Ans1. Current Closing Price of Share = $36.59 If Price Decreased by 10%: New Price of the Share = $36.59 x 0.90 = $32.93 Market Capitalization = Price x Number of Shares New Market Capitalization of Chester = 32.93 x 3,140,441 = $103.4 million So, the Correct Option is $103.4 million 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 My answer..capacity does not change,present capscity is 1,250,000 automation increased by 2.0 .....so this is charged according to manual $4 per unit for 2.0 automation it is $10,00,000 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 Please let me know if I am doing this right. For the last question if you could tell me the answer ,specifically verify the first two and give me answer for the last one. For the last question I am uploading two of inquirer....rond 3 and round 2

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 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: 2 Student: Naseem Sultana Dec. 31, 2016 Andrews Naseem Sultana Baldwin Chester Digby Naseem Sultana Selected Financial Statistics Andrews Baldwin Chester Digby 12.3% -0.4% 1.4% 9.3% 1.12 0.74 0.73 1.26 13.8% -0.3% 1.0% 11.7% 1.6 2.9 2.5 2.0 22.0% -1.0% 2.7% 22.9% $0 $0 $0 $0 Sales $136,340,097 $161,484,529 $151,850,063 $183,582,463 EBIT $30,646,419 $15,825,413 $17,919,246 $33,435,323 Profits $16,722,334 ($721,685) $2,189,547 $17,128,838 Cumulative Profit $19,025,482 $5,872,532 $7,679,968 $31,346,356 SG&A / Sales 11.4% 8.5% 11.5% 6.7% Contrib. Margin % 43.0% 32.5% 33.8% 33.5% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan COMP-XM INQUIRER Page 1 Top Round: 2 Stocks & Bonds Naseem Sultana December 31 , 2016 Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E Andrews $69.71 $6.62 1,962,055 $137 $38.81 $8.52 $3.00 4.3% 8.2 Baldwin $30.02 ($10.65) 2,921,700 $88 $25.75 ($0.25) $0.00 0.0% -122.0 Chester $38.93 ($8.53) 2,617,034 $102 $31.54 $0.84 $0.00 0.0% 46.5 Digby $84.64 $14.88 1,921,313 $163 $38.93 $8.92 $0.00 0.0% 9.5 Bond Market Summary Company Series# Face Yield Close$ S&P Andrews 11.2S2021 $8,837,000 11.3% 99.27 A 11.9S2022 $7,072,000 11.7% 102.09 A 10.9S2025 $10,000,000 11.2% 97.27 A 11.3S2021 $10,417,600 12.5% 90.09 C 12.5S2022 $14,665,611 13.4% 93.42 C 12.5S2023 $7,993,507 13.5% 92.75 C 12.5S2024 $9,474,649 13.6% 92.17 C 12.9S2025 $14,393,597 13.8% 93.62 C 13.4S2026 $34,621,180 14.0% 95.86 C 11.2S2021 $8,609,806 12.3% 91.03 CC 12.4S2022 $5,757,941 13.1% 94.53 CC 12.0S2024 $15,724,719 13.1% 91.59 CC 12.5S2025 $17,739,700 13.4% 93.52 CC 13.1S2026 $35,353,782 13.6% 96.32 CC 11.1S2023 $2,366,375 11.9% 93.28 B 11.2S2024 $5,881,308 12.0% 93.19 B 11.4S2025 $1,210,724 12.2% 93.75 B 11.6S2026 $19,603,373 12.3% 94.49 B Baldwin Chester Digby Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 2 December 31, 2016 Naseem Sultana Andrews Baldwin Chester Digby $16,722 ($722) $2,190 $17,129 $8,879 $15,180 $13,324 $8,424 $0 $0 $0 $0 $2,200 ($635) $1,381 $2,522 ($5,201) $4,349 $132 ($11,519) ($968) $104 ($2,211) ($2,002) $21,632 $18,276 $14,815 $14,554 ($12,268) ($50,140) ($54,960) ($32,400) ($5,886) $0 $0 $0 $0 $11,774 $17,388 $2,797 ($1,000) $0 $0 $0 Cash from long term debt issued $0 $34,621 $35,354 $19,603 Early retirement of long term debt $0 $0 $0 $0 ($10,000) ($25,153) ($21,771) ($14,416) $9,000 $32,415 $23,468 $20,191 $0 $0 $0 $0 ($7,886) $53,657 $54,439 $28,176 $1,478 $21,793 $14,294 $10,329 Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock 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 Andrews Baldwin Chester Digby Cash $29,218 $51,954 $36,672 $34,416 Accounts Receivable $11,206 $13,273 $12,481 $15,089 $9,317 $4,424 $9,748 $19,971 Total Current Assets $49,742 $69,650 $58,901 $69,476 Plant and equipment $133,180 $227,700 $220,260 $126,360 Accumulated Depreciation ($61,349) ($78,282) ($70,500) ($49,711) $71,831 $149,418 $149,760 $76,649 $121,573 $219,068 $208,662 $146,125 $4,481 $8,555 $8,156 $10,777 Current Debt $15,035 $43,715 $34,768 $31,491 Long Term Debt $25,909 $91,566 $83,186 $29,062 Total Liabilities $45,425 $143,835 $126,111 $71,329 Common Stock $10,725 $39,355 $35,922 $11,598 Retained Earnings $65,424 $35,877 $46,629 $63,197 Total Equity $76,148 $75,232 $82,551 $74,796 $121,573 $219,068 $208,662 $146,125 Andrews Baldwin Chester Digby $136,340 $161,485 $151,850 $183,582 $77,693 $108,960 $100,536 $121,994 $8,879 $15,180 $13,324 $8,424 $15,607 $13,699 $17,433 $12,359 $3,515 $7,820 $2,637 $7,370 $30,646 $15,825 $17,919 $33,435 Inventory Total Fixed Assets Total Assets Accounts Payable Total Liabilities & Owners' Equity Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) $4,395 $16,936 $14,482 $6,545 Taxes $9,188 ($389) $1,203 $9,411 $341 $0 $45 $350 $16,722 ($722) $2,190 $17,129 Profit Sharing Net Profit COMP-XM INQUIRER Page 3 Top Production Analysis Round: 2 December 31, 2016 Naseem Sultana Production Information 2nd Shift & Name Primary Segment Unit Age Units Inven Dec.3 Pfmn Size Sold tory Revision Date 1 MTBF Coord Coord Auto mation Capacity Material Labor Contr. OverNext Next Price Cost Cost Marg. time Round Round Plant Utiliz. Ace Nano 917 0 11/27/2016 1.1 23500 13.8 5.3 $39.00 $14.54 $8.47 42% 26% 6.0 728 126% Awe Elite 1,017 0 4/12/2016 1.6 26000 13.7 8.5 $40.00 $13.90 $8.81 43% 43% 6.0 714 142% Art Thrift 854 413 5/25/2017 4.1 18000 7.2 14.1 $24.00 $6.59 $5.14 45% 0% 7.0 1,130 97% Ant Core 1,313 251 1/13/2016 2.6 21000 9.6 10.6 $30.00 $9.84 $6.42 43% 0% 7.0 1,500 99% 0 0 6/4/2016 0.6 24000 15.5 8.2 $37.00 $0.00 $0.00 0% 0% 1.0 50 0% Awe2 Bell Thrift 2,079 0 4/10/2016 2.7 17000 8.0 12.2 $17.00 $7.76 $3.95 31% 100% 9.0 1,550 198% Bit Thrift 2,660 0 4/10/2016 2.6 17000 8.2 12.0 $17.00 $7.94 $3.95 30% 100% 9.0 1,700 198% Boat Core 1,526 138 12/15/2016 1.1 18000 11.1 8.5 $25.00 $11.07 $4.66 36% 43% 8.0 1,100 141% Buzz Core 1,711 137 12/17/2016 1.1 20000 11.8 9.0 $25.00 $11.75 $4.59 34% 36% 8.0 1,300 135% Cell Thrift 1,515 150 12/20/2017 3.5 14000 7.2 13.0 $18.00 $6.26 $2.39 49% 4% 9.5 1,250 103% City Core 2,303 24 12/7/2015 2.1 16000 9.6 10.6 $20.00 $9.01 $5.40 26% 47% 8.0 1,500 145% Cozy Nano 1,120 208 12/16/2016 1.0 18000 12.3 5.5 $30.00 $13.17 $6.86 33% 56% 6.0 900 155% Cute Elite 862 188 12/17/2016 1.0 20000 15.1 7.7 $34.00 $14.05 $7.56 36% 19% 6.0 850 118% Crimp Core 743 0 3/31/2016 0.8 16000 10.2 10.0 $21.00 $9.54 $5.80 26% 100% 7.0 1,040 149% 0 0 2/10/2017 0.0 0 0.0 Cake 0.0 $0.00 $0.00 $0.00 0% 0% 7.0 600 0% Deal Nano 1,584 0 12/2/2016 1.3 23000 12.2 6.0 $32.00 $13.96 $9.33 30% 100% 6.0 900 198% Dim Elite 889 258 1/4/2016 2.4 25000 15.4 7.5 $35.00 $15.32 $8.84 28% 57% 6.5 900 156% Dome Nano 1,379 303 9/18/2016 1.2 23000 13.3 4.8 $37.00 $14.96 $8.40 36% 82% 6.0 1,050 181% Dug Elite 1,302 284 8/16/2016 1.2 25000 15.2 7.0 $39.00 $15.41 $8.04 39% 53% 6.0 1,150 151% COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Naseem Sultana Round: 2 December 31, 2016 Thrift Statistics Total Industry Unit Demand 6,282 Actual Industry Unit Sales 6,282 Segment % of Total Industry 26.4% Next Year's Segment Growth Rate 11.0% Perceptual Map for Thrift Segment Thrift Customer Buying Criteria Expectations 1. Price 2. Importance $14.00 - 26.00 55% Reliability MTBF 14000-20000 20% 3. Ideal Position Pfmn 7.7 Size 12.5 15% 4. Age Ideal Age = 3.0 10% Top Products in Thrift Segment Market Share Units Sold to Seg Bit 31% 1,948 4/10/2016 YES 8.2 12.0 Bell 25% 1,586 4/10/2016 YES 8.0 Cell 21% 1,302 12/20/2017 Art 13% 830 City 8% Ant Crimp Name Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey $17.00 17000 2.64 $1,200 74% $1,100 67% 42 12.2 $17.00 17000 2.74 $1,200 73% $1,100 67% 44 7.2 13.0 $18.00 14000 3.48 $1,050 61% $1,000 66% 26 5/25/2017 7.2 14.1 $24.00 18000 4.07 $1,300 87% $1,500 69% 15 474 12/7/2015 9.6 10.6 $20.00 16000 2.11 $1,050 61% $1,000 66% 14 2% 112 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 69% 3 0% 31 3/31/2016 10.2 10.0 $21.00 16000 0.75 $1,050 48% $900 66% 3 COMP-XM INQUIRER Revision Date Stock Out YES Pfmn Size Coord Coord List Price Page 5 Top Core Market Segment Analysis Round: 2 December 31, 2016 Naseem Sultana Core Statistics Total Industry Unit Demand 8,076 Actual Industry Unit Sales 8,076 Segment % of Total Industry 34.0% 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 10.4 Size 9.8 16% Perceptual Map for Core Segment Top Products in Core Segment Name Market Share Units Sold to Seg Revision Date Stock Out Pfmn Size Coord Coord List Price Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey City 23% 1,829 12/7/2015 9.6 10.6 $20.00 16000 2.11 $1,050 61% $1,000 65% 38 Buzz 18% 1,480 12/17/2016 11.8 9.0 $25.00 20000 1.10 $1,200 73% $900 70% 30 Boat 16% 1,310 12/15/2016 11.1 8.5 $25.00 18000 1.09 $1,200 73% $900 70% 26 Ant 13% 1,088 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 51% 21 Bit 9% 712 4/10/2016 YES 8.2 12.0 $17.00 17000 2.64 $1,200 74% $1,100 70% 18 Crimp 9% 712 3/31/2016 YES 10.2 10.0 $21.00 16000 0.75 $1,050 48% $900 65% 33 Bell 6% 493 4/10/2016 YES 8.0 12.2 $17.00 17000 2.74 $1,200 73% $1,100 70% 14 Deal 3% 214 12/2/2016 YES 12.2 6.0 $32.00 23000 1.35 $1,300 82% $900 17% 0 Cell 3% 213 12/20/2017 7.2 13.0 $18.00 14000 3.48 $1,050 61% $1,000 65% 0 Art 0% 25 5/25/2017 7.2 14.1 $24.00 18000 4.07 $1,300 87% $1,500 51% 0 COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Naseem Sultana Round: 2 December 31, 2016 Nano Statistics Total Industry Unit Demand 4,740 Actual Industry Unit Sales 4,740 Segment % of Total Industry 19.9% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria Expectations 1. Ideal Position 2. Importance Pfmn 12.3 Size 5.3 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 Name Market Share Units Sold to Seg Dome 25% 1,205 9/18/2016 Deal 20% 971 12/2/2016 Cozy 20% 925 12/16/2016 Ace 14% 681 11/27/2016 Awe 4% 204 4/12/2016 Boat 4% 187 Cute 4% Buzz Revision Date Stock Out Pfmn Size Coord Coord List Price Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey 13.3 4.8 $37.00 23000 1.20 $1,300 82% $800 85% 45 12.2 6.0 $32.00 23000 1.35 $1,300 82% $900 85% 64 12.3 5.5 $30.00 18000 1.04 $1,050 61% $900 65% 41 YES 13.8 5.3 $39.00 23500 1.11 $1,200 81% $1,100 65% 32 YES 13.7 8.5 $40.00 26000 1.59 $1,200 81% $1,000 65% 11 12/15/2016 11.1 8.5 $25.00 18000 1.09 $1,200 73% $900 24% 8 183 12/17/2016 15.1 7.7 $34.00 20000 1.05 $1,050 61% $1,500 65% 2 4% 174 12/17/2016 11.8 9.0 $25.00 20000 1.10 $1,200 73% $900 24% 9 Dug 3% 155 8/16/2016 15.2 7.0 $39.00 25000 1.24 $1,300 81% $800 85% 4 Ant 1% 55 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 65% 0 YES COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Naseem Sultana Round: 2 December 31, 2016 Elite Statistics Total Industry Unit Demand 4,676 Actual Industry Unit Sales 4,676 Segment % of Total Industry 19.7% 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 14.9 Size 7.9 22% 4. Reliability MTBF 20000-26000 20% Perceptual Map for Elite Segment Top Products in Elite Segment Market Share Units Sold to Seg Dug 25% 1,147 8/16/2016 15.2 7.0 Dim 19% 889 1/4/2016 15.4 Awe 17% 813 4/12/2016 Cute 15% 679 12/17/2016 Deal 9% 400 12/2/2016 Name Revision Date YES YES Age MTBF Dec.31 Promo Budget Cust. Awareness $39.00 25000 1.24 $1,300 81% 7.5 $35.00 25000 2.45 $1,300 13.7 8.5 $40.00 26000 1.59 15.1 Stock Out 7.7 $34.00 20000 12.2 6.0 $32.00 23000 Pfmn Size Coord Coord List Price Cust. Accessibility Dec. Cust. Survey $800 87% 41 82% $900 87% 36 $1,200 81% $1,000 79% 33 1.05 $1,050 61% $1,500 60% 30 1.35 $1,300 82% $900 87% 18 Sales Budget Ace 5% 236 11/27/2016 Cozy 4% 194 Dome 4% Buzz YES 13.8 5.3 $39.00 23500 1.11 $1,200 81% $1,100 79% 10 12/16/2016 12.3 5.5 $30.00 18000 1.04 $1,050 61% $900 60% 4 174 9/18/2016 13.3 4.8 $37.00 23000 1.20 $1,300 82% $800 87% 1 1% 57 12/17/2016 11.8 9.0 $25.00 20000 1.10 $1,200 73% $900 11% 3 Ant 1% 57 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 79% 0 Boat 1% 29 12/15/2016 11.1 8.5 $25.00 18000 1.09 $1,200 73% $900 11% 1 COMP-XM INQUIRER Page 8 Top Market Share Report Naseem Sultana Actual Market Share in Units Thrift Core Nano Industry Unit Sales % of Market Elite Total 4,676 23,774 26.4% 34.0% 19.9% 19.7% 100.0% 6,282 8,076 Ace 14.4% Ant Total 13.2% 5.0% 3.9% 4.3% 17.4% Awe Art 4,740 4.3% 0.3% 1.8% 13.5% 3.6% 1.2% 1.2% 5.5% 15.0% 13.8% 19.8% 23.7% 17.3% Round: 2 December 31, 2016 Bell 25.3% 6.1% 8.8% Bit 31.0% 8.8% 11.2% Boat 16.2% 3.9% 0.6% 6.4% Buzz 18.3% 3.7% 1.2% 7.2% Total 56.3% 49.5% 7.6% 1.9% 33.5% Cell 20.7% City 2.6% 6.4% 7.5% 22.6% 9.7% Cozy 19.5% Crimp 0.5% 4.7% 3.9% 14.5% Cute 4.2% 3.6% 8.8% 3.1% Total 28.8% 34.1% 23.4% 18.7% 27.5% Deal 2.6% 20.5% 8.6% 6.7% 19.0% 3.7% 3.7% 5.8% 3.3% 24.5% 5.5% 2.6% 49.2% 55.8% 21.7% Dim Dome 25.4% Dug Total Potential Market Share in Units Thrift Core Nano Elite Total 6,282 8,076 4,740 4,676 23,774 26.4% 34.0% 19.9% 19.7% 100.0% Ace 19.1% 6.7% 5.1% Awe 5.5% 22.0% 5.4% Units Demanded % of Market Art 12.4% 0.3% Ant 1.7% 12.7% 1.1% 1.1% 5.2% Total 14.0% 13.0% 25.6% 29.8% 19.1% Bell 29.8% 7.3% 10.4% Bit 29.1% 8.3% 10.5% Boat 15.3% 3.4% 3.6% 0.6% 6.0% Buzz 17.2% 3.3% 1.1% 6.7% 6.9% 1.7% 33.6% Total 58.8% 48.1% Cell 19.4% 2.5% 6.0% City 7.0% 21.3% 9.1% Cozy 17.7% 3.8% 4.3% Cute 3.5% 13.3% 3.3% Crimp 0.7% 12.4% Total 27.1% 36.3% 21.2% 17.1% 27.1% 2.6% 20.3% 8.4% 6.6% 17.3% 3.4% 23.0% 3.4% 5.3% 3.0% 22.4% 5.0% 46.3% 51.4% 20.2% Deal 4.4% Dim Dome Dug Total 2.6% COMP-XM INQUIRER Page 9 Top Perceptual Map Naseem Sultana Round: 2 December 31, 2016 Perceptual Map for All Segments Andrews Name Chester Pfmn Size Revised Ace 13.8 5.3 11/27/2016 Awe 13.7 8.5 Art 7.2 Ant Awe2 Pfmn Size Cell 7.2 13.0 12/20/2017 4/12/2016 City 9.6 10.6 12/7/2015 14.1 5/25/2017 Cozy 12.3 5.5 9.6 10.6 1/13/2016 Cute 15.1 15.5 8.2 6/4/2016 Crimp 10.2 Baldwin Name Pfmn Size Revised Bell 8.0 12.2 4/10/2016 Bit 8.2 12.0 4/10/2016 Boat 11.1 8.5 12/15/2016 Buzz 11.8 9.0 12/17/2016 Name Digby Revised Name Pfmn Size Revised Deal 12.2 6.0 12/2/2016 Dim 15.4 7.5 1/4/2016 12/16/2016 Dome 13.3 4.8 9/18/2016 7.7 12/17/2016 Dug 15.2 7.0 8/16/2016 10.0 3/31/2016 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 2 December 31, 2016 Naseem Sultana HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 531 479 545 698 Complement 531 479 545 698 1st Shift Complement 463 289 389 403 2nd Shift Complement 68 190 156 294 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 7.7% 8.0% 6.3% 10.0% 169 38 125 170 0 157 0 0 $2,000 $2,500 $5,000 $0 60 40 80 0 104.4% 113.6% 123.1% 100.0% $507 $134 $749 $170 New Employees Separated Employees Recruiting Spend Training Hours Productivity Index Recruiting Cost Separation Cost $0 $783 $0 $0 $637 $383 $871 $0 $1,144 $1,301 $1,621 $170 Wages $28.15 $28.15 $28.15 $28.15 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% Training Cost Total HR Admin 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 $0 $0 Vendor/JIT $500 $1,250 $0 $0 Quality Initiative Training $500 $0 $0 $1,250 $0 $1,500 $0 $1,250 Concurrent Engineering $500 $0 $0 $1,250 UNEP Green Programs $0 $0 $0 $0 $0 $0 $0 $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 $3,500 $5,500 $0 $6,250 Material Cost Reduction 6.35% 1.40% 0.00% 2.92% Labor Cost Reduction 8.01% 0.33% 0.00% 11.25% 10.78% 0.00% 0.00% 32.13% Reduction Admin Costs 6.61% 3.25% 0.00% 0.00% Demand Increase 3.98% 1.16% 0.00% 4.56% Process Mgt Budgets Last Year Channel Support Systems TQM Budgets Last Year Benchmarking Total Expenditures Cumulative Impacts Reduction R&D Cycle Time COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews C59559 Round: 6 Dec. 31, 2016 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 2016 2015 Common Size Cash $29,218 24.0% $27,741 Accounts Receivable $11,206 9.2% $10,238 $9,317 7.7% $4,116 40.9% $42,095 Inventory Total Current Assets $49,741 Plant & Equipment $133,180 109.5% $120,912 Accumulated Depreciation ($61,349) -50.5% ($52,470) $71,831 59.1% $68,442 $121,573 100.0% $110,537 $4,481 3.7% $2,281 Current Debt $15,035 12.4% $10,000 Long Term Debt $25,909 21.3% $31,944 Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $45,425 37.4% $44,225 Common Stock $10,725 8.8% $10,889 Retained Earnings $65,424 53.8% $55,423 $76,149 62.6% $66,312 $121,573 100.0% $110,537 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 2016 2015 $16,722 $2,303 $8,879 $8,061 $0 $235 $2,200 ($7,235) ($5,201) $22,179 ($968) $3,174 $21,632 $28,716 Cash Flows from Investing Activities: Plant Improvements ($12,268) ($24,088) Cash Flows from Financing Activities: Dividends Paid ($5,886) $0 $0 $0 ($1,000) ($7,000) $0 $10,000 ($6,035) ($5,500) $5,035 ($5,717) ($7,886) ($8,217) $1,478 ($3,589) $29,218 $27,741 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 Page 1 Annual Report Top Annual Report Andrews Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Sales 2016 Common Total Size Ace Awe Art Ant Awe2 Na Na Na $35,775 $40,681 $20,506 $39,378 $0 $0 $0 $0 $136,340 100.0% $7,774 $8,960 $4,661 $8,540 $0 $0 $0 $0 $29,935 22.0% $12,901 $14,436 $5,981 $13,322 $0 $0 $0 $0 $46,640 34.2% $0 $0 $617 $501 $0 $0 $0 $0 $1,118 0.8% $20,675 $23,396 $11,259 $22,362 $0 $0 $0 $0 $77,693 57.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Contribution Margin $15,101 $17,285 $9,247 $17,015 $0 $0 $0 $0 $58,647 43.0% Depreciation $1,456 $1,428 $2,561 $3,400 $33 $0 $0 $0 $8,879 6.5% SG&A: R&D $920 $284 $1,000 $36 $432 $0 $0 $0 $2,672 2.0% Promotions $1,200 $1,200 $1,300 $1,200 $700 $0 $0 $0 $5,600 4.1% Sales $1,100 $1,000 $1,500 $1,000 $700 $0 $0 $0 $5,300 3.9% $534 $607 $306 $588 $0 $0 $0 $0 $2,035 1.5% Total Period $5,210 $4,520 $6,667 $6,224 $1,865 $0 $0 $0 $24,486 18.0% Net Margin $9,891 $12,765 $2,579 $10,792 ($1,865) $0 $0 $0 $34,161 25.1% 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 $3,515 2.6% EBIT $30,646 22.5% Short Term Interest $1,473 1.1% LongTerm Interest $2,921 2.1% Taxes $9,188 6.7% $341 0.3% $16,722 12.3% Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report Top Annual Report Baldwin 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. Comm