1. Increasing the promotional budget for a product in order to increase awareness is not advisable in the short run under which of the following circumstances? Select: 1 Demand in the segment is increasing One or more competitor has increased price Production capacity is maxed out (200% plant utilization) and the company is stocking out of the product Accessibility is less than 80% 5. Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 1.7% in this and in all future rounds. (Refer to the TQM Initiative worksheet in the CompXM.xls Decisions menu.) Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,608,638. Assuming similar sales next year, the 1.7% increase in demand will provide $2,781,347 of additional revenue. With the overall contribution margin of 34.2%, after direct costs this revenue will add $951,221 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest month? Select: 1 25 months 17 months TQM investment will not have a significant financial impact 9 months 6. In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus period expenses, and plus overhead. At the end of last year the broad cost leader Digby had an Elite product Dart. Use the Inquirer's Production Analysis to find Dart's production cost, (labor+materials). Exclude possible inventory carrying costs. Assume period expenses and overhead total 1/2 of their production cost. What is the minimum price the product could have been sold for to cover the unit cost, period expenses, and overhead? Select: 1 $35.00 $10.72 $21.45 $32.17 8. Looking forward to next year, if Baldwin's current cash balance is $17,478 (000) and cash flows from operations next period are unchanged from this period, and Baldwin takes ONLY the following actions relating to cash flows from investing and financing activities: Issues 100 (000) shares of stock at the current stock price Issues $400 (000) in bonds Retires $10,000 (000) in debt Which of the following activities will expose Baldwin to the most risk of needing an emergency loan? Select: 1 Pays a $5.00 per share dividend Sells $10,000 (000) of their long-term assets Liquidates the entire inventory Purchases assets at a cost of $25,000 (000) 9. A productivity index of 110% means that a company's labor costs would have been 10% higher if it had not made production improvements. Assume that Chester had a productivity index of 112% and that Digby had a productivity index of 103%. Now refer to the Income Statements in the Annual Report for Chester and Digby. Using the labor costs shown in the Income Statements, how much more did Chester save in direct labor costs compared to Digby by having a higher productivity index? Select: 1 $2,877 $3,516 $3,357 $3,197 COMP-XM INQUIRER Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews Page 1 of 28 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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 2 of 28 Top " Round: 0 Dec. 31, 2014 Student: Andrews Baldwin Chester 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 12.3% 1.32 16.3% 1.7 28.3% $0 $163,608,638 $36,568,511 $20,204,718 $0 7.8% 34.2% Baldwin 9.0% 1.28 11.5% 1.9 21.8% $0 $119,682,208 $21,096,446 $10,733,913 $0 10.3% 32.9% Chester 5.7% 0.91 5.2% 2.6 13.8% $0 $131,858,762 $21,858,788 $7,568,210 $0 9.6% 33.8% Digby 8.6% 0.94 8.1% 2.4 19.1% $0 $118,678,529 $23,706,513 $10,164,890 $0 11.2% 38.8% Page 1 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 3 of 28 Top Round: 0 Stocks & Bonds December 31 , 2014 Stock Market Summary Company Andrews Baldwin Chester Digby Close $95.71 $54.98 $44.72 $53.15 Change $15.19 $6.26 $1.11 $10.83 Shares 2,051,031 1,909,747 2,565,751 2,173,111 MarketCap ($M) $196 $105 $115 $116 Book Value $34.78 $25.73 $21.35 $24.46 EPS $9.85 $5.62 $2.95 $4.68 Dividend $6.50 $2.35 $4.89 $2.89 Yield 6.8% 4.3% 10.9% 5.4% P/E 9.7 9.8 15.2 11.4 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 13.5S2016 11.2S2021 11.9S2022 $11,300,000 $8,837,000 $7,072,000 12.9% 11.0% 11.3% 104.46 101.42 105.17 BB BB BB 13.5S2016 11.1S2023 11.2S2024 $11,300,000 $2,507,689 $5,667,039 13.1% 11.3% 11.4% 103.40 97.83 98.27 B B B 13.5S2016 11.3S2021 12.5S2022 12.5S2023 12.5S2024 $11,300,000 $10,417,600 $14,665,611 $7,969,218 $9,570,210 13.4% 12.2% 12.7% 12.8% 12.8% 101.00 92.90 98.07 97.94 97.82 C C C C C 13.5S2016 11.2S2021 12.4S2022 11.9S2024 $11,300,000 $8,635,154 $5,826,767 $15,600,517 13.3% 11.9% 12.5% 12.4% 101.51 93.73 99.03 96.14 CC CC CC CC Next Year's Prime Rate 8.00% COMP-XM INQUIRER Page 2 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 4 of 28 Top Round: 0 December 31, 2014 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 Andrews Baldwin Chester Digby $20,205 $10,734 $7,568 $10,165 $6,455 $0 $5,625 $0 $9,527 $0 $8,293 $0 $735 ($11,144) $10 $16,262 $1,216 ($2,015) ($1,779) $13,782 $1,273 ($1,459) ($1,049) $15,860 $608 $1,347 ($937) $19,476 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 ($3,520) ($6,500) ($15,800) ($26,642) ($13,332) $0 ($1,935) $0 $0 ($5,725) $8,184 $0 ($4,492) $0 ($1,836) $5,667 $0 ($10,504) $12,119 $0 ($12,544) $0 $0 $9,570 $0 ($22,189) $21,741 $0 ($6,291) $0 $0 $15,601 $0 ($15,875) $19,619 $0 Net cash from financing activities ($12,808) $954 ($3,422) $13,054 ($66) $8,236 ($3,362) $5,888 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $32,226 $13,447 $25,680 $71,353 Baldwin $17,478 $9,837 $16,975 $44,290 Chester $32,551 $10,838 $10,144 $53,532 Digby $32,577 $9,754 $6,366 $48,698 Plant and equipment Accumulated Depreciation Total Fixed Assets $96,824 ($44,409) $52,415 $84,380 ($35,023) $49,357 $142,900 ($51,267) $91,633 $124,400 ($47,289) $77,111 Total Assets $123,768 $93,647 $145,165 $125,809 Accounts Payable Current Debt Long Term Debt Total Liabilities $9,516 $15,717 $27,209 $52,443 $6,601 $18,440 $19,475 $44,516 $7,198 $29,274 $53,923 $90,395 $5,796 $25,500 $41,362 $72,658 Common Stock Retained Earnings Total Equity $12,081 $59,244 $71,325 $9,099 $40,032 $49,131 $24,674 $30,096 $54,770 $14,382 $38,769 $53,151 Total Liabilities & Owners' Equity $123,768 $93,647 $145,165 $125,809 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 $163,609 $107,721 $6,455 $12,835 $29 $36,569 $4,850 $11,101 $412 $20,205 Baldwin $119,682 $80,332 $5,625 $12,318 $311 $21,096 $4,246 $5,898 $219 $10,734 Chester $131,859 $87,337 $9,527 $12,657 $479 $21,859 $9,978 $4,158 $154 $7,568 Digby $118,679 $72,634 $8,293 $13,265 $780 $23,707 $7,749 $5,585 $207 $10,165 Net change in cash position COMP-XM INQUIRER Page 3 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 5 of 28 Top Round: 0 December 31, 2014 Production Analysis Production Information Name Primary Segment Units Sold Unit Inven tory Aft Agape Abby Adam Elite Thrift Core Nano 773 1,372 1,832 922 Bid Bold Buddy Bat Nano Elite Nano Elite Cid Coat Crimp Camp Dixie Dot Dune Dart Revision Date Age Dec.31 215 757 44 263 11/14/2014 4/12/2012 12/10/2013 11/9/2014 1,129 436 960 865 84 144 261 239 Thrift Thrift Core Core 1,341 1,675 1,291 1,418 Thrift Core Nano Elite 1,725 1,879 700 605 COMP-XM INQUIRER Labor Cost Contr. Marg. 2nd Shift & Overtime $16.81 $8.13 $11.60 $16.13 $9.80 $7.90 $8.96 $10.29 36% 33% 35% 33% 22% 90% 50% 42% 4.0 6.0 5.0 4.0 714 1,130 1,200 728 121% 188% 149% 141% $30.00 $38.00 $37.00 $39.00 $13.98 $15.87 $15.79 $16.39 $9.50 $7.73 $8.65 $8.14 25% 41% 33% 36% 93% 0% 33% 13% 5.0 5.0 5.0 5.0 570 700 850 950 191% 64% 132% 111% 12.4 12.2 9.4 9.9 $19.00 $19.00 $27.00 $28.00 $8.40 $8.61 $11.68 $12.39 $4.03 $4.22 $7.38 $7.33 41% 37% 30% 30% 33% 57% 93% 87% 8.0 8.0 6.0 6.0 1,050 1,250 900 950 132% 155% 191% 185% 13.2 10.6 6.9 8.7 $20.00 $22.00 $31.00 $35.00 $6.65 $10.01 $13.64 $14.36 $2.82 $5.64 $6.24 $7.09 51% 31% 36% 38% 100% 100% 25% 8% 9.0 7.0 6.0 5.0 1,000 1,150 750 800 198% 198% 124% 107% MTBF Pfmn Coord Size Coord Material Price Cost 1.1 5.1 2.2 1.1 26000 20000 22000 24000 14.0 6.5 9.2 11.9 8.2 13.5 10.8 6.2 $42.00 $26.00 $32.00 $40.00 11/12/2014 12/13/2014 12/22/2014 12/5/2014 2.2 1.9 1.0 1.0 23000 25000 23000 25000 10.2 13.4 11.8 13.8 8.0 8.8 6.2 8.2 233 280 146 81 12/11/2014 12/19/2014 12/3/2014 11/19/2014 2.8 2.6 1.2 1.2 17000 17000 18000 20000 7.6 7.8 10.2 10.9 22 14 161 134 6/28/2015 11/30/2014 12/22/2014 11/5/2014 3.5 1.2 1.1 1.1 14000 16000 18000 20000 6.8 9.4 11.3 13.3 Auto mation Capacity Next Next Round Round Plant Utiliz. Page 4 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 6 of 28 Top Round: 0 December 31, 2014 Thrift Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Thrift Statistics 5,106 5,106 27.0% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria 1. 2. 3. 4. Expectations $14.00 - 26.00 MTBF 14000-20000 Pfmn 7.3 Size 12.7 Ideal Age = 3.0 Price Reliability Ideal Position Age Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Coat Cid Dixie Agape Dot Crimp Camp Market Share 28% 23% 20% 16% 10% 1% 1% Units Sold to Seg 1,405 1,187 1,037 841 514 72 48 COMP-XM INQUIRER Revision Date Stock Out 12/19/2014 12/11/2014 6/28/2015 4/12/2012 11/30/2014 12/3/2014 11/19/2014 Pfmn Coord 7.8 7.6 6.8 6.5 9.4 10.2 10.9 Size Coord 12.2 12.4 13.2 13.5 10.6 9.4 9.9 List Price $19.00 $19.00 $20.00 $26.00 $22.00 $27.00 $28.00 MTBF 17000 17000 14000 20000 16000 18000 20000 Age Dec.31 2.56 2.76 3.46 5.11 1.17 1.21 1.25 Promo Cust. AwareBudget ness $1,050 63% $1,050 63% $950 52% $1,200 79% $950 52% $1,050 62% $1,050 63% Sales Cust. Access- Dec. Cust. Budget ibility Survey $800 62% 30 $1,000 62% 31 $1,000 63% 18 $2,000 74% 13 $1,000 63% 6 $600 62% 0 $600 62% 0 Page 5 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 7 of 28 Top Round: 0 December 31, 2014 Core Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Core Statistics 6,683 6,683 35.3% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria 1. 2. 3. 4. Expectations $20.00 - 32.00 Ideal Age = 2.0 MTBF 16000-22000 Pfmn 9.4 Size 10.6 Price Age Reliability Ideal Position Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Dot Abby Camp Crimp Dixie Agape Bid Coat Cid Dune Dart Market Share 20% 18% 15% 15% 10% 8% 6% 4% 2% 1% 0% Units Sold to Seg 1,364 1,229 989 981 688 531 415 270 154 54 8 COMP-XM INQUIRER Revision Date Stock Out 11/30/2014 12/10/2013 11/19/2014 12/3/2014 6/28/2015 4/12/2012 11/12/2014 12/19/2014 12/11/2014 12/22/2014 11/5/2014 Pfmn Coord 9.4 9.2 10.9 10.2 6.8 6.5 10.2 7.8 7.6 11.3 13.3 Size Coord 10.6 10.8 9.9 9.4 13.2 13.5 8.0 12.2 12.4 6.9 8.7 List Price $22.00 $32.00 $28.00 $27.00 $20.00 $26.00 $30.00 $19.00 $19.00 $31.00 $35.00 MTBF 16000 22000 20000 18000 14000 20000 23000 17000 17000 18000 20000 Age Dec.31 1.17 2.24 1.25 1.21 3.46 5.11 2.19 2.56 2.76 1.08 1.12 Promo Cust. AwareBudget ness $950 52% $1,200 80% $1,050 63% $1,050 62% $950 52% $1,200 79% $1,100 71% $1,050 63% $1,050 63% $950 53% $950 52% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 62% 33 $1,000 85% 27 $600 58% 18 $600 58% 18 $1,000 62% 9 $2,000 85% 5 $400 22% 7 $800 58% 27 $1,000 58% 26 $600 62% 0 $1,300 62% 0 Page 6 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 8 of 28 Top Round: 0 December 31, 2014 Nano Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Nano Statistics 3,652 3,652 19.3% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 11.3 Size 6.7 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Ideal Position Price Age Reliability Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Buddy Adam Dune Bid Abby Bat Camp Dart Crimp Aft Bold Market Share 18% 17% 13% 12% 8% 7% 7% 6% 5% 4% 2% Units Sold to Seg 660 631 464 432 296 260 240 236 183 161 90 COMP-XM INQUIRER Revision Date Stock Out 12/22/2014 11/9/2014 12/22/2014 11/12/2014 12/10/2013 12/5/2014 11/19/2014 11/5/2014 12/3/2014 11/14/2014 12/13/2014 Pfmn Coord 11.8 11.9 11.3 10.2 9.2 13.8 10.9 13.3 10.2 14.0 13.4 Size Coord 6.2 6.2 6.9 8.0 10.8 8.2 9.9 8.7 9.4 8.2 8.8 List Price $37.00 $40.00 $31.00 $30.00 $32.00 $39.00 $28.00 $35.00 $27.00 $42.00 $38.00 MTBF 23000 24000 18000 23000 22000 25000 20000 20000 18000 26000 25000 Age Dec.31 1.04 1.12 1.08 2.19 2.24 1.05 1.25 1.12 1.21 1.09 1.91 Promo Cust. AwareBudget ness $1,100 70% $1,200 78% $950 53% $1,100 71% $1,200 80% $1,100 69% $1,050 63% $950 52% $1,050 62% $1,200 77% $1,100 72% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,200 81% 44 $1,000 82% 42 $600 66% 37 $400 81% 43 $1,000 82% 10 $1,200 81% 10 $600 28% 20 $1,300 66% 12 $600 28% 15 $1,000 82% 4 $400 81% 13 Page 7 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 9 of 28 Top Round: 0 December 31, 2014 Elite Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Elite Statistics 3,480 3,480 18.4% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria 1. 2. 3. 4. Expectations Ideal Age = 0.0 $30.00 - 42.00 Pfmn 13.3 Size 8.7 MTBF 20000-26000 Age Price Ideal Position Reliability Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Aft Bat Dart Bold Abby Buddy Adam Bid Dune Camp Crimp Market Share 18% 17% 10% 10% 9% 9% 8% 8% 5% 4% 2% Units Sold to Seg 612 605 361 346 306 300 291 282 182 141 54 COMP-XM INQUIRER Revision Date Stock Out 11/14/2014 12/5/2014 11/5/2014 12/13/2014 12/10/2013 12/22/2014 11/9/2014 11/12/2014 12/22/2014 11/19/2014 12/3/2014 Pfmn Coord 14.0 13.8 13.3 13.4 9.2 11.8 11.9 10.2 11.3 10.9 10.2 Size Coord 8.2 8.2 8.7 8.8 10.8 6.2 6.2 8.0 6.9 9.9 9.4 List Price $42.00 $39.00 $35.00 $38.00 $32.00 $37.00 $40.00 $30.00 $31.00 $28.00 $27.00 MTBF 26000 25000 20000 25000 22000 23000 24000 23000 18000 20000 18000 Age Dec.31 1.09 1.05 1.12 1.91 2.24 1.04 1.12 2.19 1.08 1.25 1.21 Promo Cust. AwareBudget ness $1,200 77% $1,100 69% $950 52% $1,100 72% $1,200 80% $1,100 70% $1,200 78% $1,100 71% $950 53% $1,050 63% $1,050 62% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 87% 39 $1,200 81% 40 $1,300 55% 25 $400 81% 32 $1,000 87% 8 $1,200 81% 11 $1,000 87% 11 $400 81% 22 $600 55% 11 $600 19% 11 $600 19% 5 Page 8 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 10 of 28 Top Round: 0 December 31, 2014 Market Share Report Actual Market Share in Units Industry Unit Sales % of Market Aft Agape Abby Adam Total Thrift 5,106 27.0% Core 6,683 35.3% 16.5% 7.9% 18.4% 16.5% 26.3% Bid Bold Buddy Bat Total 6.2% 6.2% Nano 3,652 19.3% Elite 3,480 18.4% Total 18,920 100.0% Core 6,683 35.3% 16.3% 7.8% 17.9% 16.3% 25.7% 4.4% 17.6% 8.8% 8.4% 34.8% 4.1% 7.3% 9.7% 4.9% 25.9% Aft Agape Abby Adam Total 11.8% 2.5% 18.1% 7.1% 39.5% 8.1% 9.9% 8.6% 17.4% 44.1% 6.0% 2.3% 5.1% 4.6% 17.9% Bid Bold Buddy Bat Total Cid Coat Crimp Camp Total 23.0% 27.2% 1.4% 0.9% 52.4% Dixie Dot Dune Dart Total 20.3% 11.0% 23.3% 27.5% 1.4% 0.9% 53.1% 2.3% 4.0% 14.7% 14.8% 35.8% 5.0% 6.6% 11.6% 1.6% 4.0% 5.6% 7.1% 8.8% 6.8% 7.5% 30.3% Dixie Dot Dune Dart Total 20.3% 10.1% 10.3% 20.4% 0.8% 0.1% 31.6% 12.7% 6.5% 19.2% 5.2% 10.4% 15.6% 9.1% 9.9% 3.7% 3.2% 25.9% 30.4% Thrift 5,106 27.0% 8.1% 17.3% 29.8% Cid Coat Crimp Camp Total COMP-XM INQUIRER Potential Market Share in Units Units Demanded % of Market Nano 3,652 19.3% Elite 3,480 18.4% Total 18,920 100.0% 4.4% 17.6% 8.1% 17.3% 29.8% 8.8% 8.4% 34.8% 4.1% 7.1% 9.5% 4.9% 25.6% 6.0% 11.8% 2.5% 18.1% 7.1% 39.5% 8.1% 9.9% 8.6% 17.4% 44.1% 5.9% 2.3% 5.1% 4.6% 17.9% 2.3% 4.0% 14.3% 14.4% 35.0% 5.0% 6.6% 11.6% 1.6% 4.0% 5.6% 7.0% 8.7% 6.7% 7.4% 29.8% 10.2% 22.2% 0.8% 0.1% 33.2% 12.7% 6.5% 19.2% 5.2% 10.4% 15.6% 9.1% 10.8% 3.7% 3.2% 26.8% 6.1% 31.3% Page 9 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 11 of 28 Top Round: 0 December 31, 2014 Perceptual Map Perceptual Map for All Segments Andrews Name Aft Agape Abby Adam Pfmn 14.0 6.5 9.2 11.9 Name Dixie Dot Dune Dart Pfmn 6.8 9.4 11.3 13.3 Size 8.2 13.5 10.8 6.2 Baldwin Revised 11/14/2014 4/12/2012 12/10/2013 11/9/2014 Name Bid Bold Buddy Bat Pfmn 10.2 13.4 11.8 13.8 Size 8.0 8.8 6.2 8.2 Chester Revised 11/12/2014 12/13/2014 12/22/2014 12/5/2014 Name Cid Coat Crimp Camp Pfmn 7.6 7.8 10.2 10.9 Size 12.4 12.2 9.4 9.9 Revised 12/11/2014 12/19/2014 12/3/2014 11/19/2014 Digby Size 13.2 10.6 6.9 8.7 COMP-XM INQUIRER Revised 6/28/2015 11/30/2014 12/22/2014 11/5/2014 Page 10 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 12 of 28 Top Round: 0 December 31, 2014 HR/TQM Report HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 804 804 525 279 Baldwin 498 498 371 127 Chester 533 533 316 217 Digby 398 398 260 138 Overtime% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.0% 10.0% 140 0 $0 0 100.0% 0.0% 10.0% 115 0 $0 0 100.0% 0.0% 8.2% 97 0 $2,500 40 109.6% 0.0% 6.6% 54 0 $5,000 80 117.6% $140 $0 $0 $140 $115 $0 $0 $115 $340 $0 $426 $766 $324 $0 $637 $962 $25.53 2,500 2.0% 5.0% $25.53 2,500 2.0% 5.0% $25.53 2,500 2.0% 5.0% $25.53 2,500 2.0% 5.0% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost Labor Contract Next Year Wages Benefits Profit Sharing Annual Raise 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 COMP-XM INQUIRER Andrews Baldwin Chester Digby $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Page 11 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 13 of 28 PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 14 of 28 Top Annual Report Andrews Round: 4 Dec. 31, 2014 C59559 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 end-of-year cash position. Cash Accounts Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates Inventory your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the Plant & Equipment company currently owes suppliers for materials and services. Accumulated Depreciation Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency Total Fixed Assets loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's Total Assets long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount LIABILITIES & OWNERS' of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to EQUITY keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $32,226 $13,447 $25,680 $71,353 2013 $32,292 $13,458 $14,537 57.7% $60,287 78.2% -35.9% $96,824 ($44,409) $93,304 ($37,954) $52,415 42.3% $55,350 $123,768 100.0% $115,636 7.7% 12.7% 22.0% $8,781 $5,725 $34,742 $9,516 $15,717 $27,209 Total Liabilities Common Stock Retained Earnings 2014 Common Size 26.0% 10.9% 20.7% $52,442 Total Equity 42.4% $49,248 9.8% 47.9% $12,081 $59,244 $12,444 $53,944 $71,325 57.6% $66,388 $123,768 Total Liab. & O. Equity 100.0% $115,636 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 2014 $20,205 $6,455 $0 $735 ($11,144) $10 2013 $21,840 $6,220 $0 $2,083 ($3,940) ($2,901) $16,262 $23,302 ($3,520) ($1,820) ($13,332) $0 ($1,935) $0 ($7,533) $9,992 ($7,947) $0 ($541) $0 $0 ($2,070) ($12,808) ($66) $32,226 ($10,558) $10,924 $32,292 Page 1 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 15 of 28 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 16 of 28 Top Annual Report Andrews Round: 4 Dec. 31, 2014 C59559 2014 Income Statement Abby $58,617 Adam $36,877 Na $0 Na $0 Na $0 Na $0 2014 Total $163,609 Common Size 100.0% $10,834 $11,568 $1,483 $23,886 $16,327 $21,923 $111 $38,361 $9,435 $14,362 $813 $24,611 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44,218 $60,421 $3,082 $107,721 27.0% 36.9% 1.9% 65.8% $11,582 $11,784 $20,256 $12,266 $0 $0 $0 $0 $55,888 34.2% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1,047 $881 $1,200 $1,000 $255 $4,383 $2,260 $0 $1,200 $2,000 $280 $5,740 $2,080 $0 $1,200 $1,000 $461 $4,741 $1,068 $869 $1,200 $1,000 $290 $4,427 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,455 $1,750 $4,800 $5,000 $1,286 $19,290 3.9% 1.1% 2.9% 3.1% 0.8% 11.8% Net Margin $7,199 $6,044 $15,516 $7,839 $0 $0 $0 $0 $36,598 22.4% $29 $36,569 $1,493 $3,357 $11,101 $412 $20,205 0.0% 22.4% 0.9% 2.1% 6.8% 0.3% 12.3% (Product Name:) Sales Aft $32,445 Agape $35,670 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $7,621 $12,568 $675 $20,863 Contribution Margin 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 PRINT Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 17 of 28 Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 18 of 28 Top Annual Report Baldwin Round: 4 Dec. 31, 2014 C59559 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 end-of-year cash position. Cash Accounts Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates Inventory your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the Plant & Equipment company currently owes suppliers for materials and services. Accumulated Depreciation Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency Total Fixed Assets loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's Total Assets long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount LIABILITIES & OWNERS' of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to EQUITY keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $17,478 $9,837 $16,975 $44,290 2013 $9,243 $8,058 $14,960 47.3% $32,261 90.1% -37.4% $84,380 ($35,023) $77,880 ($29,397) $49,357 52.7% $48,483 $93,647 100.0% $80,743 7.0% 19.7% 20.8% $5,385 $10,504 $20,129 47.5% $36,018 9.7% 42.7% $9,488 $35,237 $6,601 $18,440 $19,475 Total Liabilities Common Stock Retained Earnings 2014 Common Size 18.7% 10.5% 18.1% $44,516 $9,099 $40,032 Total Equity $49,131 52.5% $44,725 Total Liab. & O. Equity $93,647 100.0% $80,743 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 2014 $10,734 $5,625 $0 $1,216 ($2,015) ($1,779) 2013 $7,826 $5,192 $0 ($500) ($2,846) $470 $13,782 $10,142 ($6,500) ($12,220) ($4,492) $0 ($1,836) $5,667 ($6,322) $7,937 ($3,894) $0 ($1,177) $2,508 $0 $518 $954 $8,236 $17,478 ($2,045) ($4,123) $9,243 Page 1 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 19 of 28 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 20 of 28 Top Annual Report Baldwin Round: 4 Dec. 31, 2014 C59559 2014 Income Statement Buddy $35,530 Bat $33,735 Na $0 Na $0 Na $0 Na $0 2014 Total $119,682 Common Size 100.0% $3,365 $6,110 $375 $9,849 $8,385 $14,563 $747 $23,695 $7,134 $13,693 $691 $21,518 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $29,338 $48,957 $2,037 $80,332 24.5% 40.9% 1.7% 67.1% $8,592 $6,706 $11,835 $12,217 $0 $0 $0 $0 $39,350 32.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1,292 $876 $1,100 $400 $269 $3,937 $1,213 $963 $1,100 $400 $132 $3,808 $1,473 $988 $1,100 $1,200 $283 $5,044 $1,647 $939 $1,100 $1,200 $268 $5,154 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,625 $3,765 $4,400 $3,200 $952 $17,943 4.7% 3.1% 3.7% 2.7% 0.8% 15.0% Net Margin $4,655 $2,899 $6,791 $7,063 $0 $0 $0 $0 $21,407 17.9% $311 $21,096 $1,807 $2,439 $5,898 $219 $10,734 0.3% 17.6% 1.5% 2.0% 4.9% 0.2% 9.0% (Product Name:) Sales Bid $33,861 Bold $16,556 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $10,454 $14,590 $225 $25,269 Contribution Margin 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 PRINT Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 21 of 28 Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 22 of 28 Top Annual Report Chester Round: 4 Dec. 31, 2014 C59559 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 end-of-year cash position. Cash Accounts Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates Inventory your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the Plant & Equipment company currently owes suppliers for materials and services. Accumulated Depreciation Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency Total Fixed Assets loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's Total Assets long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount LIABILITIES & OWNERS' of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to EQUITY keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $32,551 $10,838 $10,144 $53,533 2013 $35,913 $9,789 $8,685 36.9% $54,387 98.4% -35.3% $142,900 ($51,267) $127,100 ($41,740) $91,633 63.1% $85,360 $145,165 100.0% $139,746 5.0% 20.2% 37.1% $5,925 $22,189 $51,886 $7,198 $29,274 $53,923 Total Liabilities Common Stock Retained Earnings 2014 Common Size 22.4% 7.5% 7.0% $90,395 Total Equity 62.3% $80,000 17.0% 20.7% $24,674 $30,096 $24,674 $35,072 $54,770 37.7% $59,746 $145,165 Total Liab. & O. Equity 100.0% $139,746 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 2014 $7,568 $9,527 $0 $1,273 ($1,459) ($1,049) 2013 $10,358 $8,473 $0 ($695) ($253) ($551) $15,860 $17,333 ($15,800) ($18,563) ($12,544) $0 $0 $9,570 ($7,533) $7,085 ($8,976) $0 $0 $7,969 $0 ($5,270) ($3,422) ($3,362) $32,551 ($6,277) ($7,507) $35,913 Page 1 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 23 of 28 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 24 of 28 Top Annual Report Chester Round: 4 Dec. 31, 2014 C59559 2014 Income Statement Crimp $34,848 Camp $39,697 Na $0 Na $0 Na $0 Na $0 2014 Total $131,859 Common Size 100.0% $7,109 $12,538 $394 $20,041 $9,513 $14,476 $325 $24,313 $10,636 $17,028 $189 $27,852 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $32,680 $53,440 $1,217 $87,337 24.8% 40.5% 0.9% 66.2% $10,354 $11,788 $10,535 $11,845 $0 $0 $0 $0 $44,521 33.8% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,660 $958 $1,050 $1,000 $326 $5,994 $3,167 $979 $1,050 $800 $408 $6,403 $1,800 $936 $1,050 $600 $446 $4,832 $1,900 $896 $1,050 $600 $508 $4,955 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $9,527 $3,768 $4,200 $3,000 $1,689 $22,184 7.2% 2.9% 3.2% 2.3% 1.3% 16.8% Net Margin $4,360 $5,385 $5,703 $6,890 $0 $0 $0 $0 $22,337 16.9% $479 $21,859 $3,249 $6,728 $4,158 $154 $7,568 0.4% 16.6% 2.5% 5.1% 3.2% 0.1% 5.7% (Product Name:) Sales Cid $25,485 Coat $31,829 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $5,423 $9,398 $309 $15,131 Contribution Margin 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 PRINT Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 25 of 28 Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 26 of 28 Top Annual Report Digby Round: 4 Dec. 31, 2014 C59559 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 end-of-year cash position. Cash Accounts Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates Inventory your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the Plant & Equipment company currently owes suppliers for materials and services. Accumulated Depreciation Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency Total Fixed Assets loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's Total Assets long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount LIABILITIES & OWNERS' of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to EQUITY keep instead of paying to shareholders as dividends. Accounts Payable Current Debt Long Term Debt $32,577 $9,754 $6,366 $48,697 2013 $26,689 $8,817 $7,714 38.7% $43,220 98.9% -37.6% $124,400 ($47,289) $97,758 ($38,996) $77,111 61.3% $58,762 $125,809 100.0% $101,983 4.6% 20.3% 32.9% $5,189 $15,875 $31,643 $5,796 $25,500 $41,362 Total Liabilities Common Stock Retained Earnings 2014 Common Size 25.9% 7.8% 5.1% $72,658 Total Equity 57.8% $52,707 11.4% 30.8% $14,382 $38,769 $14,382 $34,894 $53,151 42.2% $49,276 $125,809 Total Liab. & O. Equity 100.0% $101,983 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 2014 $10,165 $8,293 $0 $608 $1,347 ($937) 2013 $10,642 $6,517 ($3) $782 $1,777 ($1,876) $19,476 $17,841 ($26,642) ($2,800) ($6,291) $0 $0 $15,601 ($5,881) $9,624 ($4,286) $0 $0 $0 ($1,650) ($5,992) $13,054 $5,888 $32,577 ($11,928) $3,112 $26,689 Page 1 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 27 of 28 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015 COMP-XM INQUIRER Page 28 of 28 Top Annual Report (Product Name:) Digby Dart $21,161 Na $0 Na $0 Na $0 Na $0 2014 Total $118,679 Common Size 100.0% $10,573 $18,033 $25 $28,632 $4,406 $9,176 $374 $13,957 $4,324 $8,433 $338 $13,096 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,163 $47,707 $764 $72,634 20.4% 40.2% 0.6% 61.2% $17,545 $12,702 $7,732 $8,065 $0 $0 $0 $0 $46,044 38.8% $2,800 $1,000 $950 $1,000 $521 $6,271 $2,607 $928 $950 $1,000 $624 $6,108 $1,500 $988 $950 $600 $328 $4,365 $1,387 $857 $950 $1,300 $320 $4,813 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,293 $3,772 $3,800 $3,900 $1,792 $21,558 7.0% 3.2% 3.2% 3.3% 1.5% 18.2% $11,274 $6,594 $3,367 $3,252 $0 $0 $0 $0 $24,487 20.6% $780 $23,707 $2,677 $5,072 $5,585 $207 $10,165 0.7% 20.0% 2.3% 4.3% 4.7% 0.2% 8.6% Dot $41,334 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $4,859 $12,064 $26 $16,949 Contribution Margin Net Margin 2014 Income Statement Dune $21,689 Sales Dixie $34,494 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period 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: 4 Dec. 31, 2014 C59559 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1&studentkey=1149608&s... 05/03/2015