Chester Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives.How much will the company pay in separation costs if each worker receives $5,000 when separated?

Select: 1

$205,000

$738,000

$82,000

$1,845,000

Assume Baldwin is producing 1,163 units of Best next year. What would Best's plant utilization be?

Select: 1

95.82%

73.50%

76.50%

75.00%

Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Bat entirely off the market this year. Assume Baldwin scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Baldwin or other companies. Without Baldwin's product Bat how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000).

Select: 1

7,681

9,260

4,630

8,659

8,731

9,709

7,784

The Chester's balance sheet has $101,221,000 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year?

Select: 1

$66.21

$13.13

$29.45

$30.32

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 Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report Annual Report Baldwin Annual Report Chester Annual Report Digby PRINT Top " Round: 4 Student: Lakshmi Priya Srinivas Dec. 31, 2019 Andrews Lakshmi Priya Srinivas Baldwin Chester Digby Lakshmi Priya Srinivas Selected Financial Statistics Andrews Baldwin Chester Digby 14.4% 6.0% 2.2% 15.3% 1.19 0.82 0.73 1.23 17.2% 4.9% 1.6% 18.8% 1.3 2.4 2.2 1.8 22.9% 11.6% 3.5% 33.2% $0 $0 $0 $0 Sales $279,686,062 $142,843,948 $165,892,796 $205,614,396 EBIT $68,134,174 $25,469,108 $20,836,090 $56,413,951 Profits $40,366,751 $8,516,528 $3,576,393 $31,474,130 Cumulative Profit $84,190,249 $7,979,738 $3,340,260 $88,156,228 10.2% 10.7% 13.0% 6.9% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan SG&A / Sales Contrib. Margin % 42.8% 42.3% 39.5% 42.5% COMP-XM INQUIRER Page 1 Top Round: 4 Stocks & Bonds Lakshmi Priya Srinivas December 31 , 2019 Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E Andrews $143.78 $43.53 2,351,651 $338 $75.03 $17.17 $0.00 0.0% 8.4 Baldwin $33.24 $14.76 3,075,420 $102 $23.91 $2.77 $1.71 5.1% 12.0 Chester $31.16 $6.06 3,436,843 $107 $29.45 $1.04 $0.00 0.0% 29.9 Digby $147.41 $34.49 1,874,261 $17.29 11.7% 8.8 $276 $50.51 $16.79 Bond Market Summary Company Series# Face Yield Close$ S&P 11.9S2023 $4,101,489 11.5% 103.11 AA 10.9S2026 $14,000,000 10.9% 100.00 AA 11.0S2028 $25,000,000 10.9% 100.56 AA 12.5S2023 $13,983,224 13.1% 95.35 CC 12.5S2024 $7,975,862 13.2% 94.52 CC 12.5S2025 $9,473,322 13.3% 93.80 CC 12.9S2026 $14,397,660 13.6% 94.87 CC 13.4S2027 $25,434,477 13.8% 96.76 CC 11.9S2025 $13,183,496 12.9% 92.57 CCC 12.6S2026 $17,795,619 13.3% 94.82 CCC 13.1S2027 $33,871,474 13.5% 96.73 CCC 13.8S2028 $23,591,244 13.8% 100.00 CCC 11.2S2025 $1,617,589 11.8% 94.73 BB 11.5S2026 $1,376,019 12.0% 95.51 BB 11.6S2027 $18,548,936 12.1% 95.61 BB 12.6S2028 $11,170,960 12.5% 100.52 BB Andrews Baldwin Chester Digby Next Year's Prime Rate 9.00% COMP-XM INQUIRER Page 2 Top Round: 4 December 31, 2019 Financial Summary Lakshmi Priya Srinivas Cash Flow Statement Survey Andrews Baldwin Chester Digby $40,367 $8,517 $3,576 $31,474 $14,285 $14,873 $17,736 $10,617 $192 ($755) ($1,137) ($184) $3,527 ($237) ($635) ($173) Inventory ($29,739) $4,332 $2,112 ($10,548) Accounts receivable ($10,031) ($1,451) ($342) $810 $18,600 $25,279 $21,311 $31,996 $0 $0 $0 $0 Dividends paid $0 ($5,248) $0 ($32,406) Sales of common stock $0 $0 $6,285 $0 ($7,000) $0 $0 ($3,688) $0 $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 Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Purchase of common stock Cash from long term debt issued Early retirement of long term debt ($12,000) ($9,442) ($15,746) ($6,375) Retirement of current debt $0 ($25,311) ($24,831) ($19,814) Cash from current debt borrowing $0 $23,238 $29,982 $29,859 Cash from emergency loan $0 $0 $0 $0 ($19,000) ($16,762) ($4,309) ($32,423) ($400) $8,517 $17,001 ($428) Andrews Baldwin Chester Digby Cash $22,918 $37,917 $38,196 $33,442 Accounts Receivable $36,014 $11,741 $13,635 $16,900 Inventory $49,184 $8,537 $15,466 $28,672 Total Current Assets $108,116 $58,195 $67,297 $79,013 Plant and equipment $214,268 $223,100 $266,040 $159,260 Accumulated Depreciation ($87,733) ($106,936) ($105,772) ($70,739) Total Fixed Assets $126,535 $116,164 $160,268 $88,521 Total Assets $234,651 $174,359 $227,565 $167,535 $15,109 $6,330 $7,920 $10,297 $0 $23,238 $29,982 $29,859 Long Term Debt $43,101 $71,265 $88,442 $32,714 Total Liabilities $58,210 $100,833 $126,345 $72,870 Common Stock $38,120 $40,763 $59,095 $10,830 Net cash from financing activities Net change in cash position Balance Sheet Survey Accounts Payable Current Debt Retained Earnings $138,321 $32,763 $42,126 $83,835 Total Equity $176,440 $73,526 $101,221 $94,665 Total Liabilities & Owners' Equity $234,651 $174,359 $227,565 $167,535 Income Statement Survey Andrews Baldwin Chester Digby Sales $279,686 $142,844 $165,893 $205,614 Variable Costs (Labor, Material, Carry) $159,988 $82,372 $100,333 $118,174 Depreciation $14,285 $14,873 $17,736 $10,617 SGA (R&D, Promo, Sales, Admin) $28,652 $15,243 $21,574 $14,193 $8,627 $4,886 $5,414 $6,217 $68,134 $25,469 $20,836 $56,414 $4,764 $12,099 $15,222 $7,004 $22,180 $4,679 $1,965 $17,293 $824 $174 $73 $642 $40,367 $8,517 $3,576 $31,474 Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit COMP-XM INQUIRER Page 3 Top Production Analysis Lakshmi Priya Srinivas Round: 4 December 31, 2019 Production Information Primary Unit Age Segmen Units Inven Revisio Dec. MTB Pfmn Size Name t Sold tory n Date 31 F Coord Coord Auto 2nd matio Shift n Contr & Next Capacit Plan Materia Labor . Over- Roun y Next Uti Price l Cost Cost Marg. time d Round Art Core 2,311 273 7/14/20 1.5 22000 19 11.1 9.4 $24.00 $9.79 $5.92 33% 92% 7.0 1,300 19 % Ate Nano 1,407 346 7/17/20 1.5 24000 19 12.8 4.6 $37.50 $12.71 $5.85 49% 81% 7.0 978 17 % Attic Elite 986 1,193 7/24/20 1.6 26000 19 16.0 8.1 $40.00 $13.23 $5.64 43% 56% 7.0 964 15 % Axe Thrift 1,348 600 6/24/20 1.7 20000 19 8.0 12.4 $19.00 $7.10 $4.35 36% 75% 8.0 1,030 17 % Athrif Thrift 1,124 498 5/13/20 1.7 20000 19 8.5 12.0 $22.00 $7.42 $5.90 36% 88% 7.0 850 18 % Anan o Nano 730 32 7/22/20 1.1 22000 19 12.1 4.2 $38.00 $12.12 $7.41 49% 93% 6.0 400 19 % Aelite Elite 735 28 7/7/201 1.1 22000 9 15.7 7.9 $38.00 $12.05 $7.41 49% 93% 6.0 400 19 % Aeli1 Elite 642 0 3/10/20 0.8 22000 19 15.9 7.0 $40.50 $12.39 $7.46 50% 100% 6.0 400 16 % Boat Thrift 1,605 126 6/10/20 2.6 17000 8.8 11.4 $15.00 $6.69 $1.29 45% 4% 10.0 1,400 10 19 % Best Thrift 1,628 145 6/10/20 2.6 17000 19 9.0 11.2 $15.00 Bat Core 1,997 228 12/14/2 1.6 18000 019 11.5 Bell Core 1,937 225 12/14/2 1.6 20000 019 Cone Thrift 1,090 122 Creak Thrift 1,332 Cat 0% 10.0 8.0 $23.00 $9.03 $4.69 40% 90% 8.0 1,050 18 % 12.2 8.5 $25.00 $9.64 $4.48 43% 56% 8.0 1,250 15 % 12/20/2 3.2 14000 018 8.5 11.7 $15.00 $5.93 $1.22 49% 0% 10.0 1,250 71% 203 12/6/20 4.1 16000 16 9.4 10.8 $17.00 $7.14 $1.22 45% 0% 10.0 1,500 86% Nano 1,291 313 12/21/2 1.0 18000 019 13.6 3.6 $28.00 $11.83 $5.64 36% 47% 7.0 950 Cell Elite 848 195 12/21/2 1.0 20000 019 17.0 6.4 $34.00 $12.62 $4.88 46% 0% 7.0 900 88% City Core 1,497 143 12/14/2 1.0 16000 019 11.4 8.6 $19.00 $8.63 $4.24 32% 49% 8.0 1,040 14 % Cozy Core 1,673 150 12/14/2 1.0 16000 019 11.1 9.0 $20.00 $8.38 $4.37 36% 68% 8.0 1,040 16 % Don Nano 1,774 454 9/13/20 1.3 23000 19 14.3 3.4 $34.00 $13.04 $6.60 41% 96% 7.0 1,150 19 % Drum Elite 1,379 327 8/21/20 1.6 25000 19 17.4 5.9 $34.00 $13.82 $6.55 38% 88% 7.0 850 18 % Daft Nano 1,323 378 8/13/20 1.4 23000 19 14.7 3.1 $37.00 $13.28 $5.71 46% 17% 7.0 1,200 11 % Deal Elite 295 8/21/20 1.3 25000 19 17.2 5.6 $37.00 $13.83 $5.34 45% 7.0 1,350 92% 1,337 COMP-XM INQUIRER $6.82 $1.27 44% 0% 1,550 96% Page 4 Top 14 % Thrift Market Segment Analysis Lakshmi Priya Srinivas Thrift Statistics Total Industry Unit Demand 7,748 Actual Industry Unit Sales 7,748 Segment % of Total Industry 25.8% Next Year's Segment Growth Rate 11.0% Round: 4 December 31, 2019 Thrift Customer Buying Criteria Expectations Importance 1. Price 2. Reliability 3. Ideal Position 4. Age $14.00 - 26.00 55% MTBF 14000-20000 20% Pfmn 8.5 Size 11.7 15% Ideal Age = 3.0 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Units Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y Boat 20% 1,533 6/10/20 19 8.8 11.4 $15.00 17000 2.65 $1,300 83% $1,600 83% 69 Best 20% 1,517 6/10/20 19 9.0 11.2 $15.00 17000 2.60 $1,300 83% $1,600 83% 67 Axe 17% 1,348 6/24/20 19 8.0 12.4 $19.00 20000 1.67 $1,100 88% $1,000 96% 58 Cone 14% 1,049 12/20/2 018 8.5 11.7 $15.00 14000 3.25 $1,200 72% $1,000 78% 46 Athrif 13% 1,011 5/13/20 19 8.5 12.0 $22.00 20000 1.72 $1,800 91% $1,000 96% 44 Creak 10% 807 12/6/20 16 9.4 10.8 $17.00 16000 4.11 $1,200 72% $1,000 78% 36 Art 3% 209 7/14/20 19 11.1 9.4 $24.00 22000 1.49 $1,200 91% $1,400 96% 7 Cozy 2% 185 12/14/2 019 11.1 9.0 $20.00 16000 0.96 $1,200 62% $900 78% 2 City 1% 86 12/14/2 019 11.4 8.6 $19.00 16000 0.96 $1,200 67% $900 78% 0 Bat 0% 3 12/14/2 019 11.5 8.0 $23.00 18000 1.56 $1,300 83% $1,400 83% 0 COMP-XM INQUIRER Page 5 Top Core Market Segment Analysis Lakshmi Priya Srinivas Core Statistics Total Industry Unit Demand 9,781 Actual Industry Unit Sales 9,781 Segment % of Total Industry 32.6% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria Round: 4 December 31, 2019 Perceptual Map for Core Segment Expectations Importance 1. Price $20.00 - 32.00 46% 2. Age Ideal Age = 2.0 20% MTBF 16000-22000 18% Pfmn 11.8 Size 8.4 16% 3. Reliability 4. Ideal Position Top Products in Core Segment Units Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y Art 21% 2,102 7/14/20 19 11.1 9.4 $24.00 22000 1.49 $1,200 91% $1,400 58% 54 Bat 20% 1,990 12/14/2 019 11.5 8.0 $23.00 18000 1.56 $1,300 83% $1,400 81% 53 Bell 20% 1,929 12/14/2 019 12.2 8.5 $25.00 20000 1.57 $1,300 83% $1,400 81% 52 Cozy 15% 1,488 12/14/2 019 11.1 9.0 $20.00 16000 0.96 $1,200 62% $900 73% 39 City 14% 1,411 12/14/2 019 11.4 8.6 $19.00 16000 0.96 $1,200 67% $900 73% 37 524 12/6/20 9.4 10.8 $17.00 16000 4.11 $1,200 72% $1,000 73% 10 Creak 5% 16 Athrif 1% 112 5/13/20 19 8.5 12.0 $22.00 20000 1.72 $1,800 91% $1,000 58% 0 Best 1% 111 6/10/20 19 9.0 11.2 $15.00 17000 2.60 $1,300 83% $1,600 81% 3 Boat 1% 72 6/10/20 19 8.8 11.4 $15.00 17000 2.65 $1,300 83% $1,600 81% 2 Cone 0% 41 12/20/2 018 8.5 11.7 $15.00 14000 3.25 $1,200 72% $1,000 73% 0 COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Lakshmi Priya Srinivas Nano Statistics Total Industry Unit Demand 6,166 Actual Industry Unit Sales 6,166 Segment % of Total Industry 20.6% Next Year's Segment Growth Rate 14.0% Round: 4 December 31, 2019 Nano Customer Buying Criteria Expectations Importance 1. Ideal Position Pfmn 13.7 Size 3.3 35% 2. Price $28.00 - 40.00 27% 3. Age Ideal Age = 1.0 20% MTBF 18000-24000 18% 4. Reliability Perceptual Map for Nano Segment Top Products in Nano Segment Units Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y Don 26% 1,607 9/13/20 19 14.3 3.4 $34.00 23000 1.27 $1,400 92% $1,100 80% 66 Daft 21% 1,277 8/13/20 19 14.7 3.1 $37.00 23000 1.36 $1,400 92% $1,000 80% 51 Cat 21% 1,277 12/21/2 019 13.6 3.6 $28.00 18000 1.02 $1,200 73% $2,400 74% 56 Ate 20% 1,226 7/17/20 19 12.8 4.6 $37.50 24000 1.46 $1,100 86% $1,500 77% 46 Anan o 12% 716 7/22/20 19 12.1 4.2 $38.00 22000 1.11 $1,300 47% $1,300 77% 28 Aelite 1% 37 7/7/201 9 15.7 7.9 $38.00 22000 1.14 $1,200 44% $1,200 77% 0 Deal 0% 15 8/21/20 19 17.2 5.6 $37.00 25000 1.35 $1,400 91% $1,000 80% 0 Bat 0% 4 12/14/2 019 11.5 8.0 $23.00 18000 1.56 $1,300 83% $1,400 12% 0 Aeli1 0% 4 3/10/20 YES 15.9 19 7.0 $40.50 22000 0.81 $1,200 53% $1,200 77% 0 Bell 0% 3 12/14/2 8.5 $25.00 20000 1.57 $1,300 83% $1,400 12% 0 12.2 019 COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Lakshmi Priya Srinivas Elite Statistics Total Industry Unit Demand 6,299 Actual Industry Unit Sales 6,299 Segment % of Total Industry 21.0% Next Year's Segment Growth Rate 16.0% Round: 4 December 31, 2019 Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age = 0.0 34% 2. Price $30.00 - 42.00 24% Pfmn 16.9 Size 6.5 22% MTBF 20000-26000 20% 3. Ideal Position 4. Reliability Perceptual Map for Elite Segment Top Products in Elite Segment Units Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y Drum 22% 1,379 8/21/20 19 17.4 5.9 $34.00 25000 1.63 $1,400 92% $1,000 87% 54 Deal 21% 1,322 8/21/20 19 17.2 5.6 $37.00 25000 1.35 $1,400 91% $1,000 87% 50 Attic 16% 986 7/24/20 19 16.0 8.1 $40.00 26000 1.64 $1,200 87% $1,500 85% 36 Cell 13% 848 12/21/2 019 17.0 6.4 $34.00 20000 1.03 $1,200 72% $2,400 74% 37 Aelite 11% 698 7/7/201 9 15.7 7.9 $38.00 22000 1.14 $1,200 44% $1,200 85% 26 Aeli1 10% 638 3/10/20 YES 15.9 19 7.0 $40.50 22000 0.81 $1,200 53% $1,200 85% 31 Ate 3% 181 7/17/20 19 12.8 4.6 $37.50 24000 1.46 $1,100 86% $1,500 85% 0 Don 3% 166 9/13/20 19 14.3 3.4 $34.00 23000 1.27 $1,400 92% $1,100 87% 0 Daft 1% 46 8/13/20 19 14.7 3.1 $37.00 23000 1.36 $1,400 92% $1,000 87% 0 Cat 0% 15 12/21/2 019 13.6 3.6 $28.00 18000 1.02 $1,200 73% $2,400 74% 0 Anan o 0% 14 7/22/20 19 12.1 4.2 $38.00 22000 1.11 $1,300 47% $1,300 85% 0 Bell 0% 5 12/14/2 019 12.2 8.5 $25.00 20000 1.57 $1,300 83% $1,400 0 COMP-XM INQUIRER 5% Page 8 Top Market Share Report Lakshmi Priya Srinivas Round: 4 December 31, 2019 Actual Market Share in Units Thrif Core Nano Elite t Total Industry Unit Sales 7,748 9,781 6,166 6,299 29,994 % of Market 25.8 32.6 20.6 21.0 % % % % 100.0 % Art 2.7% 21.5 % Ate 7.7% 19.9 2.9% % 4.7% 15.7 % 3.3% Attic Axe 17.4 % 4.5% Athrif 13.1 1.1% % 3.8% Anano 11.6 0.2% % 2.4% Aelite 0.6% 11.1 % 2.5% Aeli1 0.1% 10.1 % 2.1% 33.1 22.6 32.2 40.0 % % % % 30.9% Total Boat 19.8 0.7% % 5.3% Best 19.6 1.1% % 5.4% 20.3 0.1% % 6.7% 19.7 0.0% 0.1% % 6.5% Total 39.4 41.9 0.1% 0.1% % % 23.9% Cone 13.5 0.4% % 3.6% Creak 10.4 5.4% % 4.4% Bat 0.0% Bell Cat 20.7 0.2% % 4.3% Cell 13.5 % 2.8% City 1.1% 14.4 % 5.0% Cozy 2.4% 15.2 % 5.6% Total Don 27.5 35.4 20.7 13.7 % % % % 25.8% 26.1 2.6% % 5.9% 21.9 % 4.6% 20.7 0.7% % 4.4% 21.0 % 4.5% 47.0 46.3 19.4% Drum Daft Deal Total 0.3% % % Potential Market Share in Units Units Demande d % of Market Art Thrift Core Nano Elite Total 7,748 9,781 6,166 6,299 29,994 25.8% 32.6% 20.6% 21.0% 100.0% 2.7% 21.5% Ate 7.7% 19.9% 2.8% 4.7% 15.2% 3.2% Attic Axe 17.4% 4.5% Athrif 13.1% 1.1% 3.7% Anano 11.6% 0.2% 2.4% Aelite 0.6% 10.9% 2.4% Aeli1 0.1% 12.5% 2.6% Total 33.1% 22.6% 32.2% 41.6% 31.3% Boat 19.8% 0.7% 5.3% Best 19.6% 1.1% 5.4% Bat 20.3% 0.1% Bell 19.7% 6.7% 0.1% 6.5% Total 39.4% 41.9% 0.1% 0.1% 23.9% Cone 13.5% 0.4% 3.6% Creak 10.4% 5.4% 4.4% Cat 20.7% 0.2% 4.3% Cell 13.1% 2.8% City 1.1% 14.4% 5.0% Cozy 2.4% 15.2% 5.6% Total 27.5% 35.4% 20.7% 13.3% 25.7% 26.1% 2.6% 5.9% 21.3% 4.5% Daft 20.7% 0.7% 4.4% Deal 0.2% 20.4% 4.3% Total 47.0% 45.0% 19.1% Don Drum COMP-XM INQUIRER Page 9 Top Perceptual Map Lakshmi Priya Srinivas Perceptual Map for All Segments Round: 4 December 31, 2019 Andrews Name Pfmn Size Chester Revised Name Pfmn Size Art 11.1 9.4 7/14/2019 Cone 8.5 Ate 12.8 4.6 7/17/2019 Creak 9.4 10.8 Attic 16.0 8.1 7/24/2019 Cat 13.6 3.6 Axe 8.0 12.4 6/24/2019 Cell Athrif 8.5 12.0 Anano 12.1 4.2 Aelite 15.7 7.9 7/7/2019 Aeli1 15.9 7.0 3/10/2019 Revised Name Pfmn Size 3.4 9/13/2019 17.4 5.9 8/21/2019 12/21/2019 Daft 14.7 3.1 8/13/2019 17.0 6.4 12/21/2019 Deal 17.2 5.6 8/21/2019 5/13/2019 City 11.4 8.6 12/14/2019 7/22/2019 Cozy 11.1 9.0 12/14/2019 Revised 11.7 12/20/2018 Don Revised 14.3 Baldwin Name Pfmn Size Digby 12/6/2016 Drum Boat 8.8 11.4 6/10/2019 Best 9.0 11.2 6/10/2019 Bat 11.5 8.0 12/14/2019 Bell 12.2 8.5 12/14/2019 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 4 December 31, 2019 Lakshmi Priya Srinivas HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 886 297 410 537 Complement 886 297 410 537 1st Shift Complement 485 197 303 368 2nd Shift Complement 401 100 107 170 Overtime% 0.1% 0.0% 0.0% 0.0% Turnover Rate 6.6% 8.0% 6.1% 10.0% 217 24 25 54 0 50 120 75 New Employees Separated Employees Recruiting Spend $5,000 $2,500 $5,000 $0 80 40 80 0 Productivity Index 115.4% 119.0% 131.3% 100.0% Recruiting Cost $1,300 $83 $149 $54 Separation Cost $0 $248 $602 $377 Training Cost $1,418 $238 $656 $0 Total HR Admin Cost $2,718 $568 $1,408 $431 $31.04 $31.04 $31.04 $31.04 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 Hours Labor Contract Next Year Wages 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 $800 $1,250 $1,500 $0 $0 $1,250 $1,500 $0 Quality Initiative Training $1,250 $0 $0 $1,250 Channel Support Systems $1,250 $1,500 $0 $1,250 Concurrent Engineering $1,250 $0 $0 $1,250 UNEP Green Programs $0 $0 $1,500 $0 $0 $0 $1,500 $0 Quality Function Deployment Effort $1,200 $0 $0 $0 CCE/6 Sigma Training $1,200 $750 $0 $1,250 GEMI TQEM Sustainability Initiatives $1,200 $750 $0 $1,250 Process Mgt Budgets Last Year CPI Systems Vendor/JIT TQM Budgets Last Year Benchmarking Total Expenditures $8,150 $5,500 $6,000 $6,250 7.36% 10.20% 6.07% 9.48% Labor Cost Reduction 13.91% 4.39% 0.28% 14.00% Reduction R&D Cycle Time 40.01% 0.00% 0.00% 40.01% 0.15% 34.91% 60.02% 0.00% 12.54% 10.57% 2.35% 12.78% Cumulative Impacts Material Cost Reduction Reduction Admin Costs Demand Increase 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 Round: 4 Dec. 31, 2019 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 2019 2018 Common Size Cash $22,918 9.8% $23,317 Accounts Receivable $36,014 15.3% $25,983 Inventory $49,184 21.0% $19,445 46.1% $68,745 Total Current Assets $108,116 Plant & Equipment $214,268 91.3% $214,268 Accumulated Depreciation ($87,733) -37.4% ($73,448) Total Fixed Assets $126,535 53.9% $140,820 Total Assets $234,651 100.0% $209,565 $15,109 6.4% $11,582 $0 0.0% $0 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $43,101 18.4% $54,909 24.8% $66,491 $38,120 16.2% $40,081 $138,321 58.9% $102,993 Total Liabilities Common Stock Retained Earnings $58,210 Total Equity $176,441 75.2% $143,074 Total Liab. & O. Equity $234,651 100.0% $209,565 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: 2019 2018 Net Income (Loss) $40,367 $20,888 Depreciation $14,285 $13,485 Extraordinary gains/losses/writeoffs Accounts Payable $192 $0 $3,527 $617 Inventory ($29,739 ($13,851 ) ) Accounts Receivable ($10,031 ($4,072) ) Net cash from operations $18,600 $17,066 Cash Flows from Investing Activities: $0 ($56,968 ) Dividends Paid $0 $0 Sales of Common Stock $0 $20,000 Plant Improvements Cash Flows from Financing Activities: Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position Annual Report ($7,000) $0 $0 $25,000 ($12,000 ) $0 $0 ($11,300 ) ($19,000 $33,700 ) ($400) ($6,202) $22,918 $23,317 Page 1 Top Annual Report Andrews Round: 4 Dec. 31, 2019 C59559 2019 Income Statement (Product Name:) Sales Art Ate Attic Axe Athrif Anano Aelite Aeli1 2019 Total Commo n Size $55,466 $52,765 $39,435 $25,616 $24,723 $27,741 $27,925 $26,016 $279,686 100.0% Variable Costs: Direct Labor $13,709 $8,230 $6,162 $5,891 $6,635 $5,407 $5,443 $4,794 $56,272 20.1% Direct Material 35.0% Inventory Carry $22,714 $18,000 $13,377 $9,729 $8,490 $8,685 $8,708 $8,111 $97,814 $5,902 2.1% $36,939 $27,003 $22,375 $16,454 $15,928 $14,168 $14,215 $12,906 $159,988 57.2% Contribution $18,526 $25,762 $17,060 $9,162 $8,795 $13,573 $13,710 $13,111 $119,698 Margin 42.8% Total Variable $517 $773 $2,836 $834 $804 $75 $64 $0 Period Costs: Depreciation $2,947 $2,217 $2,185 $2,609 $1,927 $800 $800 $800 $14,285 5.1% SG&A: R&D $564 $520 $189 $3,779 1.4% $1,200 $1,100 $1,200 $1,100 $1,800 $1,300 $1,200 $1,200 $10,100 3.6% $1,400 $1,500 $1,500 $1,000 $1,000 $1,300 $1,200 $1,200 $10,100 3.6% Promotion s Sales Admin Total Period $541 $927 $548 $882 $567 $659 $484 $428 $367 $413 $463 $467 $435 $4,673 1.7% $7,015 $6,246 $6,111 $5,621 $5,507 $4,427 $4,186 $3,824 $42,937 15.4% Net Margin $11,512 $19,516 $10,949 $3,541 $3,288 $9,146 $9,524 $9,287 $76,762 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 $8,627 3.1% EBIT $68,134 24.4% Short Term Interest $0 0.0% LongTerm Interest $4,764 1.7% Taxes Profit Sharing Net Profit $22,180 7.9% $824 0.3% $40,367 14.4% 27.4% Annual Report Page 2 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 Round: 4 Dec. 31, 2019 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 2019 2018 Common Size Cash $37,917 21.7% $29,401 Accounts Receivable $11,741 6.7% $10,290 $8,537 4.9% $12,869 33.4% $52,560 $223,100 128.0% $223,100 ($106,936 ) -61.3% ($92,062) Inventory Total Current Assets Plant & Equipment Accumulated Depreciation $58,195 Total Fixed Assets $116,164 66.6% $131,038 Total Assets $174,359 100.0% $183,597 $6,330 3.6% $6,567 Current Debt $23,238 13.3% $25,311 Long Term Debt $71,265 40.9% $81,462 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $100,833 57.8% $113,340 Common Stock $40,763 23.4% $40,763 Retained Earnings $32,763 18.8% $29,494 $73,526 42.2% $70,257 $174,359 100.0% $183,597 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) 2019 2018 $8,517 ($1,055) Depreciation $14,873 $14,873 Extraordinary gains/losses/writeoffs ($755) ($89) Accounts Payable ($237) ($813) Inventory $4,332 ($2,245) Accounts Receivable ($1,451) $474 Net cash from operations $25,279 $11,144 Cash Flows from Investing Activities: $0 ($11,800 ) ($5,248) $0 Sales of Common Stock $0 $5,428 Purchase of Common Stock $0 $0 Cash from long term debt $0 $0 Retirement of long term debt ($9,442) ($813) Change in current debt (net) ($2,072) ($16,138 ) Net cash from financing activities ($16,762 ($11,523 ) ) Plant Improvements Cash Flows from Financing Activities: Dividends Paid Net change in cash position Closing cash position $8,517 ($12,179 ) $37,917 $29,401 Annual Report Page 1 Top Annual Report Baldwin C59559 2019 Income Statement Round: 4 Dec. 31, 2019 (Product Name:) Best Bat 2019 Total Commo n Size Bell Na Na Na Na $24,069 $24,422 $45,932 $48,420 $0 $0 $0 $0 $142,844 100.0% $2,513 $2,482 $9,304 $8,634 $0 $0 $0 $0 $22,934 16.1% $10,716 $11,100 $17,982 $18,616 $0 $0 $0 $0 $58,414 40.9% $381 $0 $0 $0 $0 $1,024 0.7% $13,354 $13,727 $27,660 $27,631 $0 $0 $0 $0 $82,372 57.7% Contribution $10,715 $10,695 $18,272 $20,790 Margin $0 $0 $0 $0 $60,472 42.3% $0 $0 $0 $0 $14,873 10.4% $966 $0 $0 $0 $0 $2,824 2.0% $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 3.6% $1,600 $1,600 $1,400 $1,400 $0 $0 $0 $0 $6,000 4.2% $413 $0 $0 $0 $0 $1,219 0.9% Total Period $7,845 $8,308 $6,718 $7,246 $0 $0 $0 $0 $30,116 21.1% Net Margin $2,870 $2,388 $11,554 $13,544 $0 $0 $0 $0 $30,356 21.3% Sales Boat Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $125 $145 $374 Period Costs: Depreciation SG&A: R&D Promotion s Sales Admin $4,293 $4,753 $2,660 $3,167 $446 $205 $446 $208 $966 $392 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Annual Report Page 2 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 Round: 4 Dec. 31, 2019 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 2019 2018 Common Size Cash $38,196 16.8% $21,194 Accounts Receivable $13,635 6.0% $13,293 Inventory $15,466 6.8% $17,579 29.6% $52,066 $266,040 116.9% $266,040 ($105,772 ) -46.5% ($88,036) Total Current Assets Plant & Equipment Accumulated Depreciation $67,297 Total Fixed Assets $160,268 70.4% $178,004 Total Assets $227,565 100.0% $230,070 3.5% $8,555 LIABILITIES & OWNERS' EQUITY Accounts Payable $7,920 Current Debt $29,982 13.2% $24,831 Long Term Debt $88,442 38.9% $105,324 55.5% $138,710 Total Liabilities $126,344 Common Stock $59,095 26.0% $52,809 Retained Earnings $42,126 18.5% $38,550 Total Equity $101,221 44.5% $91,359 Total Liab. & O. Equity $227,565 100.0% $230,070 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) 2019 2018 $3,576 ($2,250) Depreciation $17,736 $17,736 Extraordinary gains/losses/writeoffs ($1,137) $0 Accounts Payable ($635) $1,220 Inventory $2,112 ($3,986) Accounts Receivable ($342) ($2,603) Net cash from operations $21,311 $10,117 Cash Flows from Investing Activities: Plant Improvements $0 ($48,780 ) $0 $0 Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock $6,285 $16,186 Purchase of Common Stock $0 Cash from long term debt $0 $23,591 Retirement of long term debt Change in current debt (net) ($15,746 ) $0 $0 $5,151 ($8,312) Net cash from financing activities ($4,309) $31,466 Net change in cash position $17,001 ($7,198) Closing cash position $38,196 $21,194 Annual Report Page 1 Top Annual Report Chester C59559 Round: 4 Dec. 31, 2019 2019 Income Statement (Product Name:) Creak Cat Cell City 2019 Total Commo n Size Cozy Na Na $16,354 $22,639 $36,155 $28,842 $28,441 $33,462 $0 $0 $165,893 100.0% Direct Labor $1,531 $2,202 $7,503 $4,472 $6,467 $7,325 $0 $0 $29,500 17.8% Direct Material $6,671 $10,051 $15,084 $10,671 $12,698 $13,803 $0 $0 $68,978 41.6% $227 $0 $0 $1,856 1.1% Total Variable $8,312 $12,477 $23,245 $15,561 $19,385 $21,354 $0 $0 $100,333 60.5% Contribution Margin $8,042 $10,162 $12,911 $13,281 $9,056 $12,107 $0 $0 $65,559 39.5% $3,833 $4,600 $2,153 $2,040 $2,635 $2,475 $0 $0 $17,736 10.7% $966 $0 $0 $3,902 2.4% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $0 $0 $7,200 4.3% $1,000 $1,000 $2,400 $2,400 Sales Cone Variable Costs: Inventory Carry $110 $224 $657 $417 $220 Period Costs: Depreciation SG&A: R&D Promotion s Sales $0 $0 $985 $985 $966 $900 $900 $0 $0 $8,600 5.2% $321 $378 $0 $0 $1,872 1.1% Total Period $6,218 $7,055 $7,146 $6,950 $6,022 $5,918 $0 $0 $39,310 23.7% Net Margin $1,825 $3,107 $5,764 $6,331 $3,034 $6,189 $0 $0 $26,250 15.8% Admin $185 $255 $408 $325 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 $5,414 3.3% EBIT $20,836 12.6% Short Term Interest $3,718 2.2% LongTerm Interest $11,504 6.9% Taxes Profit Sharing Net Profit $1,965 1.2% $73 0.0% $3,576 2.2% Annual Report Page 2 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 Round: 4 Dec. 31, 2019 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 2019 2018 Common Size Cash $33,442 20.0% $33,869 Accounts Receivable $16,900 10.1% $17,709 Inventory $28,672 17.1% $18,124 47.2% $69,702 Total Current Assets $79,014 Plant & Equipment $159,260 95.1% $159,260 Accumulated Depreciation ($70,739) -42.2% ($60,121) $88,521 52.8% $99,139 $167,535 100.0% $168,841 Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable $10,297 6.1% $10,470 Current Debt $29,859 17.8% $19,814 Long Term Debt $32,714 19.5% $39,273 Total Liabilities $72,870 43.5% $69,557 Common Stock $10,830 6.5% $11,248 Retained Earnings $83,835 50.0% $88,037 $94,665 56.5% $99,285 $167,535 100.0% $168,841 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) 2019 2018 $31,474 $28,344 Depreciation $10,617 $10,617 Extraordinary gains/losses/writeoffs ($184) $0 Accounts Payable ($173) $314 ($10,548 ) $3,505 Inventory Accounts Receivable Net cash from operations $810 ($3,351) $31,996 $39,429 Cash Flows from Investing Activities: Plant Improvements $0 ($36,000 ) ($32,406 ) $0 $0 $0 Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt ($3,688) ($1,045) $0 $11,171 Retirement of long term debt ($6,375) $0 Change in current debt (net) $10,046 ($10,844 ) ($32,423 ) ($718) ($428) $2,711 Net cash from financing activities Net change in cash position Closing cash position $33,442 $33,869 Annual Report Page 1 Top Annual Report Digby C59559 2019 Income Statement Round: 4 Dec. 31, 2019 (Product Name:) Drum Daft 2019 Total Commo n Size Deal Na Na Na Na $60,312 $46,880 $48,963 $49,459 $0 $0 $0 $0 $205,614 100.0% Direct Labor $11,705 $9,069 $7,942 $7,832 $0 $0 $0 $0 $36,549 17.8% Direct Material $0 $0 $0 $0 $78,184 38.0% $702 $0 $0 $0 $0 $3,441 1.7% $35,546 $28,888 $26,538 $27,201 $0 $0 $0 $0 $118,174 57.5% Contribution $24,766 $17,992 $22,425 $22,258 Margin $0 $0 $0 $0 $87,441 42.5% $0 $0 $0 $0 $10,617 5.2% $645 $0 $0 $0 $0 $2,622 1.3% $1,400 $1,400 $1,400 $1,400 $0 $0 $0 $0 $5,600 2.7% $1,100 $1,000 $1,000 $1,000 $0 $0 $0 $0 $4,100 2.0% $450 $0 $0 $0 $0 $1,870 0.9% Total Period $6,669 $5,398 $6,188 $6,555 $0 $0 $0 $0 $24,810 12.1% Net Margin $18,097 $12,594 $16,236 $15,704 $0 $0 $0 $0 $62,631 30.5% Sales Don Variable Costs: Inventory Carry Total Variable $22,782 $19,019 $17,716 $18,667 $1,059 $800 $880 Period Costs: Depreciation SG&A: R&D Promotion s Sales Admin $2,911 $1,927 $2,720 $3,060 $710 $549 $645 $426 $623 $445 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 $6,217 3.0% EBIT $56,414 27.4% Short Term Interest $3,105 1.5% LongTerm Interest $3,899 1.9% Taxes Profit Sharing Net Profit $17,293 8.4% $642 0.3% $31,474 15.3% Annual Report Page 2