2) Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Bell. Labor costs will go from $3.02 to $3.52 per unit. In addition, their material costs have fallen from $6.80 to $5.80. Assume all period costs as reported on Baldwin's Income Statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product Bell would need to be sold next round to break even on the product? Select: 1 1,382 2,340 1,438 1,196 The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $143,082 Common Stock $53,558 Retained Earnings $38,650 Suppose next year the Baldwin Company generates $36,500 in net profit and pays $15,000 in dividends and total liabilities and common stock remain unchanged. What must their total assets be next year? Select: 1 $256,790 $92,208 $235,290 $286,790 Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 12.5S2022 bond early. Select: 1 $14,665,611 $15,841,880 $14,008,592 What would Chester Corporation?s market capitalization be if the current stock price fell 10%? Select: 1 $104.6 million $114.9 million $103.4 million $94.1 million Refer to the HR Report section of the Inquirer. Baldwin spends $569,118 on various HR initiatives. What percentage of this expenditure is dedicated to training its employees? Select: 1 59.2% 69.0% 62.1% 31.0% Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a niche differentiation strategy. From last year?s reports, which company would be the strongest competitor? Select: 1 Chester Andrews Digby Baldwin The Digby company will increase its automation for the Dome product by 2.0. Assuming no further change in capacity, how much will this investment in automation cost? Select: 1 $8,750,000 $17,500,000 $10,000,000 $20,000,000

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 Annual Report Digby PRINT Top " Round: 3 Student: Naseem Sultana Dec. 31, 2017 Andrews Naseem Sultana Baldwin Chester Digby Naseem Sultana Selected Financial Statistics Andrews Baldwin Chester Digby 8.7% 1.7% 0.9% 13.1% 0.94 0.70 0.74 1.24 8.2% 1.2% 0.7% 16.3% 2.1 2.6 2.4 1.7 17.3% 3.0% 1.6% 27.9% $13,182,122 $0 $0 $0 Sales $140,607,956 $165,224,617 $188,064,404 $214,650,410 EBIT $28,011,446 $21,571,984 $20,128,555 $51,390,943 Profits $12,271,569 $2,772,748 $1,681,879 $28,215,748 Cumulative Profit $31,297,051 $8,645,280 $9,361,846 $59,562,103 SG&A / Sales 11.4% 8.2% 11.3% 6.4% Contrib. Margin % 43.3% 35.9% 36.3% 38.6% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan COMP-XM INQUIRER Page 1 Top Round: 3 Stocks & Bonds Naseem Sultana December 31 , 2017 Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E Andrews $73.02 $3.31 1,962,055 $143 $36.06 $6.25 $9.00 12.3% 11.7 Baldwin $29.12 ($0.90) 3,394,810 $99 $27.16 $0.82 $0.00 0.0% 35.6 Chester $36.59 ($2.34) 3,140,441 $115 $33.31 $0.54 $0.00 0.0% 68.2 $115.65 $31.02 1,899,156 $220 $53.25 $14.86 $0.00 0.0% 7.8 Digby Bond Market Summary Company Series# Face Yield Close$ S&P Andrews 11.2S2021 $8,837,000 11.9% 94.36 CCC 11.9S2022 $7,072,000 12.4% 95.79 CCC 10.9S2025 $10,000,000 12.2% 89.48 CCC 11.4S2027 $25,000,000 12.6% 90.81 CCC 11.3S2021 $10,417,600 12.2% 92.69 CC 12.5S2022 $14,665,611 13.1% 95.52 CC 12.5S2023 $7,993,507 13.2% 94.92 CC 12.5S2024 $9,474,649 13.2% 94.39 CC 12.9S2025 $14,393,597 13.5% 95.80 CC 13.4S2026 $34,621,180 13.7% 98.01 CC 14.2S2027 $10,577,574 13.9% 102.10 CC 11.2S2021 $8,609,806 12.0% 92.95 CC 12.4S2022 $5,757,941 12.9% 95.84 CC 12.0S2024 $15,724,719 12.9% 93.05 CC 12.5S2025 $17,739,700 13.2% 94.83 CC 13.1S2026 $35,353,782 13.4% 97.49 CC 13.8S2027 $25,097,584 13.7% 101.06 CC 11.1S2023 $2,366,375 11.4% 97.11 BBB 11.2S2024 $5,881,308 11.5% 97.24 BBB 11.4S2025 $1,210,724 11.6% 98.00 BBB 11.6S2026 $19,603,373 11.7% 98.93 BBB 12.6S2027 $11,164,576 12.1% 104.56 BBB Baldwin Chester Digby Next Year's Prime Rate 9.00% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 3 December 31, 2017 Naseem Sultana Andrews Baldwin Chester Digby $12,272 $2,773 $1,682 $28,216 $11,545 $17,393 $18,489 $10,844 $0 $0 $0 $0 $1,193 $921 $2,202 ($523) ($28,366) ($11,179) ($8,330) $5,222 ($351) ($307) ($2,977) ($2,554) ($3,707) $9,601 $11,065 $41,206 ($40,000) ($33,200) ($57,069) ($36,300) ($17,658) $0 $0 $0 Sales of common stock $0 $14,202 $20,378 $0 Purchase of common stock $0 $0 $0 ($1,875) $25,000 $10,578 $25,098 $11,165 $0 $0 $0 $0 ($15,035) ($43,715) ($34,768) ($31,491) $9,000 $31,463 $29,119 $21,036 $13,182 $0 $0 $0 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 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 $14,489 $12,528 $39,825 ($1,165) ($29,218) ($11,071) ($6,178) $3,741 Andrews Baldwin Chester Digby $0 $40,882 $30,494 $38,157 Accounts Receivable $11,557 $13,580 $15,457 $17,642 Inventory $37,684 $15,603 $18,079 $14,748 Total Current Assets $49,241 $70,065 $64,030 $70,548 Plant and equipment $173,180 $260,900 $277,329 $162,660 Accumulated Depreciation ($72,894) ($95,676) ($88,988) ($60,555) Total Fixed Assets $100,286 $165,224 $188,341 $102,105 Total Assets $149,526 $235,290 $252,371 $172,653 $5,674 $9,476 $10,358 $10,254 Current Debt $22,182 $31,463 $29,119 $21,036 Long Term Debt $50,909 $102,144 $108,284 $40,226 Total Liabilities $78,765 $143,082 $147,760 $71,517 Common Stock $10,725 $53,558 $56,300 $11,308 Retained Earnings $60,037 $38,650 $48,311 $89,829 Total Equity $70,761 $92,207 $104,611 $101,136 $149,526 $235,290 $252,371 $172,653 Andrews Baldwin Chester Digby $140,608 $165,225 $188,064 $214,650 Net change in cash position Balance Sheet Survey Cash Accounts Payable Total Liabilities & Owners' Equity Income Statement Survey Sales Variable Costs (Labor, Material, Carry) $79,707 $105,982 $119,860 $131,752 Depreciation $11,545 $17,393 $18,489 $10,844 SGA (R&D, Promo, Sales, Admin) $16,095 $13,538 $21,313 $13,828 $5,250 $6,739 $8,274 $6,836 $28,011 $21,572 $20,129 $51,391 Interest (Short term, Long term) $8,747 $17,219 $17,488 $7,096 Taxes $6,743 $1,523 $924 $15,503 $250 $57 $34 $576 $12,272 $2,773 $1,682 $28,216 Other (Fees, Writeoffs, TQM, Bonuses) EBIT Profit Sharing Net Profit COMP-XM INQUIRER Page 3 Top Production Analysis Round: 3 December 31, 2017 Naseem Sultana Production Information 2nd Shift & Name Ace Primary Segment Nano Unit Age Units Inven Dec.3 Pfmn Size Sold tory Revision Date 1 MTBF Coord Coord 1,292 154 11/18/2017 1.1 24000 12.7 Auto mation Capacity Material Labor Contr. OverNext Next Price Cost Cost Marg. time Round Round 4.3 $39.50 $13.50 $7.96 45% 99% 6.0 Plant Utiliz. 1,228 199% Awe Elite 1,068 178 10/28/2017 1.4 26000 14.7 7.5 $40.00 $13.54 $7.75 47% 75% 6.0 1,214 175% Art Thrift 802 707 5/25/2017 2.8 18000 8.9 12.9 $24.00 $7.12 $5.15 44% 0% 7.0 1,130 Ant Core 797 1,448 4/27/2018 3.6 21000 9.6 10.6 $30.00 $9.00 $5.76 38% 33% 7.0 1,500 133% Awe2 Elite 100 0 3/10/2017 1.2 25000 15.9 8.2 $37.00 $13.57 $15.93 20% 100% 6.0 350 199% Bell Thrift 2,223 202 6/10/2018 3.7 17000 8.0 12.2 $16.00 $6.80 $3.02 37% 58% 10.0 1,600 157% Bit Thrift 2,341 382 6/10/2018 3.6 17000 8.2 12.0 $16.00 $6.96 $3.03 35% 62% 10.0 1,800 160% Boat Core 1,817 301 12/15/2016 2.1 18000 11.1 8.5 $24.00 $9.72 $4.68 37% 82% 8.0 1,250 180% Buzz Core 2,025 340 12/17/2016 2.1 20000 11.8 9.0 $24.00 $10.36 $4.63 35% 73% 8.0 1,500 171% Cell Thrift 1,099 387 12/20/2017 2.2 14000 8.7 11.5 $17.00 $6.82 $1.87 51% 8% 10.0 1,250 107% City Core 2,107 293 12/7/2015 3.1 16000 9.6 10.6 $19.00 $8.14 $4.26 32% 60% 9.9 1,596 158% Cozy Nano 1,261 333 12/17/2017 1.0 18000 13.1 4.4 $30.00 $12.74 $7.05 33% 56% 7.0 1,044 154% Cute Elite 858 172 12/17/2017 1.0 20000 16.2 6.9 $36.00 $13.59 $6.02 44% 0% 7.0 Crimp Core 1,784 97 12/25/2017 0.9 16000 11.0 9.1 $21.00 $9.31 $5.86 29% 83% 7.9 1,097 181% Cake Core 1,053 0 2/10/2017 0.9 16000 10.7 9.5 $22.00 $9.03 $4.48 37% 100% 8.0 1,024 176% Deal Nano 1,782 0 11/5/2017 1.2 23000 13.7 4.5 $34.00 $13.66 $7.91 39% 100% 7.0 1,150 198% Dim Elite 1,378 18 8/24/2017 1.9 25000 16.5 6.5 $34.00 $14.56 $6.34 37% 28% 7.0 900 127% Dome Nano 1,335 453 7/3/2017 1.3 23000 14.2 4.0 $37.00 $14.04 $7.30 39% 43% 7.0 1,250 141% Dug Elite 1,562 208 7/25/2017 1.3 25000 16.3 6.2 $37.00 $14.57 $7.09 40% 30% 7.0 1,350 129% COMP-XM INQUIRER 994 97% 99% Page 4 Top Thrift Market Segment Analysis Naseem Sultana Round: 3 December 31, 2017 Thrift Statistics Total Industry Unit Demand 6,974 Actual Industry Unit Sales 6,974 Segment % of Total Industry 26.1% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria Expectations 1. Price 2. Importance $14.00 - 26.00 55% Reliability MTBF 14000-20000 20% 3. Ideal Position Pfmn 8.2 Size 12.0 15% 4. Age Ideal Age = 3.0 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Market Share Units Sold to Seg Bit 29% 2,030 6/10/2018 8.2 12.0 Bell 29% 2,023 6/10/2018 8.0 Cell 15% 1,071 12/20/2017 City 12% 815 12/7/2015 Name Revision Date Stock Out Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey $16.00 17000 3.64 $1,250 79% $1,400 75% 55 12.2 $16.00 17000 3.74 $1,250 78% $1,400 75% 54 8.7 11.5 $17.00 14000 2.25 $1,140 66% $1,000 72% 31 9.6 10.6 $19.00 16000 3.11 $1,140 67% $1,000 72% 24 Pfmn Size Coord Coord List Price Art 9% 642 5/25/2017 8.9 12.9 $24.00 18000 2.83 $1,300 89% $1,500 66% 19 Crimp 3% 216 12/25/2017 11.0 9.1 $21.00 16000 0.88 $1,140 58% $900 72% 0 Ant 2% 149 4/27/2018 9.6 10.6 $30.00 21000 3.65 $1,200 83% $1,000 66% 4 Cake 0% 28 2/10/2017 10.7 9.5 $22.00 16000 0.89 $1,140 51% $900 72% 3 YES COMP-XM INQUIRER Page 5 Top Core Market Segment Analysis Naseem Sultana Round: 3 December 31, 2017 Core Statistics Total Industry Unit Demand 8,883 Actual Industry Unit Sales 8,883 Segment % of Total Industry 33.3% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria Expectations Importance 1. Price $20.00 - 32.00 46% 2. Age Ideal Age = 2.0 20% 3. Reliability MTBF 16000-22000 18% 4. Ideal Position Pfmn 11.2 Size 9.0 16% Perceptual Map for Core Segment Top Products in Core Segment Market Share Units Sold to Seg Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey Buzz 22% 1,937 12/17/2016 11.8 9.0 $24.00 20000 2.10 $1,250 78% $1,100 76% 50 Boat 19% 1,710 12/15/2016 11.1 8.5 $24.00 18000 2.09 $1,250 78% $1,100 76% 44 Crimp 18% 1,568 12/25/2017 11.0 9.1 $21.00 16000 0.88 $1,140 58% $900 72% 38 City 15% 1,292 12/7/2015 9.6 10.6 $19.00 16000 3.11 $1,140 67% $1,000 72% 26 Cake 12% 1,025 2/10/2017 10.7 9.5 $22.00 16000 0.89 $1,140 51% $900 72% 31 Ant 7% 647 4/27/2018 9.6 10.6 $30.00 21000 3.65 $1,200 83% $1,000 42% 12 Bit 4% 311 6/10/2018 8.2 12.0 $16.00 17000 3.64 $1,250 79% $1,400 76% 2 Bell 2% 201 6/10/2018 8.0 12.2 $16.00 17000 3.74 $1,250 78% $1,400 76% 0 Art 2% 160 5/25/2017 8.9 12.9 $24.00 18000 2.83 $1,300 89% $1,500 42% 0 Cell 0% 28 12/20/2017 8.7 11.5 $17.00 14000 2.25 $1,140 66% $1,000 72% 8 Deal 0% 4 11/5/2017 13.7 4.5 $34.00 23000 1.24 $1,350 87% $1,000 11% 0 Name Revision Date Stock Out YES YES Pfmn Size Coord Coord List Price COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Naseem Sultana Round: 3 December 31, 2017 Nano Statistics Total Industry Unit Demand 5,403 Actual Industry Unit Sales 5,403 Segment % of Total Industry 20.3% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria Expectations 1. Ideal Position 2. Importance Pfmn 13.1 Size 4.2 35% Price $28.00 - 40.00 27% 3. Age Ideal Age = 1.0 20% 4. Reliability MTBF 18000-24000 18% Perceptual Map for Nano Segment Top Products in Nano Segment Market Share Units Sold to Seg Deal 27% 1,432 11/5/2017 Dome 24% 1,279 Cozy 21% 1,132 Name Revision Date Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey $34.00 23000 1.24 $1,350 87% $1,000 83% 62 4.0 $37.00 23000 1.34 $1,350 87% $900 83% 48 4.4 $30.00 18000 1.03 $1,140 67% $1,900 70% 46 Stock Out Pfmn Size Coord Coord YES 13.7 4.5 7/3/2017 14.2 12/17/2017 13.1 List Price Ace 18% 980 11/18/2017 12.7 4.3 $39.50 24000 1.11 $1,200 82% $1,100 61% 44 Awe 4% 209 10/28/2017 14.7 7.5 $40.00 26000 1.38 $1,200 82% $1,000 61% 8 Boat 2% 106 12/15/2016 11.1 8.5 $24.00 18000 2.09 $1,250 78% $1,100 18% 2 Dug 2% 91 7/25/2017 16.3 6.2 $37.00 25000 1.34 $1,350 87% $900 83% 0 Buzz 2% 88 12/17/2016 11.8 9.0 $24.00 20000 2.10 $1,250 78% $1,100 18% 1 Cute 1% 66 12/17/2017 16.2 6.9 $36.00 20000 1.04 $1,140 67% $2,200 70% 0 Dim 0% 18 8/24/2017 16.5 6.5 $34.00 25000 1.90 $1,350 87% $1,000 83% 0 COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Naseem Sultana Round: 3 December 31, 2017 Elite Statistics Total Industry Unit Demand 5,425 Actual Industry Unit Sales 5,425 Segment % of Total Industry 20.3% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age = 0.0 34% 2. Price $30.00 - 42.00 24% 3. Ideal Position Pfmn 16.0 Size 7.1 22% 4. Reliability MTBF 20000-26000 20% Perceptual Map for Elite Segment Top Products in Elite Segment Market Share Units Sold to Seg Dug 27% 1,471 7/25/2017 16.3 6.2 Dim 25% 1,360 8/24/2017 16.5 Awe 16% 859 10/28/2017 Cute 15% 791 12/17/2017 Deal 6% 346 11/5/2017 Ace 6% 312 Cozy 2% Awe2 Dome Name Age MTBF Dec.31 Promo Budget Cust. Awareness $37.00 25000 1.34 $1,350 87% 6.5 $34.00 25000 1.90 $1,350 14.7 7.5 $40.00 26000 1.38 16.2 6.9 $36.00 20000 13.7 4.5 $34.00 11/18/2017 12.7 4.3 129 12/17/2017 13.1 2% 100 3/10/2017 1% 56 7/3/2017 Revision Date Stock Out YES YES Cust. Accessibility Dec. Cust. Survey $900 87% 48 87% $1,000 87% 47 $1,200 82% $1,000 80% 37 1.04 $1,140 67% $2,200 69% 30 23000 1.24 $1,350 87% $1,000 87% 8 $39.50 24000 1.11 $1,200 82% $1,100 80% 0 4.4 $30.00 18000 1.03 $1,140 67% $1,900 69% 1 15.9 8.2 $37.00 25000 1.19 $700 37% $700 80% 33 14.2 4.0 $37.00 23000 1.34 $1,350 87% $900 87% 1 Pfmn Size Coord Coord List Price COMP-XM INQUIRER Sales Budget Page 8 Top Market Share Report Naseem Sultana Round: 3 December 31, 2017 Actual Market Share in Units Thrift Core Nano Industry Unit Sales % of Market Elite Total 5,425 26,684 26.1% 33.3% 20.3% 20.3% 100.0% 6,974 8,883 Ace 5,403 18.1% 4.8% 3.9% 15.8% Awe 5.8% 4.0% Art 9.2% 1.8% 3.0% Ant 2.1% 7.3% 3.0% Awe2 1.8% 0.4% 15.2% Total 11.3% 9.1% 22.0% 23.4% Bell 29.0% 2.3% 8.3% Bit 29.1% 3.5% 8.8% Boat 19.3% 2.0% 6.8% Buzz 21.8% 1.6% 7.6% Total 58.1% 46.8% 3.6% 31.5% Cell 15.4% 0.3% 4.1% City 11.7% 14.5% 7.9% Cozy 20.9% 4.7% 1.2% 14.6% Cute 2.4% 3.2% Crimp 3.1% 17.6% 6.7% Cake 0.4% 11.5% 4.0% Total 30.6% 44.0% 22.2% 17.0% 30.6% Deal 0.0% 26.5% Dome 6.7% 0.3% 25.1% Dim 6.4% 5.2% 23.7% 1.0% 5.0% 1.7% 27.1% 5.8% 0.0% 52.2% 59.6% 22.7% Dug Total Potential Market Share in Units Thrift Core Nano Elite Total 6,974 8,883 5,403 5,425 26,684 26.1% 33.3% 20.3% 20.3% 100.0% Ace 18.0% 4.7% 4.6% Awe 3.9% 13.1% 3.4% Units Demanded % of Market Art 9.2% 1.8% 3.0% Ant 2.1% 7.2% 2.9% Awe2 18.1% 21.9% 3.7% 36.0% 17.7% Total 11.3% 8.9% Bell 29.2% 2.3% 8.4% Bit 29.0% 3.5% 8.7% Boat 18.9% 2.0% 6.7% Buzz 21.4% 1.6% 7.4% 3.6% 31.2% Total 58.2% 46.0% Cell 15.3% 0.3% 4.1% City 11.6% 14.3% 7.8% Cozy 20.8% 2.0% 4.6% Cute 1.2% 12.0% 2.7% Crimp 3.1% 17.4% 6.6% Cake 0.5% 13.0% 4.5% Total 30.5% 45.0% Deal 22.1% 14.0% 30.3% 26.9% 6.1% 6.7% Dim 0.3% Total 0.0% 0.8% 4.9% 1.7% Dug 4.3% 23.6% Dome 20.7% 22.4% 4.9% 52.5% 50.0% 20.8% COMP-XM INQUIRER Page 9 Top Perceptual Map Round: 3 December 31, 2017 Naseem Sultana Perceptual Map for All Segments Andrews Name Ace Chester Pfmn Size Revised 12.7 4.3 11/18/2017 Name Cell Pfmn Size 8.7 11.5 Digby Revised Name 12/20/2017 Deal Pfmn Size Revised 13.7 4.5 11/5/2017 Awe 14.7 7.5 10/28/2017 City 9.6 10.6 12/7/2015 Art 8.9 12.9 5/25/2017 Cozy 13.1 4.4 Ant 9.6 10.6 4/27/2018 Cute 16.2 Awe2 15.9 8.2 3/10/2017 Crimp Cake Baldwin Name Pfmn Size 8.0 12.2 8.2 12.0 11.1 8.5 11.8 9.0 12/17/2017 Dome 14.2 4.0 7/3/2017 6.9 12/17/2017 Dug 16.3 6.2 7/25/2017 11.0 9.1 12/25/2017 10.7 9.5 2/10/2017 12/15/2016 Buzz 8/24/2017 6/10/2018 Boat 6.5 6/10/2018 Bit 16.5 Revised Bell Dim 12/17/2016 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 3 December 31, 2017 Naseem Sultana HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 581 491 634 604 Complement 581 491 634 604 1st Shift Complement 391 290 424 405 2nd Shift Complement 190 200 211 199 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 7.5% 8.0% 6.1% 10.0% 94 50 128 60 0 0 0 94 $2,000 $2,500 $5,000 $0 60 40 80 0 108.0% 115.8% 125.3% 100.0% $281 $177 $771 $60 $0 $0 $0 $470 Training Cost $697 $393 $1,015 $0 Total HR Admin Cost $978 $569 $1,786 $530 Wages $29.56 $29.56 $29.56 $29.56 Benefits 2,500 2,500 2,500 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 5.0% 5.0% New Employees Separated Employees Recruiting Spend Training Hours Productivity Index Recruiting Cost Separation Cost Labor Contract Next Year 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 Andrews Baldwin Chester Digby CPI Systems $500 $1,250 $1,500 $0 Vendor/JIT $500 $1,250 $1,500 $0 $0 $0 $0 $1,250 Channel Support Systems $500 $1,500 $0 $1,250 Concurrent Engineering $500 $0 $0 $1,250 UNEP Green Programs $500 $0 $1,500 $0 $0 $0 $1,500 $0 Quality Function Deployment Effort $500 $0 $0 $0 CCE/6 Sigma Training $500 $750 $0 $1,250 GEMI TQEM Sustainability Initiatives $500 $750 $0 $1,250 $4,000 $5,500 $6,000 $6,250 Material Cost Reduction 7.76% 6.03% 1.41% 6.43% Labor Cost Reduction 8.97% 1.78% 0.05% 13.93% 17.29% 0.00% 0.00% 39.79% 8.91% 16.23% 43.11% 0.00% Process Mgt Budgets Last Year Quality Initiative Training TQM Budgets Last Year Benchmarking Total Expenditures Cumulative Impacts Reduction R&D Cycle Time Reduction Admin Costs Demand Increase 5.81% 5.47% 0.45% 9.37% COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews C59559 Balance Sheet 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 2017 2016 Common Size $0 0.0% $29,218 Accounts Receivable $11,557 7.7% $11,206 Inventory $37,684 25.2% $9,317 32.9% $49,741 Cash Total Current Assets $49,241 Plant & Equipment $173,180 115.8% $133,180 Accumulated Depreciation ($72,894) -48.8% ($61,349) Round: 7 Dec. 31, 2017 Total Fixed Assets $100,286 67.1% $71,831 Total Assets $149,526 100.0% $121,573 $5,674 3.8% $4,481 Current Debt $22,182 14.8% $15,035 Long Term Debt $50,909 34.0% $25,909 52.7% $45,425 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $78,765 Common Stock $10,725 7.2% $10,725 Retained Earnings $60,037 40.2% $65,424 $70,762 47.3% $76,149 $149,526 100.0% $121,573 Total Equity Total Liab. & O. Equity 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: 2017 2016 Net Income (Loss) $12,272 $16,722 Depreciation $11,545 $8,879 $0 $0 $1,193 $2,200 ($28,366) ($5,201) ($351) ($968) ($3,707) $21,632 Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements ($40,000) ($12,268) Cash Flows from Financing Activities: Dividends Paid ($17,658) ($5,886) Sales of Common Stock $0 $0 Purchase of Common Stock $0 ($1,000) $25,000 $0 $0 ($6,035) $7,147 $5,035 $14,489 ($7,886) ($29,218) $1,478 $0 $29,218 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 Page 1 Top Annual Report Andrews Round: 7 Dec. 31, 2017 C59559 2017 Income Statement (Product Name:) 2017 Common Total Size Ace Awe Art Ant Awe2 Na Na Na $51,032 $42,730 $19,259 $23,897 $3,689 $0 $0 $0 $140,608 100.0% Direct Labor $10,285 $8,278 $4,197 $4,654 $1,589 $0 $0 $0 $29,003 20.6% Direct Material $17,656 $14,112 $5,590 $7,446 $1,377 $0 $0 $0 $46,182 32.8% $399 $448 $1,035 $2,640 $0 $0 $0 $0 $4,522 3.2% Total Variable $28,341 $22,838 $10,822 $14,740 $2,966 $0 $0 $0 $79,707 56.7% Contribution Margin $22,691 $19,893 $8,437 $9,157 $723 $0 $0 $0 $60,901 43.3% Depreciation $2,456 $2,428 $2,561 $3,400 $700 $0 $0 $0 $11,545 8.2% SG&A: R&D $892 $835 $403 $1,000 $190 $0 $0 $0 $3,320 2.4% Promotions $1,200 $1,200 $1,300 $1,200 $700 $0 $0 $0 $5,600 4.0% Sales $1,100 $1,000 $1,500 $1,000 $700 $0 $0 $0 $5,300 3.8% $680 $570 $257 $319 $49 $0 $0 $0 $1,875 1.3% Total Period $6,329 $6,033 $6,021 $6,919 $2,339 $0 $0 $0 $27,640 19.7% Net Margin $16,363 $13,860 $2,417 $2,238 ($1,616) $0 $0 $0 $33,261 23.7% Sales Variable Costs: Inventory Carry Period Costs: Admin 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. Other $5,250 3.7% EBIT $28,011 19.9% Short Term Interest $2,976 2.1% LongTerm Interest $5,771 4.1% Taxes $6,743 4.8% $250 0.2% $12,272 8.7% Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report Top Annual Report Baldwin C59559 Round: 7 Dec. 31, 2017 Balance Sheet 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 2017 2016 Common Size Cash $40,882 17.4% $51,954 Accounts Receivable $13,580 5.8% $13,273 Inventory $15,603 6.6% $4,424 29.8% $69,651 Total Current Assets $70,065 Plant & Equipment $260,900 110.9% $227,700 Accumulated Depreciation ($95,676) -40.7% ($78,282) Total Fixed Assets $165,224 70.2% $149,418 Total Assets $235,290 100.0% $219,068 $9,476 4.0% $8,555 $31,463 13.4% $43,715 $102,144 43.4% $91,566 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt Total Liabilities $143,083 60.8% $143,836 Common Stock $53,558 22.8% $39,355 Retained Earnings $38,650 16.4% $35,877 $92,208 39.2% $75,232 $235,290 100.0% $219,068 Total Equity Total Liab. & O. Equity 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 2017 2016 $2,773 ($722) $17,393 $15,180 $0 $0 $921 ($635) ($11,179) $4,349 ($307) $104 $9,601 $18,276 Cash Flows from Investing Activities: Plant Improvements ($33,200) ($50,140) Cash Flows from Financing Activities: Dividends Paid $0 $14,202 $11,774 $0 $0 $10,578 Sales of Common Stock $0 $34,621 Purchase of Common Stock Cash from long term debt Retirement of long term debt $0 ($11,300) ($12,252) Closing cash position $21,793 $40,882 Net change in cash position $53,657 ($11,071) Net cash from financing activities $18,562 $12,528 Change in current debt (net) $51,954 Page 1 Annual Report Top Annual Report Baldwin Round: 7 Dec. 31, 2017 C59559 2017 Income Statement (Product Name:) Sales 2017 Common Total Size Bell Bit Boat Buzz Na Na Na Na $35,575 $37,451 $43,602 $48,597 $0 $0 $0 $0 $165,225 100.0% $6,708 $7,103 $8,528 $9,393 $0 $0 $0 $0 $31,733 19.2% $15,627 $16,821 $18,272 $21,658 $0 $0 $0 $0 $72,377 43.8% $244 $469 $533 $626 $0 $0 $0 $0 $1,872 1.1% $22,579 $24,393 $27,333 $31,678 $0 $0 $0 $0 $105,982 64.1% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Contribution Margin $12,996 $13,058 $16,269 $16,919 $0 $0 $0 $0 $59,242 35.9% Depreciation $4,907 $5,520 $3,167 $3,800 $0 $0 $0 $0 $17,393 10.5% SG&A: R&D $1,000 $1,000 $0 $0 $0 $0 $0 $0 $2,000 1.2% Promotions $1,250 $1,250 $1,250 $1,250 $0 $0 $0 $0 $5,000 3.0% Sales $1,400 $1,400 $1,100 $1,100 $0 $0 $0 $0 $5,000 3.0% $331 $349 $406 $452 $0 $0 $0 $0 $1,538 0.9% Total Period $8,888 $9,519 $5,923 $6,602 $0 $0 $0 $0 $30,931 18.7% Net Margin $4,108 $3,539 $10,347 $10,316 $0 $0 $0 $0 $28,311 17.1% Period Costs: Admin 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. Other $6,739 4.1% EBIT $21,572 13.1% Short Term Interest $4,027 2.4% LongTerm Interest $13,192 8.0% $1,523 0.9% $57 0.0% $2,773 1.7% Taxes Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report Top Annual Report Chester C59559 Balance Sheet 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 2017 2016 Common Size Cash $30,494 12.1% $36,672 Round: 7 Dec. 31, 2017 Accounts Receivable $15,457 6.1% $12,481 Inventory $18,079 7.2% $9,748 25.4% $58,901 Total Current Assets $64,030 Plant & Equipment $277,329 109.9% $220,260 Accumulated Depreciation ($88,988) -35.3% ($70,500) Total Fixed Assets $188,341 74.6% $149,760 Total Assets $252,371 100.0% $208,662 LIABILITIES & OWNERS' EQUITY Accounts Payable $10,358 4.1% $8,156 Current Debt $29,119 11.5% $34,768 $108,284 42.9% $83,186 58.5% $126,110 Long Term Debt Total Liabilities $147,761 Common Stock $56,300 22.3% $35,922 Retained Earnings $48,311 19.1% $46,629 Total Equity $104,611 41.5% $82,551 Total Liab. & O. Equity $252,371 100.0% $208,662 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 2017 2016 $1,682 $2,190 $18,489 $13,324 $0 $0 $2,202 $1,381 ($8,330) $132 ($2,977) ($2,211) $11,065 $14,815 Cash Flows from Investing Activities: Plant Improvements ($57,069) ($54,960) 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 $0 $0 $20,378 $17,388 $0 $0 $25,098 $35,354 $0 ($11,300) ($5,650) $12,998 Net cash from financing activities $39,825 $54,439 Net change in cash position ($6,178) $14,294 Closing cash position $30,494 $36,672 Change in current debt (net) Page 1 Annual Report Top Annual Report Chester Round: 7 Dec. 31, 2017 C59559 2017 Income Statement (Product Name:) 2017 Common Total Size Cell City Cozy Cute Crimp Cake Na Na $18,688 $40,029 $37,840 $30,879 $37,461 $23,167 $0 $0 $188,064 100.0% Direct Labor $2,125 $9,007 $8,859 $5,398 $10,461 $4,718 $0 $0 $40,567 21.6% Direct Material $6,587 $17,724 $15,661 $11,389 $15,981 $9,782 $0 $0 $77,124 41.0% $368 $446 $777 $404 $173 $0 $0 $0 $2,169 1.2% Total Variable $9,080 $27,178 $25,297 $17,191 $26,615 $14,500 $0 $0 $119,860 63.7% Contribution Margin $9,608 $12,851 $12,543 $13,688 $10,846 $8,668 $0 $0 $68,204 36.3% Depreciation $3,833 $4,852 $2,366 $2,253 $2,750 $2,434 $0 $0 $18,489 9.8% SG&A: R&D $983 $0 $973 $973 $995 $114 $0 $0 $4,039 2.1% Promotions $1,140 $1,140 $1,140 $1,140 $1,140 $1,140 $0 $0 $6,840 3.6% Sales $1,000 $1,000 $1,900 $2,200 $900 $900 $0 $0 $7,900 4.2% $252 $539 $510 $416 $505 $312 $0 $0 $2,535 1.3% Total Period $7,208 $7,531 $6,890 $6,982 $6,290 $4,900 $0 $0 $39,802 21.2% Net Margin $2,400 $5,320 $5,654 $6,705 $4,556 $3,768 $0 $0 $28,402 15.1% Sales Variable Costs: Inventory Carry Period Costs: Admin 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. Other $8,274 4.4% EBIT $20,129 10.7% Short Term Interest $3,611 1.9% LongTerm Interest $13,878 7.4% $924 0.5% $34 0.0% $1,682 0.9% Taxes Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report Top Annual Report Digby C59559 Balance Sheet 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 2017 2016 Common Size Cash $38,157 22.1% $34,416 Accounts Receivable $17,642 10.2% $15,089 Inventory $14,748 8.5% $19,971 40.9% $69,476 Total Current Assets $70,547 Plant & Equipment $162,660 94.2% $126,360 Accumulated Depreciation ($60,555) -35.1% ($49,711) Total Fixed Assets $102,105 59.1% $76,649 Total Assets $172,653 100.0% $146,125 Round: 7 Dec. 31, 2017 LIABILITIES & OWNERS' EQUITY Accounts Payable $10,254 5.9% $10,777 Current Debt $21,036 12.2% $31,491 Long Term Debt $40,226 23.3% $29,062 41.4% $71,330 Total Liabilities $71,516 Common Stock $11,308 6.5% $11,598 Retained Earnings $89,829 52.0% $63,197 Total Equity $101,137 58.6% $74,795 Total Liab. & O. Equity $172,653 100.0% $146,125 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: 2017 2016 Net Income (Loss) $28,216 $17,129 Depreciation $10,844 $8,424 $0 $0 Accounts Payable ($523) $2,522 Inventory $5,222 ($11,519) Extraordinary gains/losses/writeoffs ($2,554) Net cash from operations ($2,002) $41,206 Accounts Receivable $14,554 Cash Flows from Investing Activities: Plant Improvements ($36,300) ($32,400) Cash Flows from Financing Activities: Dividends Paid $0 $0 Sales of Common Stock $0 $2,797 Purchase of Common Stock ($1,875) $0 Cash from long term debt $11,165 $19,603 Retirement of long term debt $0 ($11,300) ($10,455) Closing cash position $10,329 $38,157 Net change in cash position $28,176 $3,741 Net cash from financing activities $17,075 ($1,165) Change in current debt (net) $34,416 Page 1 Annual Report Top Annual Report Digby Round: 7 Dec. 31, 2017 C59559 2017 Income Statement (Product Name:) Deal Dim Dome Dug Na Na Na Na 2017 Common Total Size Sales $60,598 $46,856 $49,408 $57,789 $0 $0 $0 $0 $214,650 100.0% Direct Labor $14,095 $9,373 $9,998 $11,319 $0 $0 $0 $0 $44,785 20.9% Direct Material $23,193 $20,190 $18,911 $22,902 $0 $0 $0 $0 $85,197 39.7% $0 $47 $1,177 $546 $0 $0 $0 $0 $1,770 0.8% Total Variable $37,288 $29,610 $30,086 $34,767 $0 $0 $0 $0 $131,752 61.4% Contribution Margin $23,310 $17,246 $19,321 $23,021 $0 $0 $0 $0 $82,899 38.6% Depreciation $2,911 $2,040 $2,833 $3,060 $0 $0 $0 $0 $10,844 5.1% SG&A: R&D $858 $655 $510 $571 $0 $0 $0 $0 $2,595 1.2% Promotions $1,350 $1,350 $1,350 $1,350 $0 $0 $0 $0 $5,400 2.5% Sales $1,000 $1,000 $900 $900 $0 $0 $0 $0 $3,800 1.8% $574 $444 $468 $547 $0 $0 $0 $0 $2,033 0.9% Total Period $6,693 $5,489 $6,061 $6,428 $0 $0 $0 $0 $24,672 11.5% Net Margin $16,617 $11,757 $13,260 $16,593 $0 $0 $0 $0 $58,227 27.1% Variable Costs: Inventory Carry Period Costs: Admin 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. Other $6,836 3.2% EBIT $51,391 23.9% Short Term Interest $2,356 1.1% LongTerm Interest $4,740 2.2% Taxes Profit Sharing Net Profit Annual Report $15,503 7.2% $576 0.3% $28,216 13.1% Page 2 2) Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product Bell. Labor costs will go from $3.02 to $3.52 per unit. In addition, their material costs have fallen from $6.80 to $5.80. Assume all period costs as reported on Baldwin's Income Statement remain the same. If Baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product Bell would need to be sold next round to break even on the prod Select: 1 1,382 2,340 1,438 1,196 Old New Profit/loss Passed New after passed Labor cost 3.02 3.52 0.5 0.25 3.27 Material cost 6.8 5.8 -1 -0.5 6.3 Total cost 9.32 Price 15.75 Contri margin 6.43 Fixed cost 8888 Total period cost Units 1382.27060653 The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $143,082 Common Stock $53,558 Retained Earnings $38,650 Suppose next year the Baldwin Company generates $36,500 in net profit and pays $15,000 in dividends and total liabilities and common stock remain unchanged. What must their total assets be next year? Select: 1 $256,790 $92,208 $235,290 $286,790 Total Assets Old assets + profit - dividends 256790 Assuming no brokerage fees, calculate the amount of cash needed to retire Baldwin's 12.5S2022 bond early. Select: 1 $14,665,611 $15,841,880 $14,008,592 Cash needed Face value * close 14,008,591.63