1. a) Evaluate the Capital Structure of the company with the largest asset base. Comment on the results.

b) Calculate the leverage ratio of this company; is it a good leverage rate? Justify your answer.

2. What is Digbys overall competitive strategy? Justify your answer by explaining the companys functional decisions for each of its products in the R&D, Marketing and Production.

3. Calculate the quantity and value of lost sales for Chesters product CONDA, as well as Eries product ERA.

4. Why company Andrew had an emergency loan worth $11850 despite the fact that it achieved a net profit of $8915?

5. What is the company that has the highest fixed cost percentage/sales? Justify your answers with calculations.

Andrews Baldwin Chester Digby Erle Forris S8,915 54,605 $2.451 $15.139 $3,406 $8,771 Cash Flow Statement Survey Cash flows from operating activities Net Income (LG) Adjustment for non-cash items: Depreciation Extraordinary gainsilosses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations S6,805 50 56,297 $0 55240 SO 56.347 SO 55.213 SO 56.469 SO 5865 (59,808) $185 56,872 54,500 (520,332) (52,600) (57450 5515 (57,978) (5213) $15 $1,451 (54,732) (52,605) $17.600 $714 $3,502 (51,756) $11,168 562 (59.335) $38 $6,006 (510,668) (521,320) (55,000) ($18, 1001 (54 800) (56,118) 50 so (51,519) 55,000 $0 $0 $0 (52,600) $0 $7,540 $0 55 000 SO 56.000 SO (52,600) SO SO $0 $0 (51,500) $3.000 $0 (52.600) SO SO SO 54,060 SO 53,313 SO (52.600) SO SO SO $1,000 SO $10,776 SO 52.600) SO SO (52.600) 50 $11,850 (52,120) 58,421 58.400 (51,100) $4,773 $9,176 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 diebt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Freed Assets Total Assets (55,916) Andrews 50 $7,104 $19,261 526,365 (520,340) Baldwin $0 $9,924 522,684 $32,600 $3.415 Chester $26.710 $8.686 517 366 $52.762 (51,600) Digby $29.409 $12.641 $4,732 546782 $11,141 Erie $27 327 $9,064 Ferris 520,626 $9,416 $16,697 546,739 $1,528 $36,807 $102,075 (532, 121) 560,955 $94,454 (528,328 566,126 $78.600 (527,427) $51,173 $125.200 (533,777) 591423 $78,188 (528.761) $49,427 597,038 1532 299 564,739 596,320 $98,734 $103.935 $138.205 586.235 $111,478 Accounts Payable Current Debt Total Current Liabilities 55.463 $11,850 $17,293 58,654 $7,540 $16, 194 55,100 SO 55,109 537 200 $42 309 $5.359 $0 $5.350 54911 SO 54,911 $4,576 SO $4,576 $25,133 542,426 $32.142 $48,336 $43.100 $48.459 $39.872 $44,783 552,072 556,648 Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity $21,732 $32, 162 553,894 $28, 102 $22.295 $50,397 598,734 $38223 $23 403 $61.626 $44.977 $44.769 $89.745 $22,562 $18.889 $41,451 $18,237 536,502 S54,830 Total Liabilities & Owners' Equity 596,320 $103.995 $138.205 $86 235 $111,478 Income Statement Survey Sales Variable Costs (Labor, Material Carry Contribution Margin Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeofts, TOM, Bonuses) EBIT Interest (Short term. Long term Taxes Profit Sharing Net Profit FOUNDATIONE FAST TRACK Andrews $108,722 $58,641 $45,081 S6,805 $19,878 50 $18,397 $4,402 $4,898 $182 58,915 Baldwin $124,902 $87,678 $37,224 56,297 $18,569 5250 $12, 108 54,878 $2.530 $94 54,605 Chester 590 579 $56 265 $34.314 $5.240 520 707 5550 57.817 $3.969 $1 347 $50 $2.451 Digby $131.823 $74,082 $57.741 $8.347 $21.08 5173 528.134 54.367 $8.318 $300 $15.139 Eric $96,763 $63,520 $33,243 $5,213 $17.818 $360 $9,844 $4,496 $1872 $70 $3,406 Ferris S101,086 556,908 S44,178 $6,469 $17,630 $589 $19,400 $5,721 54,819 $179 $8,771 Page 3 Accessibility F112210 Low Tech Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment of Total Industry Next Year's Segment Growth Rate 9,822 9,822 55.9% Andrews Baldwin Chester Digby Erie 10.0% Ferris PINE Low Tech Customer Buying Criteria Expectations Importance Price $15.00 - 35.00 41% Age Ideal Age = 3.0 Reliability MTBF 14000-20000 21% Ideal Position Pimn8.3 Size 117 Perceptual Map for Low Tech Segment Perceptual map (at end of this year) 0% 20% 40% 60% 80% 100% Actual vs Potential Market Share 2026 F112210 Low Tech 20% 15% 10% Ema 5% 0% O Actual Potential 10 16 17 18 Coord Name Drogo Daze Fast Cake BBB Eat Market Units Sold Share to seg 1,170 1,061 10% 1031 10% 1,015 10% 1014 104 968 10% 936 923 9% 898 5% 459 4% 350 2 Top Products in Low Toch Segment Revision Pim Sbe List Date Stock Out Age Coord Price MTBF Dec. 31 1/24/2026 YES 7.8 123 $31.00 20000 2.85 11/12/2026 7.1 12.9 $30.50 20000 2.26 5/31/2027 7.0 12.8 $32.50 21000 3.68 12/14/2026 YES 7.7 12.4 $31.25 20000 1.53 10/5/2026 8.6 11.4 $31.50 20000 1.74 6/11/2025 6.5 13.5 $32.00 20000 1/21/2026 8.3 11.7 $32.00 20000 2.55 11/5/2026 6.B 13.5 $300 20000 2.06 3/30/2027 6.5 13.5 530 50 20000 4.53 1/2/2027 YES 7.0 13.0 $33.00 19500 1.81 3/17/2026 8.5 11.5 $32.00 20000 0.79 4/212027 110 9.0 $44.00 23000 3.09 2.70 Promo Cust. Aware Budget $1,400 100% $1,400 100% $1,400 100% $1,400 100% $1,400 100% $1,500 100% $1,480 100% $1,475 100% $1,475 100% $2,500 96% $1,500 61% $1,500 100% Sales Cust, Access. Dec. Cust. Budget bility Survey $1,500 99% 47 $3.000 99 42 $3,000 36 $3,000 95% 35 $1,000 86% 34 $3,000 9.2% 34 $1,000 86% 41 $1,500 100% 33 $3,000 100% 29 $1,500 95% 26 $1,000 86% 19 SO 0 Baker Alpha Able CONDA Bonbon Ema Andrews Baldwin 20.0% Chester Digby Erie High Tech Statistics Total Industry Un Demand 7,740 Actual Industry Unit Sales 7,740 Segment of Total Industry 44.1% Next Year's Segment Growth Rate High Tech Customer Buying Criteria Expectations Importance 1. Ideal Position Pimn 12.3 Size 7.7 33% 2 Age Ideal Age=0.0 3 Price $25.00 -45.00 Reliability MTBF 17000-22000 13% Perceptual Map for High Tech Segment Perceptual map (at end of this year Ferris 0% 20% 40% 60% 80% 100% 4 Actual vs Potential Market Share 2026 F112210 High Tech Q 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Mapy Actual Potential Param 10 12 14 Share Top Products in High Tech Segment Market Units Sold Revision Pimn Sbe List Name Age to seg Date Stock Out Coord Coord Price Promo Cust. Aware MTBF Dec 3i Aurora Budget 7/8/2026 12.3 7.5 544.00 23000 1.03 $2,000 92% Aroma 547 6/23/2026 12.2 7.7 $42.45 23000 1.45 $1,475 100% DNYRS 7% 545 7/19/2025 12.3 7.7 $44.00 23000 1.03 $2.000 92% Falsa 532 5/25 2026 12.0 $44.90 23000 1.54 $1,400 100% CRISP 7% 527 7/8/2026 12.1 7.9 $43.50 23000 1.48 $1,400 100% End 516 6/28/2020 YES 12.3 7.7 $45.00 23000 1.00 $1,500 Ferari 6% 83% 501 5/25 2026 12.0 8.2 $44.80 23000 1.52 $1,400 | 6% 500 7/7/2026 12.3 7.7 $45.00 23000 1.41 $1,570 100% Dragon 6% 499 7/19/2026 7.7 $44.00 23000 1.48 $1,400 100% Forera 6% 475 5/25 2026 12.0 8.2 $44.80 23000 1.48 $2,000 100% Ego 6% 466 6/28/2026 12.3 7.7 $45.00 23000 1.34 $1,500 100% COOL 6% 464 7/4/2026 12.3 7.7 $44.80 23000 1.56 $2,000 100% FOUNDATIONE FAST TRACK 100% Sales Cust. Access Dec. Cust. Budget ibility Survey $2,000 99% 51 $2,500 51 $1,500 100% 52 $3,000 100% 46 $3,000 97% 51 $3,000 94% 50 $1,500 100% $2,000 100% $1,500 100% 48 SO 100% SO 94% $1,500 97% 45 Page 6 123 Top Foundation Market Share Report Fast Track F112210 Round: 7 December 31, 2026 Units Sold vs Demand Chart F112210 Market Share F112210 10.000 20% 8,000 15% 6,000 10% 4,000 0% 2.000 0 Andrews Baldwin Chester Digby Low Industry Unit Sales High Total Unit Demand Low High Potential Market Share in Units Low High 9,822 7,740 55.9% Industry Unit Sales of Market Able Alpha Aroma Aurora Total Baker ba Barby Bonbon Actual Market Share in Units Low High 9.122 7.740 55.9% 44.1% 9.1% 9.4% 7.1% 7.2% 18.5 14.3% 9.5% 1.3% 6.5% 10.3% 0.6% 5.8% 3.6% 1.8% 15.9 10.3% Total 17.561 100.0% 5.0% 5.3% 3.1% 3.1% 16.4 5.8% 2.8% 5.9% 2.5% 2.7% 19.7% 6.9% 7.1% 14.0% 1.2% 18.4% 9.3% 29 6.3% Bonbon 10.15 3.5% 22 10.7% 0.6% 5.7% 1.8% 15.6% Cake CRISP COOL CONDA Total 6.0% 12.8% 4.7% 15.0% Total Units 17.561 pemanded 100.0% of Market 5.1% 5.3% Alpha 3.1% Aroma 3.2% Aurora 16.7 Total 5.9% Baker BBQ 6.0%B0 2.6% Barty 2.8% 20.1% 5.8% Cake 3.0% CRISP 2.6% COOL 2.6% CONDA 14.0% Total 6.0% paze 2.8% Dragon 6.8% Droog 3.1% DNYRS 2.1% DumDum 20.9% Total 5.5% Eat 1.1% 2.7% E90 2.9% End 1.7% Fra 13.8% Total 5.9% Fast 3.0% Falsa3 2.9% Ferari 2.7% Forera 14.4% 6.0% 2.9% 2.6% 3.2% 14.7% 6.7% 5.9% 125% 5.8% 16.4% 10.6% 10.89 paze Dragon proge PNYRS pumDum Total 12.0% 6.4% 0.29% 11.7% 90 6.3% 0.2% 73% 4.7% 18.5% 22.8% 4.8% 18.5% 22.3% 5.9% 2.8% 6.7% 3.2% 2.1% 20.6% 5.4% 1.4% 2.6% 3.1% 1.9% 14.3% 9.8% 0.0% ma Fat Ema Ego End Era Total 2.5% 6.0% 6.7% 3.8% 19.09 3.1% 5.9% 70% 4.2% 20.3% 9.8% 9.6% 10.3% Fast 10.5% Falsa Ferari Forera Total 10.5% FOUNDATIONS FAST TRACK 6.9% 6.5% 6.19 19.5% 6.7% 6.3% 60% 19.1% 5.89 3.0% 2.8% 2.6% 1424 Page 7 1039 Andrews Baldwin Chester Digby Erle Forris S8,915 54,605 $2.451 $15.139 $3,406 $8,771 Cash Flow Statement Survey Cash flows from operating activities Net Income (LG) Adjustment for non-cash items: Depreciation Extraordinary gainsilosses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations S6,805 50 56,297 $0 55240 SO 56.347 SO 55.213 SO 56.469 SO 5865 (59,808) $185 56,872 54,500 (520,332) (52,600) (57450 5515 (57,978) (5213) $15 $1,451 (54,732) (52,605) $17.600 $714 $3,502 (51,756) $11,168 562 (59.335) $38 $6,006 (510,668) (521,320) (55,000) ($18, 1001 (54 800) (56,118) 50 so (51,519) 55,000 $0 $0 $0 (52,600) $0 $7,540 $0 55 000 SO 56.000 SO (52,600) SO SO $0 $0 (51,500) $3.000 $0 (52.600) SO SO SO 54,060 SO 53,313 SO (52.600) SO SO SO $1,000 SO $10,776 SO 52.600) SO SO (52.600) 50 $11,850 (52,120) 58,421 58.400 (51,100) $4,773 $9,176 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 diebt Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Freed Assets Total Assets (55,916) Andrews 50 $7,104 $19,261 526,365 (520,340) Baldwin $0 $9,924 522,684 $32,600 $3.415 Chester $26.710 $8.686 517 366 $52.762 (51,600) Digby $29.409 $12.641 $4,732 546782 $11,141 Erie $27 327 $9,064 Ferris 520,626 $9,416 $16,697 546,739 $1,528 $36,807 $102,075 (532, 121) 560,955 $94,454 (528,328 566,126 $78.600 (527,427) $51,173 $125.200 (533,777) 591423 $78,188 (528.761) $49,427 597,038 1532 299 564,739 596,320 $98,734 $103.935 $138.205 586.235 $111,478 Accounts Payable Current Debt Total Current Liabilities 55.463 $11,850 $17,293 58,654 $7,540 $16, 194 55,100 SO 55,109 537 200 $42 309 $5.359 $0 $5.350 54911 SO 54,911 $4,576 SO $4,576 $25,133 542,426 $32.142 $48,336 $43.100 $48.459 $39.872 $44,783 552,072 556,648 Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity $21,732 $32, 162 553,894 $28, 102 $22.295 $50,397 598,734 $38223 $23 403 $61.626 $44.977 $44.769 $89.745 $22,562 $18.889 $41,451 $18,237 536,502 S54,830 Total Liabilities & Owners' Equity 596,320 $103.995 $138.205 $86 235 $111,478 Income Statement Survey Sales Variable Costs (Labor, Material Carry Contribution Margin Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeofts, TOM, Bonuses) EBIT Interest (Short term. Long term Taxes Profit Sharing Net Profit FOUNDATIONE FAST TRACK Andrews $108,722 $58,641 $45,081 S6,805 $19,878 50 $18,397 $4,402 $4,898 $182 58,915 Baldwin $124,902 $87,678 $37,224 56,297 $18,569 5250 $12, 108 54,878 $2.530 $94 54,605 Chester 590 579 $56 265 $34.314 $5.240 520 707 5550 57.817 $3.969 $1 347 $50 $2.451 Digby $131.823 $74,082 $57.741 $8.347 $21.08 5173 528.134 54.367 $8.318 $300 $15.139 Eric $96,763 $63,520 $33,243 $5,213 $17.818 $360 $9,844 $4,496 $1872 $70 $3,406 Ferris S101,086 556,908 S44,178 $6,469 $17,630 $589 $19,400 $5,721 54,819 $179 $8,771 Page 3 Accessibility F112210 Low Tech Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment of Total Industry Next Year's Segment Growth Rate 9,822 9,822 55.9% Andrews Baldwin Chester Digby Erie 10.0% Ferris PINE Low Tech Customer Buying Criteria Expectations Importance Price $15.00 - 35.00 41% Age Ideal Age = 3.0 Reliability MTBF 14000-20000 21% Ideal Position Pimn8.3 Size 117 Perceptual Map for Low Tech Segment Perceptual map (at end of this year) 0% 20% 40% 60% 80% 100% Actual vs Potential Market Share 2026 F112210 Low Tech 20% 15% 10% Ema 5% 0% O Actual Potential 10 16 17 18 Coord Name Drogo Daze Fast Cake BBB Eat Market Units Sold Share to seg 1,170 1,061 10% 1031 10% 1,015 10% 1014 104 968 10% 936 923 9% 898 5% 459 4% 350 2 Top Products in Low Toch Segment Revision Pim Sbe List Date Stock Out Age Coord Price MTBF Dec. 31 1/24/2026 YES 7.8 123 $31.00 20000 2.85 11/12/2026 7.1 12.9 $30.50 20000 2.26 5/31/2027 7.0 12.8 $32.50 21000 3.68 12/14/2026 YES 7.7 12.4 $31.25 20000 1.53 10/5/2026 8.6 11.4 $31.50 20000 1.74 6/11/2025 6.5 13.5 $32.00 20000 1/21/2026 8.3 11.7 $32.00 20000 2.55 11/5/2026 6.B 13.5 $300 20000 2.06 3/30/2027 6.5 13.5 530 50 20000 4.53 1/2/2027 YES 7.0 13.0 $33.00 19500 1.81 3/17/2026 8.5 11.5 $32.00 20000 0.79 4/212027 110 9.0 $44.00 23000 3.09 2.70 Promo Cust. Aware Budget $1,400 100% $1,400 100% $1,400 100% $1,400 100% $1,400 100% $1,500 100% $1,480 100% $1,475 100% $1,475 100% $2,500 96% $1,500 61% $1,500 100% Sales Cust, Access. Dec. Cust. Budget bility Survey $1,500 99% 47 $3.000 99 42 $3,000 36 $3,000 95% 35 $1,000 86% 34 $3,000 9.2% 34 $1,000 86% 41 $1,500 100% 33 $3,000 100% 29 $1,500 95% 26 $1,000 86% 19 SO 0 Baker Alpha Able CONDA Bonbon Ema Andrews Baldwin 20.0% Chester Digby Erie High Tech Statistics Total Industry Un Demand 7,740 Actual Industry Unit Sales 7,740 Segment of Total Industry 44.1% Next Year's Segment Growth Rate High Tech Customer Buying Criteria Expectations Importance 1. Ideal Position Pimn 12.3 Size 7.7 33% 2 Age Ideal Age=0.0 3 Price $25.00 -45.00 Reliability MTBF 17000-22000 13% Perceptual Map for High Tech Segment Perceptual map (at end of this year Ferris 0% 20% 40% 60% 80% 100% 4 Actual vs Potential Market Share 2026 F112210 High Tech Q 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Mapy Actual Potential Param 10 12 14 Share Top Products in High Tech Segment Market Units Sold Revision Pimn Sbe List Name Age to seg Date Stock Out Coord Coord Price Promo Cust. Aware MTBF Dec 3i Aurora Budget 7/8/2026 12.3 7.5 544.00 23000 1.03 $2,000 92% Aroma 547 6/23/2026 12.2 7.7 $42.45 23000 1.45 $1,475 100% DNYRS 7% 545 7/19/2025 12.3 7.7 $44.00 23000 1.03 $2.000 92% Falsa 532 5/25 2026 12.0 $44.90 23000 1.54 $1,400 100% CRISP 7% 527 7/8/2026 12.1 7.9 $43.50 23000 1.48 $1,400 100% End 516 6/28/2020 YES 12.3 7.7 $45.00 23000 1.00 $1,500 Ferari 6% 83% 501 5/25 2026 12.0 8.2 $44.80 23000 1.52 $1,400 | 6% 500 7/7/2026 12.3 7.7 $45.00 23000 1.41 $1,570 100% Dragon 6% 499 7/19/2026 7.7 $44.00 23000 1.48 $1,400 100% Forera 6% 475 5/25 2026 12.0 8.2 $44.80 23000 1.48 $2,000 100% Ego 6% 466 6/28/2026 12.3 7.7 $45.00 23000 1.34 $1,500 100% COOL 6% 464 7/4/2026 12.3 7.7 $44.80 23000 1.56 $2,000 100% FOUNDATIONE FAST TRACK 100% Sales Cust. Access Dec. Cust. Budget ibility Survey $2,000 99% 51 $2,500 51 $1,500 100% 52 $3,000 100% 46 $3,000 97% 51 $3,000 94% 50 $1,500 100% $2,000 100% $1,500 100% 48 SO 100% SO 94% $1,500 97% 45 Page 6 123 Top Foundation Market Share Report Fast Track F112210 Round: 7 December 31, 2026 Units Sold vs Demand Chart F112210 Market Share F112210 10.000 20% 8,000 15% 6,000 10% 4,000 0% 2.000 0 Andrews Baldwin Chester Digby Low Industry Unit Sales High Total Unit Demand Low High Potential Market Share in Units Low High 9,822 7,740 55.9% Industry Unit Sales of Market Able Alpha Aroma Aurora Total Baker ba Barby Bonbon Actual Market Share in Units Low High 9.122 7.740 55.9% 44.1% 9.1% 9.4% 7.1% 7.2% 18.5 14.3% 9.5% 1.3% 6.5% 10.3% 0.6% 5.8% 3.6% 1.8% 15.9 10.3% Total 17.561 100.0% 5.0% 5.3% 3.1% 3.1% 16.4 5.8% 2.8% 5.9% 2.5% 2.7% 19.7% 6.9% 7.1% 14.0% 1.2% 18.4% 9.3% 29 6.3% Bonbon 10.15 3.5% 22 10.7% 0.6% 5.7% 1.8% 15.6% Cake CRISP COOL CONDA Total 6.0% 12.8% 4.7% 15.0% Total Units 17.561 pemanded 100.0% of Market 5.1% 5.3% Alpha 3.1% Aroma 3.2% Aurora 16.7 Total 5.9% Baker BBQ 6.0%B0 2.6% Barty 2.8% 20.1% 5.8% Cake 3.0% CRISP 2.6% COOL 2.6% CONDA 14.0% Total 6.0% paze 2.8% Dragon 6.8% Droog 3.1% DNYRS 2.1% DumDum 20.9% Total 5.5% Eat 1.1% 2.7% E90 2.9% End 1.7% Fra 13.8% Total 5.9% Fast 3.0% Falsa3 2.9% Ferari 2.7% Forera 14.4% 6.0% 2.9% 2.6% 3.2% 14.7% 6.7% 5.9% 125% 5.8% 16.4% 10.6% 10.89 paze Dragon proge PNYRS pumDum Total 12.0% 6.4% 0.29% 11.7% 90 6.3% 0.2% 73% 4.7% 18.5% 22.8% 4.8% 18.5% 22.3% 5.9% 2.8% 6.7% 3.2% 2.1% 20.6% 5.4% 1.4% 2.6% 3.1% 1.9% 14.3% 9.8% 0.0% ma Fat Ema Ego End Era Total 2.5% 6.0% 6.7% 3.8% 19.09 3.1% 5.9% 70% 4.2% 20.3% 9.8% 9.6% 10.3% Fast 10.5% Falsa Ferari Forera Total 10.5% FOUNDATIONS FAST TRACK 6.9% 6.5% 6.19 19.5% 6.7% 6.3% 60% 19.1% 5.89 3.0% 2.8% 2.6% 1424 Page 7 1039