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 $300,000 $120,000 $2,680,000 $1,072,000 Your Competitive Intelligence team is predicting that the Digby Company will invest in adding capacity to their Deft product this year. Assume Digby's product Deft invests in increasing its capacity by 10% this year. Because of this new information, your company anticipates all other products in the Core segment will increase their capacity by the same amount. How much can the industry produce in the Core segment the next year? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000). Select: 1 7,678 4,525 8,728 4,830 9,706 12,936 8,656 Assume Baldwin is paying a dividend of $1.63 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield? Select: 1 5.06% 19.76% 4.05% 6.58% Last year Attic charged $1,904,000 Depreciation on the Income Statement of Andrews. If early this year Attic purchased a new depreciable asset, the effect on Andrews's financial statements would be (all other items remaining equal): Select: 1 Increase Net Cash from operations Decrease Net Cash from operations on the Cash Flow Statement No impact on Net Cash from operations Just impact the Balance Sheet Assume Baldwin is producing 2,025 units of Bam next year. What would Bam's plant utilization be? Select: 1 135.00% 132.30% 66.01% 137.70% Digby's balance sheet has $64,549,000 in equity. Next year they expect Assets to increase by $4,000,000 and Liabilities to decrease by $2,000,000. If that happens, what will be Digby's book value? Select: 1 $66,549,000 $25,985,000 $58,549,000 $70,549,000 All else constant, what would Digby?s SG&A/Sales ratio be if the company had spent an additional $1,500,000 for Daft?s promotional budget and $750,000 for Daft?s sales budget? Select: 1 10.5% 14.8% 12.3% 14.1% In the month of March the Digby Corporation received and delivered orders of 117,000 units at a price of $15.00 for revenue of $1.755mil for their product Drum. Digby uses the accrual method of accounting and offers 30 day credit terms. By the end of May Digby had collected payments of $1.755mil for the March deliveries. How much of the collected $1.755mil should Digby show on the March 31st income statement and how much on the May 31st income statement? Select: 1 $0 in March; $1.755mil in May $0.877mil in March; $0.877mil in May $1.755mil in March; $0 in May $0.579mil in March; $1.176mil in May

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 PRINT Annual Report Digby Top " Round: 4 Dec. 31, 2018 Qingying LIN Student: Qingying LIN Andrews Qingying LIN 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 % COMP-XM INQUIRER Andrews 8.0% 1.14 9.2% 1.4 12.9% $0 $224,281,193 $33,087,910 $18,042,132 $8,292,567 9.9% 32.9% Baldwin 3.0% 0.76 2.2% 2.2 5.0% $0 $167,963,143 $22,549,049 $4,960,455 $1,006,069 12.8% 40.0% Chester 17.7% 1.45 25.8% 1.7 43.3% $0 $252,370,605 $76,783,629 $44,760,195 $100,524,889 5.7% 42.6% Digby 3.8% 0.79 3.0% 2.5 7.3% $0 $126,093,538 $18,912,103 $4,730,333 ($1,397,680) 12.3% 42.8% Page 1 Top Stocks & Bonds Round: 4 Qingying LIN December 31 , 2018 Stock Market Summary Company Andrews Baldwin Chester Digby Close $63.09 $29.20 $177.07 $23.74 Change $32.00 $8.36 $65.82 $11.40 Shares 3,301,559 3,540,374 1,849,079 3,110,447 MarketCap ($M) $208 $103 $327 $74 Book Value $42.49 $28.03 $55.91 $20.75 EPS $5.46 $1.40 $24.21 $1.52 Dividend $2.00 $0.00 $17.99 $1.48 Yield 3.2% 0.0% 10.2% 6.2% P/E 11.5 20.8 7.3 15.6 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 11.2S2021 11.9S2022 10.9S2025 10.1S2026 11.6S2027 $8,837,000 $7,072,000 $7,000,000 $10,000,000 $10,000,000 11.2% 11.6% 11.0% 10.6% 11.3% 100.24 102.48 99.06 94.87 102.76 AA AA AA AA AA 11.9S2024 12.5S2025 13.2S2026 13.8S2027 $13,682,896 $17,783,553 $34,163,620 $22,206,470 12.9% 13.2% 13.6% 13.8% 92.57 94.39 97.20 100.00 CCC CCC CCC CCC 11.2S2024 11.5S2025 11.6S2026 12.7S2027 $1,561,374 $1,307,561 $18,579,030 $8,186,647 11.7% 11.9% 12.0% 12.4% 95.91 96.83 97.04 102.64 BBB BBB BBB BBB 12.5S2022 12.5S2023 12.5S2024 12.9S2025 13.4S2026 $14,315,893 $7,981,720 $9,473,587 $14,407,694 $23,641,333 13.1% 13.3% 13.4% 13.7% 13.9% 95.07 94.19 93.42 94.46 96.31 CC CC CC CC CC Next Year's Prime Rate 9.00% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey 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 Round: 4 December 31, 2018 Qingying LIN Andrews Baldwin Chester Digby $18,042 $4,960 $44,760 $4,730 $11,567 ($662) $17,623 ($1,096) $10,051 ($157) $14,567 ($617) $1,102 ($8,390) ($51) $21,609 ($485) $6,411 ($1,764) $25,649 $810 $1,887 ($3,146) $54,205 ($1,957) $14,354 ($1,587) $29,491 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 $23,306 $0 $0 $0 ($6,603) $4,000 $0 $0 $0 ($7,000) $0 $0 $0 $6,892 $0 $0 ($15,291) ($23,534) $26,908 $0 ($33,267) $0 ($3,646) $0 ($6,461) ($18,949) $29,091 $0 ($4,613) $0 $0 $0 ($7,343) ($23,281) $19,748 $0 Net cash from financing activities ($9,603) ($5,024) ($33,233) ($15,490) Net change in cash position $35,312 $20,624 $20,972 $14,001 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $59,596 $18,434 $17,239 $95,269 Baldwin $36,510 $13,805 $12,514 $62,829 Chester $51,771 $20,743 $20,001 $92,514 Digby $31,643 $10,364 $4,359 $46,366 Plant and equipment Accumulated Depreciation Total Fixed Assets $173,512 ($72,686) $100,826 $264,340 ($105,545) $158,795 $150,760 ($69,605) $81,155 $218,500 ($106,042) $112,458 Total Assets $196,094 $221,624 $173,669 $158,824 Accounts Payable Current Debt Long Term Debt Total Liabilities $12,888 $0 $42,909 $55,797 $7,639 $26,908 $87,837 $122,383 $11,564 $29,091 $29,635 $70,289 $4,707 $19,748 $69,820 $94,275 Common Stock Retained Earnings Total Equity $82,080 $58,217 $140,297 $59,431 $39,809 $99,241 $10,340 $93,040 $103,380 $40,564 $23,985 $64,549 Total Liabilities & Owners' Equity $196,094 $221,624 $173,669 $158,824 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 $224,281 $150,484 $11,567 $22,153 $6,988 $33,088 $4,764 $9,913 $368 $18,042 Baldwin $167,963 $100,853 $17,623 $21,460 $5,478 $22,549 $14,762 $2,726 $101 $4,960 Chester $252,371 $144,983 $10,051 $14,309 $6,245 $76,784 $6,516 $24,594 $913 $44,760 Digby $126,094 $72,150 $14,567 $15,471 $4,993 $18,912 $11,486 $2,599 $97 $4,730 COMP-XM INQUIRER Page 3 Top Production Analysis Round: 4 December 31, 2018 Qingying LIN Production Information Name Primary Segment Units Sold Unit Inven tory Revision Date Age Dec.31 MTBF Pfmn Coord Size Coord Price Material Cost Labor Cost 2nd Shift & Contr. OverMarg. time Auto mation Capacity Next Next Round Round Plant Utiliz. Attic Axe Art Ant Abe Agye Agee Thrift Thrift Nano Elite Core Thrift Core 1,229 1,238 1,382 1,337 1,503 1,028 1,307 475 354 5 0 0 453 0 6/7/2018 5/23/2018 8/10/2018 8/10/2018 5/24/2018 5/23/2018 5/24/2018 1.7 1.8 1.4 1.4 1.7 1.7 1.7 17300 17300 21000 24000 17500 17300 17500 7.7 7.7 12.9 16.1 10.8 7.7 10.8 12.3 12.3 3.9 7.1 9.2 12.3 9.2 $17.00 $17.00 $36.50 $36.50 $23.20 $17.30 $23.30 $6.49 $6.49 $12.14 $12.93 $8.63 $6.49 $8.63 $6.17 $6.93 $7.77 $7.77 $7.64 $6.95 $7.81 20% 17% 46% 44% 28% 17% 29% 79% 76% 85% 84% 71% 79% 89% 7.0 6.5 7.0 6.0 6.0 6.5 6.0 840 850 758 734 800 780 700 177% 175% 183% 182% 170% 178% 187% Best Bam Bell Bit Bolt Buzz Thrift Thrift Nano Elite Core Core 951 1,168 1,475 1,108 1,327 1,482 96 159 239 262 70 37 12/20/2017 12/7/2015 12/21/2018 12/21/2018 12/14/2018 12/14/2018 3.2 4.1 1.0 1.0 1.0 1.0 14000 16000 18000 20000 16000 16000 7.7 8.6 12.8 16.2 10.6 10.3 12.3 11.4 4.2 7.0 9.2 9.6 $15.00 $17.00 $28.00 $34.00 $19.00 $20.00 $5.93 $7.14 $11.83 $12.62 $8.63 $8.38 $1.22 $1.22 $5.85 $5.30 $4.00 $4.15 49% 43% 36% 45% 33% 38% 0% 0% 72% 22% 25% 39% 10.0 10.0 7.0 7.0 8.0 8.0 1,250 1,500 900 900 1,040 1,040 51% 66% 171% 121% 124% 138% Creak Cat Cell City Nano Elite Nano Elite 2,050 1,814 1,517 1,753 137 32 388 445 9/13/2018 8/21/2018 8/13/2018 8/21/2018 1.3 1.6 1.4 1.3 23000 25000 23000 25000 13.5 16.6 13.9 16.4 4.0 6.5 3.7 6.2 $34.00 $34.00 $37.00 $37.00 $13.04 $13.82 $13.28 $13.83 $6.63 $6.63 $6.15 $6.06 42% 40% 45% 44% 100% 100% 45% 38% 7.0 7.0 7.0 7.0 1,050 850 1,100 1,300 198% 198% 144% 137% Drum Daft Deft Dim Thrift Thrift Core Core 1,400 1,422 1,772 1,720 121 136 74 85 6/10/2018 6/10/2018 12/14/2018 12/14/2018 2.6 2.6 1.6 1.6 17000 17000 18000 20000 8.0 8.2 10.7 11.4 12.0 11.8 8.6 9.1 $15.00 $15.00 $23.00 $25.00 $6.69 $6.82 $9.03 $9.64 $1.28 $1.28 $4.39 $4.10 44% 42% 41% 44% 0% 0% 43% 16% 10.0 10.0 8.0 8.0 1,350 1,500 1,050 1,250 84% 76% 141% 115% COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Qingying LIN Thrift Statistics 7,746 7,746 25.8% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria 1. 2. 3. 4. Expectations $14.00 - 26.00 MTBF 14000-20000 Pfmn 7.7 Size 12.3 Ideal Age = 3.0 Price Reliability Ideal Position Age Round: 4 December 31, 2018 Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Drum Daft Attic Axe Agye Best Bam Buzz Bolt Deft Market Share 17% 17% 15% 15% 12% 12% 9% 2% 1% 0% Units Sold to Seg 1,336 1,322 1,153 1,139 936 915 704 162 75 3 COMP-XM INQUIRER Revision Date Stock Out 6/10/2018 6/10/2018 6/7/2018 5/23/2018 5/23/2018 12/20/2017 12/7/2015 12/14/2018 12/14/2018 12/14/2018 Pfmn Coord 8.0 8.2 7.7 7.7 7.7 7.7 8.6 10.3 10.6 10.7 Size Coord 12.0 11.8 12.3 12.3 12.3 12.3 11.4 9.6 9.2 8.6 List Price $15.00 $15.00 $17.00 $17.00 $17.30 $15.00 $17.00 $20.00 $19.00 $23.00 MTBF 17000 17000 17300 17300 17300 14000 16000 16000 16000 18000 Age Dec.31 2.65 2.60 1.73 1.82 1.72 3.25 4.11 0.96 0.96 1.56 Promo Cust. AwareBudget ness $1,300 83% $1,300 83% $1,100 77% $1,050 75% $900 52% $1,200 72% $1,200 72% $1,200 62% $1,200 67% $1,300 83% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,600 83% 69 $1,600 83% 67 $1,200 96% 56 $1,200 96% 56 $950 96% 46 $1,000 78% 46 $1,000 78% 36 $900 78% 2 $900 78% 0 $1,400 83% 0 Page 5 Top Core Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Qingying LIN Core Statistics 9,778 9,778 32.6% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria 1. 2. 3. 4. Expectations $20.00 - 32.00 Ideal Age = 2.0 MTBF 16000-22000 Pfmn 11.0 Size 9.0 Price Age Reliability Ideal Position Round: 4 December 31, 2018 Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Deft Dim Abe Buzz Agee Bolt Bam Daft Axe Agye Attic Drum Market Share 18% 18% 15% 14% 13% 13% 5% 1% 1% 1% 1% 1% Units Sold to Seg 1,765 1,711 1,498 1,321 1,302 1,252 464 99 99 92 76 64 COMP-XM INQUIRER Revision Date Stock Out 12/14/2018 12/14/2018 5/24/2018 YES 12/14/2018 5/24/2018 YES 12/14/2018 12/7/2015 6/10/2018 5/23/2018 5/23/2018 6/7/2018 6/10/2018 Pfmn Coord 10.7 11.4 10.8 10.3 10.8 10.6 8.6 8.2 7.7 7.7 7.7 8.0 Size Coord 8.6 9.1 9.2 9.6 9.2 9.2 11.4 11.8 12.3 12.3 12.3 12.0 List Price $23.00 $25.00 $23.20 $20.00 $23.30 $19.00 $17.00 $15.00 $17.00 $17.30 $17.00 $15.00 MTBF 18000 20000 17500 16000 17500 16000 16000 17000 17300 17300 17300 17000 Age Dec.31 1.56 1.57 1.67 0.96 1.67 0.96 4.11 2.60 1.82 1.72 1.73 2.65 Promo Cust. AwareBudget ness $1,300 83% $1,300 83% $1,300 71% $1,200 62% $1,300 70% $1,200 67% $1,200 72% $1,300 83% $1,050 75% $900 52% $1,100 77% $1,300 83% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,400 81% 53 $1,400 81% 52 $1,200 86% 50 $900 73% 39 $1,200 86% 49 $900 73% 37 $1,000 73% 10 $1,600 81% 3 $1,200 86% 0 $950 86% 0 $1,200 86% 0 $1,600 81% 2 Page 6 Top Nano Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Qingying LIN Nano Statistics 6,164 6,164 20.6% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 12.9 Size 3.9 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Ideal Position Price Age Reliability Round: 4 December 31, 2018 Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Creak Cell Bell Art City Abe Agee Deft Dim Market Share 30% 24% 24% 22% 0% 0% 0% 0% 0% Units Sold to Seg 1,834 1,457 1,456 1,382 17 5 5 5 3 COMP-XM INQUIRER Revision Date Stock Out 9/13/2018 8/13/2018 12/21/2018 8/10/2018 8/21/2018 5/24/2018 YES 5/24/2018 YES 12/14/2018 12/14/2018 Pfmn Coord 13.5 13.9 12.8 12.9 16.4 10.8 10.8 10.7 11.4 Size Coord 4.0 3.7 4.2 3.9 6.2 9.2 9.2 8.6 9.1 List Price $34.00 $37.00 $28.00 $36.50 $37.00 $23.20 $23.30 $23.00 $25.00 MTBF 23000 23000 18000 21000 25000 17500 17500 18000 20000 Age Dec.31 1.27 1.36 1.02 1.39 1.35 1.67 1.67 1.56 1.57 Promo Cust. AwareBudget ness $1,400 92% $1,400 92% $1,200 73% $1,300 86% $1,400 91% $1,300 71% $1,300 70% $1,300 83% $1,300 83% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 80% 66 $1,000 80% 51 $2,400 74% 56 $1,500 73% 49 $1,000 80% 0 $1,200 73% 0 $1,200 73% 0 $1,400 12% 0 $1,400 12% 0 Page 7 Top Elite Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Qingying LIN Elite Statistics 6,297 6,297 21.0% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria 1. 2. 3. 4. Expectations Ideal Age = 0.0 $30.00 - 42.00 Pfmn 16.1 Size 7.1 MTBF 20000-26000 Age Price Ideal Position Reliability Round: 4 December 31, 2018 Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Cat City Ant Bit Creak Cell Bell Dim Market Share 29% 28% 21% 18% 3% 1% 0% 0% Units Sold to Seg 1,814 1,736 1,337 1,108 216 60 19 7 COMP-XM INQUIRER Revision Date Stock Out 8/21/2018 8/21/2018 8/10/2018 YES 12/21/2018 9/13/2018 8/13/2018 12/21/2018 12/14/2018 Pfmn Coord 16.6 16.4 16.1 16.2 13.5 13.9 12.8 11.4 Size Coord 6.5 6.2 7.1 7.0 4.0 3.7 4.2 9.1 List Price $34.00 $37.00 $36.50 $34.00 $34.00 $37.00 $28.00 $25.00 MTBF 25000 25000 24000 20000 23000 23000 18000 20000 Age Dec.31 1.63 1.35 1.39 1.03 1.27 1.36 1.02 1.57 Promo Cust. AwareBudget ness $1,400 92% $1,400 91% $1,300 86% $1,200 72% $1,400 92% $1,400 92% $1,200 73% $1,300 83% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 87% 54 $1,000 87% 50 $1,500 72% 46 $2,400 74% 37 $1,100 87% 0 $1,000 87% 0 $2,400 74% 0 $1,400 5% 0 Page 8 Top Market Share Report Industry Unit Sales % of Market Actual Market Share in Units Thrift Core Nano Elite 7,746 25.8% 9,778 32.6% Attic Axe Art Ant Abe Agye Agee Total 14.9% 14.7% 0.8% 1.0% 41.7% 15.3% 0.9% 13.3% 31.4% Best Bam Bell Bit Bolt Buzz Total 11.8% 9.1% 0.4% 4.7% 1.0% 2.1% 24.0% 12.8% 13.5% 31.4% 12.1% 6,164 20.6% 22.4% 0.1% 0.1% 22.6% 6,297 21.0% 21.2% 21.2% Total 29,984 100.0% Units Demanded % of Market 34.4% COMP-XM INQUIRER 0.7% 1.0% 18.1% 17.5% 37.2% 7,746 25.8% 9,778 32.6% Attic Axe Art Ant Abe Agye Agee Total 14.9% 14.7% 0.7% 1.0% 12.1% 41.7% 16.4% 0.9% 16.2% 35.2% Best Bam Bell Bit Bolt Buzz Total 11.8% 9.1% 0.4% 4.5% 1.0% 2.1% 24.0% 12.1% 12.7% 29.7% 23.6% 17.9% 3.2% 3.9% 4.9% 3.7% 4.4% 4.9% 25.1% 3.4% 28.8% 1.0% 27.6% 60.8% 6.8% 6.0% 5.1% 5.8% 23.8% Creak Cat Cell City Total 0.1% 0.1% 4.7% 4.7% 5.9% 5.7% 21.1% Drum Daft Deft Dim Total 23.6% 23.6% 0.3% 53.7% 17.3% 17.1% 0.0% PotentialCore MarketNano Share in Units Thrift Elite 4.1% 4.1% 4.6% 4.5% 5.0% 3.4% 4.4% 30.1% 29.8% Creak Cat Cell City Total Drum Daft Deft Dim Total Round: 4 December 31, 2018 Qingying LIN 0.1% 0.1% 0.1% 0.3% 17.6% 6,164 20.6% 22.4% 0.1% 0.1% 22.6% 6,297 21.0% 23.8% 23.8% Total 29,984 100.0% 4.1% 4.1% 4.6% 5.0% 5.4% 3.4% 5.3% 31.9% 23.6% 0.3% 17.1% 23.6% 17.4% 3.2% 3.8% 4.9% 3.6% 4.2% 4.7% 24.4% 29.8% 3.4% 27.8% 1.0% 26.6% 58.7% 6.8% 5.8% 5.1% 5.6% 23.4% 0.1% 0.1% 4.7% 4.7% 5.6% 5.4% 20.4% 23.6% 0.3% 53.7% 17.3% 17.1% 34.4% 0.6% 0.9% 17.0% 16.5% 35.1% 0.1% 0.1% Page 9 Top Perceptual Map Round: 4 December 31, 2018 Qingying LIN Perceptual Map for All Segments Andrews Name Attic Axe Art Ant Abe Agye Agee Pfmn 7.7 7.7 12.9 16.1 10.8 7.7 10.8 Size 12.3 12.3 3.9 7.1 9.2 12.3 9.2 Baldwin Revised 6/7/2018 5/23/2018 8/10/2018 8/10/2018 5/24/2018 5/23/2018 5/24/2018 Name Best Bam Bell Bit Bolt Buzz Pfmn 7.7 8.6 12.8 16.2 10.6 10.3 Size 12.3 11.4 4.2 7.0 9.2 9.6 Chester Revised 12/20/2017 12/7/2015 12/21/2018 12/21/2018 12/14/2018 12/14/2018 Name Creak Cat Cell City Pfmn 13.5 16.6 13.9 16.4 Size 4.0 6.5 3.7 6.2 Revised 9/13/2018 8/21/2018 8/13/2018 8/21/2018 Digby Name Drum Daft Deft Dim Pfmn 8.0 8.2 10.7 11.4 Size 12.0 11.8 8.6 9.1 COMP-XM INQUIRER Revised 6/10/2018 6/10/2018 12/14/2018 12/14/2018 Page 10 Top HR/TQM Report Qingying LIN Round: 4 December 31, 2018 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 929 929 515 414 Baldwin 401 401 295 106 Chester 595 595 356 240 Digby 225 225 186 39 Overtime% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.0% 8.1% 75 29 $4,000 40 109.0% 0.0% 6.1% 25 100 $5,000 80 131.6% 0.0% 10.0% 60 32 $0 0 100.0% 0.0% 8.0% 18 126 $2,500 40 118.5% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $374 $145 $743 $1,262 $147 $499 $642 $1,288 $60 $160 $0 $220 $63 $630 $180 $873 Labor Contract Next Year Wages Benefits Profit Sharing Annual Raise $31.04 2,500 2.0% 5.0% $31.04 2,500 2.0% 5.0% $31.04 2,500 2.0% 5.0% $31.04 2,500 2.0% 5.0% 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 Process Mgt Budgets Last Year CPI Systems Vendor/JIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase COMP-XM INQUIRER Andrews Baldwin Chester Digby $1,500 $0 $1,000 $0 $1,800 $1,150 $1,500 $1,500 $0 $0 $0 $1,500 $0 $0 $1,250 $1,250 $1,250 $0 $1,250 $1,250 $0 $1,500 $0 $0 $1,000 $1,000 $0 $0 $7,450 $1,500 $0 $0 $0 $6,000 $0 $0 $1,250 $1,250 $6,250 $0 $0 $750 $750 $5,500 11.17% 13.55% 40.01% 59.91% 11.60% 6.07% 0.28% 0.00% 60.02% 2.35% 9.48% 14.00% 40.01% 0.00% 12.78% 10.20% 4.39% 0.00% 34.91% 10.57% Page 11 PRINT Annual Report Top Annual Report Andrews 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-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 Cash Accounts Receivable Inventory 2018 Common Size 30.4% 9.4% 8.8% Total Current Assets $95,269 Plant & Equipment Accumulated Depreciation $173,512 ($72,686) $24,284 $18,384 $8,848 48.6% $51,516 88.5% -37.1% $59,596 $18,434 $17,239 2017 $211,000 ($75,963) Total Fixed Assets $100,826 51.4% $135,037 Total Assets $196,094 100.0% $186,553 6.6% 0.0% 21.9% $11,786 $7,000 $42,909 28.5% $61,695 41.9% 29.7% $78,080 $46,778 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $12,888 $0 $42,909 Total Liabilities Common Stock Retained Earnings $55,797 $82,080 $58,217 Total Equity $140,297 71.5% $124,858 Total Liab. & O. Equity $196,094 100.0% $186,553 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 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 Annual Report 2018 $18,042 $11,567 ($662) $1,102 ($8,390) ($51) 2017 $3,487 $14,067 $2,132 ($4,003) $20,726 ($2,049) $21,609 $34,359 $23,306 ($15,603) ($6,603) $4,000 $0 $0 $0 ($7,000) $0 $11,000 $0 $10,000 $0 ($15,473) ($9,603) $35,312 $59,596 $5,527 $24,284 $24,284 Page 1 Top Annual Report Andrews Round: 8 Dec. 31, 2018 C59559 2018 Income Statement Sales Attic $20,899 Axe $21,045 Art $50,431 Ant $48,790 Abe $34,870 Agye $17,792 Agee $30,453 NA $0 2018 Total $224,281 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $7,699 $8,220 $738 $16,656 $8,613 $8,257 $578 $17,449 $10,739 $16,635 $11 $27,384 $10,380 $17,162 $0 $27,542 $11,714 $13,338 $0 $25,052 $7,186 $6,859 $742 $14,788 $10,203 $11,409 $0 $21,612 $0 $0 $0 $0 $66,534 $81,882 $2,069 $150,484 29.7% 36.5% 0.9% 67.1% Contribution Margin $4,243 $3,596 $23,047 $21,248 $9,818 $3,004 $8,841 $0 $73,797 32.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1,904 $438 $1,100 $1,200 $176 $4,818 $1,813 $397 $1,050 $1,200 $177 $4,638 $1,718 $616 $1,300 $1,500 $425 $5,559 $1,468 $616 $1,300 $1,500 $411 $5,296 $1,600 $399 $1,300 $1,200 $294 $4,793 $1,664 $397 $900 $950 $150 $4,061 $1,400 $399 $1,300 $1,200 $257 $4,556 $0 $0 $0 $0 $0 $0 $11,567 $3,262 $8,250 $8,750 $1,892 $33,721 5.2% 1.5% 3.7% 3.9% 0.8% 15.0% Net Margin ($576) ($1,041) $17,487 $15,952 $5,025 ($1,057) $4,285 $0 $40,076 17.9% $6,988 $33,088 $0 $4,764 $9,913 $368 $18,042 3.1% 14.8% 0.0% 2.1% 4.4% 0.2% 8.0% (Product Name:) 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 EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 Annual Report 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-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 Cash Accounts Receivable Inventory 2018 Common Size 16.5% 6.2% 5.6% Total Current Assets $62,829 Plant & Equipment Accumulated Depreciation $264,340 ($105,545) $15,885 $12,042 $18,924 28.3% $46,851 119.3% -47.6% $36,510 $13,805 $12,514 2017 $264,340 ($87,922) Total Fixed Assets $158,795 71.7% $176,418 Total Assets $221,624 100.0% $223,269 3.4% 12.1% 39.6% $8,124 $23,534 $104,223 55.2% $135,881 26.8% 18.0% $52,539 $34,849 $99,240 44.8% $87,388 $221,624 100.0% $223,269 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $7,639 $26,908 $87,837 Total Liabilities Common Stock Retained Earnings $122,384 $59,431 $39,809 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 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 Annual Report 2018 $4,960 $17,623 ($1,096) ($485) $6,411 ($1,764) 2017 ($4,876) $17,623 $0 $1,584 ($9,568) ($1,869) $25,649 $2,895 $0 ($47,080) $0 $6,892 $0 $0 ($15,291) $3,374 $0 $15,486 $0 $22,206 $0 ($9,153) ($5,024) $20,624 $36,510 $28,539 ($15,645) $15,885 Page 1 Top Annual Report Baldwin Round: 8 Dec. 31, 2018 C59559 2018 Income Statement Best $14,264 Bam $19,855 Bell $41,303 Bit $37,681 Bolt $25,217 Buzz $29,644 Na $0 Na $0 2018 Total $167,963 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $1,378 $5,778 $86 $7,243 $2,170 $8,912 $180 $11,262 $8,763 $17,194 $505 $26,461 $6,152 $13,904 $569 $20,625 $5,438 $11,268 $106 $16,813 $6,157 $12,237 $55 $18,450 $0 $0 $0 $0 $0 $0 $0 $0 $30,059 $69,293 $1,502 $100,853 17.9% 41.3% 0.9% 60.0% Contribution Margin $7,021 $8,593 $14,842 $17,056 $8,404 $11,194 $0 $0 $67,110 40.0% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,833 $0 $1,200 $1,000 $149 $6,183 $4,600 $0 $1,200 $1,000 $208 $7,008 $2,040 $985 $1,200 $2,400 $432 $7,057 $2,040 $985 $1,200 $2,400 $394 $7,019 $2,635 $966 $1,200 $900 $264 $5,965 $2,475 $966 $1,200 $900 $310 $5,851 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $17,623 $3,902 $7,200 $8,600 $1,758 $39,083 10.5% 2.3% 4.3% 5.1% 1.0% 23.3% $839 $1,585 $7,784 $10,037 $2,440 $5,343 $0 $0 $28,027 16.7% $5,478 $22,549 $3,337 $11,425 $2,726 $101 $4,960 3.3% 13.4% 2.0% 6.8% 1.6% 0.1% 3.0% (Product Name:) Sales Net Margin 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 EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 Annual Report 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-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 $30,799 $17,597 $21,888 53.3% $70,284 86.8% -40.1% $150,760 ($59,555) $81,155 46.7% $91,205 $173,669 Cash Accounts Receivable Inventory 2018 Common Size 29.8% 11.9% 11.5% 100.0% $161,489 6.7% 16.8% 17.1% $10,754 $18,949 $36,253 40.5% $65,956 6.0% 53.6% $10,751 $84,783 $51,771 $20,743 $20,001 Total Current Assets $92,515 Plant & Equipment Accumulated Depreciation $150,760 ($69,605) Total Fixed Assets Total Assets 2017 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $11,564 $29,091 $29,635 Total Liabilities Common Stock Retained Earnings $70,290 $10,340 $93,040 Total Equity $103,380 59.5% $95,534 Total Liab. & O. Equity $173,669 100.0% $161,489 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 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 Annual Report 2018 $44,760 $10,051 ($157) $810 $1,887 ($3,146) 2017 $28,426 $10,051 $0 $896 ($588) ($3,855) $54,205 $34,930 $0 ($27,500) ($33,267) $0 ($3,646) $0 ($6,461) $10,142 ($633) $0 ($2,724) $8,187 $0 ($11,849) ($33,233) $20,972 $51,771 ($7,019) $411 $30,799 Page 1 Top Annual Report Chester Round: 8 Dec. 31, 2018 C59559 2018 Income Statement Sales Creak $69,700 Cat $61,676 Cell $56,131 City $64,863 Na $0 Na $0 Na $0 Na $0 2018 Total $252,371 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $13,724 $26,346 $322 $40,391 $12,088 $25,045 $79 $37,212 $9,621 $20,280 $919 $30,821 $11,085 $24,394 $1,081 $36,559 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $46,518 $96,065 $2,400 $144,983 18.4% 38.1% 1.0% 57.4% Contribution Margin $29,309 $24,464 $25,310 $28,304 $0 $0 $0 $0 $107,388 42.6% $2,684 $710 $1,400 $1,100 $549 $6,442 $1,927 $645 $1,400 $1,000 $485 $5,457 $2,493 $623 $1,400 $1,000 $442 $5,958 $2,947 $645 $1,400 $1,000 $511 $6,502 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,051 $2,622 $5,600 $4,100 $1,987 $24,360 4.0% 1.0% 2.2% 1.6% 0.8% 9.7% $22,867 $19,007 $19,352 $21,802 $0 $0 $0 $0 $83,028 32.9% $6,245 $76,784 $2,996 $3,520 $24,594 $913 $44,760 2.5% 30.4% 1.2% 1.4% 9.7% 0.4% 17.7% (Product Name:) Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin 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 EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 Annual Report 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-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 Cash Accounts Receivable Inventory 2018 Common Size 19.9% 6.5% 2.7% Total Current Assets $46,366 Plant & Equipment Accumulated Depreciation $218,500 ($106,042) $17,642 $8,777 $18,713 29.2% $45,132 137.6% -66.8% $31,643 $10,364 $4,359 2017 $218,500 ($91,476) Total Fixed Assets $112,458 70.8% $127,024 Total Assets $158,824 100.0% $172,157 3.0% 12.4% 44.0% $6,664 $23,281 $77,780 59.4% $107,725 25.5% 15.1% $40,564 $23,867 $64,549 40.6% $64,431 $158,824 100.0% $172,157 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $4,707 $19,748 $69,820 Total Liabilities Common Stock Retained Earnings $94,275 $40,564 $23,985 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 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 Annual Report 2018 $4,730 $14,567 ($617) ($1,957) $14,354 ($1,587) 2017 ($4,757) $14,567 ($278) $800 ($15,254) $1,196 $29,491 ($3,727) $0 ($11,400) ($4,613) $0 $0 $0 ($7,343) ($3,534) $0 $5,423 $0 $0 ($2,529) ($17,270) ($15,490) $14,001 $31,643 ($14,376) ($29,503) $17,642 Page 1 Top Annual Report Digby Round: 8 Dec. 31, 2018 C59559 2018 Income Statement Sales Drum $21,005 Daft $21,323 Deft $40,754 Dim $43,011 Na $0 Na $0 Na $0 Na $0 2018 Total $126,094 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $2,339 $9,390 $122 $11,851 $2,395 $9,747 $139 $12,281 $7,787 $16,124 $120 $24,031 $7,114 $16,731 $142 $23,987 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $19,635 $51,992 $523 $72,150 15.6% 41.2% 0.4% 57.2% Contribution Margin $9,154 $9,042 $16,723 $19,024 $0 $0 $0 $0 $53,944 42.8% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,140 $446 $1,300 $1,600 $241 $7,727 $4,600 $446 $1,300 $1,600 $245 $8,191 $2,660 $966 $1,300 $1,400 $468 $6,794 $3,167 $966 $1,300 $1,400 $494 $7,327 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14,567 $2,824 $5,200 $6,000 $1,448 $30,038 11.6% 2.2% 4.1% 4.8% 1.1% 23.8% Net Margin $1,427 $851 $9,929 $11,698 $0 $0 $0 $0 $23,906 19.0% $4,993 $18,912 $2,488 $8,998 $2,599 $97 $4,730 4.0% 15.0% 2.0% 7.1% 2.1% 0.1% 3.8% (Product Name:) 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. Annual Report Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2