Chester Corporation is considering adding capacity to their Cute product, currently automated to 7.0. Assume: - They will use the new capacity next year to make and sell 200 additional units (000). - Each unit of capacity will cost $34.00. - Cute's price will be unchanged at $34.00. - Material costs will remain $13.04 next year. - Labor costs will remain $5.34 on first shift, and $7.91 on second shift. - Bond interest will remain 11.3% next year. - Depreciation will be straight line over 15 years. - SG&A costs can be ignored because they would be the same with or without the new capacity. Which of the following tactics will yield the highest ROI in their first year of production? Select: 1 Buy 100 units of capacity. Finance the $3,400 purchase entirely with a new bond. Buy 200 units of capacity. Finance the $6,800 purchase entirely with a new bond. Buy 100 units of capacity. Finance the $3,400 purchase entirely with a stock issue. Buy 200 units of capacity. Finance the $6,800 purchase entirely with a stock issue.
COMP-XM INQUIRER Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... 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 1 of 29 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top " Round: 4 Dec. 31, 2017 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 % COMP-XM INQUIRER 2 of 29 Andrews 13.8% 0.98 13.5% 1.5 19.6% $0 $186,611,612 $46,285,219 $25,821,373 $60,157,765 9.3% 46.3% Baldwin 4.6% 0.78 3.6% 2.2 7.9% $0 $187,347,507 $28,972,080 $8,532,839 $13,236,464 11.6% 39.5% Chester 17.2% 1.37 23.5% 1.7 39.8% $0 $243,958,057 $72,883,064 $42,027,665 $97,608,723 5.8% 42.6% Digby 6.8% 0.81 5.5% 2.4 13.1% $0 $156,626,638 $30,084,402 $10,594,140 $15,569,881 10.0% 42.3% Page 1 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 Stocks & Bonds December 31 , 2017 Stock Market Summary Company Andrews Baldwin Chester Digby Close $121.43 $41.59 $168.40 $39.44 Change $31.26 $9.94 $58.41 $13.56 Shares 2,050,942 3,223,287 1,861,885 3,207,515 MarketCap ($M) $249 $134 $314 $126 Book Value $64.15 $33.54 $56.75 $25.25 EPS $12.59 $2.65 $22.57 $3.30 Dividend $0.00 $0.00 $16.10 $3.28 Yield 0.0% 0.0% 9.6% 8.3% P/E 9.6 15.7 7.5 11.9 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 11.2S2020 11.9S2021 10.9S2024 11.0S2025 11.8S2026 $8,837,000 $7,072,000 $12,000,000 $13,000,000 $10,000,000 11.2% 11.7% 11.1% 11.2% 11.5% 99.76 101.85 98.13 98.47 102.74 AA AA AA AA AA 12.4S2021 12.0S2023 12.6S2024 13.1S2025 13.8S2026 $2,071,106 $15,610,279 $17,788,546 $34,902,738 $19,645,689 12.9% 12.9% 13.3% 13.5% 13.8% 95.90 92.96 94.82 96.73 100.00 CCC CCC CCC CCC CCC 11.2S2023 11.5S2024 11.6S2025 12.6S2026 $2,170,317 $1,377,976 $18,600,072 $10,904,257 11.7% 11.9% 12.0% 12.3% 95.91 96.83 97.04 102.11 BBB BBB BBB BBB 11.3S2020 12.5S2021 12.5S2022 12.5S2023 12.9S2024 13.4S2025 14.2S2026 $351,497 $14,665,611 $7,963,435 $9,569,958 $14,262,838 $28,649,980 $2,456,436 12.1% 13.1% 13.2% 13.3% 13.6% 13.8% 14.1% 93.51 95.35 94.52 93.80 94.87 96.76 100.49 CC CC CC CC CC CC CC Next Year's Prime Rate 9.00% COMP-XM INQUIRER 3 of 29 Page 2 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 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 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 Net cash from financing activities Net change in cash position Andrews Baldwin Chester Digby $25,821 $8,533 $42,028 $10,594 $13,742 $0 $17,849 ($765) $10,617 ($195) $15,687 ($736) $456 ($4,033) ($902) $35,085 ($758) $3,328 ($1,157) $27,030 $1,031 ($2,715) ($2,911) $47,855 ($1,365) $4,874 ($941) $28,112 ($25,268) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $395 $0 $0 ($11,623) ($26,832) $32,147 $0 ($29,973) $0 ($3,774) $0 ($5,807) ($20,522) $28,309 $0 ($10,512) $0 $0 $0 ($9,330) ($29,290) $27,102 $0 $0 ($5,912) ($31,768) ($22,030) $9,817 $21,118 $16,087 $6,083 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $35,879 $15,338 $15,706 $66,923 Baldwin $47,087 $15,398 $15,026 $77,511 Chester $45,875 $20,051 $24,084 $90,009 Digby $44,385 $12,873 $9,214 $66,473 Plant and equipment Accumulated Depreciation Total Fixed Assets $206,136 ($82,185) $123,951 $267,740 ($106,098) $161,642 $159,260 ($70,739) $88,521 $235,300 ($108,844) $126,456 Total Assets $190,874 $239,153 $178,531 $192,929 Accounts Payable Current Debt Long Term Debt Total Liabilities $8,406 $0 $50,909 $59,315 $8,893 $32,147 $90,018 $131,058 $11,499 $28,309 $33,053 $72,861 $6,932 $27,102 $77,920 $111,954 Common Stock Retained Earnings Total Equity $12,081 $119,478 $131,559 $56,046 $52,049 $108,095 $10,492 $95,177 $105,669 $45,786 $35,189 $80,975 Total Liabilities & Owners' Equity $190,874 $239,153 $178,531 $192,929 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 $186,612 $100,126 $13,742 $17,358 $9,100 $46,285 $5,749 $14,188 $527 $25,821 Baldwin $187,348 $113,324 $17,849 $21,773 $5,429 $28,972 $15,577 $4,688 $174 $8,533 Chester $243,958 $140,084 $10,617 $14,175 $6,199 $72,883 $6,906 $23,092 $858 $42,028 Digby $156,627 $90,314 $15,687 $15,638 $4,904 $30,084 $13,453 $5,821 $216 $10,594 COMP-XM INQUIRER 4 of 29 Page 3 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 Production Analysis Production Information Primary Segment Units Sold Unit Inven tory Ark Able Acre Awe Elite Thrift Core Nano 1,602 1,634 1,806 1,452 Buzz Brat Baker Bead Bid Bold Thrift Thrift Nano Elite Core Core Cute Crimp Cake Cedar Dug Drat Deal Dell Name Revision Date Age Dec.31 213 438 160 279 10/6/2017 11/27/2017 11/28/2017 9/30/2017 1,279 1,505 1,458 1,051 1,592 1,790 141 196 198 268 159 141 Nano Elite Nano Elite 2,021 1,718 1,497 1,661 Thrift Thrift Core Core 1,883 1,907 2,112 2,049 COMP-XM INQUIRER 5 of 29 Labor Cost Contr. Marg. 2nd Shift & Overtime $13.37 $7.06 $9.23 $12.31 $6.81 $2.14 $3.58 $6.67 44% 51% 47% 45% 98% 52% 10% 23% 7.5 10.0 10.0 7.0 1,014 1,330 1,450 1,228 196% 151% 109% 122% $15.00 $17.00 $28.00 $34.00 $19.00 $20.00 $5.93 $7.14 $11.83 $12.62 $8.63 $8.38 $1.24 $1.24 $5.76 $5.17 $4.36 $4.54 49% 44% 36% 46% 31% 36% 0% 0% 53% 11% 59% 88% 10.0 10.0 7.0 7.0 8.0 8.0 1,250 1,500 950 950 1,040 1,040 83% 92% 151% 109% 157% 186% 3.4 5.9 3.1 5.6 $34.00 $34.00 $37.00 $37.00 $13.04 $13.82 $13.28 $13.83 $6.63 $6.63 $5.92 $5.81 42% 39% 46% 44% 100% 100% 29% 22% 7.0 7.0 7.0 7.0 1,150 850 1,200 1,350 198% 198% 128% 121% 11.4 11.2 8.0 8.5 $15.00 $15.00 $23.00 $25.00 $6.69 $6.82 $9.03 $9.64 $1.40 $1.34 $4.64 $4.46 44% 43% 40% 43% 24% 13% 78% 52% 10.0 10.0 8.0 8.0 1,450 1,600 1,150 1,350 123% 111% 177% 150% MTBF Pfmn Coord Size Coord Material Price Cost 1.2 1.3 1.2 1.2 26000 20000 20000 22000 16.9 8.4 11.6 13.7 6.5 11.9 8.6 3.3 $36.60 $19.50 $24.60 $35.60 12/19/2016 12/7/2014 12/21/2017 12/21/2017 12/14/2017 12/14/2017 3.2 4.1 1.0 1.0 1.0 1.0 14000 16000 18000 20000 16000 16000 8.5 9.4 13.6 17.0 11.4 11.1 11.7 10.8 3.6 6.4 8.6 9.0 300 137 378 400 9/13/2017 8/21/2017 8/13/2017 8/21/2017 1.3 1.6 1.4 1.3 23000 25000 23000 25000 14.3 17.4 14.7 17.2 163 199 197 249 6/10/2017 6/10/2017 12/14/2017 12/14/2017 2.6 2.6 1.6 1.6 17000 17000 18000 20000 8.8 9.0 11.5 12.2 Auto mation Capacity Next Next Round Round Plant Utiliz. Page 4 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 Thrift Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Thrift Statistics 7,754 7,754 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 8.5 Size 11.7 Ideal Age = 3.0 Price Reliability Ideal Position Age Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Dug Drat Able Buzz Brat Bold Bid Acre Deal Market Share 23% 23% 20% 16% 12% 3% 1% 1% 0% Units Sold to Seg 1,806 1,788 1,570 1,236 951 216 100 83 3 COMP-XM INQUIRER 6 of 29 Revision Date Stock Out 6/10/2017 6/10/2017 11/27/2017 12/19/2016 12/7/2014 12/14/2017 12/14/2017 11/28/2017 12/14/2017 Pfmn Coord 8.8 9.0 8.4 8.5 9.4 11.1 11.4 11.6 11.5 Size Coord 11.4 11.2 11.9 11.7 10.8 9.0 8.6 8.6 8.0 List Price $15.00 $15.00 $19.50 $15.00 $17.00 $20.00 $19.00 $24.60 $23.00 MTBF 17000 17000 20000 14000 16000 16000 16000 20000 18000 Age Dec.31 2.65 2.60 1.33 3.25 4.11 0.96 0.96 1.18 1.56 Promo Cust. AwareBudget ness $1,300 83% $1,300 83% $1,500 99% $1,200 72% $1,200 72% $1,200 62% $1,200 67% $1,300 86% $1,300 83% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,600 83% 69 $1,600 83% 67 $2,100 81% 55 $1,000 78% 46 $1,000 78% 36 $900 78% 2 $900 78% 0 $1,600 81% 0 $1,400 83% 0 Page 5 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 Core Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Core Statistics 9,788 9,788 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 11.8 Size 8.4 Price Age Reliability Ideal Position Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Deal Dell Acre Bold Bid Brat Drat Dug Able Buzz Market Share 21% 21% 18% 16% 15% 6% 1% 1% 1% 0% Units Sold to Seg 2,103 2,040 1,723 1,574 1,492 554 119 77 64 43 COMP-XM INQUIRER 7 of 29 Revision Date Stock Out 12/14/2017 12/14/2017 11/28/2017 12/14/2017 12/14/2017 12/7/2014 6/10/2017 6/10/2017 11/27/2017 12/19/2016 Pfmn Coord 11.5 12.2 11.6 11.1 11.4 9.4 9.0 8.8 8.4 8.5 Size Coord 8.0 8.5 8.6 9.0 8.6 10.8 11.2 11.4 11.9 11.7 List Price $23.00 $25.00 $24.60 $20.00 $19.00 $17.00 $15.00 $15.00 $19.50 $15.00 MTBF 18000 20000 20000 16000 16000 16000 17000 17000 20000 14000 Age Dec.31 1.56 1.57 1.18 0.96 0.96 4.11 2.60 2.65 1.33 3.25 Promo Cust. AwareBudget ness $1,300 83% $1,300 83% $1,300 86% $1,200 62% $1,200 67% $1,200 72% $1,300 83% $1,300 83% $1,500 99% $1,200 72% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,400 81% 53 $1,400 81% 52 $1,600 47% 44 $900 73% 39 $900 73% 37 $1,000 73% 10 $1,600 81% 3 $1,600 81% 2 $2,100 47% 0 $1,000 73% 0 Page 6 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 Nano Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Nano Statistics 6,170 6,170 20.6% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 13.7 Size 3.3 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Ideal Position Price Age Reliability Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Cute Awe Cake Baker Cedar Deal Dell Market Share 29% 24% 23% 23% 0% 0% 0% Units Sold to Seg 1,814 1,452 1,440 1,439 17 5 3 COMP-XM INQUIRER 8 of 29 Revision Date Stock Out 9/13/2017 9/30/2017 8/13/2017 12/21/2017 8/21/2017 12/14/2017 12/14/2017 Pfmn Coord 14.3 13.7 14.7 13.6 17.2 11.5 12.2 Size Coord 3.4 3.3 3.1 3.6 5.6 8.0 8.5 List Price $34.00 $35.60 $37.00 $28.00 $37.00 $23.00 $25.00 MTBF 23000 22000 23000 18000 25000 18000 20000 Age Dec.31 1.27 1.24 1.36 1.02 1.35 1.56 1.57 Promo Cust. AwareBudget ness $1,400 92% $1,450 100% $1,400 92% $1,200 73% $1,400 91% $1,300 83% $1,300 83% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 80% 66 $1,400 55% 53 $1,000 80% 51 $2,400 74% 56 $1,000 80% 0 $1,400 12% 0 $1,400 12% 0 Page 7 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 Elite Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Elite Statistics 6,303 6,303 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 16.9 Size 6.5 MTBF 20000-26000 Age Price Ideal Position Reliability Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Crimp Cedar Ark Bead Cute Cake Baker Dell Market Share 27% 26% 25% 17% 3% 1% 0% 0% Units Sold to Seg 1,718 1,644 1,602 1,051 207 58 18 6 COMP-XM INQUIRER 9 of 29 Revision Date Stock Out 8/21/2017 8/21/2017 10/6/2017 12/21/2017 9/13/2017 8/13/2017 12/21/2017 12/14/2017 Pfmn Coord 17.4 17.2 16.9 17.0 14.3 14.7 13.6 12.2 Size Coord 5.9 5.6 6.5 6.4 3.4 3.1 3.6 8.5 List Price $34.00 $37.00 $36.60 $34.00 $34.00 $37.00 $28.00 $25.00 MTBF 25000 25000 26000 20000 23000 23000 18000 20000 Age Dec.31 1.63 1.35 1.23 1.03 1.27 1.36 1.02 1.57 Promo Cust. AwareBudget ness $1,400 92% $1,400 91% $1,450 95% $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 $1,400 54% 52 $2,400 74% 37 $1,100 87% 0 $1,000 87% 0 $2,400 74% 0 $1,400 5% 0 Page 8 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 Market Share Report Industry Unit Sales % of Market Ark Able Acre Awe Total Buzz Brat Baker Bead Bid Bold Total Actual Market Share in Units Thrift Core Nano Elite 7,754 25.8% 9,788 32.6% 20.3% 1.1% 0.7% 17.6% 21.3% 18.3% 15.9% 12.3% 0.4% 5.7% 1.3% 2.8% 32.3% 15.2% 16.1% 37.4% 25.4% 23.5% 23.5% 25.4% Total 30,014 100.0% Units Demanded % of Market 5.3% 5.4% 6.0% 4.8% 21.6% Ark Able Acre Awe Total Buzz Brat Baker Bead Bid Bold Total 23.3% 0.3% 16.7% 23.3% 17.0% 4.3% 5.0% 4.9% 3.5% 5.3% 6.0% 28.9% 3.3% 27.3% 0.9% 26.1% 57.5% 6.7% 5.7% 5.0% 5.5% 23.0% 23.3% 23.1% 0.1% 46.4% 0.8% 1.2% 21.5% 20.8% 44.3% 0.1% 0.1% 6.3% 6.3% 7.0% 6.8% 26.5% Dug Drat Deal Dell Total PotentialCore Market Nano Share inElite Units Thrift 7,754 25.8% 9,788 32.6% 20.3% 1.1% 0.6% 17.6% 21.3% 18.3% 15.9% 12.3% 0.4% 5.7% 1.3% 2.8% 32.3% 15.2% 16.1% 37.4% 0.1% 0.1% 0.1% 6,170 20.6% 6,303 21.0% 25.4% Total 30,014 100.0% 5.3% 5.4% 6.0% 4.8% 21.6% 23.5% 23.5% 25.4% 23.3% 0.3% 16.7% 23.3% 17.0% 4.3% 5.0% 4.9% 3.5% 5.3% 6.0% 28.9% 29.4% Cute Crimp Cake Cedar Total 23.3% 0.3% 53.0% COMP-XM INQUIRER 10 of 29 6,303 21.0% 29.4% Cute Crimp Cake Cedar Total Dug Drat Deal Dell Total 6,170 20.6% 3.3% 27.3% 0.9% 26.1% 57.5% 6.7% 5.7% 5.0% 5.5% 23.0% 0.1% 0.1% 6.3% 6.4% 7.0% 6.8% 26.5% 23.3% 0.3% 53.0% 23.3% 23.1% 46.4% 0.8% 1.2% 21.5% 20.8% 44.3% 0.1% 0.1% Page 9 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 Perceptual Map Perceptual Map for All Segments Andrews Name Ark Able Acre Awe Pfmn 16.9 8.4 11.6 13.7 Name Dug Drat Deal Dell Pfmn 8.8 9.0 11.5 12.2 Size 6.5 11.9 8.6 3.3 Baldwin Revised 10/6/2017 11/27/2017 11/28/2017 9/30/2017 Name Buzz Brat Baker Bead Bid Bold Pfmn 8.5 9.4 13.6 17.0 11.4 11.1 Size 11.7 10.8 3.6 6.4 8.6 9.0 Chester Revised 12/19/2016 12/7/2014 12/21/2017 12/21/2017 12/14/2017 12/14/2017 Name Cute Crimp Cake Cedar Pfmn 14.3 17.4 14.7 17.2 Size 3.4 5.9 3.1 5.6 Revised 9/13/2017 8/21/2017 8/13/2017 8/21/2017 Digby Size 11.4 11.2 8.0 8.5 COMP-XM INQUIRER 11 of 29 Revised 6/10/2017 6/10/2017 12/14/2017 12/14/2017 Page 10 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Round: 4 December 31, 2017 HR/TQM Report HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 455 456 321 135 Baldwin 462 462 323 138 Chester 595 595 376 219 Digby 320 320 212 108 Overtime% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.0% 6.9% 32 66 $5,000 80 114.3% 0.0% 6.0% 28 128 $5,000 80 129.9% 0.0% 10.0% 60 17 $0 0 100.0% 0.0% 8.0% 26 111 $2,500 40 118.7% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $189 $330 $730 $1,249 $167 $642 $738 $1,547 $60 $85 $0 $145 $89 $555 $256 $900 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 12 of 29 Andrews Baldwin Chester Digby $1,600 $2,200 $1,100 $800 $500 $600 $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 $350 $550 $900 $500 $9,100 $1,500 $0 $0 $0 $6,000 $0 $0 $1,250 $1,250 $6,250 $0 $0 $750 $750 $5,500 11.80% 13.98% 15.70% 58.50% 11.01% 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 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... PRINT Annual Report 13 of 29 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report Andrews Round: 4 Dec. 31, 2017 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 2017 Common Size 18.8% 8.0% 8.2% $35,879 $15,338 $15,706 Total Current Assets $66,923 Plant & Equipment Accumulated Depreciation 2016 $26,062 $14,436 $11,674 35.1% $52,172 108.0% -43.1% $206,136 ($82,185) $180,868 ($68,442) Total Fixed Assets $123,951 64.9% $112,426 Total Assets $190,874 100.0% $164,597 4.4% 0.0% 26.7% $7,950 $0 $50,909 31.1% $58,859 6.3% 62.6% $12,081 $93,657 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,406 $0 $50,909 Total Liabilities Common Stock Retained Earnings $59,315 $12,081 $119,478 Total Equity $131,559 68.9% $105,738 Total Liab. & O. Equity $190,874 100.0% $164,597 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 14 of 29 2017 $25,821 $13,742 $0 $456 ($4,033) ($902) 2016 $20,010 $12,058 ($109) $11 $1,813 ($1,240) $35,085 $32,543 ($25,268) ($22,631) $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,000 $0 ($11,300) $0 $9,817 $35,879 ($1,300) $8,612 $26,062 Page 1 5/10/14, 12:03 AM COMP-XM INQUIRER 15 of 29 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report (Product Name:) Andrews $51,703 $0 $0 Na $0 Na $0 2017 Total $186,612 Common Size 100.0% $3,581 $11,559 $487 $15,626 $6,925 $16,461 $248 $23,634 $9,871 $17,729 $637 $28,237 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $31,314 $66,928 $1,885 $100,126 16.8% 35.9% 1.0% 53.7% $25,996 $16,237 $20,787 $23,466 $0 $0 $0 $0 $86,486 46.3% $2,434 $772 $1,450 $1,400 $563 $6,619 $4,079 $918 $1,500 $2,100 $306 $8,902 $4,447 $921 $1,300 $1,600 $426 $8,694 $2,783 $756 $1,450 $1,400 $496 $6,885 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $13,742 $3,367 $5,700 $6,500 $1,791 $31,100 7.4% 1.8% 3.1% 3.5% 1.0% 16.7% $19,377 $7,334 $12,093 $16,581 $0 $0 $0 $0 $55,385 29.7% $9,100 $46,285 $0 $5,749 $14,188 $527 $25,821 4.9% 24.8% 0.0% 3.1% 7.6% 0.3% 13.8% Able $31,863 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $10,937 $21,179 $512 $32,629 Contribution Margin Net Margin 2017 Income Statement Acre Awe Na Na $44,421 Sales Ark $58,625 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period 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. 16 of 29 Round: 4 Dec. 31, 2017 C59559 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Page 2 Annual Report PRINT Annual Report 17 of 29 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report Baldwin Round: 4 Dec. 31, 2017 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 2017 Common Size 19.7% 6.4% 6.3% $47,087 $15,398 $15,026 Total Current Assets $77,511 Plant & Equipment Accumulated Depreciation 2016 $25,970 $14,241 $18,354 32.4% $58,565 112.0% -44.4% $267,740 ($106,098) $267,740 ($88,249) Total Fixed Assets $161,642 67.6% $179,491 Total Assets $239,153 100.0% $238,055 3.7% 13.4% 37.6% $9,651 $26,832 $102,406 54.8% $138,889 23.4% 21.8% $55,651 $43,516 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,893 $32,147 $90,018 Total Liabilities Common Stock Retained Earnings $131,058 $56,046 $52,049 Total Equity $108,095 45.2% $99,167 Total Liab. & O. Equity $239,153 100.0% $238,055 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 18 of 29 2017 $8,533 $17,849 ($765) ($758) $3,328 ($1,157) 2016 $174 $17,849 $0 $2,394 ($10,029) ($2,676) $27,030 $7,712 $0 ($48,980) $0 $395 $0 $0 ($11,623) $5,316 $0 $18,373 $0 $19,646 $0 ($6,424) ($5,912) $21,118 $47,087 $31,595 ($9,673) $25,970 Page 1 5/10/14, 12:03 AM COMP-XM INQUIRER 19 of 29 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report Baldwin Round: 4 Dec. 31, 2017 C59559 2017 Income Statement Baker Bead Bid Bold $40,811 $35,731 $30,241 $35,795 Na $0 Na $0 2017 Total $187,348 Common Size 100.0% $2,663 $11,372 $219 $14,255 $8,602 $17,022 $417 $26,042 $5,713 $13,188 $577 $19,478 $7,083 $13,503 $247 $20,833 $8,117 $14,668 $216 $23,001 $0 $0 $0 $0 $0 $0 $0 $0 $33,966 $77,555 $1,803 $113,324 18.1% 41.4% 1.0% 60.5% $9,467 $11,332 $14,770 $16,252 $9,408 $12,794 $0 $0 $74,023 39.5% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,833 $0 $1,200 $1,000 $212 $6,245 $4,600 $0 $1,200 $1,000 $283 $7,083 $2,153 $985 $1,200 $2,400 $451 $7,189 $2,153 $985 $1,200 $2,400 $395 $7,133 $2,635 $966 $1,200 $900 $334 $6,035 $2,475 $966 $1,200 $900 $396 $5,936 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $17,849 $3,902 $7,200 $8,600 $2,071 $39,622 9.5% 2.1% 3.8% 4.6% 1.1% 21.1% Net Margin $3,222 $4,250 $7,581 $9,119 $3,373 $6,857 $0 $0 $34,401 18.4% $5,429 $28,972 $3,922 $11,655 $4,688 $174 $8,533 2.9% 15.5% 2.1% 6.2% 2.5% 0.1% 4.6% (Product Name:) Buzz $19,182 Brat $25,588 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $1,788 $7,800 $127 $9,715 Contribution Margin Sales 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. 20 of 29 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Page 2 Annual Report PRINT Annual Report 21 of 29 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report Chester Round: 4 Dec. 31, 2017 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 2017 Common Size 25.7% 11.2% 13.5% $45,875 $20,051 $24,084 Total Current Assets $90,010 2016 $29,787 $17,140 $21,368 50.4% $68,295 89.2% -39.6% $159,260 ($60,121) $88,521 49.6% $99,139 $178,531 Plant & Equipment Accumulated Depreciation 100.0% $167,434 6.4% 15.9% 18.5% $10,468 $20,522 $39,055 40.8% $70,045 5.9% 53.3% $10,915 $86,474 $159,260 ($70,739) Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $11,499 $28,309 $33,053 Total Liabilities Common Stock Retained Earnings $72,861 $10,492 $95,177 Total Equity $105,669 59.2% $97,389 Total Liab. & O. Equity $178,531 100.0% $167,434 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 22 of 29 2017 $42,028 $10,617 ($195) $1,031 ($2,715) ($2,911) 2016 $26,389 $10,617 $0 $309 ($711) ($2,586) $47,855 $34,018 $0 ($36,000) ($29,973) $0 ($3,774) $0 ($5,807) $7,787 $0 $0 ($1,584) $10,904 $0 ($10,138) ($31,768) $16,087 $45,875 ($818) ($2,800) $29,787 Page 1 5/10/14, 12:03 AM COMP-XM INQUIRER 23 of 29 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report (Product Name:) Chester $61,446 $0 $0 Na $0 Na $0 2017 Total $243,958 Common Size 100.0% $11,445 $23,726 $336 $35,507 $9,243 $20,043 $888 $30,174 $10,203 $23,139 $964 $34,305 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $44,330 $92,864 $2,890 $140,084 18.2% 38.1% 1.2% 57.4% $28,601 $22,901 $25,232 $27,140 $0 $0 $0 $0 $103,874 42.6% $2,911 $710 $1,400 $1,100 $522 $6,642 $1,927 $645 $1,400 $1,000 $444 $5,415 $2,720 $623 $1,400 $1,000 $421 $6,164 $3,060 $645 $1,400 $1,000 $467 $6,572 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,617 $2,622 $5,600 $4,100 $1,853 $24,792 4.4% 1.1% 2.3% 1.7% 0.8% 10.2% $21,960 $17,486 $19,068 $20,569 $0 $0 $0 $0 $79,082 32.4% $6,199 $72,883 $2,972 $3,933 $23,092 $858 $42,028 2.5% 29.9% 1.2% 1.6% 9.5% 0.4% 17.2% Crimp $58,408 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $13,439 $25,956 $702 $40,097 Contribution Margin Net Margin 2017 Income Statement Cake Cedar Na Na $55,406 Sales Cute $68,698 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period 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. 24 of 29 Round: 4 Dec. 31, 2017 C59559 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Page 2 Annual Report PRINT Annual Report 25 of 29 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report Digby Round: 4 Dec. 31, 2017 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 2017 Common Size 23.0% 6.7% 4.8% $44,385 $12,873 $9,214 Total Current Assets $66,472 Plant & Equipment Accumulated Depreciation 2016 $38,303 $11,932 $14,088 34.5% $64,323 122.0% -56.4% $235,300 ($108,844) $235,300 ($93,158) Total Fixed Assets $126,456 65.5% $142,142 Total Assets $192,929 100.0% $206,465 3.6% 14.0% 40.4% $8,296 $29,290 $87,986 58.0% $125,572 23.7% 18.2% $45,786 $35,107 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $6,932 $27,102 $77,920 Total Liabilities Common Stock Retained Earnings $111,954 $45,786 $35,189 Total Equity $80,975 42.0% $80,893 $192,929 Total Liab. & O. Equity 100.0% $206,465 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 26 of 29 2017 $10,594 $15,687 ($736) ($1,365) $4,874 ($941) 2016 $1,614 $15,687 $0 $674 ($10,029) $457 $28,112 $8,403 $0 ($19,800) ($10,512) $0 $0 $0 ($9,330) ($2,188) $0 $8,668 $0 $2,456 $0 ($12,194) ($22,030) $6,083 $44,385 ($1,070) ($12,467) $38,303 Page 1 5/10/14, 12:03 AM COMP-XM INQUIRER 27 of 29 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... 5/10/14, 12:03 AM COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Top Annual Report Digby Round: 4 Dec. 31, 2017 C59559 2017 Income Statement Deal Dell Na Na $48,567 $51,213 $0 $0 Na $0 Na $0 2017 Total $156,627 Common Size 100.0% $3,040 $12,977 $200 $16,218 $9,781 $19,027 $322 $29,129 $9,145 $19,698 $422 $29,265 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $24,981 $64,227 $1,106 $90,314 15.9% 41.0% 0.7% 57.7% $12,539 $12,389 $19,437 $21,948 $0 $0 $0 $0 $66,312 42.3% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,447 $446 $1,300 $1,600 $291 $8,083 $4,907 $446 $1,300 $1,600 $295 $8,547 $2,913 $966 $1,300 $1,400 $500 $7,080 $3,420 $966 $1,300 $1,400 $528 $7,614 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,687 $2,824 $5,200 $6,000 $1,614 $31,324 10.0% 1.8% 3.3% 3.8% 1.0% 20.0% Net Margin $4,455 $3,841 $12,357 $14,334 $0 $0 $0 $0 $34,988 22.3% $4,904 $30,084 $3,361 $10,092 $5,821 $216 $10,594 3.1% 19.2% 2.1% 6.4% 3.7% 0.1% 6.8% (Product Name:) Sales Dug $28,241 Drat $28,606 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $3,016 $12,525 $162 $15,702 Contribution 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. 28 of 29 Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit 5/10/14, 12:03 AM COMP-XM INQUIRER Annual Report 29 of 29 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?XM=1... Page 2 5/10/14, 12:03 AM
