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 $150,000 $1,365,000 $546,000 $60,000 In the Month of March, Chester Corporation received orders of 148 units at a price of $15.00 for their product Clack. Chester uses the accrual method of accounting and offers 30 day credit terms. Chester delivers 98 units in March and the balance of 49 units in April. They received payment for 49 units in March, 49 units in April, and 49 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands) Select: 1 $2,220 , 0 $735 , $735 $1,470 , $735 0 , $2,220 Assume Baldwin is producing 808 units of Boat next year. What would Boat's plant utilization be? Select: 1 198.03% 93.10% 96.90% 95.00% Chester's balance sheet has $73,194,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, what will be Chester's book value? Select: 1 $75,194,000 $35,450,000 $71,194,000 $67,194,000 All else constant, what would Chester?s SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Cone?s promotional budget and $750,000 for Cone?s sales budget? Select: 1 11.9% 8.8% 12.5% 10.4% Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Chester to pull the product Cure entirely off the market this year. Assume Chester 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 Chester or other companies. Without Chester's product Cure 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 4,730 8,678 8,556 4,238 9,460 7,578 9,656 Currently Baldwin is paying a dividend of $16.83 (per share). If this dividend were raised by $3.64, given its current stock price what would be the Dividend Yield? Select: 1 $3.64 $20.47 12.6% 10.4% Currently Attic is charged $2,443,467 Depreciation on the Income Statement of Andrews. Andrews is planning for an increase in this depreciation. On the financial statements of Andrews will this? Select: 1 Increase Net Cash from Operations on the Cash Flow Statement. Decrease Net Cash from Operations on the Cash Flow Statement. Just impact the Balance Sheet. Have no impact on the Net Cash from Operations as depreciation appears in both Cash Flow and the Income Statement.

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: 4 Dec. 31, 2018 Student: Andrews Baldwin Chester Digby Selected Financial Statistics ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews 11.0% 1.49 16.3% 1.2 20.0% $0 $204,125,216 $36,822,039 $22,429,336 $40,948,976 9.9% 36.3% Baldwin 17.0% 1.38 23.3% 1.7 40.0% $0 $235,329,129 $69,285,528 $39,919,906 $93,178,525 6.0% 42.4% Chester 7.1% 0.85 6.1% 2.3 14.1% $0 $144,738,518 $27,676,132 $10,311,953 $13,001,431 10.4% 42.7% Digby 3.8% 0.77 3.0% 2.2 6.5% $0 $176,450,492 $25,673,292 $6,783,512 $4,281,347 12.0% 39.5% COMP-XM INQUIRER Page 1 Top Round: 4 Stocks & Bonds December 31 , 2018 Stock Market Summary Company Andrews Baldwin Chester Digby Close Change Shares $104.29 $162.45 $38.66 $32.42 $23.00 $58.70 $16.92 $11.53 2,051,207 1,854,617 2,892,363 3,639,935 MarketCap ($M) $214 $301 $112 $118 Book Value $54.66 $53.78 $25.31 $28.47 EPS Dividend Yield P/E $10.93 $21.52 $3.57 $1.86 $0.00 $16.83 $1.92 $0.00 0.0% 10.4% 5.0% 0.0% 9.5 7.5 10.8 17.4 Bond Market Summary Company Series# Face Yield Close$ S&P 11.2S2021 11.9S2022 $6,871,269 $7,072,000 11.0% 11.4% 101.48 104.07 AAA AAA 11.2S2024 11.5S2025 11.5S2026 13.0S2027 $227,868 $1,307,561 $17,351,846 $10,409,388 11.7% 11.9% 12.0% 12.5% 95.52 96.38 96.07 103.69 BBB BBB BBB BBB Andrews Baldwin Chester 12.5S2022 12.5S2023 12.5S2024 12.9S2025 13.4S2026 14.2S2027 $13,875,739 $7,981,720 $9,473,587 $14,407,694 $18,608,920 $1,088,571 13.1% 13.2% 13.3% 13.5% 13.8% 14.1% 95.63 94.85 94.17 95.28 97.22 100.99 CC CC CC CC CC CC 11.9S2024 12.5S2025 13.1S2026 13.9S2027 $9,223,784 $17,783,553 $34,288,550 $24,565,503 12.9% 13.2% 13.5% 13.8% 92.57 94.39 96.73 100.50 CCC CCC CCC CCC Digby Next Year's Prime Rate 9.00% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 4 December 31, 2018 Andrews Baldwin Chester Digby $22,429 $39,920 $10,312 $6,784 $11,999 $31 $10,051 ($153) $14,207 ($797) $17,509 ($1,531) $303 ($8,751) ($1,082) $24,930 $3,156 ($10,184) ($2,760) $40,029 $930 $978 ($996) $24,633 $1,374 ($3,622) ($1,131) $19,383 ($31,288) $0 $0 $0 $0 $0 $0 $0 ($1,000) $0 $0 $0 ($31,205) $0 ($2,420) $0 ($7,799) ($15,037) $30,317 $0 ($5,546) $0 $0 $0 ($10,410) ($25,187) $24,715 $0 $0 $10,486 $0 $0 ($19,315) ($24,344) $30,377 $0 Net cash from financing activities ($1,000) ($26,143) ($16,429) ($2,796) Net change in cash position ($7,358) $13,886 $8,204 $16,587 Andrews $2,567 $16,777 $20,611 $39,955 Baldwin $45,036 $19,342 $25,452 $89,830 Chester $40,789 $11,896 $9,225 $61,910 Digby $39,316 $14,503 $17,824 $71,642 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 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 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Plant and equipment Accumulated Depreciation Total Fixed Assets $179,988 ($82,666) $97,322 $150,760 ($69,505) $81,255 $213,100 ($105,016) $108,084 $262,640 ($105,518) $157,122 Total Assets $137,277 $171,085 $169,994 $228,764 Accounts Payable Current Debt Long Term Debt Total Liabilities $11,210 $0 $13,943 $25,153 $11,733 $30,317 $29,297 $71,347 $6,649 $24,715 $65,436 $96,800 $8,898 $30,377 $85,861 $125,136 Common Stock Retained Earnings Total Equity $12,080 $100,043 $112,124 $9,419 $90,319 $99,738 $35,743 $37,450 $73,194 $60,543 $43,085 $103,628 Total Liabilities & Owners' Equity $137,277 $171,085 $169,994 $228,764 Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit Andrews $204,125 $130,112 $11,999 $20,146 $5,046 $36,822 $1,611 $12,324 $458 $22,429 Baldwin $235,329 $135,621 $10,051 $14,121 $6,250 $69,286 $6,617 $21,934 $815 $39,920 Chester $144,739 $82,981 $14,207 $15,016 $4,859 $27,676 $11,488 $5,666 $210 $10,312 Digby $176,450 $106,773 $17,509 $21,211 $5,283 $25,673 $15,024 $3,727 $138 $6,784 COMP-XM INQUIRER Page 3 Top Production Analysis Round: 4 December 31, 2018 Production Information 2nd Auto Capac Prima Shift matio ity ry Unit Revisi Age Materi & n Next Next Segm Units Inven on Dec.3 Pfmn Size al Labor Contr. Over- Roun Roun Plant Name ent Sold tory Date 1 MTBF Coord Coord Price Cost Cost Marg. time d d Utiliz. 7/30/2 018 7/30/2 Axe Elite 1,682 29 018 7/16/2 Apple Thrift 1,592 1,820 018 7/26/2 Ate Core 2,828 17 018 Attic Nano 1,719 Bill Nano 1,922 Boat Elite Best Nano 1,424 Bam Elite 1,680 1,626 Clack Thrift 1,782 Cone Thrift 1,801 Cure Core 1,926 Cat Core 1,868 Dim Thrift 1,213 Don Thrift 1,408 Drum Nano 1,383 Daft Elite 1,032 Deal Core 1,456 20 9/13/2 018 8/21/2 69 018 8/13/2 435 018 8/21/2 471 018 307 6/10/2 018 6/10/2 159 018 12/14/ 230 2018 12/14/ 258 2018 144 12/20/ 2017 12/7/2 167 015 12/21/ 329 2018 12/21/ 326 2018 148 12/14/ 113 $33.0 0 $35.5 7.4 0 $16.0 12.3 0 $22.0 9.3 0 1.4 23000 12.6 4.5 1.4 25000 15.5 1.7 15000 7.7 1.5 20000 10.7 1.3 23000 14.0 1.6 25000 17.1 1.4 23000 14.4 1.3 25000 16.9 2.6 17000 8.5 2.6 17000 8.7 1.6 18000 11.2 1.6 20000 11.9 3.2 14000 8.2 11.8 4.1 16000 9.1 10.9 $34.0 0 $34.0 6.0 0 $37.0 3.2 0 $37.0 5.7 0 3.5 $15.0 0 $15.0 11.3 0 $23.0 8.1 0 $25.0 8.6 0 11.5 1.0 18000 13.3 3.7 1.0 20000 16.7 6.5 1.0 16000 11.1 8.7 $15.0 0 $17.0 0 $28.0 0 $34.0 0 $19.0 $12.3 $7.51 0 $12.8 $7.51 5 40% 100% 7.0 1,078 198% 43% 100% 7.0 1,064 198% $5.67 $4.51 24% 100% 9.0 1,330 198% $9.10 $6.01 31% 100% 8.0 1,350 198% $6.63 42% 100% 7.0 1,100 198% $6.63 40% 100% 7.0 $6.15 45% 45% 7.0 1,100 144% $6.13 44% 44% 7.0 1,250 143% $6.69 $1.45 45% 44% 10.0 1,250 143% $6.82 $1.40 44% 29% 10.0 1,400 127% $9.03 $4.60 40% 77% 8.0 1,100 176% $9.64 $4.38 43% 46% 8.0 1,300 145% $5.93 $1.23 49% 0% 10.0 1,250 91% $7.14 $1.23 46% 0% 10.0 1,500 92% 35% 72% 7.0 900 171% 44% 35% 7.0 850 134% 32% 44% 8.0 1,040 143% $13.0 4 $13.8 2 $13.2 8 $13.8 3 $11.8 $5.92 3 $12.6 $5.55 2 $8.63 $4.24 850 198% Dim Core 1,641 143 2018 12/14/ 2018 1.0 16000 10.8 9.1 0 $20.0 $8.38 $4.42 0 36% COMP-XM INQUIRER 68% 8.0 1,040 167% Page 4 Top Thrift Market Segment Analysis Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 7,746 7,746 25.8% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria Expectations 1. 2. 3. 4. Price Reliability Ideal Position Age $14.00 - 26.00 MTBF 14000-20000 Pfmn 8.2 Size 11.8 Ideal Age = 3.0 Perceptual Map for Thrift Segment Importanc e 55% 20% 15% 10% Round: 4 December 31, 2018 Top Products in Thrift Segment Units Market Sold to Revision Stock Pfmn Size List Age Name Share Seg Date Out Coord Coord Price MTBF Dec.31 Clack 22% 1,713 6/10/2018 8.5 11.5 $15.00 17000 2.65 Cone 22% 1,694 6/10/2018 8.7 11.3 $15.00 17000 2.60 Apple 21% 1,592 7/16/2018 7.7 12.3 $16.00 15000 1.70 Dim 15% 1,173 12/20/2017 8.2 11.8 $15.00 14000 3.25 Don 12% 902 12/7/2015 9.1 10.9 $17.00 16000 4.11 Ate 5% 364 7/26/2018 10.7 9.3 $22.00 20000 1.50 Dim 3% 207 12/14/2018 10.8 9.1 $20.00 16000 0.96 Deal 1% 97 12/14/2018 11.1 8.7 $19.00 16000 0.96 Cure 0% 3 12/14/2018 11.2 8.1 $23.00 18000 1.56 Cust. Cust. Dec. Promo Aware- Sales Access- Cust. Budget ness Budget ibility Survey $1,300 83% $1,600 83% 69 $1,300 83% $1,600 83% 67 $1,900 100% $2,100 98% 59 $1,200 72% $1,000 78% 46 $1,200 72% $1,000 78% 36 $1,900 100% $2,100 98% 9 $1,200 62% $900 78% 2 $1,200 67% $900 78% 0 $1,300 83% $1,400 83% 0 COMP-XM INQUIRER Page 5 Top Core Market Segment Analysis Round: 4 December 31, 2018 Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 9,778 9,778 32.6% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria Expectations 1. 2. 3. 4. Price Age Reliability Ideal Position $20.00 - 32.00 Ideal Age = 2.0 MTBF 16000-22000 Pfmn 11.5 Size 8.5 Importanc e 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Units Market Sold to Revision Stock Pfmn Size Name Share Seg Date Out Coord Coord Ate 25% 2,465 7/26/2018 10.7 9.3 Cure 20% 1,918 12/14/2018 11.2 8.1 Cat 19% 1,859 12/14/2018 11.9 8.6 Dim 15% 1,434 12/14/2018 10.8 9.1 Deal 14% 1,360 12/14/2018 11.1 8.7 Don 5% 506 12/7/2015 9.1 10.9 Cone 1% 107 6/10/2018 8.7 11.3 Clack 1% 69 6/10/2018 8.5 11.5 Dim 0% 40 12/20/2017 8.2 11.8 Attic 0% 14 7/30/2018 12.6 4.5 Axe 0% 7 7/30/2018 15.5 7.4 List Age Price MTBF Dec.31 $22.00 20000 1.50 $23.00 18000 1.56 $25.00 20000 1.57 $20.00 16000 0.96 $19.00 16000 0.96 $17.00 16000 4.11 $15.00 17000 2.60 $15.00 17000 2.65 $15.00 14000 3.25 $33.00 23000 1.41 $35.50 25000 1.41 Promo Budget $1,900 $1,300 $1,300 $1,200 $1,200 $1,200 $1,300 $1,300 $1,200 $1,900 $1,800 Cust. Awareness 100% 83% 83% 62% 67% 72% 83% 83% 72% 100% 100% Cust. Dec. Sales Access- Cust. Budget ibility Survey $2,100 82% 67 $1,400 81% 53 $1,400 81% 52 $900 73% 39 $900 73% 37 $1,000 73% 10 $1,600 81% 3 $1,600 81% 2 $1,000 73% 0 $2,000 82% 0 $1,900 82% 0 COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,164 6,164 20.6% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria Expectations 1. 2. 3. 4. Ideal Position Price Age Reliability Pfmn 13.4 Size 3.4 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Perceptual Map for Nano Segment Importanc e 35% 27% 20% 18% Round: 4 December 31, 2018 Top Products in Nano Segment Units Market Sold to Revision Stock Pfmn Size Name Share Seg Date Out Coord Coord Bill 28% 1,718 9/13/2018 14.0 3.5 Attic 26% 1,624 7/30/2018 12.6 4.5 Best 22% 1,366 8/13/2018 14.4 3.2 Drum 22% 1,365 12/21/2018 13.3 3.7 Axe 1% 67 7/30/2018 15.5 7.4 Bam 0% 17 8/21/2018 16.9 5.7 Cure 0% 4 12/14/2018 11.2 8.1 Cat 0% 3 12/14/2018 11.9 8.6 List Age Price MTBF Dec.31 $34.00 23000 1.27 $33.00 23000 1.41 $37.00 23000 1.36 $28.00 18000 1.02 $35.50 25000 1.41 $37.00 25000 1.35 $23.00 18000 1.56 $25.00 20000 1.57 Cust. Cust. Dec. Promo Aware- Sales Access- Cust. Budget ness Budget ibility Survey $1,400 92% $1,100 80% 66 $1,900 100% $2,000 82% 63 $1,400 92% $1,000 80% 51 $1,200 73% $2,400 74% 56 $1,800 100% $1,900 82% 0 $1,400 91% $1,000 80% 0 $1,300 83% $1,400 12% 0 $1,300 83% $1,400 12% 0 COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,297 6,297 21.0% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria Expectations 1. 2. 3. 4. Age Price Ideal Position Reliability Ideal Age = 0.0 $30.00 - 42.00 Pfmn 16.6 Size 6.6 MTBF 20000-26000 Importanc e 34% 24% 22% 20% Round: 4 December 31, 2018 Perceptual Map for Elite Segment Top Products in Elite Segment Units Market Sold to Revision Stock Pfmn Size Name Share Seg Date Out Coord Coord Boat 27% 1,680 8/21/2018 17.1 6.0 Bam 26% 1,610 8/21/2018 16.9 5.7 Axe 26% 1,608 7/30/2018 15.5 7.4 Daft 16% 1,032 12/21/2018 16.7 6.5 Bill 3% 204 9/13/2018 14.0 3.5 Attic 1% 81 7/30/2018 12.6 4.5 Best 1% 58 8/13/2018 14.4 3.2 Drum 0% 18 12/21/2018 13.3 3.7 Cat 0% 6 12/14/2018 11.9 8.6 List Age Price MTBF Dec.31 $34.00 25000 1.63 $37.00 25000 1.35 $35.50 25000 1.41 $34.00 20000 1.03 $34.00 23000 1.27 $33.00 23000 1.41 $37.00 23000 1.36 $28.00 18000 1.02 $25.00 20000 1.57 Cust. Cust. Dec. Promo Aware- Sales Access- Cust. Budget ness Budget ibility Survey $1,400 92% $1,000 87% 54 $1,400 91% $1,000 87% 50 $1,800 100% $1,900 82% 52 $1,200 72% $2,400 74% 37 $1,400 92% $1,100 87% 0 $1,900 100% $2,000 82% 0 $1,400 92% $1,000 87% 0 $1,200 73% $2,400 74% 0 $1,300 83% $1,400 5% 0 COMP-XM INQUIRER Page 8 Top Market Share Report Round: 4 December 31, 2018 Actual Market Share in Units Thrift Core Nano Elite Industry Unit 7,746 9,778 6,164 6,297 Sales % of Market 25.8% 32.6% 20.6% 21.0% Total 29,984 100.0% Attic Axe Apple 0.1% 26.3% 1.3% 0.1% 1.1% 25.5% 20.6% 5.7% 5.6% 5.3% Ate Total 4.7% 25.2% 25.3% 25.4% 27.4% 26.8% 9.4% 26.1% Bill 27.9% 3.2% 6.4% Boat 26.7% 5.6% Best 22.2% 0.9% 4.8% Bam 0.3% 25.6% 5.4% Total 50.3% 56.4% 22.2% Clack 22.1% 0.7% 5.9% Cone 21.9% 1.1% 6.0% Cure Cat Total 0.0% 19.6% 0.1% 19.0% 0.0% 0.1% 44.0% 40.4% 0.1% 0.1% Dim 15.1% 0.4% Don 11.7% 5.2% Drum Deal Dim Total 6.4% 6.2% 24.6% 4.0% 4.7% 22.1% 0.3% 4.6% 16.4% 3.4% Daft 1.3% 13.9% 2.7% 14.7% 30.7% 34.1% 22.1% 16.7% Potential Market Share in Units 4.9% 5.5% 27.1% Thrift Units Demande d % of Market Core Nano Elite Total 7,746 9,778 6,164 6,297 29,984 25.8% 32.6% 20.6% 21.0% 100.0% Attic Axe Apple 0.1% 26.4% 1.3% 0.1% 1.1% 25.5% 20.6% 5.7% 5.6% 5.3% Ate Total 4.7% 25.2% 25.3% 25.4% 27.4% 26.8% 9.4% 26.1% Bill 27.9% Best 22.2% 3.2% 6.4% 26.7% Boat 5.6% 0.9% 4.7% Bam 0.3% 25.6% 5.4% Total 50.3% 56.4% 22.2% Clack 22.1% 0.7% Cone 21.9% 1.1% Cure Cat Total 19.6% 19.0% 44.0% 40.4% Dim 15.1% 0.4% Don 11.6% 5.2% Drum Dim Total COMP-XM INQUIRER 6.0% 0.1% 0.1% 0.1% 0.1% 6.4% 6.2% 24.6% 4.0% 4.7% 22.1% 0.3% 4.6% 16.4% Daft Deal 5.9% 3.4% 1.2% 13.9% 2.7% 14.7% 30.7% 34.1% 22.1% 16.7% 4.9% 5.5% 27.1% Page 9 Top Perceptual Map Round: 4 December 31, 2018 Perceptual Map for All Segments Andrews Name Attic Axe Apple Ate Pfmn 12.6 15.5 7.7 10.7 Baldwin Size 4.5 7.4 12.3 9.3 Revised 7/30/2018 7/30/2018 7/16/2018 7/26/2018 Name Bill Boat Best Bam Pfmn 14.0 17.1 14.4 16.9 Size 3.5 6.0 3.2 5.7 Chester Revised 9/13/2018 8/21/2018 8/13/2018 8/21/2018 Name Clack Cone Cure Cat Pfmn Size 8.5 11.5 8.7 11.3 11.2 8.1 11.9 8.6 Revised 6/10/2018 6/10/2018 12/14/2018 12/14/2018 Digby Name Dim Don Drum Daft Deal Dim Pfmn Size 8.2 11.8 9.1 10.9 13.3 3.7 16.7 6.5 11.1 8.7 10.8 9.1 Revised 12/20/2017 12/7/2015 12/21/2018 12/21/2018 12/14/2018 12/14/2018 COMP-XM INQUIRER Page 10 Top HR/TQM Report HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 705 604 303 458 Complement 705 604 303 458 1st Shift Complement 353 356 197 313 2nd Shift Complement 352 248 106 145 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 6.1% 10.0% 8.0% 6.0% 43 152 24 27 New Employees Separated Employees Recruiting Spend Training Hours Productivity Index Recruiting Cost Separation Cost 59 0 1 24 $4,500 $0 $2,500 $5,000 80 0 40 80 118.9% 100.0% 119.6% 130.1% $238 $152 $85 $164 $295 $0 $6 $119 Training Cost $1,128 $0 $242 $732 Total HR Admin Cost $1,661 $152 $333 $1,016 Wages $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% 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 Round: 4 December 31, 2018 Wages Benefits Profit Sharing Annual Raise Strike Days TQM SUMMARY Andrews Baldwin Chester Digby Process Mgt Budgets Last Year CPI Systems $500 $0 $1,250 $1,500 Vendor/JIT $500 $0 $1,250 $1,500 Quality Initiative Training $500 $1,250 $0 $0 Channel Support Systems $500 $1,250 $1,500 $0 Concurrent Engineering $500 $1,250 $0 $0 UNEP Green Programs $500 $0 $0 $1,500 $500 $0 $0 $1,500 $500 $0 $0 $0 $500 $1,250 $750 $0 $500 $1,250 $750 $0 $5,000 $6,250 $5,500 $6,000 TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures Cumulative Impacts Material Cost Reduction 9.11% 9.48% 10.20% 6.07% Labor Cost Reduction 11.06% 14.00% 4.39% 0.28% Reduction R&D Cycle Time 38.25% 40.01% 0.00% 0.00% Reduction Admin Costs 58.21% 0.00% 34.91% 60.02% Demand Increase 11.62% 12.78% 10.57% 2.35% COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews C59559 Round: 8 Dec. 31, 2018 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-ofyear 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 Cash Accounts Receivable Inventory $2,567 2018 Common Size 1.9% $16,777 12.2% $20,611 15.0% Total Current Assets Plant & Equipment Accumulated Depreciation $39,955 29.1% $179,988 131.1% ($82,666) -60.2% Total Fixed Assets $97,322 70.9% Total Assets $137,277 100.0% LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $11,210 8.2% $0 0.0% $13,943 10.2% Total Liabilities Common Stock Retained Earnings $25,153 18.3% $12,080 8.8% $100,043 72.9% Total Equity $112,123 81.7% Total Liab. & O. Equity $137,277 100.0% Cash Flow Statement The Cash Flow Statement examines what happened in Cash Flows from the Cash Account during the year. Cash injections appear Operating Activities: as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for Net Income (Loss) diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency gains/losses/writeoffs funding. For example, if sales are bad and you find Accounts Payable yourself carrying an abundance of excess inventory, the Inventory report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could Accounts Receivable outstrip your inflows, exhaust your starting cash and force Net cash from operations you to beg for money to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position 2018 2017 $22,429 $11,999 $17,252 $9,913 $31 $4 $303 ($8,751) ($1,082) ($624) ($6,669) $188 $24,930 $20,065 ($31,288) ($21,244) $0 $0 $0 $0 $0 $0 $0 $0 ($1,000) ($1,000) $0 ($11,300) ($1,000) ($12,300) ($7,358) ($13,479) $2,567 $9,925 Page 1 Annual Report Top Annual Report Andrews C59559 Round: 8 Dec. 31, 2018 2018 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Attic Axe Apple Ate Na Na Na $56,717 $59,712 $25,476 $62,221 $0 $0 $0 2018 Common Total Size $0 $204,125 100.0% $12,914 $12,638 $7,512 $17,158 $0 $0 $0 $0 $50,222 24.6% $20,950 $21,421 $9,432 $25,614 $0 $0 $0 $0 $77,417 37.9% $47 $70 $2,325 $31 $0 $0 $0 $0 $2,473 1.2% $33,911 $34,129 $19,269 $42,803 $0 $0 $0 $0 $130,112 63.7% Na Contributi on Margin Period Costs: Depreciati on SG&A: R&D Promoti ons Sales Admin Total Period Net Margin $22,805 $25,583 $6,207 $19,418 $0 $0 $0 $0 $74,013 36.3% $2,443 $2,412 $3,724 $3,420 $0 $0 $0 $0 $11,999 5.9% $585 $585 $545 $573 $0 $0 $0 $0 $2,288 1.1% $1,900 $1,800 $1,900 $1,900 $0 $0 $0 $0 $7,500 3.7% $2,000 $627 $1,900 $660 $2,100 $282 $2,100 $688 $0 $0 $0 $0 $0 $0 $0 $0 $8,100 $2,258 4.0% 1.1% $7,556 $7,358 $8,551 $8,681 $0 $0 $0 $0 $32,145 15.7% $15,249 $18,225 ($2,344) $10,737 $0 $0 $0 $0 $41,868 20.5% Definitions: Sales: Unit sales times list price. Direct Labor Other incurred to produce the product that was sold. Inventory Carry Cost to carry unsold goods in inventory.Depreciation: Calculated on straight-line EBIT Short Term 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated atInterest LongTerm 1.5% of sales. Promotions: The promotion budget for each product. The sales force budget for each product. Other: Charges not included in other Interest categories such as Fees, Write Offs, and TQM. The fees include money paid toTaxes Profit Sharing investment bankers and brokerage firms to issue new stocks or bonds plus Net Profit 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. Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract.Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report $5,046 2.5% $36,822 18.0% $0 0.0% $1,611 0.8% $12,324 6.0% $458 0.2% $22,429 11.0% Page 2 PRINT Annual Report Top Annual Report Baldwin Round: 8 Dec. 31, 2018 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-ofyear 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 Cash Accounts Receivable Inventory $45,036 $19,342 11.3% $25,452 14.9% Total Current Assets Plant & Equipment Accumulated Depreciation 2018 Common Size 26.3% $89,830 52.5% $150,760 88.1% ($69,505) -40.6% Total Fixed Assets $81,255 47.5% Total Assets $171,085 100.0% LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $11,733 6.9% $30,317 17.7% $29,297 17.1% Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $71,347 41.7% $9,419 5.5% $90,319 52.8% $99,738 58.3% $171,085 100.0% Cash Flow Statement The Cash Flow Statement examines what happened in Cash Flows from the Cash Account during the year. Cash injections appear Operating Activities: as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for Net Income (Loss) diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency gains/losses/writeoffs funding. For example, if sales are bad and you find Accounts Payable yourself carrying an abundance of excess inventory, the Inventory report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could Accounts Receivable outstrip your inflows, exhaust your starting cash and force Net cash from operations you to beg for money to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position 2018 2017 $39,920 $10,051 $25,612 $10,051 ($153) $0 $3,156 ($10,184) ($2,760) ($3,027) $17,896 ($3,028) $40,029 $47,504 $0 ($29,000) ($31,205) $0 $0 $1,057 ($2,420) $0 $0 $10,409 ($7,799) $0 $15,280 ($18,315) ($26,143) ($6,848) $13,886 $11,656 $45,036 $31,151 Page 1 Annual Report Top Annual Report Baldwin C59559 Round: 8 Dec. 31, 2018 2018 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Bill Boat Best Bam Na Na Na $65,356 $57,107 $52,696 $60,170 $0 $0 $0 2018 Common Total Size $0 $235,329 100.0% $12,799 $11,147 $8,946 $10,237 $0 $0 $0 $0 $43,129 18.3% $24,695 $23,125 $19,029 $22,589 $0 $0 $0 $0 $89,438 38.0% $720 $169 $1,024 $1,141 $0 $0 $0 $0 $3,054 1.3% $38,214 $34,441 $28,998 $33,968 $0 $0 $0 $0 $135,621 57.6% Na Contributi on Margin Period Costs: Depreciati on SG&A: R&D Promoti ons Sales Admin Total Period Net Margin $27,143 $22,666 $23,697 $26,203 $0 $0 $0 $0 $99,708 42.4% $2,797 $1,927 $2,493 $2,833 $0 $0 $0 $0 $10,051 4.3% $710 $645 $623 $645 $0 $0 $0 $0 $2,622 1.1% $1,400 $1,400 $1,400 $1,400 $0 $0 $0 $0 $5,600 2.4% $1,100 $500 $1,000 $437 $1,000 $403 $1,000 $460 $0 $0 $0 $0 $0 $0 $0 $0 $4,100 $1,799 1.7% 0.8% $6,507 $5,408 $5,919 $6,338 $0 $0 $0 $0 $24,172 10.3% $20,636 $17,257 $17,778 $19,864 $0 $0 $0 $0 $75,536 32.1% Definitions: Sales: Unit sales times list price. Direct Labor Other incurred to produce the product that was sold. Inventory Carry Cost to carry unsold goods in inventory.Depreciation: Calculated on straight-line EBIT Short Term 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated atInterest LongTerm 1.5% of sales. Promotions: The promotion budget for each product. The sales force budget for each product. Other: Charges not included in other Interest categories such as Fees, Write Offs, and TQM. The fees include money paid toTaxes Profit Sharing investment bankers and brokerage firms to issue new stocks or bonds plus Net Profit 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. Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract.Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report $6,250 2.7% $69,286 29.4% $3,092 1.3% $3,525 1.5% $21,934 9.3% $815 0.3% $39,920 17.0% Page 2 PRINT Annual Report Top Annual Report Chester Round: 8 Dec. 31, 2018 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-ofyear 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 Cash Accounts Receivable Inventory $40,789 2018 Common Size 24.0% $11,896 7.0% $9,225 5.4% Total Current Assets Plant & Equipment Accumulated Depreciation $61,910 36.4% $213,100 125.4% ($105,016) -61.8% Total Fixed Assets $108,084 63.6% Total Assets $169,994 100.0% LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $6,649 3.9% $24,715 14.5% $65,436 38.5% Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $96,800 56.9% $35,743 21.0% $37,450 22.0% $73,193 43.1% $169,994 100.0% Cash Flow Statement The Cash Flow Statement examines what happened in Cash Flows from the Cash Account during the year. Cash injections appear Operating Activities: as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for Net Income (Loss) diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency gains/losses/writeoffs funding. For example, if sales are bad and you find Accounts Payable yourself carrying an abundance of excess inventory, the Inventory report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could Accounts Receivable outstrip your inflows, exhaust your starting cash and force Net cash from operations you to beg for money to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position 2018 2017 $10,312 $14,207 $1,073 $14,207 ($797) $0 $930 $978 ($996) ($3,307) $13,218 ($195) $24,633 $24,995 $0 ($10,600) ($5,546) $0 $0 $3,036 $0 $0 $0 $1,089 ($10,410) $0 ($472) ($15,324) ($16,429) ($11,199) $8,204 $3,196 $40,789 $32,584 Page 1 Annual Report Top Annual Report Chester C59559 Round: 8 Dec. 31, 2018 2018 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Clack Cone Cure Cat Na Na Na $26,728 $27,017 $44,296 $46,698 $0 $0 $0 2018 Common Total Size $0 $144,739 100.0% $2,789 $2,770 $8,782 $8,132 $0 $0 $0 $0 $22,472 15.5% $11,827 $12,230 $17,350 $17,995 $0 $0 $0 $0 $59,402 41.0% $142 $159 $374 $433 $0 $0 $0 $0 $1,107 0.8% $14,758 $15,159 $26,505 $26,559 $0 $0 $0 $0 $82,981 57.3% Na Contributi on Margin Period Costs: Depreciati on SG&A: R&D Promoti ons Sales Admin Total Period Net Margin $11,969 $11,858 $17,791 $20,140 $0 $0 $0 $0 $61,758 42.7% $3,833 $4,293 $2,787 $3,293 $0 $0 $0 $0 $14,207 9.8% $446 $446 $966 $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 $183 $1,600 $185 $1,400 $304 $1,400 $320 $0 $0 $0 $0 $0 $0 $0 $0 $6,000 $992 4.1% 0.7% $7,362 $7,824 $6,756 $7,280 $0 $0 $0 $0 $29,223 20.2% $4,607 $4,033 $11,034 $12,860 $0 $0 $0 $0 $32,535 22.5% Definitions: Sales: Unit sales times list price. Direct Labor Other incurred to produce the product that was sold. Inventory Carry Cost to carry unsold goods in inventory.Depreciation: Calculated on straight-line EBIT Short Term 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated atInterest LongTerm 1.5% of sales. Promotions: The promotion budget for each product. The sales force budget for each product. Other: Charges not included in other Interest categories such as Fees, Write Offs, and TQM. The fees include money paid toTaxes Profit Sharing investment bankers and brokerage firms to issue new stocks or bonds plus Net Profit 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. Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract.Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report $4,859 3.4% $27,676 19.1% $3,065 2.1% $8,423 5.8% $5,666 $210 $10,312 3.9% 0.1% 7.1% Page 2 PRINT Annual Report Top Annual Report Digby Round: 8 Dec. 31, 2018 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-ofyear 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 Cash Accounts Receivable Inventory $39,316 2018 Common Size 17.2% $14,503 6.3% $17,824 7.8% Total Current Assets Plant & Equipment Accumulated Depreciation $71,643 31.3% $262,640 114.8% ($105,518) -46.1% Total Fixed Assets $157,122 68.7% Total Assets $228,764 100.0% LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,898 3.9% $30,377 13.3% $85,861 37.5% Total Liabilities Common Stock Retained Earnings $125,136 54.7% $60,543 26.5% $43,085 18.8% Total Equity $103,628 45.3% Total Liab. & O. Equity $228,764 100.0% Cash Flow Statement The Cash Flow Statement examines what happened in Cash Flows from the Cash Account during the year. Cash injections appear Operating Activities: as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for Net Income (Loss) diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency gains/losses/writeoffs funding. For example, if sales are bad and you find Accounts Payable yourself carrying an abundance of excess inventory, the Inventory report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could Accounts Receivable outstrip your inflows, exhaust your starting cash and force Net cash from operations you to beg for money to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position 2018 2017 $6,784 $17,509 ($2,578) $17,509 ($1,531) $0 $1,374 ($3,622) ($1,131) ($1,353) $10,365 ($3,009) $19,383 $20,935 $0 ($42,380) $0 $10,486 $0 $14,235 $0 $0 $0 $24,566 ($19,315) $0 $6,033 ($8,837) ($2,796) $29,963 $16,587 $8,518 $39,316 $22,729 Page 1 Annual Report Top Annual Report Digby C59559 Round: 8 Dec. 31, 2018 2018 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Dim Don Drum Daft Deal Dim Na $18,190 $23,941 $38,730 $35,096 $27,670 $32,823 $0 2018 Common Total Size $0 $176,450 100.0% $1,677 $2,207 $8,285 $5,917 $6,339 $7,259 $0 $0 $31,685 18.0% $7,474 $10,568 $16,128 $12,916 $12,360 $13,502 $0 $0 $72,949 41.3% $103 $181 $698 $713 $227 $217 $0 $0 $2,139 1.2% $9,254 $12,957 $25,111 $19,546 $18,927 $20,978 $0 $0 $106,773 60.5% Na Contributi on Margin Period Costs: Depreciati on SG&A: R&D Promoti ons Sales Admin Total Period Net Margin $8,936 $10,984 $13,619 $15,551 $8,743 $11,845 $0 $0 $69,678 39.5% $3,833 $4,600 $2,040 $1,927 $2,635 $2,475 $0 $0 $17,509 9.9% $0 $0 $985 $985 $966 $966 $0 $0 $3,902 2.2% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $0 $0 $7,200 4.1% $1,000 $156 $1,000 $205 $2,400 $331 $2,400 $300 $900 $237 $900 $281 $0 $0 $0 $0 $8,600 $1,510 4.9% 0.9% $6,189 $7,005 $6,956 $6,812 $5,938 $5,822 $0 $0 $38,721 21.9% $2,747 $3,979 $6,663 $8,739 $2,806 $6,024 $0 $0 $30,957 17.5% Definitions: Sales: Unit sales times list price. Direct Labor Other incurred to produce the product that was sold. Inventory Carry Cost to carry unsold goods in inventory.Depreciation: Calculated on straight-line EBIT Short Term 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated atInterest LongTerm 1.5% of sales. Promotions: The promotion budget for each product. The sales force budget for each product. Other: Charges not included in other Interest categories such as Fees, Write Offs, and TQM. The fees include money paid toTaxes Profit Sharing investment bankers and brokerage firms to issue new stocks or bonds plus Net Profit 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. Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract.Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report $5,283 3.0% $25,673 14.5% $3,797 2.2% $11,227 6.4% $3,727 $138 $6,784 2.1% 0.1% 3.8% Page 2