1. Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 11.3S2019 bond early. Select: 1 $9,416,000 $8,572,326 -$843,674 2. Chester has a new design for their product Cure next round that can reduce their material cost of producing units from $8.14 to $7.32. Chester passes on half of all cost savings by cutting the current price to customers. For simplicity: - Use current labor costs of $4.08 - Assume all period costs as reported on Chester's Income Statement (Annual Rpt Pg 2) will remain the same. Determine how many units (000) of product Cure would need to be sold next round to break even on the product.

12/9/13 Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews Report Page Page 5 Thrift Segment Analysis Page 6 Core Segment Analysis Page 7 Nano Segment Analysis Page 8 Elite Segment Analysis Annual Report Baldwin Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report Annual Report Chester Annual Report Digby PRINT www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 1/25 12/9/13 Report Page Top " Round: 3 Dec. 31, 2015 Mayur Madhav Student: Mayur Madhav Andrews Mayur Madhav Digby Baldwin Chester Selected Financial Statistics ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews 13.2% 1.14 15.1% 1.6 23.6% $0 $191,024,465 $45,209,266 $25,282,961 $38,660,776 11.3% 43.2% COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Baldwin 1.9% 0.64 1.2% 2.6 3.1% $0 $141,404,020 $12,465,965 ($2,629,189) ($357,875) 9.7% 34.8% Chester 1.4% 0.70 1.0% 2.5 2.5% $0 $171,623,689 $13,595,968 ($2,470,767) $5,121,834 12.6% 35.9% Digby 12.6% 1.20 15.1% 1.8 26.4% $0 $209,769,888 $48,829,834 $26,359,617 $57,146,206 6.4% 38.0% Page 1 2/25 12/9/13 Report Page Top Stocks & Bonds Round: 3 Mayur Madhav December 31 , 2015 Stock Market Summary Company Andrews Baldwin Chester Digby Close $97.57 $19.45 $30.44 $112.50 Change $40.40 ($6.55) ($8.24) $28.35 Shares 2,051,504 3,377,321 3,115,102 1,916,905 MarketCap ($M) $200 $66 $95 $216 Book Value $52.30 $24.76 $32.00 $52.15 EPS $12.32 ($0.78) ($0.79) $13.75 Dividend $0.00 $0.00 $0.00 $0.25 Yield 0.0% 0.0% 0.0% 0.2% P/E 7.9 25.0 38.4 8.2 Bond Market Summary Company Andrews Baldwin Chester Digby Series# 11.1S2019 11.9S2020 10.6S2025 11.3S2019 12.5S2020 12.5S2021 12.5S2022 13.4S2023 13.8S2024 14.2S2025 11.2S2019 12.4S2020 12.0S2022 13.0S2023 13.5S2024 13.8S2025 11.2S2021 11.2S2022 12.0S2023 12.2S2024 12.5S2025 Face $8,837,000 $7,072,000 $34,869,000 $9,416,000 $13,681,781 $12,413,327 $9,112,764 $15,955,273 $35,038,817 $3,598,817 $8,044,881 $7,997,731 $16,568,420 $15,859,805 $36,521,469 $22,883,321 $3,596,962 $6,293,079 $1,598,747 $18,645,435 $10,387,594 Yield 11.3% 11.8% 11.3% 12.4% 13.4% 13.5% 13.6% 14.0% 14.2% 14.3% 12.3% 13.2% 13.2% 13.8% 14.0% 14.1% 11.8% 11.9% 12.3% 12.4% 12.5% Close$ 98.17 100.73 93.71 91.04 93.54 92.69 91.95 95.42 97.08 98.97 91.30 93.85 90.62 94.47 96.56 97.93 94.73 94.16 97.56 98.43 100.00 S&P A A A C C C C C C C CC CC CC CC CC CC BB BB BB BB BB Next Year's Prime Rate 9.00% COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 2 3/25 12/9/13 Report Page Top Financial Summary Round: 3 December 31, 2015 Mayur Madhav Cash Flow Statement Survey Andrews Net Income (Loss) Adjustment for noncash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations 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 Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets Total Assets Accounts Payable Current Debt Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liabilities & Owners' Equity 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 COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Baldwin Chester Cash flows from operating activities Digby $25,283 $11,847 $0 $3,359 ($3,885) ($3,304) $33,301 ($58,250) $0 $0 $0 $34,869 $0 ($10,300) $0 $0 ($2,629) $16,953 $0 $1,882 ($22,317) $213 ($5,898) ($16,882) $0 $9,354 $0 $3,599 $0 ($43,703) $27,824 $0 ($2,471) $18,305 $0 $3,121 ($18,821) ($2,399) ($2,264) ($54,349) $0 $20,078 $0 $22,883 $0 ($34,416) $27,146 $0 $26,360 $10,807 $0 $1,385 ($9,220) ($2,086) $27,246 ($37,900) ($474) $0 ($2,537) $10,388 $0 ($28,434) $23,209 $0 $24,569 ($379) ($2,926) ($25,707) $35,691 ($20,921) $2,152 ($8,503) Andrews $37,812 $15,701 $3,885 $57,397 $177,710 ($67,834) $109,876 $167,273 Baldwin $24,440 $11,622 $22,317 $58,379 $254,298 ($92,818) $161,480 $219,859 Chester $18,822 $14,106 $23,486 $56,414 $274,582 ($85,933) $188,649 $245,064 Digby $30,771 $17,241 $22,542 $70,555 $162,100 ($57,740) $104,360 $174,915 $9,192 $0 $50,778 $59,970 $11,192 $96,111 $107,303 $167,273 $9,191 $27,824 $99,217 $136,232 $50,839 $32,788 $83,627 $219,859 $10,359 $27,146 $107,876 $145,381 $53,572 $46,111 $99,683 $245,064 $11,219 $23,209 $40,522 $74,951 $11,431 $88,534 $99,965 $174,915 Andrews $191,024 $108,416 $11,847 $21,558 $3,994 $45,209 $5,519 $13,892 $516 $25,283 Baldwin $141,404 $92,191 $16,953 $13,646 $6,148 $12,466 $16,511 ($1,416) $0 ($2,629) Chester $171,624 $110,034 $18,305 $21,540 $8,148 $13,596 $17,397 ($1,330) $0 ($2,471) Digby $209,770 $129,988 $10,807 $13,338 $6,807 $48,830 $7,449 $14,483 $538 $26,360 Page 3 4/25 12/9/13 Report Page Top Production Analysis Round: 3 December 31, 2015 Mayur Madhav Production Information Primary Segment Name Abby Alan Aft Agape Bold Buddy Baker Beetle Coat Cure Camp Cent Clack Cone Dot Dune Dart Deft Units Unit Inven Sold tory Nano Elite Thrift Core 1,363 1,296 1,688 2,000 Thrift Thrift Core Core 12.1 14.7 6.7 9.2 5.3 7.9 12.5 10.8 17000 17000 18000 20000 COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 100% 93% 91% 80% 1,631 1,832 1,150 1,350 1,200 1,598 1,050 1,000 1,034 1,033 124% 139% 165% 111% 163% 176% 1,150 850 1,250 1,400 198% 163% 141% 151% 7.0 7.0 7.0 7.0 131% 130% 181% 169% 10.0 10.0 7.0 7.0 8.0 8.0 100% 65% 43% 52% 198% 191% 189% 179% Plant Utiliz. 890 880 1,260 1,295 10.0 10.0 8.0 8.0 25% 41% 67% 12% 64% 100% 39% 36% 40% 38% 7.0 7.0 10.0 10.0 Auto mation Capacity Next Next Round Round 32% 31% 83% 71% 49% 32% 33% 42% 30% 38% $7.91 $6.82 $7.30 $7.43 37% 34% 36% 33% $1.96 $4.08 $7.11 $6.65 $5.67 $4.44 $13.66 $14.56 $14.04 $14.57 47% 49% 36% 38% $2.86 $2.99 $4.99 $4.91 $6.82 $8.14 $12.74 $13.59 $9.31 $9.03 $34.00 $34.00 $37.00 $37.00 2nd Shift & Over time $6.80 $6.96 $9.72 $10.36 $17.00 $19.00 $30.00 $36.00 $21.00 $22.00 4.5 6.5 4.0 6.2 Contr. Marg. $8.02 $7.97 $4.77 $6.28 $12.84 $13.39 $6.95 $9.05 $16.00 $16.00 $24.00 $24.00 11.5 10.6 4.4 6.9 9.1 9.5 13.5 16.3 14.0 16.1 $40.00 $42.00 $19.00 $25.00 Labor Cost Material Price Cost 12.2 12.0 8.5 9.0 8.5 9.4 12.9 16.0 10.8 10.5 23000 25000 23000 25000 7.8 8.0 10.9 11.6 14000 16000 18000 20000 16000 16000 1.2 1.9 1.3 1.3 Size Coord 24000 26000 20000 22000 2.3 3.1 1.0 1.1 0.9 0.9 11/5/2015 8/24/2015 7/3/2015 7/25/2015 Pfmn Coord MTBF 3.7 3.7 2.1 2.1 12/20/2015 12/7/2013 12/17/2015 12/6/2015 12/25/2015 2/10/2015 0 213 383 439 6/9/2016 5/31/2016 12/16/2014 12/18/2014 639 431 326 266 96 0 1,782 1,325 1,313 1,502 1.6 1.7 3.3 3.3 374 537 425 436 846 1,797 1,239 825 1,587 1,041 Nano Elite Nano Elite 6/1/2015 5/13/2015 1/19/2016 3/20/2016 3 4 312 0 1,755 1,839 1,655 1,841 Thrift Core Nano Elite Core Core Revision Date Age Dec.31 Page 4 5/25 12/9/13 Report Page Top Thrift Market Segment Analysis Mayur Madhav Round: 3 December 31, 2015 Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,976 6,976 26.1% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria 1. 2. 3. 4. Price Reliability Ideal Position Age Expectations $14.00 26.00 MTBF 1400020000 Pfmn 8.0 Size 12.0 Ideal Age = 3.0 Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Aft Bold Buddy Coat Cure Agape Clack Cone Market Units Sold to Share Seg 24% 1,682 22% 1,569 22% 1,558 12% 821 9% 626 8% 529 2% 167 0% 24 Revision Date Stock Out 1/19/2016 6/9/2016 5/31/2016 12/20/2015 12/7/2013 3/20/2016 YES 12/25/2015 2/10/2015 YES Pfmn Coord 6.7 7.8 8.0 8.5 9.4 9.2 10.8 10.5 Size Coord 12.5 12.2 12.0 11.5 10.6 10.8 9.1 9.5 List Price $19.00 $16.00 $16.00 $17.00 $19.00 $25.00 $21.00 $22.00 COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage MTBF 20000 17000 17000 14000 16000 22000 16000 16000 Age Dec.31 3.29 3.74 3.66 2.25 3.11 3.29 0.88 0.89 Promo Cust. Aware Cust. Access Dec. Cust. Budget ness Sales Budget ibility Survey $2,000 100% $2,000 88% 57 $1,250 78% $1,400 75% 54 $1,250 79% $1,400 75% 55 $1,140 66% $1,000 72% 31 $1,140 67% $1,000 72% 24 $2,000 100% $2,000 88% 23 $1,140 58% $900 72% 0 $1,140 51% $900 72% 3 Page 5 6/25 12/9/13 Report Page Top Core Market Segment Analysis Mayur Madhav Round: 3 December 31, 2015 Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 8,886 8,886 33.3% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria 1. 2. 3. 4. Price Age Reliability Ideal Position Expectations $20.00 32.00 Ideal Age = 2.0 MTBF 1600022000 Pfmn 11.0 Size 9.0 Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Beetle Baker Agape Clack Cure Cone Buddy Bold Coat Aft Dot Market Units Sold to Share Seg 20% 1,755 17% 1,551 17% 1,471 16% 1,421 13% 1,171 11% 1,017 3% 281 2% 186 0% 25 0% 6 0% 3 Revision Date Stock Out 12/18/2014 12/16/2014 3/20/2016 YES 12/25/2015 12/7/2013 2/10/2015 YES 5/31/2016 6/9/2016 12/20/2015 1/19/2016 11/5/2015 YES Pfmn Coord 11.6 10.9 9.2 10.8 9.4 10.5 8.0 7.8 8.5 6.7 13.5 Size Coord 9.0 8.5 10.8 9.1 10.6 9.5 12.0 12.2 11.5 12.5 4.5 List Price $24.00 $24.00 $25.00 $21.00 $19.00 $22.00 $16.00 $16.00 $17.00 $19.00 $34.00 COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage MTBF 20000 18000 22000 16000 16000 16000 17000 17000 14000 20000 23000 Age Dec.31 2.10 2.10 3.29 0.88 3.11 0.89 3.66 3.74 2.25 3.29 1.24 Promo Cust. Aware Cust. Access Dec. Cust. Budget ness Sales Budget ibility Survey $1,250 78% $1,100 76% 50 $1,250 78% $1,100 76% 44 $2,000 100% $2,000 70% 39 $1,140 58% $900 72% 38 $1,140 67% $1,000 72% 26 $1,140 51% $900 72% 31 $1,250 79% $1,400 76% 2 $1,250 78% $1,400 76% 0 $1,140 66% $1,000 72% 8 $2,000 100% $2,000 70% 0 $1,350 87% $1,000 11% 0 Page 6 7/25 12/9/13 Report Page Top Nano Market Segment Analysis Mayur Madhav Round: 3 December 31, 2015 Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,405 5,405 20.3% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Ideal Position Price Age Reliability Expectations Pfmn 12.9 Size 4.2 $28.00 40.00 Ideal Age = 1.0 MTBF 1800024000 Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Dot Dart Abby Camp Baker Alan Deft Beetle Cent Dune Market Units Sold to Share Seg 26% 1,403 23% 1,259 22% 1,173 21% 1,115 2% 104 2% 94 2% 88 2% 86 1% 65 0% 18 Revision Date Stock Out 11/5/2015 YES 7/3/2015 6/1/2015 12/17/2015 12/16/2014 5/13/2015 7/25/2015 12/18/2014 12/6/2015 8/24/2015 Pfmn Coord 13.5 14.0 12.1 12.9 10.9 14.7 16.1 11.6 16.0 16.3 Size Coord 4.5 4.0 5.3 4.4 8.5 7.9 6.2 9.0 6.9 6.5 List Price $34.00 $37.00 $40.00 $30.00 $24.00 $42.00 $37.00 $24.00 $36.00 $34.00 COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage MTBF 23000 23000 24000 18000 18000 26000 25000 20000 20000 25000 Age Dec.31 1.24 1.34 1.64 1.03 2.10 1.66 1.34 2.10 1.05 1.90 Promo Cust. Aware Cust. Access Dec. Cust. Budget ness Sales Budget ibility Survey $1,350 87% $1,000 83% 62 $1,350 87% $900 83% 48 $2,000 100% $2,000 83% 44 $1,140 67% $1,900 70% 46 $1,250 78% $1,100 18% 2 $2,000 100% $2,000 83% 3 $1,350 87% $900 83% 0 $1,250 78% $1,100 18% 1 $1,140 67% $2,200 70% 0 $1,350 87% $1,000 83% 0 Page 7 8/25 12/9/13 Report Page Top Elite Market Segment Analysis Mayur Madhav Round: 3 December 31, 2015 Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,426 5,426 20.3% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria 1. 2. 3. 4. Age Price Ideal Position Reliability Expectations Ideal Age = 0.0 $30.00 42.00 Pfmn 15.8 Size 7.1 MTBF 2000026000 Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Deft Dune Alan Cent Dot Abby Camp Dart Market Units Sold to Share Seg 26% 1,413 24% 1,307 22% 1,202 14% 760 7% 376 4% 191 2% 124 1% 53 Revision Date Stock Out 7/25/2015 8/24/2015 5/13/2015 12/6/2015 11/5/2015 YES 6/1/2015 12/17/2015 7/3/2015 Pfmn Coord 16.1 16.3 14.7 16.0 13.5 12.1 12.9 14.0 Size Coord 6.2 6.5 7.9 6.9 4.5 5.3 4.4 4.0 List Price $37.00 $34.00 $42.00 $36.00 $34.00 $40.00 $30.00 $37.00 COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage MTBF 25000 25000 26000 20000 23000 24000 18000 23000 Age Dec.31 1.34 1.90 1.66 1.05 1.24 1.64 1.03 1.34 Promo Cust. Aware Cust. Access Dec. Cust. Budget ness Sales Budget ibility Survey $1,350 87% $900 87% 48 $1,350 87% $1,000 87% 47 $2,000 100% $2,000 94% 38 $1,140 67% $2,200 69% 30 $1,350 87% $1,000 87% 8 $2,000 100% $2,000 94% 5 $1,140 67% $1,900 69% 1 $1,350 87% $900 87% 1 Page 8 9/25 12/9/13 Report Page Top Market Share Report Industry Unit Sales % of Market Abby Alan Aft Agape Total Bold Buddy Baker Beetle Total Coat Cure Camp Cent Clack Cone Total Dot Dune Dart Deft Total Round: 3 December 31, 2015 Mayur Madhav Actual Market Share in Units Thrift 6,976 Core 8,886 Nano 5,405 Elite 5,426 Total 26,693 26.1% 33.3% 20.3% 20.3% 100.0% 21.7% 1.7% 3.5% 22.1% 23.4% 25.7% 5.1% 4.8% 6.3% 7.5% 23.8% 24.1% 7.6% 31.7% 0.1% 16.6% 16.6% 22.5% 22.3% 44.8% 2.1% 3.2% 17.4% 19.8% 42.5% 11.8% 9.0% 0.3% 13.2% 2.4% 0.3% 23.5% 16.0% 11.4% 40.9% 0.0% 0.0% 6.6% 6.9% 6.2% 6.9% 26.6% 1.9% 1.6% 3.5% 20.6% 1.2% 2.3% 14.0% 21.8% 16.3% 3.2% 6.7% 4.6% 3.1% 6.0% 3.9% 27.5% 25.9% 0.3% 23.3% 1.6% 51.2% 6.9% 24.1% 1.0% 26.0% 58.0% 6.7% 5.0% 4.9% 5.6% 22.2% Units Demanded % of Market Abby Alan Aft Agape Total Bold Buddy Baker Beetle Total Coat Cure Camp Cent Clack Cone Total Dot Dune Dart Deft Total COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Potential Market Share in Units Thrift 6,976 Core 8,886 Nano 5,405 Elite 5,426 Total 26,693 26.1% 33.3% 20.3% 20.3% 100.0% 24.0% 1.8% 3.8% 23.9% 25.8% 27.7% 5.6% 5.2% 6.3% 8.5% 25.6% 23.8% 8.6% 32.4% 0.1% 18.9% 18.9% 22.2% 22.1% 44.3% 2.0% 3.0% 16.8% 19.0% 40.9% 11.6% 8.9% 0.3% 12.7% 2.4% 0.4% 23.3% 15.5% 11.7% 40.1% 0.0% 6.5% 6.8% 6.0% 6.7% 25.9% 1.8% 1.5% 3.4% 19.8% 1.1% 2.2% 13.6% 20.9% 15.8% 3.1% 6.5% 4.4% 3.0% 5.8% 4.0% 26.9% 25.6% 0.3% 22.4% 1.6% 49.9% 6.9% 23.4% 1.0% 25.3% 56.5% 6.6% 4.8% 4.7% 5.5% 21.6% Page 9 10/25 12/9/13 Report Page Top Perceptual Map Round: 3 December 31, 2015 Mayur Madhav Perceptual Map for All Segments Andrews Name Abby Alan Aft Agape Pfmn 12.1 14.7 6.7 9.2 Name Dot Dune Dart Deft Size 5.3 7.9 12.5 10.8 Pfmn 13.5 16.3 14.0 16.1 Baldwin Revised 6/1/2015 5/13/2015 1/19/2016 3/20/2016 Name Bold Buddy Baker Beetle Digby Size 4.5 6.5 4.0 6.2 Pfmn 7.8 8.0 10.9 11.6 Size 12.2 12.0 8.5 9.0 Chester Revised 6/9/2016 5/31/2016 12/16/2014 12/18/2014 Name Coat Cure Camp Cent Clack Cone Pfmn 8.5 9.4 12.9 16.0 10.8 10.5 Size 11.5 10.6 4.4 6.9 9.1 9.5 Revised 11/5/2015 8/24/2015 7/3/2015 7/25/2015 Revised 12/20/2015 12/7/2013 12/17/2015 12/6/2015 12/25/2015 2/10/2015 COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 10 11/25 12/9/13 Report Page Top HR/TQM Report Round: 3 December 31, 2015 Mayur Madhav HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement Complement 602 602 495 495 633 633 653 653 1st Shift Complement 2nd Shift Complement 317 285 319 176 428 205 400 253 0.0% 6.8% 0.0% 8.0% 0.0% 6.2% 0.0% 10.0% 180 0 120 0 183 0 75 0 Recruiting Spend $5,000 $2,500 $5,000 $0 Training Hours Productivity Index 80 112.3% 40 114.0% 80 124.7% 0 100.0% Recruiting Cost $1,080 $421 $1,096 $75 Separation Cost Training Cost $0 $963 $0 $396 $0 $1,012 $0 $0 $2,043 $817 $2,109 $75 $29.56 2,500 $29.56 2,500 $29.56 2,500 $29.56 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 5.0% 5.0% Overtime% Turnover Rate New Employees Separated Employees Total HR Admin Cost Labor Contract Next Year Wages Benefits 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 Process Mgt Budgets Last Year CPI Systems Vendor/JIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase Andrews Baldwin Chester Digby $750 $750 $0 $0 $0 $0 $1,250 $1,250 $0 $1,500 $0 $0 $1,500 $1,500 $0 $0 $0 $1,500 $0 $0 $1,250 $1,250 $1,250 $0 $0 $0 $750 $0 $2,250 $0 $0 $750 $750 $5,500 $1,500 $0 $0 $0 $6,000 $0 $0 $1,250 $1,250 $6,250 8.46% 6.39% 16.88% 45.70% 10.08% 6.03% 1.78% 0.00% 16.23% 5.47% 1.41% 0.05% 0.00% 43.11% 0.45% 6.43% 13.93% 39.79% 0.00% 9.37% COMPXM INQUIRER www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 11 12/25 12/9/13 Report Page PRINT Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 13/25 12/9/13 Report Page Top Annual Report Andrews Round: 3 Dec. 31, 2015 C53395 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your endofyear cash position. Accounts Receivable: Reflects the lag between delivery and payment of Cash your products. Inventories: The current value of your inventory Accounts Receivable across all products. A zero indicates your company stocked out. Inventory Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: Total Current Assets The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for Plant & Equipment materials and services. Current Debt: The debt the company is Accumulated Depreciation obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you Total Fixed Assets 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 Total Assets amount of capital invested by shareholders in the company. LIABILITIES & OWNERS' EQUITY Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $38,191 $12,397 $0 $57,398 34.3% 106.2% 40.6% $119,460 ($55,987) $109,876 $177,710 ($67,834) 2015 Common Size 22.6% 9.4% 2.3% 65.7% $63,473 $37,812 $15,701 $3,885 2014 $50,588 $167,273 100.0% $114,061 $9,192 $0 $50,778 5.5% 0.0% 30.4% $5,833 $10,300 $15,909 $11,192 $96,111 $59,970 35.9% 6.7% 57.5% Total Liabilities Total Equity $107,303 64.1% $82,020 Total Liab. & O. Equity $167,273 100.0% $114,061 Common Stock Retained Earnings $32,042 $11,192 $70,828 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. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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) Net cash from financing activities Net change in cash position Closing cash position Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 $25,283 $11,847 $0 $3,359 ($3,885) ($3,304) $33,301 ($58,250) $0 $0 $0 $34,869 $0 ($10,300) $24,569 ($379) $37,812 2014 $8,509 $7,964 $0 ($741) $28,897 ($1,769) $42,860 ($14,200) $0 $0 $0 $0 ($10,300) $10,300 $0 $28,660 $38,191 Page 1 14/25 12/9/13 Report Page Top Annual Report Andrews Round: 3 Dec. 31, 2015 C53395 2015 Income Statement (Product Name:) Abby Alan Aft Agape Na Na Sales $54,532 $54,417 $32,072 $50,003 $0 $0 Variable Costs: Direct Labor $10,940 $10,325 $8,050 $12,570 $0 $0 Direct Material $17,746 $17,636 $12,087 $18,595 $0 $0 Inventory Carry $8 $11 $447 $0 $0 $0 Total Variable $28,694 $27,973 $20,584 $31,166 $0 $0 Contribution Margin $25,839 $26,445 $11,488 $18,837 $0 $0 Period Costs: Depreciation $2,017 $1,995 $3,864 $3,971 $0 $0 SG&A: R&D $421 $368 $1,000 $1,000 $0 $0 Promotions $2,000 $2,000 $2,000 $2,000 $0 $0 Sales $2,000 $2,000 $2,000 $2,000 $0 $0 Admin $790 $789 $465 $725 $0 $0 Total Period $7,229 $7,152 $9,329 $9,696 $0 $0 Net Margin $18,610 $19,293 $2,159 $9,141 $0 $0 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straightline 15year 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: Charges 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. Writeoffs 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. www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 Total $191,024 Common Size 100.0% $41,885 $66,064 $466 $108,416 21.9% 34.6% 0.2% 56.8% $0 $82,608 43.2% $0 $0 $0 $0 $0 $0 $11,847 $2,790 $8,000 $8,000 $2,769 $33,406 6.2% 1.5% 4.2% 4.2% 1.4% 17.5% $0 $49,203 25.8% $3,994 $45,209 $0 $5,519 $13,892 $516 $25,283 2.1% 23.7% 0.0% 2.9% 7.3% 0.3% 13.2% Na Na $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 15/25 12/9/13 Report Page Page 2 Annual Report PRINT Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 16/25 12/9/13 Report Page Top Annual Report Baldwin Round: 3 Dec. 31, 2015 C53395 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your endofyear cash position. Accounts Receivable: Reflects the lag between delivery and payment of Cash your products. Inventories: The current value of your inventory Accounts Receivable across all products. A zero indicates your company stocked out. Inventory Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: Total Current Assets The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for Plant & Equipment materials and services. Current Debt: The debt the company is Accumulated Depreciation obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you Total Fixed Assets run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this Total Assets represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. LIABILITIES & OWNERS' EQUITY Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $24,440 $11,622 $22,317 2015 Common Size 11.1% 5.3% 10.2% $254,298 ($92,818) $58,379 26.6% 115.7% 42.2% $237,416 ($75,865) $161,480 73.4% $161,551 2014 $50,147 $11,835 $0 $61,982 $219,859 100.0% $223,532 $9,191 $27,824 $99,217 4.2% 12.7% 45.1% $7,309 $43,703 $95,618 $50,839 $32,788 $136,232 62.0% 23.1% 14.9% Total Liabilities Total Equity $83,627 38.0% $76,902 Total Liab. & O. Equity $219,859 100.0% $223,532 Common Stock Retained Earnings $146,630 $41,485 $35,417 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. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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) Net cash from financing activities Net change in cash position Closing cash position Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 ($2,629) $16,953 $0 $1,882 ($22,317) $213 ($5,898) ($16,882) $0 $9,354 $0 $3,599 $0 ($15,879) ($2,926) ($25,707) $24,440 2014 ($4,484) $15,828 $0 ($2,184) $6,471 $1,921 $17,552 ($57,856) $0 $12,830 $0 $35,039 ($10,300) $18,036 $55,605 $15,301 $50,147 Page 1 17/25 12/9/13 Report Page Top Annual Report Baldwin Round: 3 Dec. 31, 2015 C53395 2015 Income Statement (Product Name:) Bold Buddy Baker Beetle Na Na Sales $28,075 $29,428 $39,713 $44,188 $0 $0 Variable Costs: Direct Labor $5,013 $5,506 $8,255 $9,043 $0 $0 Direct Material $12,332 $13,217 $16,549 $19,597 $0 $0 Inventory Carry $444 $656 $764 $814 $0 $0 Total Variable $17,789 $19,379 $25,568 $29,454 $0 $0 Contribution Margin $10,286 $10,049 $14,145 $14,734 $0 $0 Period Costs: Depreciation $5,002 $5,618 $2,913 $3,420 $0 $0 SG&A: R&D $1,000 $1,000 $0 $0 $0 $0 Promotions $1,250 $1,250 $1,250 $1,250 $0 $0 Sales $1,400 $1,400 $1,100 $1,100 $0 $0 Admin $327 $343 $462 $515 $0 $0 Total Period $8,979 $9,611 $5,726 $6,285 $0 $0 Net Margin $1,307 $438 $8,419 $8,449 $0 $0 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straightline 15year 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: Charges 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. Writeoffs 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. www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 Total $141,404 Common Size 100.0% $27,817 $61,696 $2,678 $92,191 19.7% 43.6% 1.9% 65.2% $0 $49,213 34.8% $0 $0 $0 $0 $0 $0 $16,953 $2,000 $5,000 $5,000 $1,646 $30,600 12.0% 1.4% 3.5% 3.5% 1.2% 21.6% $0 $18,614 13.2% $6,148 $12,466 $3,561 $12,949 ($1,416) $0 ($2,629) 4.3% 8.8% 2.5% 9.2% 1.0% 0.0% 1.9% Na Na $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 18/25 12/9/13 Report Page Page 2 Annual Report PRINT Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 19/25 12/9/13 Report Page Top Annual Report Chester Round: 3 Dec. 31, 2015 C53395 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your endofyear cash position. Accounts Receivable: Reflects the lag between delivery and payment of Cash your products. Inventories: The current value of your inventory Accounts Receivable across all products. A zero indicates your company stocked out. Inventory Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: Total Current Assets The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for Plant & Equipment materials and services. Current Debt: The debt the company is Accumulated Depreciation obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you Total Fixed Assets 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 Total Assets amount of capital invested by shareholders in the company. LIABILITIES & OWNERS' EQUITY Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $18,822 $14,106 $23,486 2015 Common Size 7.7% 5.8% 9.6% $274,582 ($85,933) $56,414 23.0% 112.0% 35.1% $220,233 ($67,627) $188,649 77.0% $152,606 2014 $39,743 $11,707 $4,665 $56,115 $245,064 100.0% $208,721 $10,359 $27,146 $107,876 4.2% 11.1% 44.0% $7,238 $34,416 $84,992 $53,572 $46,111 $145,381 59.3% 21.9% 18.8% Total Liabilities Total Equity $99,683 40.7% $82,075 Total Liab. & O. Equity $245,064 100.0% $208,721 Common Stock Retained Earnings $126,646 $33,493 $48,582 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. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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) Net cash from financing activities Net change in cash position Closing cash position Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 ($2,471) $18,305 $0 $3,121 ($18,821) ($2,399) ($2,264) ($54,349) $0 $20,078 $0 $22,883 $0 ($7,270) $35,691 ($20,921) $18,822 2014 $1,059 $13,338 $0 $375 $4,218 ($1,151) $17,839 ($58,733) $0 $16,997 $0 $36,521 ($10,300) $12,979 $56,197 $15,303 $39,743 Page 1 20/25 12/9/13 Report Page Top Annual Report Chester Round: 3 Dec. 31, 2015 C53395 2015 Income Statement (Product Name:) Coat Cure Camp Cent Clack Cone Sales $14,382 $34,146 $37,156 $29,708 $33,335 $22,897 Variable Costs: Direct Labor $1,659 $7,327 $8,777 $5,547 $8,999 $4,618 Direct Material $5,013 $15,104 $15,339 $10,946 $14,221 $9,668 Inventory Carry $605 $645 $762 $638 $168 $0 Total Variable $7,277 $23,076 $24,878 $17,130 $23,388 $14,286 Contribution Margin $7,105 $11,071 $12,278 $12,577 $9,947 $8,611 Period Costs: Depreciation $3,680 $4,901 $2,380 $2,267 $2,619 $2,459 SG&A: R&D $983 $0 $973 $942 $995 $114 Promotions $1,140 $1,140 $1,140 $1,140 $1,140 $1,140 Sales $1,000 $1,000 $1,900 $2,200 $900 $900 Admin $234 $556 $604 $483 $542 $373 Total Period $7,037 $7,596 $6,998 $7,032 $6,197 $4,985 Net Margin $68 $3,475 $5,280 $5,545 $3,750 $3,626 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straightline 15year 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: Charges 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. Writeoffs 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. www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 Total $171,624 Common Size 100.0% $36,927 $70,289 $2,818 $110,034 21.5% 41.0% 1.6% 64.1% $0 $61,589 35.9% $0 $0 $0 $0 $0 $0 $18,305 $4,008 $6,840 $7,900 $2,792 $39,845 10.7% 2.3% 4.0% 4.6% 1.6% 23.2% $0 $21,744 12.7% $8,148 $13,596 $3,366 $14,031 ($1,330) $0 ($2,471) 4.7% 7.9% 2.0% 8.2% 0.8% 0.0% 1.4% Na Na $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 21/25 12/9/13 Report Page Page 2 Annual Report PRINT Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 22/25 12/9/13 Report Page Top Annual Report Digby Round: 3 Dec. 31, 2015 C53395 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your endofyear cash position. Accounts Receivable: Reflects the lag between delivery and payment of Cash your products. Inventories: The current value of your inventory Accounts Receivable across all products. A zero indicates your company stocked out. Inventory Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: Total Current Assets The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for Plant & Equipment materials and services. Current Debt: The debt the company is Accumulated Depreciation obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you Total Fixed Assets 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 Total Assets amount of capital invested by shareholders in the company. LIABILITIES & OWNERS' EQUITY Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $30,771 $17,241 $22,542 2015 Common Size 17.6% 9.9% 12.9% $162,100 ($57,740) $70,554 40.3% 92.7% 33.0% $124,200 ($46,933) $104,360 59.7% $77,267 2014 $39,274 $15,155 $13,322 $67,751 $174,915 100.0% $145,019 $11,219 $23,209 $40,522 6.4% 13.3% 23.2% $9,834 $28,434 $30,134 $11,431 $88,534 $74,950 42.8% 6.5% 50.6% Total Liabilities Total Equity $99,965 57.2% $76,616 Total Liab. & O. Equity $174,915 100.0% $145,019 Common Stock Retained Earnings $68,402 $11,822 $64,794 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. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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) Net cash from financing activities Net change in cash position Closing cash position Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 $26,360 $10,807 $0 $1,385 ($9,220) ($2,086) $27,246 ($37,900) ($474) $0 ($2,537) $10,388 $0 ($5,225) $2,152 ($8,503) $30,771 2014 $18,352 $8,280 $0 $1,543 ($265) ($2,567) $25,343 ($30,800) $0 $3,735 $0 $18,645 ($10,300) $14,416 $26,497 $21,040 $39,274 Page 1 23/25 12/9/13 Report Page Top Annual Report Digby Round: 3 Dec. 31, 2015 C53395 2015 Income Statement (Product Name:) Dot Dune Dart Deft Na Na Sales $60,598 $45,033 $48,580 $55,559 $0 $0 Variable Costs: Direct Labor $14,095 $9,257 $9,738 $11,225 $0 $0 Direct Material $23,193 $19,257 $18,558 $21,960 $0 $0 Inventory Carry $0 $550 $992 $1,164 $0 $0 Total Variable $37,288 $29,063 $29,287 $34,349 $0 $0 Contribution Margin $23,310 $15,970 $19,292 $21,210 $0 $0 Period Costs: Depreciation $2,873 $1,927 $2,833 $3,173 $0 $0 SG&A: R&D $858 $655 $510 $571 $0 $0 Promotions $1,350 $1,350 $1,350 $1,350 $0 $0 Sales $1,000 $1,000 $900 $900 $0 $0 Admin $446 $331 $357 $409 $0 $0 Total Period $6,527 $5,263 $5,951 $6,403 $0 $0 Net Margin $16,782 $10,706 $13,341 $14,807 $0 $0 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straightline 15year 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: Charges 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. Writeoffs 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. www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2015 Total $209,770 Common Size 100.0% $44,314 $82,969 $2,705 $129,988 21.1% 39.6% 1.3% 62.0% $0 $79,782 38.0% $0 $0 $0 $0 $0 $0 $10,807 $2,595 $5,400 $3,800 $1,543 $24,145 5.2% 1.2% 2.6% 1.8% 0.7% 11.5% $0 $55,637 26.5% $6,807 $48,830 $2,576 $4,873 $14,483 $538 $26,360 3.2% 23.3% 1.2% 2.3% 6.9% 0.3% 12.6% Na Na $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 24/25 12/9/13 Report Page Annual Report www.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 2 25/25