1. Chester's turnover rate for this year is 6.25%. This rate is projected to remain the same next year and no further downsizing will occur from automating. Chester plans to spend an additional $500 beyond the extra amount above the $1000 recruiting base it spent this year. The goal of this additional investment is to improve the quality of applicants. What would the total recruiting cost be for Chester next year?

Select: 1

$181,325

$197,810

$164,841

$214,294

2. It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing $10,000,000 in bonds. Assume the bonds are issued at face value and leverage changes to 2.8. Which of the following statements are true? Select all that apply.

Select: 3

The total investment for Chester will be $209,538,450

Working capital will remain the same at $13,510,989

Total Assets will rise to $227,935,642

Total liabilities will be $138,132,863

Chesters long-term debt will rise by $9,000,000

3.

Suppose the Baldwin company begins to compete through good designs, high awareness and easy accessibility for their existing products, what strategy would they be implementing?

Select: 1

Broad differentiation

Broad cost leader

Niche cost leader

Niche differentiation

4.

Andrews Corp. ended the year carrying $59,450,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Andrews Corp.?

Select: 1

$110,453,620

$89,075,500

$59,450,000

$33,046,000

5.

Last year, Baldwin Corp paid their workers $26.81 per hour. How much will they be paying them 2 rounds from then?

Select: 1

$29.56

$31.04

$28.15

$28.29

6.

The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwins accounts payable goes down:

Select: 1

It is a source of cash, and will be shown in the operating section as an addition.

It is a use of cash, and will be shown in the operating section as a subtraction.

It is a source of cash and will be shown in the financing section as an addition.

It is a use of cash, and will be shown in the financing section as a subtraction.

7.

This year Digby achieved an ROE of 22.4%. Suppose next year the profit margin (Net Income/Sales) decreases. Assuming sales, assets and financial leverage remain the same next year, what effect would you expect this action to have on Digby's ROE?

Select: 1

Digby ROE will increase.

Digby ROE will decrease.

Digby ROE will remain the same.

8.

On the income statement, which of the following would be classified as a Period cost?

Select: 1

Inventory Carry Expense

R&D Expense

Direct Material Expense

Direct Labor Expense

Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews 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 PRINT Annual Report Digby Top " Round: 2 Dec. 31, 2018 Andrews LISA GERNER Baldwin Chester Student: LISA GERNER LISA GERNER Digby Selected Financial Statistics ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % COMP-XM INQUIRER Andrews -0.2% 1.22 -0.3% 1.7 -0.5% $0 $143,671,364 $3,986,972 ($325,416) $5,303,194 13.0% 24.1% Baldwin -2.0% 0.70 -1.4% 2.9 -4.2% $0 $152,891,735 $12,671,604 ($3,111,691) $3,659,068 9.0% 32.7% Chester 0.0% 0.69 0.0% 2.6 0.0% $0 $145,188,610 $15,202,347 ($9,018) $5,799,378 11.8% 33.5% Digby 9.2% 1.25 11.6% 1.9 22.4% $0 $185,771,736 $33,832,646 $17,134,373 $30,820,233 6.6% 33.6% Page 1 Top Stocks & Bonds Company Andrews Baldwin Chester Digby Round: 2 LISA GERNER Close $38.50 $27.25 $36.08 $83.80 Change ($26.13) ($13.69) ($11.97) $15.34 Stock Market Summary Shares 2,066,680 2,964,858 2,631,585 1,951,969 MarketCap ($M) $80 $81 $95 $164 Book Value $33.49 $25.26 $30.93 $39.12 EPS ($0.16) ($1.05) $0.00 $8.78 Dividend $4.00 $0.00 $0.00 $0.00 December 31 , 2018 Yield 10.4% 0.0% 0.0% 0.0% P/E -246.1 -26.0 -14867.0 9.6 Bond Market Summary Company Andrews Baldwin Chester Digby COMP-XM INQUIRER Series# Face Yield Close$ S&P 11.2S2023 11.9S2024 $8,837,000 $7,072,000 11.4% 11.9% 97.83 100.41 BBB BBB 11.3S2023 12.5S2024 12.5S2025 12.5S2026 13.4S2027 13.9S2028 $10,417,600 $14,665,611 $7,981,720 $9,473,587 $14,407,694 $34,619,932 12.5% 13.4% 13.5% 13.6% 13.9% 14.1% 90.09 93.42 92.75 92.17 96.07 98.45 C C C C C C 11.2S2023 12.4S2024 11.9S2026 13.0S2027 13.6S2028 $8,639,846 $5,828,840 $15,600,742 $17,783,553 $37,186,075 12.3% 13.1% 13.1% 13.5% 13.7% 91.03 94.53 91.13 96.01 98.95 CC CC CC CC CC 11.1S2025 11.2S2026 12.0S2027 12.2S2028 $2,504,080 $5,675,277 $1,307,561 $21,119,405 11.9% 12.0% 12.4% 12.5% 93.28 93.19 96.88 97.79 B B B B Next Year's Prime Rate 8.50% Page 2 Financial Summary Cash Flow Statement Survey Cash flows from operating activities Net Income (Loss) Adjustment for non-cash 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 Top Round: 2 December 31, 2018 LISA GERNER Andrews Baldwin Chester Digby ($325) ($3,112) ($9) $17,134 $5,975 $0 $15,578 $0 $13,551 $0 $8,624 $0 ($2,604) $13,176 ($3,133) $13,089 ($1,245) $3,940 $997 $16,158 $858 ($305) ($1,455) $12,640 $1,989 ($7,674) ($2,158) $17,915 $0 ($56,112) ($58,360) ($35,400) ($8,267) $1,000 $0 $0 $0 ($13,114) $15,000 $0 $0 $13,604 $0 $34,620 $0 ($25,203) $32,890 $0 $0 $18,156 $0 $37,186 $0 ($21,740) $23,947 $0 $0 $4,777 $0 $21,119 $0 ($14,285) $19,136 $0 ($5,381) $55,910 $57,549 $30,747 $7,708 $15,956 $11,829 $13,262 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $7,708 $9,841 $59,450 $76,998 Baldwin $46,038 $12,566 $5,135 $63,740 Chester $33,527 $11,933 $11,144 $56,605 Plant and equipment Accumulated Depreciation Total Fixed Assets $89,624 ($49,129) $40,495 $233,672 ($78,680) $154,992 $223,660 ($70,726) $152,934 $129,360 ($49,911) $79,449 Total Assets $117,493 $218,731 $209,538 $147,974 Accounts Payable Current Debt Long Term Debt Total Liabilities $6,073 $26,300 $15,909 $48,282 $8,087 $44,190 $91,566 $143,843 $7,847 $35,247 $85,039 $128,133 $10,574 $30,436 $30,606 $71,616 Common Stock Retained Earnings Total Equity $13,080 $56,131 $69,211 $41,234 $33,654 $74,888 $36,803 $44,603 $81,406 $13,596 $62,762 $76,358 Total Liabilities & Owners' Equity $117,493 $218,731 $209,538 $147,974 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 Andrews $143,671 $108,976 $5,975 $18,683 $6,050 $3,987 $4,488 ($175) $0 ($325) Baldwin $152,892 $102,950 $15,578 $13,781 $7,911 $12,672 $17,459 ($1,676) $0 ($3,112) Chester $145,189 $96,503 $13,551 $17,165 $2,767 $15,202 $15,216 ($5) $0 ($9) Digby $185,772 $123,430 $8,624 $12,340 $7,545 $33,833 $6,934 $9,414 $350 $17,134 COMP-XM INQUIRER Digby $32,834 $15,269 $20,422 $68,525 Page 3 Top Production Analysis Production Information Primary Segment Units Sold Unit Inven tory Art Ate Attic Axe Angel Core Nano Elite Thrift 1,365 914 1,070 1,534 0 Boat Best Bat Bell Thrift Thrift Core Core Cone Creak Cat Cell City Cozy Don Drum Daft Deal Name Revision Date Age Dec.31 1,226 781 598 0 0 8/23/2019 10/19/2018 5/11/2018 7/23/2018 2/28/2018 2,079 2,302 1,477 1,659 0 61 136 138 Thrift Core Nano Elite Core 1,278 2,167 1,097 892 743 0 Nano Elite Nano Elite 1,584 926 1,346 1,355 COMP-XM INQUIRER Round: 2 December 31, 2018 LISA GERNER Labor Cost Contr. Marg. 2nd Shift & Overtime $9.95 $12.82 $14.12 $7.49 $0.00 $8.52 $10.54 $11.20 $8.13 $0.00 26% 26% 29% 11% 0% 2% 17% 40% 48% 0% 5.0 4.0 4.0 6.0 0.0 1,500 728 714 630 0 101% 116% 139% 147% 0% $17.00 $17.00 $25.00 $25.00 $7.76 $7.94 $11.07 $11.75 $3.95 $3.86 $4.62 $4.51 31% 30% 36% 34% 100% 80% 38% 28% 9.0 9.0 8.0 8.0 1,597 1,797 1,099 1,299 198% 178% 137% 127% 12.7 10.3 5.2 7.4 9.7 0.0 $18.00 $20.00 $30.00 $34.00 $21.00 $0.00 $6.26 $9.01 $13.17 $14.05 $9.54 $0.00 $2.35 $5.38 $6.73 $7.58 $5.82 $0.00 49% 26% 34% 36% 26% 0% 0% 43% 44% 19% 100% 0% 9.5 8.0 6.0 6.0 7.0 7.0 1,250 1,550 900 900 1,040 600 95% 142% 142% 118% 149% 0% 5.7 7.2 4.5 6.7 $32.00 $35.00 $37.00 $39.00 $13.96 $15.32 $14.96 $15.41 $9.33 $8.84 $8.27 $8.04 30% 28% 36% 38% 100% 57% 71% 53% 6.0 6.5 6.0 6.0 950 900 1,050 1,200 198% 156% 169% 151% MTBF Pfmn Coord Size Coord Material Price Cost 3.0 1.2 1.9 2.3 0.8 22000 18000 24000 18500 16000 9.0 11.5 14.0 7.3 9.0 11.3 5.0 8.4 12.8 10.0 $29.50 $37.50 $39.50 $17.50 $15.00 4/11/2018 4/11/2018 12/16/2018 12/18/2018 2.7 2.6 1.1 1.1 17000 17000 18000 20000 8.1 8.3 11.2 11.9 11.9 11.7 8.2 8.7 252 66 193 197 0 0 12/20/2019 12/7/2017 12/17/2018 12/18/2018 4/1/2018 2/10/2019 3.5 2.1 1.0 1.0 0.8 0.0 14000 16000 18000 20000 16000 0 7.3 9.7 12.4 15.2 10.3 0.0 0 253 301 310 12/3/2018 1/4/2018 9/19/2018 8/17/2018 1.3 2.4 1.2 1.2 23000 25000 23000 25000 12.3 15.5 13.4 15.3 Auto mation Capacity Next Next Round Round Plant Utiliz. Page 4 Top Thrift Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry LISA GERNER Thrift Statistics 6,287 6,287 26.4% Next Year's Segment Growth Rate 1. 2. 3. 4. Name Best Boat Axe Cone Creak Art City Price Reliability Ideal Position Age Thrift Customer Buying Criteria Expectations $14.00 - 26.00 MTBF 14000-20000 Pfmn 7.8 Size 12.2 Ideal Age = 3.0 Perceptual Map for Thrift Segment Market Share 26% 24% 23% 17% 6% 4% 0% Units Sold to Seg 1,612 1,491 1,441 1,072 399 246 25 COMP-XM INQUIRER Revision Date Stock Out 4/11/2018 4/11/2018 YES 7/23/2018 YES 12/20/2019 12/7/2017 8/23/2019 4/1/2018 YES Round: 2 December 31, 2018 11.0% Importance 55% 20% 15% 10% Top Products in Thrift Segment Pfmn Coord 8.3 8.1 7.3 7.3 9.7 9.0 10.3 Size Coord 11.7 11.9 12.8 12.7 10.3 11.3 9.7 List Price $17.00 $17.00 $17.50 $18.00 $20.00 $29.50 $21.00 MTBF 17000 17000 18500 14000 16000 22000 16000 Age Dec.31 2.64 2.74 2.28 3.48 2.11 2.98 0.75 Promo Cust. AwareBudget ness $1,200 74% $1,200 73% $1,400 93% $1,050 61% $1,050 61% $1,700 100% $1,050 48% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 67% 42 $1,100 67% 44 $900 76% 49 $1,000 66% 26 $1,000 66% 14 $1,500 76% 7 $900 66% 3 Page 5 Top Core Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry LISA GERNER Core Statistics 8,081 8,081 34.0% Next Year's Segment Growth Rate 1. 2. 3. 4. Name Creak Bell Bat Art City Best Boat Cone Don Axe Price Age Reliability Ideal Position Core Customer Buying Criteria Expectations $20.00 - 32.00 Ideal Age = 2.0 MTBF 16000-22000 Pfmn 10.5 Size 9.5 Perceptual Map for Core Segment Market Share 22% 18% 16% 14% 9% 9% 7% 3% 3% 1% Units Sold to Seg 1,768 1,430 1,266 1,119 717 690 588 206 204 93 COMP-XM INQUIRER Revision Date Stock Out 12/7/2017 12/18/2018 12/16/2018 8/23/2019 4/1/2018 YES 4/11/2018 4/11/2018 YES 12/20/2019 12/3/2018 YES 7/23/2018 YES Round: 2 December 31, 2018 10.0% Importance 46% 20% 18% 16% Top Products in Core Segment Pfmn Coord 9.7 11.9 11.2 9.0 10.3 8.3 8.1 7.3 12.3 7.3 Size Coord 10.3 8.7 8.2 11.3 9.7 11.7 11.9 12.7 5.7 12.8 List Price $20.00 $25.00 $25.00 $29.50 $21.00 $17.00 $17.00 $18.00 $32.00 $17.50 MTBF 16000 20000 18000 22000 16000 17000 17000 14000 23000 18500 Age Dec.31 2.11 1.10 1.09 2.98 0.75 2.64 2.74 3.48 1.35 2.28 Promo Cust. AwareBudget ness $1,050 61% $1,200 73% $1,200 73% $1,700 100% $1,050 48% $1,200 74% $1,200 73% $1,050 61% $1,300 82% $1,400 93% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 65% 38 $900 70% 30 $900 70% 26 $1,500 81% 22 $900 65% 33 $1,100 70% 18 $1,100 70% 14 $1,000 65% 0 $900 17% 0 $900 81% 0 Page 6 Top Nano Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry LISA GERNER Nano Statistics 4,743 4,743 19.9% Next Year's Segment Growth Rate 1. 2. 3. 4. Name Daft Don Cat Ate Attic Bat Cell Bell Deal Ideal Position Price Age Reliability Nano Customer Buying Criteria Expectations Pfmn 12.4 Size 5.0 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Perceptual Map for Nano Segment Market Share 25% 20% 19% 18% 5% 4% 4% 4% 3% Units Sold to Seg 1,162 954 893 840 218 180 176 169 151 COMP-XM INQUIRER Revision Date Stock Out 9/19/2018 12/3/2018 YES 12/17/2018 10/19/2018 5/11/2018 12/16/2018 12/18/2018 12/18/2018 8/17/2018 Round: 2 December 31, 2018 14.0% Importance 35% 27% 20% 18% Top Products in Nano Segment Pfmn Coord 13.4 12.3 12.4 11.5 14.0 11.2 15.2 11.9 15.3 Size Coord 4.5 5.7 5.2 5.0 8.4 8.2 7.4 8.7 6.7 List Price $37.00 $32.00 $30.00 $37.50 $39.50 $25.00 $34.00 $25.00 $39.00 MTBF 23000 23000 18000 18000 24000 18000 20000 20000 25000 Age Dec.31 1.20 1.35 1.04 1.24 1.87 1.09 1.05 1.10 1.24 Promo Cust. AwareBudget ness $1,300 82% $1,300 82% $1,050 61% $1,700 95% $1,500 89% $1,200 73% $1,050 61% $1,200 73% $1,300 81% Sales Cust. Access- Dec. Cust. Budget ibility Survey $800 85% 45 $900 85% 64 $900 65% 41 $1,500 74% 30 $1,500 74% 7 $900 24% 8 $1,500 65% 2 $900 24% 9 $800 85% 4 Page 7 Top Elite Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry LISA GERNER Elite Statistics 4,679 4,679 19.7% Next Year's Segment Growth Rate 1. 2. 3. 4. Name Deal Drum Attic Cell Don Cat Daft Ate Bell Bat Age Price Ideal Position Reliability Elite Customer Buying Criteria Expectations Ideal Age = 0.0 $30.00 - 42.00 Pfmn 15.0 Size 7.6 MTBF 20000-26000 Perceptual Map for Elite Segment Market Share 26% 20% 18% 15% 9% 4% 4% 2% 1% 1% Units Sold to Seg 1,205 926 852 717 426 204 184 75 61 31 COMP-XM INQUIRER Revision Date Stock Out 8/17/2018 1/4/2018 5/11/2018 12/18/2018 12/3/2018 YES 12/17/2018 9/19/2018 10/19/2018 12/18/2018 12/16/2018 Round: 2 December 31, 2018 16.0% Importance 34% 24% 22% 20% Top Products in Elite Segment Pfmn Coord 15.3 15.5 14.0 15.2 12.3 12.4 13.4 11.5 11.9 11.2 Size Coord 6.7 7.2 8.4 7.4 5.7 5.2 4.5 5.0 8.7 8.2 List Price $39.00 $35.00 $39.50 $34.00 $32.00 $30.00 $37.00 $37.50 $25.00 $25.00 MTBF 25000 25000 24000 20000 23000 18000 23000 18000 20000 18000 Age Dec.31 1.24 2.45 1.87 1.05 1.35 1.04 1.20 1.24 1.10 1.09 Promo Cust. AwareBudget ness $1,300 81% $1,300 82% $1,500 89% $1,050 61% $1,300 82% $1,050 61% $1,300 82% $1,700 95% $1,200 73% $1,200 73% Sales Cust. Access- Dec. Cust. Budget ibility Survey $800 87% 41 $900 87% 36 $1,500 73% 25 $1,500 60% 30 $900 87% 18 $900 60% 4 $800 87% 1 $1,500 73% 0 $900 11% 3 $900 11% 1 Page 8 Top Market Share Report Industry Unit Sales % of Market Art Ate Attic Axe Total Boat Best Bat Bell Total Cone Creak Cat Cell City Total Don Drum Daft Deal Total Actual Market Share in Units Thrift 6,287 26.4% 3.9% 22.9% 26.8% 23.7% 25.6% 49.4% 17.1% 6.3% 0.4% 23.8% COMP-XM INQUIRER Round: 2 December 31, 2018 LISA GERNER Core 8,081 34.0% 13.8% 1.1% 15.0% 7.3% 8.5% 15.7% 17.7% 49.2% 2.5% 21.9% 8.9% 33.3% 2.5% 2.5% Nano 4,743 19.9% Elite 4,679 19.7% 17.7% 4.6% 1.6% 18.2% 22.3% 19.8% 3.8% 3.6% 7.4% 0.7% 1.3% 1.9% 18.8% 3.7% 4.4% 15.3% 20.1% 9.1% 19.8% 3.9% 25.7% 58.6% 22.5% 24.5% 3.2% 47.8% 19.7% Total 23,790 100.0% 5.7% 3.8% 4.5% 6.5% 20.5% 8.7% 9.7% 6.2% 7.0% 31.6% 5.4% 9.1% 4.6% 3.8% 3.1% 26.0% 6.7% 3.9% 5.7% 5.7% 21.9% Units Demanded % of Market Art Ate Attic Axe Total Boat Best Bat Bell Total Cone Creak Cat Cell City Total Don Drum Daft Deal Total Potential Market Share in Units Thrift 6,287 26.4% 3.5% 27.6% 31.2% 23.8% 23.3% 47.1% 15.5% 5.6% 0.6% 21.7% Core 8,081 34.0% 13.3% 1.3% 14.6% 7.2% 8.1% 15.0% 16.9% 47.2% 2.5% 20.9% 12.2% 35.6% 2.5% 2.5% Nano 4,743 19.9% Elite 4,679 19.7% 17.5% 4.5% 1.6% 18.1% 3.7% 3.5% 7.2% 0.7% 1.3% 1.9% 18.5% 3.7% 4.3% 15.2% 21.2% 9.6% 19.7% 3.9% 25.6% 58.8% 22.0% 22.2% 24.2% 3.1% 48.5% 19.7% 19.5% Total 23,790 100.0% 5.4% 3.8% 4.5% 7.8% 21.5% 8.8% 8.9% 6.0% 6.7% 30.3% 4.9% 8.6% 4.6% 3.7% 4.3% 26.1% 7.0% 3.9% 5.6% 5.7% 22.1% Page 9 Top Perceptual Map Round: 2 December 31, 2018 LISA GERNER Perceptual Map for All Segments Name Art Ate Attic Axe Angel Name Don Drum Daft Deal Pfmn 9.0 11.5 14.0 7.3 9.0 Andrews Pfmn 12.3 15.5 13.4 15.3 Size 11.3 5.0 8.4 12.8 10.0 Digby COMP-XM INQUIRER Size 5.7 7.2 4.5 6.7 Revised 8/23/2019 10/19/2018 5/11/2018 7/23/2018 2/28/2018 Name Boat Best Bat Bell Pfmn 8.1 8.3 11.2 11.9 Baldwin Size 11.9 11.7 8.2 8.7 Revised 4/11/2018 4/11/2018 12/16/2018 12/18/2018 Name Cone Creak Cat Cell City Pfmn 7.3 9.7 12.4 15.2 10.3 Chester Size 12.7 10.3 5.2 7.4 9.7 Revised 12/20/2019 12/7/2017 12/17/2018 12/18/2018 4/1/2018 Revised 12/3/2018 1/4/2018 9/19/2018 8/17/2018 Page 10 Top HR/TQM Report LISA GERNER HUMAN RESOURCES SUMMARY Andrews 645 645 536 Baldwin 455 455 289 Chester 527 527 388 0.0% 0.0% 0.0% Separated Employees Recruiting Spend Training Hours Productivity Index 201 $0 5 100.0% 190 $2,500 40 113.5% 0 $5,000 80 123.6% 0 $0 0 100.0% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $63 $1,005 $65 $1,133 $127 $949 $364 $1,441 $556 $0 $844 $1,399 $136 $0 $0 $136 Labor Contract Next Year Wages Benefits Profit Sharing Annual Raise $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% Baldwin Chester $0 $0 $0 $0 $0 $0 Digby $0 $0 $1,250 $1,250 $1,250 $0 $0 $2,000 $0 $0 $6,000 $0 $0 $750 $750 $5,500 $0 $0 $0 $0 $0 $0 $0 $1,250 $1,250 $6,250 1.02% 0.06% 3.45% 5.70% 0.24% 1.40% 0.33% 0.00% 3.25% 1.16% 0.00% 0.00% 0.00% 0.00% 0.00% 2.92% 11.25% 32.13% 0.00% 4.56% Needed Complement Complement 1st Shift Complement 2nd Shift Complement Overtime% Turnover Rate New Employees 109 9.8% 63 166 8.0% 36 140 6.3% 93 Round: 2 December 31, 2018 Digby 686 686 403 283 0.0% 10.0% 136 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 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 COMP-XM INQUIRER Andrews $2,000 $2,000 $0 $0 $0 $0 TQM SUMMARY $1,250 $1,250 $0 $1,500 $0 $0 Page 11 Annual Report PRINT Annual Report Top Balance Sheet Andrews DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you 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 amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory $7,708 $9,841 $59,450 Total Current Assets Plant & Equipment Accumulated Depreciation Total Fixed Assets $89,624 ($49,129) Total Assets LIABILITIES & OWNERS' EQUITY $6,073 $26,300 $15,909 Common Stock Retained Earnings $13,080 $56,131 Total Equity $76,999 $40,495 $117,493 Accounts Payable Current Debt Long Term Debt Total Liabilities Total Liab. & O. Equity $48,282 $69,211 $117,493 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 Round: 2 Dec. 31, 2018 C59559 2018 Common Size 6.6% 8.4% 50.6% 2017 $0 $6,708 $72,626 76.3% -41.8% $89,624 ($43,154) 100.0% $125,804 5.2% 22.4% 13.5% $8,677 $13,114 $27,209 11.1% 47.8% $12,080 $64,723 65.5% $79,334 34.5% $46,470 41.1% $49,000 58.9% $76,803 100.0% $125,804 2018 ($325) $5,975 $0 ($2,604) $13,176 ($3,133) 2017 $5,629 $5,975 ($1,980) ($839) ($46,654) $6,723 $0 $1,950 $13,089 ($8,267) $1,000 $0 $0 ($11,300) $13,186 ($5,381) $7,708 $7,708 ($31,147) $0 $0 $0 $0 $0 ($2,603) ($2,603) ($31,800) $0 Page 1 Top Annual Report Sales (Product Name:) Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Contribution Margin Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Andrews Axe $26,842 Angel $0 Na $0 Na $0 Na $0 2018 Total $143,671 Common Size 100.0% $10,009 $12,954 $2,354 $25,318 $11,911 $16,044 $1,875 $29,831 $12,042 $11,932 $0 $23,974 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $46,418 $55,424 $7,134 $108,976 32.3% 38.6% 5.0% 75.9% $1,068 $810 $1,700 $1,500 $497 $5,574 $1,047 $364 $1,500 $1,500 $612 $5,023 $1,260 $567 $1,400 $900 $389 $4,515 $0 $162 $1,000 $1,000 $0 $2,162 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,975 $2,902 $7,300 $6,400 $2,081 $24,658 4.2% 2.0% 5.1% 4.5% 1.4% 17.2% $6,050 $3,987 $2,656 $1,831 ($175) $0 ($325) 4.2% 2.8% 1.8% 1.3% -0.1% 0.0% -0.2% Ate $34,279 $12,455 $14,494 $2,904 $29,854 $2,600 $1,000 $1,700 $1,500 $583 $7,383 $3,043 2018 Income Statement Attic $42,269 Art $40,281 $10,427 $8,962 $3,387 $12,439 $7,416 $2,867 ($1,648) $0 ($2,162) $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 straight-line 15-year 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. Write-offs 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. Annual Report Round: 2 Dec. 31, 2018 C59559 PRINT $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit $0 $0 $34,695 $10,037 24.1% 7.0% Page 2 Annual Report Annual Report Top Balance Sheet Baldwin DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you 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 amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory $46,038 $12,566 $5,135 Total Current Assets Plant & Equipment Accumulated Depreciation Total Fixed Assets $233,672 ($78,680) Total Assets LIABILITIES & OWNERS' EQUITY $8,087 $44,190 $91,566 Common Stock Retained Earnings $41,234 $33,654 Total Equity $63,739 $154,992 $218,731 Accounts Payable Current Debt Long Term Debt Total Liabilities Total Liab. & O. Equity $143,843 $74,888 $218,731 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 Round: 2 Dec. 31, 2018 C59559 2018 Common Size 21.0% 5.7% 2.3% 2017 $30,082 $13,563 $9,075 106.8% -36.0% $177,560 ($63,102) 100.0% $167,177 29.1% $52,720 70.9% $114,458 3.7% 20.2% 41.9% $9,332 $25,203 $68,246 65.8% $102,781 18.9% 15.4% $27,630 $36,766 34.2% $64,396 100.0% $167,177 2018 ($3,112) $15,578 $0 ($1,245) $3,940 $997 2017 $6,771 $11,837 $0 $2,049 $1,370 ($2,744) ($56,112) ($34,660) $55,910 $15,956 $46,038 $13,318 ($2,060) $30,082 $16,158 $0 $13,604 $0 $34,620 ($11,300) $18,986 $19,282 $0 $2,946 $0 $14,408 $0 ($4,036) Page 1 Annual Report Sales (Product Name:) Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Contribution Margin Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Baldwin 2018 Income Statement Bell $41,484 Na $0 Na $0 Na $0 Na $0 2018 Total $152,892 Common Size 100.0% $8,985 $18,394 $88 $27,467 $7,235 $16,049 $257 $23,541 $8,050 $19,179 $271 $27,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $32,481 $69,853 $616 $102,950 21.2% 45.7% 0.4% 67.3% $5,032 $279 $1,200 $1,100 $634 $8,244 $2,784 $970 $1,200 $900 $598 $6,452 $3,291 $976 $1,200 $900 $672 $7,039 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,578 $2,505 $4,800 $4,000 $2,476 $29,359 10.2% 1.6% 3.1% 2.6% 1.6% 19.2% $7,911 $12,672 $5,524 $11,935 ($1,676) $0 ($3,112) 5.2% 8.3% 3.6% 7.8% -1.1% 0.0% -2.0% Best $39,134 $8,210 $16,231 $0 $24,441 $4,472 $279 $1,200 $1,100 $572 $7,623 $3,284 $11,667 $3,422 $13,385 $6,932 $13,983 $6,944 $0 $0 $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 straight-line 15-year 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. Write-offs 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. Annual Report Round: 2 Dec. 31, 2018 C59559 Bat $36,926 Boat $35,349 $10,907 Top PRINT $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit $0 $0 $49,942 $20,583 32.7% 13.5% Page 2 Annual Report Annual Report Top Balance Sheet Chester DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you 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 amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory $33,527 $11,933 $11,144 Total Current Assets Plant & Equipment Accumulated Depreciation Total Fixed Assets $223,660 ($70,726) Total Assets LIABILITIES & OWNERS' EQUITY $7,847 $35,247 $85,039 Common Stock Retained Earnings $36,803 $44,603 Total Equity $56,604 $152,934 $209,538 Accounts Payable Current Debt Long Term Debt Total Liabilities Total Liab. & O. Equity $128,133 $81,406 $209,538 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 Round: 2 Dec. 31, 2018 C59559 2018 Common Size 16.0% 5.7% 5.3% 2017 $21,698 $10,479 $10,839 106.7% -33.8% $165,300 ($57,176) 100.0% $151,141 27.0% $43,016 73.0% $108,124 3.7% 16.8% 40.6% $6,989 $21,740 $59,153 17.6% 21.3% $18,647 $44,612 61.2% $87,882 38.9% $63,259 100.0% $151,141 2018 ($9) $13,551 $0 $858 ($305) ($1,455) 2017 $5,808 $9,887 $0 $1,193 ($4,392) ($714) ($58,360) ($40,900) $57,549 $11,829 $33,527 $18,293 ($10,825) $21,698 $12,640 $0 $18,156 $0 $37,186 ($11,300) $13,507 $11,782 $0 $4,258 $0 $17,784 $0 ($3,749) Page 1 Annual Report Sales (Product Name:) Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Contribution Margin Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Chester 2018 Income Statement Cell $30,342 City $15,596 Cozy $0 Na $0 Na $0 2018 Total $145,189 Common Size 100.0% $11,682 $20,201 $116 $31,999 $7,314 $14,018 $451 $21,783 $6,685 $12,114 $497 $19,297 $4,322 $7,281 $0 $11,604 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $33,141 $62,025 $1,337 $96,503 22.8% 42.7% 0.9% 66.5% $3,927 $0 $1,050 $1,000 $721 $6,698 $1,800 $973 $1,050 $900 $548 $5,271 $1,800 $977 $1,050 $1,500 $505 $5,831 $2,357 $250 $1,050 $900 $259 $4,817 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $13,551 $4,200 $5,250 $5,300 $2,416 $30,716 9.3% 2.9% 3.6% 3.7% 1.7% 21.2% $2,767 $15,202 $4,300 $10,916 ($5) $0 ($9) 1.9% 10.5% 3.0% 7.5% 0.0% 0.0% 0.0% Creak $43,336 $3,136 $8,412 $273 $11,821 $3,667 $1,000 $1,050 $1,000 $383 $7,099 $4,084 $11,337 $4,639 $11,129 $5,858 $11,045 $5,213 $3,992 ($825) $0 ($1,000) 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 straight-line 15-year 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. Write-offs 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. Annual Report Round: 2 Dec. 31, 2018 C59559 Cat $32,912 Cone $23,004 $11,183 Top PRINT $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit $0 $0 $48,686 $17,969 33.5% 12.4% Page 2 Annual Report Annual Report Top Balance Sheet Digby DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you 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 amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory $32,834 $15,269 $20,422 Total Current Assets Plant & Equipment Accumulated Depreciation Total Fixed Assets $129,360 ($49,911) Total Assets LIABILITIES & OWNERS' EQUITY $10,574 $30,436 $30,606 Common Stock Retained Earnings $13,596 $62,762 Total Equity $68,525 $79,449 $147,974 Accounts Payable Current Debt Long Term Debt Total Liabilities Total Liab. & O. Equity $71,616 $76,358 $147,974 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 Round: 2 Dec. 31, 2018 C59559 2018 Common Size 22.2% 10.3% 13.8% 2017 $19,572 $13,111 $12,748 87.4% -33.7% $93,960 ($41,287) 100.0% $98,104 46.3% $45,431 53.7% $52,673 7.1% 20.6% 20.7% $8,586 $14,285 $20,787 9.2% 42.4% $8,818 $45,628 48.4% $43,658 51.6% $54,446 100.0% $98,104 2018 $17,134 $8,624 $0 $1,989 ($7,674) ($2,158) 2017 $13,686 $6,264 $0 $2,204 $2,085 ($3,282) ($35,400) ($9,580) $30,747 $13,262 $32,834 ($11,547) ($171) $19,572 $17,915 $0 $4,777 $0 $21,119 ($11,300) $16,151 $20,956 ($7,169) $0 ($1,539) $1,308 $0 ($4,147) Page 1 Annual Report Sales (Product Name:) Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Contribution Margin Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Digby 2018 Income Statement Deal $52,849 Na $0 Na $0 Na $0 Na $0 2018 Total $185,772 Common Size 100.0% $8,188 $14,489 $745 $23,421 $11,220 $19,825 $833 $31,878 $10,970 $20,790 $873 $32,633 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $45,167 $75,813 $2,451 $123,430 24.3% 40.8% 1.3% 66.4% $1,920 $9 $1,300 $900 $251 $4,380 $2,100 $727 $1,300 $800 $385 $5,312 $2,400 $634 $1,300 $800 $409 $5,542 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,624 $2,304 $5,200 $3,400 $1,437 $20,964 4.6% 1.2% 2.8% 1.8% 0.8% 11.3% $7,545 $33,833 $3,287 $3,647 $9,414 $350 $17,134 4.1% 18.2% 1.8% 2.0% 5.1% 0.2% 9.2% Drum $32,422 $14,789 $20,709 $0 $35,498 $2,204 $934 $1,300 $900 $392 $5,730 $9,468 $9,001 $4,621 $17,927 $12,614 $20,216 $14,674 $0 $0 $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 straight-line 15-year 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. Write-offs 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. Annual Report Round: 2 Dec. 31, 2018 C59559 Daft $49,805 Don $50,696 $15,198 Top $0 $0 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit $0 $0 $62,342 $41,377 33.6% 22.3% Page 2