155 $6.074.932.418.202.Period 2013 This report gives the history of emergency equity injections and withdrawals.620. Period 2008 2009 2010 2011 2012 2013 Owner Injection $0 $0 $0 $0 $0 $0 Withdrawal $0 $0 $0 $0 $0 $0 Profit $932.515 $1.967 $8.248.006.Real Cool Cycles .110.405 $9.670 $7.Single-Player .Emergency Equity Injection and Withdrawal History MikesBikes-Intro .826 $10.438 $1.155 $1.170.

618. If you wish to consider increasing any of your budgets.000) CASH AVAILABLE AFTER OPERATIONAL DECISIONS AVAILABLE OVERDRAFT $8. This report is included for users with a good understanding of financial accounting.718. Pro Forma Cashflow Report A pro forma estimate of next year's ending cash balance.590 $0 CASH AVAILABLE AFTER FINANCIAL DECISIONS OPERATIONAL DECISIONS $10.590 $3.928 You have enough funds available to implement your current decisions.Real Cool Cycles -------------------------------------------------------------------------------------------TO: FROM: DATE: SUBJECT: President Vice President Finance 31 December 2013 Cash Management Forecasts for 2014 -------------------------------------------------------------------------------------------The following key results have been forecasted for 2014: Pro Forma 2014 CLOSING CASH BALANCE FROM PREVIOUS PERIOD (2013) FINANCIAL DECISIONS $10.Single-Player . Pro Forma Funds Available This report gives a more detailed forecast of your available cash and what budgets you have currently allocated it to. .900. then you have $11.928 available to you.183.901.337 FUNDS REMAINING $11.Financial Management Overview MikesBikes-Intro .590 ($1.901. However it is a good idea to save as much as possible for the future. 2. These results are presented in more detail in the following reports: 1.618.

000 (20.280.072 0 $550 $358 $750.09 6 $3.50 $191.86 0.697.70 0 $7.790.000) 0 20.000 14 20.738.000 45% 20.77 3 $3.315.280.50 $188.458 $560 $364 $750.50 20.Period 2013 Period State 2013 Normal RCRockH opper 2012 Normal RCRockH opper 2011 Normal RCRockH opper 2010 Normal RCRockH opper 2009 Normal RCRockH opper 2008 Normal RCRockH opper Prod Devpt Project MARKETING & SALES INFORMATION Retail Price Average Wholesale Price Advertising Expenditure Product Awareness Actual Sales Units Est.000 20.541.14 7 $7.00 0.000 20.014 (20.803.738.306.502.000 46% 20.44 3 48% $3.00 0.803.68 1 47% Sales Cost of Goods Sold Gross Margin Gross Margin (%) PRODUCTION INFORMATION Avg Manufacturing Cost Per Unit SCU Required for Product Planned Production (Units) Opening Inventory (Units) Actual Production (Units) Units For Sale Less: Sales (Units) Closing Inventory (Units) Closing Inventory (Weeks of demand) Delivery Performance Index $184.000 1.25 5 $3.00 0 $7.43 5 48% $3.000 47% 19.65 3 $3.000 0 20.000 1.00 0 $3.30 0 49% $3.Sales.84 0.000 20.00 0 $3.000 (20.519.280.00 1.50 $189.000 0 20.83 0 $7.00 0 $7.763.14 7 $3.00 0 $7.086 (20.014) 0 20.50 $186.582.000 20.716.000 0 20.000 (19. Margin.000 86 20.00 .20 8 $3.91 0.000) 0 20. Lost Sales ACCOUNTING INFORMATION Cost of Goods Manufactured $560 $364 $750.50 0.57 4 $3.Single-Player .563.00 0.90 0.000 (20.85 3 49% $3.000 20.15 0.285.00 0.000 2.50 $185.94 0.820.072) 14 20.014 878 $560 $364 $750.89 0.00 0.Real Cool Cycles .000 20.83 0 $3.119.914 0 $3.00 1.716.00 0.17 0 49% $3.000 46% 20.000 45% 20.000) 0 20.914) 86 0.89 0.177 $560 $364 $750.816 $560 $364 $750. Production MikesBikes-Intro .697.765.000 0 20.000 45% 20.Product Report for RC_RockHopper .70 0 $3.00 0 $3.

043. Multifirm Retailer Margin and Extra Support A table comparing all firms' retailer margins and sales promotion support budgets.Real Cool Cycles -------------------------------------------------------------------------------------------TO: FROM: DATE: SUBJECT: President Vice President Marketing 31 December 2013 Firm Marketing Reports for 2013 -------------------------------------------------------------------------------------------The following key distribution results have been calculated for 2013: Retail Channel Max Stores Stores Stocking Retail Sales Wholesale Sales Wholesale Margin % Channel % (of total sales) Bike Shops 160 56 $1.134.676 65% 14% Sports Stores 320 202 $7.554 $1. Multifirm Product Distribution Levels A line chart showing the historical distribution coverage of all firms.791 $5. .Single-Player .Firm Marketing Reports Overview MikesBikes-Intro .605.101.694. 3.864 65% 71% Discount Stores 400 147 $1. Multifirm Brand Awareness A line chart showing the historical corporate brand awareness of all firms. 2.655 $1.460 65% 15% These results are presented in more detail in the following reports: 1.899.

652 0.660 0.653 0.659 0.659 0.652 0.651 .651 0.653 0.659 0.Multifirm Product Distribution RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 0.652 0.651 0.

Multifirm Retailer Margins and Extra Support MikesBikes-Intro .Period 2013 Firm Real Cool Cycles Real Cool Cycles Real Cool Cycles MountainTop Cycles MountainTop Cycles MountainTop Cycles Channel Bike Shops Sports Stores Discount Stores Bike Shops Sports Stores Discount Stores Retailer Margin 35% 35% 35% 35% 35% 35% ExtraSupport $0 $0 $0 $0 $0 $0 Stores Used 56 202 147 55 198 144 .Single-Player .

Product Inventory Line Chart A line chart showing your current inventory levels of each of your products before this year's production orders were placed. then the max possible sales will be zero and so will your forecast sales.000 1. Factory Report A table detailing your capacity/quality decisions last year. i. if you have not ordered any and have no stock.Operations Reports Overview MikesBikes-Intro . Multifirm Product Delivery Performance A line chart comparing all products' delivery performance time.Real Cool Cycles -------------------------------------------------------------------------------------------TO: FROM: DATE: SUBJECT: President Vice President Operations 31 December 2013 Operations Reports for 2013 -------------------------------------------------------------------------------------------The following key summary operations forecasts have been prepared for you: Product Product State Current Inventory (Units) Ordered (Units) Max Possible Sales (Units) Forecast Sales* (Units) Forecast Closing Inventory (Units) RC_RockHopper Normal 0 20. 3.Single-Player . 2. Last year's operations results are presented in more detail in the following reports: 1.000 19. Multifirm Product Quality Ratings A line chart comparing firms' quality ratings over time.000 Note that the Forecast Sales defaults to either the max possible sales. .e. whichever is smaller. 4. or your actual sales forecast.000 20.

00 0 0.000 0 0 20.000 0 0 20.00 0 0.75 75% $150.00 0 0.00 0 0.00 0 0.75 75% $150.75 .00 0 0.75 75% $150.75 $250.00 0 0.00 0 0.Real Cool Cycles .75 $250.00 0 0.000 0 0 20.00 0 0.75 $250.Factory Report MikesBikes-Intro .000 0 0 20.000 0 0 20.00 0 0.00 0 0.75 75% $150.75 $250.75 75% $150.Single-Player .75 75% $150.Period 2013 Period CAPACITY Capacity sold (SCU) Capacity purchased(SCU) TOTAL CAPACITY (SCU) 2013 2012 2011 2010 2009 2008 0 0 20.000 Capacity was allocated to: Production (%) Wastage (%) Idle Time (%) 50% 17% 33% 100% 50% 17% 33% 100% 4 5 2 50% 17% 33% 100% 4 5 2 50% 17% 33% 100% 4 5 2 50% 17% 33% 100% 4 5 2 50% 17% 33% 100% 4 5 2 Administration Staff Marketing & Sales Staff Production Admin Staff PRODUCTION PROCESS Efficiency Improvement Efficiency Index Max Production Efficiency Quality Improvement Quality Index 4 5 2 $250.75 $250.

750 0.750 0.750 0.Multifirm Quality Rating RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 0.750 0.750 0.750 0.750 0.750 0.750 0.750 0.750 .750 0.

998 0.906 0.Multifirm product Delivery: RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper _MT_RockHopper 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 0.998 0.924 0.881 .902 0.887 0.896 0.895 0.998 0.889 0.908 0.

0 0.0 14.0 .0 0.0 0.0 0.Product Inventory Unit Line Chart RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper RC_RockHopper 2008 2009 2010 2011 2012 2013 86.

065. 3. 5.Real Cool Cycles -------------------------------------------------------------------------------------------TO: FROM: DATE: SUBJECT: President Vice President Finance 31 December 2013 Forecast Financial Reports for 2014 -------------------------------------------------------------------------------------------- The following key results have been calculated for 2013: Actual 2013 Sales Revenue Gross Margin Net Income Net Income (% of sales) $7.403. Pro Forma Cost of Goods Manufactured Report 2014 A pro forma estimate of next periods COGM Report.710 $1.000 $3.582. Pro Forma Cashflow Report 2014 A pro forma estimate of next periods ending cash balance.202. Pro Forma Funds Available 2014 A report detailing whether or not your have enough cash to implement your current strategy 2. These results are presented in more detail in the following reports: 1. Pro Forma Income Statement 2014 A comparison of your forecast income statement versus your current income statement. Pro Forma Gross Margin Report 2014 A table showing the forecast gross margins for each of your product(s) 4.776 less than your current net income.280. your forecast net income is $136. Current Decisions for 2014 A report summarizing the decisions you have enterd for next year.263 15% Variance (5%) (5%) (11%) Unfortunately.853 $1. .916.000 $3.Forecast Results Reports Overview MikesBikes-Intro .Single-Player .038 17% Forecast 2014 $6. 6.

50 $188.000 45% 20.70 0 $3.68 1 47% Sales Cost of Goods Sold Gross Margin Gross Margin (%) PRODUCTION INFORMATION Avg Manufacturing Cost Per Unit SCU Required for Product Planned Production (Units) Opening Inventory (Units) Actual Production (Units) Units For Sale Less: Sales (Units) Closing Inventory (Units) Closing Inventory (Weeks of demand) Delivery Performance Index $184.000 2.00 0.30 0 49% $3.00 0.Single-Player .738.57 4 $3.00 0.803.014 878 $560 $364 $750.000 46% 20.000 47% 19.00 0 $3.000 20.582.000 45% 20.000 20.50 $185.17 0 49% $3.00 0 $7.Real Cool Cycles .738.000 0 20.50 $191.177 $560 $364 $750.790.280.000 20.000 14 20.315.502.000 86 20.280.914 0 $3.00 0.765.820.20 8 $3.000 20.000) 0 20.914) 86 0.285.563.15 0.50 $186.50 20.000 (20.Product Report for RC_RockHopper .00 1.697.000) 0 20.000 (20.00 0 $3.86 0.119.00 0 $7.14 7 $7.541.77 3 $3.072 0 $550 $358 $750.000 45% 20.09 6 $3.716.000 0 20.43 5 48% $3.91 0.50 0.803.458 $560 $364 $750.00 0 $7.83 0 $7.816 $560 $364 $750.00 .000 0 20.763.716.89 0.70 0 $7.072) 14 20.14 7 $3. Production MikesBikes-Intro .83 0 $3.00 0.50 $189.Period 2013 Period State 2013 Normal RCRockH opper 2012 Normal RCRockH opper 2011 Normal RCRockH opper 2010 Normal RCRockH opper 2009 Normal RCRockH opper 2008 Normal RCRockH opper Prod Devpt Project MARKETING & SALES INFORMATION Retail Price Average Wholesale Price Advertising Expenditure Product Awareness Actual Sales Units Est.00 0.94 0. Lost Sales ACCOUNTING INFORMATION Cost of Goods Manufactured $560 $364 $750.000 (19.85 3 49% $3.000 20.697.25 5 $3.000 46% 20.306.000 1.000 20.014 (20.65 3 $3.519.000 1.014) 0 20.000 (20.000) 0 20.84 0. Margin.000 0 20.Sales.90 0.00 1.086 (20.280.00 0 $3.89 0.44 3 48% $3.

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