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Chester has negotiated a new labor contract for the next round that will affect the cost for their product Creak. Labor costs will go from

Chester has negotiated a new labor contract for the next round that will affect the cost for their product Creak. Labor costs will go from $1.84 to $2.44 per unit. Assume all period and other variable costs remain the same. If Chester were to absorb the new labor costs without passing them on in the form of higher prices, how many units of product Creak would need to be sold next round to break even on the product?
Select: 1
893
861
1,085

927

image text in transcribed COMP-XM INQUIRER Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews 12/10/16, 7)49 AM 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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 1 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top " Round: 3 Dec. 31, 2018 Heriberto Haddock Student: Heriberto Haddock Andrews Heriberto Haddock 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 14.1% 1.31 18.5% 1.5 27.3% $0 $194,995,019 $47,617,063 $27,582,897 $50,003,618 10.1% 43.0% Baldwin 1.5% 0.72 1.1% 2.5 2.7% $0 $149,550,802 $18,643,655 $2,230,990 $6,193,744 9.0% 36.1% Chester -0.1% 0.73 -0.1% 2.4 -0.2% $0 $171,123,891 $15,965,612 ($169,023) $4,974,759 12.3% 36.5% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Digby 12.3% 1.24 15.3% 1.7 26.1% $0 $191,304,774 $43,331,353 $23,587,275 $52,051,752 7.1% 38.5% Page 1 Page 2 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Stocks & Bonds Round: 3 Heriberto Haddock December 31 , 2018 Stock Market Summary Company Andrews Baldwin Chester Digby Close $125.55 $26.35 $30.77 $102.05 Change $47.48 ($0.86) ($4.13) $24.15 Shares 1,785,048 3,186,781 3,126,102 1,843,460 MarketCap ($M) $224 $84 $96 $188 Book Value $56.56 $25.74 $31.09 $48.98 EPS $15.45 $0.70 ($0.05) $12.80 Dividend $0.00 $0.00 $0.00 $0.00 Yield 0.0% 0.0% 0.0% 0.0% P/E 8.1 37.6 -579.8 8.0 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 11.2S2022 11.9S2023 10.5S2027 10.9S2028 $8,837,000 $7,072,000 $2,900,000 $20,000,000 11.1% 11.5% 10.7% 10.9% 100.93 103.70 97.78 100.00 AA AA AA AA 11.3S2022 12.5S2023 12.5S2024 12.5S2025 12.9S2026 13.4S2027 14.2S2028 $10,417,600 $14,665,611 $7,969,218 $9,570,210 $14,272,791 $30,386,904 $2,285,668 12.2% 13.1% 13.2% 13.2% 13.5% 13.7% 13.9% 92.69 95.52 94.92 94.39 95.80 98.01 102.10 CC CC CC CC CC CC CC 11.2S2022 12.4S2023 11.9S2025 12.6S2026 13.1S2027 13.8S2028 $8,635,154 $5,826,767 $15,600,517 $17,807,701 $34,386,651 $19,320,132 12.0% 12.9% 12.8% 13.2% 13.4% 13.7% 92.95 95.84 92.62 95.30 97.49 101.06 CC CC CC CC CC CC 11.1S2024 11.2S2025 11.5S2026 11.5S2027 12.8S2028 $2,507,689 $5,667,039 $1,377,083 $17,478,318 $8,078,831 11.4% 11.5% 11.7% 11.7% 12.1% 97.11 97.24 98.50 98.39 105.70 BBB BBB BBB BBB BBB Next Year's Prime Rate 9.00% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 2 Page 3 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM 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 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 Round: 3 December 31, 2018 Heriberto Haddock Andrews Baldwin Chester Digby $27,583 $2,231 ($169) $23,587 $11,570 $0 $15,893 $0 $17,623 $0 $9,937 $0 $590 ($1,384) ($1,421) $36,937 $445 ($9,201) ($61) $9,308 $1,673 ($8,236) ($2,727) $8,163 ($510) ($609) ($2,259) $30,147 ($36,488) ($18,700) ($45,580) ($27,300) $0 $0 ($7,335) $20,000 $0 ($11,300) $0 $0 $0 $8,687 $0 $2,286 $0 ($42,632) $28,913 $0 $0 $18,185 $0 $19,320 $0 ($33,938) $26,330 $0 $0 $0 ($1,891) $8,079 $0 ($32,702) $19,185 $0 $1,365 ($2,746) $29,897 ($7,328) $1,814 ($12,138) ($7,520) ($4,481) Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $21,323 $24,575 $2,215 $48,113 Baldwin $37,063 $12,292 $14,868 $64,223 Chester $24,995 $14,065 $19,140 $58,199 Digby $29,205 $15,724 $19,478 $64,407 Plant and equipment Accumulated Depreciation Total Fixed Assets $173,552 ($72,665) $100,887 $238,400 ($93,644) $144,756 $264,340 ($88,022) $176,318 $149,060 ($59,341) $89,719 Total Assets $149,000 $208,979 $234,517 $154,125 Accounts Payable Current Debt Long Term Debt Total Liabilities $9,234 $0 $38,809 $48,043 $8,463 $28,913 $89,568 $126,945 $9,421 $26,330 $101,577 $137,328 $9,532 $19,185 $35,109 $63,827 Common Stock Retained Earnings Total Equity $8,992 $91,965 $100,956 $45,745 $36,290 $82,034 $53,445 $43,744 $97,189 $8,421 $81,878 $90,299 Total Liabilities & Owners' Equity $149,000 $208,979 $234,517 $154,125 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 $194,995 $111,233 $11,570 $19,665 $4,910 $47,617 $4,316 $15,155 $563 $27,583 Baldwin $149,551 $95,556 $15,893 $13,409 $6,049 $18,644 $15,141 $1,226 $46 $2,231 Chester $171,124 $108,686 $17,623 $20,974 $7,875 $15,966 $16,226 ($91) $0 ($169) Digby $191,305 $117,703 $9,937 $13,651 $6,682 $43,331 $6,303 $12,960 $481 $23,587 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 3 Page 4 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Production Analysis Round: 3 December 31, 2018 Heriberto Haddock Production Information Primary Segment Units Sold Unit Inven tory Attic Axe Art Ant Ace Thrift Core Nano Elite Elite 1,504 1,365 1,442 1,400 494 Best Bam Beetle Bit Thrift Thrift Core Core Creak Cat Cell City Cozy Cute Drum Daft Deal Dim Name Revision Date Age Dec.31 14 156 0 0 0 7/4/2018 7/14/2018 6/19/2018 6/15/2018 6/15/2018 2,074 2,184 1,605 1,788 154 416 306 302 Thrift Core Nano Elite Core Core 1,031 1,907 1,146 732 1,594 1,053 Nano Elite Nano Elite 1,683 1,169 1,220 1,329 Labor Cost Contr. Marg. 2nd Shift & Overtime $7.29 $8.38 $12.85 $13.31 $11.67 $3.87 $4.83 $10.22 $10.20 $8.25 53% 50% 36% 36% 48% 25% 5% 100% 98% 0% 9.0 8.0 5.0 5.0 5.0 1,230 1,400 1,128 1,014 500 123% 104% 198% 196% 99% $16.00 $16.00 $24.00 $24.00 $6.80 $6.96 $9.72 $10.36 $2.96 $3.00 $4.57 $4.49 37% 35% 38% 35% 50% 58% 67% 56% 10.0 10.0 8.0 8.0 1,500 1,700 1,100 1,300 149% 156% 165% 154% 11.8 10.9 4.7 7.2 9.4 9.8 $17.00 $19.00 $30.00 $36.00 $21.00 $22.00 $6.82 $8.14 $12.74 $13.59 $9.31 $9.03 $1.84 $4.13 $6.77 $6.02 $5.75 $4.47 51% 32% 34% 44% 29% 37% 4% 43% 35% 0% 68% 100% 10.0 10.0 7.0 7.0 8.0 8.0 1,250 1,500 950 850 1,040 1,040 103% 142% 134% 99% 167% 176% 4.8 6.8 4.3 6.5 $34.00 $34.00 $37.00 $37.00 $13.66 $14.56 $14.04 $14.57 $7.91 $6.46 $6.87 $7.12 38% 36% 40% 39% 100% 35% 19% 32% 7.0 7.0 7.0 7.0 1,100 850 1,100 1,200 198% 134% 118% 131% MTBF Pfmn Coord Size Coord Material Price Cost 1.9 1.5 1.5 1.5 1.2 20000 16000 24000 26000 20000 7.6 10.6 12.3 14.9 14.8 12.4 9.5 5.0 7.8 7.8 $23.90 $26.90 $35.90 $37.00 $37.99 6/10/2019 6/10/2019 12/16/2017 12/18/2017 3.7 3.6 2.1 2.1 17000 17000 18000 20000 7.5 7.7 10.6 11.3 12.5 12.3 8.8 9.3 429 296 256 260 139 0 12/20/2018 12/6/2016 12/17/2018 12/17/2018 12/25/2018 2/10/2018 2.2 3.1 1.0 1.0 0.9 0.9 14000 16000 18000 20000 16000 16000 8.2 9.1 12.6 15.7 10.5 10.2 51 144 351 358 11/5/2018 8/24/2018 7/3/2018 7/25/2018 1.2 1.9 1.3 1.3 23000 25000 23000 25000 13.2 16.0 13.7 15.8 Auto mation Capacity Next Next Round Round COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Plant Utiliz. Page 4 Page 5 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Thrift Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Heriberto Haddock Thrift Statistics 6,983 6,983 26.1% 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: 3 December 31, 2018 Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Bam Best Attic Creak Cat Cozy Cute Axe Market Share 27% 27% 16% 14% 11% 3% 0% 0% Units Sold to Seg 1,908 1,895 1,144 1,006 766 204 30 29 Revision Date Stock Out 6/10/2019 6/10/2019 7/4/2018 12/20/2018 12/6/2016 12/25/2018 2/10/2018 YES 7/14/2018 Pfmn Coord 7.7 7.5 7.6 8.2 9.1 10.5 10.2 10.6 Size Coord 12.3 12.5 12.4 11.8 10.9 9.4 9.8 9.5 List Price $16.00 $16.00 $23.90 $17.00 $19.00 $21.00 $22.00 $26.90 MTBF 17000 17000 20000 14000 16000 16000 16000 16000 Age Dec.31 3.64 3.74 1.94 2.25 3.11 0.88 0.89 1.52 Promo Cust. AwareBudget ness $1,250 79% $1,250 78% $1,500 100% $1,140 66% $1,140 67% $1,140 58% $1,140 51% $1,500 100% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,400 75% 55 $1,400 75% 54 $1,500 77% 34 $1,000 72% 31 $1,000 72% 24 $900 72% 0 $900 72% 3 $1,500 77% 0 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 5 Page 6 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Core Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Heriberto Haddock Core Statistics 8,895 8,895 33.3% 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 10.7 Size 9.3 Price Age Reliability Ideal Position Round: 3 December 31, 2018 Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Bit Beetle Cozy Axe Cat Cute Attic Bam Best Creak Drum Market Share 19% 17% 16% 14% 13% 12% 4% 3% 2% 0% 0% Units Sold to Seg 1,708 1,508 1,390 1,282 1,141 1,023 360 276 180 24 3 Revision Date Stock Out 12/18/2017 12/16/2017 12/25/2018 7/14/2018 12/6/2016 2/10/2018 YES 7/4/2018 6/10/2019 6/10/2019 12/20/2018 11/5/2018 Pfmn Coord 11.3 10.6 10.5 10.6 9.1 10.2 7.6 7.7 7.5 8.2 13.2 Size Coord 9.3 8.8 9.4 9.5 10.9 9.8 12.4 12.3 12.5 11.8 4.8 List Price $24.00 $24.00 $21.00 $26.90 $19.00 $22.00 $23.90 $16.00 $16.00 $17.00 $34.00 MTBF 20000 18000 16000 16000 16000 16000 20000 17000 17000 14000 23000 Age Dec.31 2.10 2.09 0.88 1.52 3.11 0.89 1.94 3.64 3.74 2.25 1.24 Promo Cust. AwareBudget ness $1,250 78% $1,250 78% $1,140 58% $1,500 100% $1,140 67% $1,140 51% $1,500 100% $1,250 79% $1,250 78% $1,140 66% $1,350 87% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 76% 50 $1,100 76% 44 $900 72% 38 $1,500 67% 34 $1,000 72% 26 $900 72% 31 $1,500 67% 5 $1,400 76% 2 $1,400 76% 0 $1,000 72% 8 $1,000 11% 0 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 6 Page 7 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Nano Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Heriberto Haddock Nano Statistics 5,410 5,410 20.3% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 12.6 Size 4.5 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Ideal Position Price Age Reliability Round: 3 December 31, 2018 Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Drum Art Deal Cell Ant Beetle Dim Bit City Ace Axe Daft Market Share 25% 24% 22% 19% 2% 2% 2% 1% 1% 1% 1% 0% Units Sold to Seg 1,342 1,308 1,172 1,036 126 97 82 80 61 52 38 16 Revision Date Stock Out 11/5/2018 6/19/2018 YES 7/3/2018 12/17/2018 6/15/2018 YES 12/16/2017 7/25/2018 12/18/2017 12/17/2018 6/15/2018 YES 7/14/2018 8/24/2018 Pfmn Coord 13.2 12.3 13.7 12.6 14.9 10.6 15.8 11.3 15.7 14.8 10.6 16.0 Size Coord 4.8 5.0 4.3 4.7 7.8 8.8 6.5 9.3 7.2 7.8 9.5 6.8 List Price $34.00 $35.90 $37.00 $30.00 $37.00 $24.00 $37.00 $24.00 $36.00 $37.99 $26.90 $34.00 MTBF 23000 24000 23000 18000 26000 18000 25000 20000 20000 20000 16000 25000 Age Dec.31 1.24 1.50 1.34 1.03 1.50 2.09 1.34 2.10 1.04 1.19 1.52 1.90 Promo Cust. AwareBudget ness $1,350 87% $1,500 100% $1,350 87% $1,140 67% $1,500 100% $1,250 78% $1,350 87% $1,250 78% $1,140 67% $1,600 85% $1,500 100% $1,350 87% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 83% 62 $1,500 89% 74 $900 83% 48 $1,900 70% 46 $1,500 89% 4 $1,100 18% 2 $900 83% 0 $1,100 18% 1 $2,200 70% 0 $1,600 89% 3 $1,500 89% 0 $1,000 83% 0 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 7 Page 8 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Elite Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Elite Statistics 5,432 5,432 20.3% 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 15.5 Size 7.4 MTBF 20000-26000 Age Price Ideal Position Reliability Round: 3 December 31, 2018 Heriberto Haddock Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Ant Dim Daft City Ace Drum Art Cell Deal Axe Market Share 23% 23% 21% 12% 8% 6% 2% 2% 1% 0% Units Sold to Seg 1,274 1,247 1,152 671 442 339 134 110 48 15 Revision Date Stock Out 6/15/2018 YES 7/25/2018 8/24/2018 12/17/2018 6/15/2018 YES 11/5/2018 6/19/2018 YES 12/17/2018 7/3/2018 7/14/2018 Pfmn Coord 14.9 15.8 16.0 15.7 14.8 13.2 12.3 12.6 13.7 10.6 Size Coord 7.8 6.5 6.8 7.2 7.8 4.8 5.0 4.7 4.3 9.5 List Price $37.00 $37.00 $34.00 $36.00 $37.99 $34.00 $35.90 $30.00 $37.00 $26.90 MTBF 26000 25000 25000 20000 20000 23000 24000 18000 23000 16000 Age Dec.31 1.50 1.34 1.90 1.04 1.19 1.24 1.50 1.03 1.34 1.52 Promo Cust. AwareBudget ness $1,500 100% $1,350 87% $1,350 87% $1,140 67% $1,600 85% $1,350 87% $1,500 100% $1,140 67% $1,350 87% $1,500 100% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,500 99% 64 $900 87% 48 $1,000 87% 47 $2,200 69% 30 $1,600 99% 36 $1,000 87% 8 $1,500 99% 4 $1,900 69% 1 $900 87% 1 $1,500 99% 0 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 8 Page 9 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Market Share Report Actual Market Share in Units Industry Unit Sales % of Market Thrift Core Nano Elite Total 6,983 26.1% 8,895 33.3% 5,410 20.3% 5,432 20.3% 26,720 100.0% Attic Axe Art Ant Ace Total 16.4% 0.4% 4.0% 14.4% 16.8% 18.5% 0.7% 24.2% 2.3% 1.0% 28.2% 0.3% 2.5% 23.4% 8.1% 34.3% Best Bam Beetle Bit Total 27.1% 27.3% 54.5% 2.0% 3.1% 16.9% 19.2% 41.3% Creak Cat Cell City Cozy Cute Total 14.4% 11.0% 0.3% 12.8% 2.9% 0.4% 28.7% 15.6% 11.5% 40.2% Drum Daft Deal Dim Total Round: 3 December 31, 2018 Heriberto Haddock 0.0% 0.0% 1.8% 1.5% 3.3% Potential Market Share in Units Units Demanded % of Market Thrift Core Nano Elite Total 6,983 26.1% 8,895 33.3% 5,410 20.3% 5,432 20.3% 26,720 100.0% 5.6% 5.1% 5.4% 5.2% 1.9% 23.2% Attic Axe Art Ant Ace Total 17.0% 0.4% 4.2% 14.3% 17.4% 18.6% 0.6% 31.1% 2.6% 1.8% 36.1% 0.2% 3.0% 26.8% 15.8% 45.9% 5.9% 5.1% 6.9% 6.0% 3.6% 27.4% 7.8% 8.2% 6.0% 6.7% 28.6% Best Bam Beetle Bit Total 27.2% 27.0% 54.2% 2.0% 3.1% 16.9% 19.1% 41.1% 1.6% 1.3% 2.9% Creak Cat Cell City Cozy Cute Total 14.2% 10.9% 0.3% 12.8% 2.9% 0.5% 28.4% 15.6% 11.7% 40.3% Drum Daft Deal Dim Total 19.1% 1.1% 2.0% 12.4% 20.3% 14.4% 3.9% 7.1% 4.3% 2.7% 6.0% 3.9% 27.9% 24.8% 0.3% 21.7% 1.5% 48.3% 6.2% 21.2% 0.9% 23.0% 51.3% 6.3% 4.4% 4.6% 5.0% 20.2% 0.0% 7.8% 8.1% 5.9% 6.6% 28.4% 17.0% 1.0% 1.7% 10.2% 18.0% 11.9% 3.8% 7.1% 3.8% 2.3% 5.9% 4.0% 26.9% 22.0% 0.3% 19.3% 1.4% 43.0% 5.1% 17.5% 0.7% 18.9% 42.3% 5.5% 3.6% 4.1% 4.1% 17.3% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 9 Page 10 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Perceptual Map Round: 3 December 31, 2018 Heriberto Haddock Perceptual Map for All Segments Andrews Name Attic Axe Art Ant Ace Pfmn 7.6 10.6 12.3 14.9 14.8 Name Drum Daft Deal Dim Pfmn 13.2 16.0 13.7 15.8 Size 12.4 9.5 5.0 7.8 7.8 Baldwin Revised 7/4/2018 7/14/2018 6/19/2018 6/15/2018 6/15/2018 Name Best Bam Beetle Bit Pfmn 7.5 7.7 10.6 11.3 Size 12.5 12.3 8.8 9.3 Chester Revised 6/10/2019 6/10/2019 12/16/2017 12/18/2017 Name Creak Cat Cell City Cozy Cute Pfmn 8.2 9.1 12.6 15.7 10.5 10.2 Size 11.8 10.9 4.7 7.2 9.4 9.8 Revised 12/20/2018 12/6/2016 12/17/2018 12/17/2018 12/25/2018 2/10/2018 Digby Size 4.8 6.8 4.3 6.5 Revised 11/5/2018 8/24/2018 7/3/2018 7/25/2018 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 10 Page 11 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top HR/TQM Report Heriberto Haddock Round: 3 December 31, 2018 HUMAN RESOURCES SUMMARY Andrews 676 Baldwin 439 Chester 579 Digby 562 Complement 676 439 579 562 1st Shift Complement 2nd Shift Complement 454 222 279 161 418 161 390 173 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 6.3% 8.0% 6.1% 10.0% 43 27 35 12 98 0 56 92 Recruiting Spend Training Hours $5,000 80 $2,500 40 $5,000 80 $0 0 Productivity Index 114.2% 116.5% 126.0% 100.0% Needed Complement New Employees Separated Employees Recruiting Cost $257 $123 $587 $56 Separation Cost Training Cost $135 $1,082 $58 $351 $0 $927 $461 $0 Total HR Admin Cost $1,474 $532 $1,514 $517 $29.56 2,500 $29.56 2,500 $29.56 2,500 $29.56 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 Wages Benefits 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 Andrews Baldwin Chester Digby $0 $0 $0 $950 $950 $950 $1,250 $1,250 $0 $1,500 $0 $0 $1,500 $1,500 $0 $0 $0 $1,500 $0 $0 $1,250 $1,250 $1,250 $0 $950 $0 $0 $0 $3,800 $0 $0 $750 $750 $5,500 $1,500 $0 $0 $0 $6,000 $0 $0 $1,250 $1,250 $6,250 11.27% 13.56% 39.95% 60.02% 13.34% 6.03% 1.78% 0.00% 16.23% 5.47% 1.41% 0.05% 0.00% 43.11% 0.45% 6.43% 13.93% 39.79% 0.00% 9.37% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 11 Page 12 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 13 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report Andrews Round: 3 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 14.3% 16.5% 1.5% $21,323 $24,575 $2,215 Total Current Assets $48,113 Plant & Equipment Accumulated Depreciation $173,552 ($72,665) 2017 $19,509 $23,153 $831 32.3% $43,493 116.5% -48.8% $137,064 ($61,095) Total Fixed Assets $100,887 67.7% $75,969 Total Assets $149,000 100.0% $119,462 6.2% 0.0% 26.0% $8,645 $11,300 $18,809 32.2% $38,754 6.0% 61.7% $9,891 $70,818 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $9,234 $0 $38,809 Total Liabilities Common Stock Retained Earnings $48,043 $8,992 $91,965 Total Equity $100,957 67.8% $80,709 Total Liab. & O. Equity $149,000 100.0% $119,462 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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport 2018 $27,583 $11,570 $0 $590 ($1,384) ($1,421) 2017 $21,272 $9,138 $0 $3,330 $1,458 ($5,454) $36,937 $29,743 ($36,488) ($17,240) $0 $0 ($7,335) $20,000 $0 ($11,300) $0 $0 ($6,037) $2,900 ($11,300) $11,300 $1,365 $1,814 $21,323 ($3,137) $9,366 $19,509 Page 1 Page 14 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report Andrews Round: 3 Dec. 31, 2018 C59559 2018 Income Statement Attic Axe Art Ant Ace Na Na Na Sales $35,941 $36,724 $51,756 $51,803 $18,770 $0 $0 $0 2018 Total $194,995 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $5,818 $11,010 $19 $16,847 $6,608 $11,430 $247 $18,284 $14,736 $18,557 $0 $33,294 $14,284 $18,671 $0 $32,955 $4,075 $5,779 $0 $9,854 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $45,521 $65,446 $266 $111,233 23.3% 33.6% 0.1% 57.0% Contribution Margin $19,094 $18,440 $18,462 $18,849 $8,917 $0 $0 $0 $83,762 43.0% $3,444 $511 $1,500 $1,500 $372 $7,328 $3,547 $542 $1,500 $1,500 $380 $7,469 $1,955 $470 $1,500 $1,500 $536 $5,962 $1,758 $461 $1,500 $1,500 $537 $5,755 $867 $461 $1,600 $1,600 $194 $4,722 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,570 $2,445 $7,600 $7,600 $2,020 $31,235 5.9% 1.3% 3.9% 3.9% 1.0% 16.0% $11,767 $10,972 $12,501 $13,094 $4,195 $0 $0 $0 $52,527 26.9% $4,910 $47,617 $0 $4,316 $15,155 $563 $27,583 2.5% 24.4% 0.0% 2.2% 7.8% 0.3% 14.1% (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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 15 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 16 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report Baldwin Round: 3 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 17.7% 5.9% 7.1% $37,063 $12,292 $14,868 Total Current Assets $64,223 Plant & Equipment Accumulated Depreciation $238,400 ($93,644) 2017 $49,202 $12,231 $5,668 30.7% $67,101 114.1% -44.8% $219,700 ($77,751) Total Fixed Assets $144,756 69.3% $141,949 Total Assets $208,979 100.0% $209,050 4.0% 13.8% 42.9% $8,019 $42,632 $87,282 60.7% $137,933 21.9% 17.4% $37,058 $34,059 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,463 $28,913 $89,568 Total Liabilities Common Stock Retained Earnings $126,944 $45,745 $36,290 Total Equity Total Liab. & O. Equity $82,035 39.3% $71,117 $208,979 100.0% $209,050 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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport 2018 $2,231 $15,893 $0 $445 ($9,201) ($61) 2017 ($2,145) $14,647 $0 ($750) $1,913 $733 $9,308 $14,398 ($18,700) ($42,140) $0 $8,687 $0 $2,286 $0 ($13,719) $0 $9,509 $0 $30,387 ($11,300) $17,377 ($2,746) ($12,138) $37,063 $45,973 $18,231 $49,202 Page 1 Page 17 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report Baldwin Round: 3 Dec. 31, 2018 C59559 2018 Income Statement Best Bam Beetle Bit Na Na Na Na Sales $33,189 $34,940 $38,518 $42,903 $0 $0 $0 $0 2018 Total $149,551 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $6,150 $14,579 $184 $20,913 $6,579 $15,710 $509 $22,799 $7,362 $16,179 $538 $24,080 $8,061 $19,151 $552 $27,765 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $28,153 $65,619 $1,784 $95,556 18.8% 43.9% 1.2% 63.9% Contribution Margin $12,277 $12,142 $14,438 $15,139 $0 $0 $0 $0 $53,995 36.1% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,600 $1,000 $1,250 $1,400 $313 $8,563 $5,213 $1,000 $1,250 $1,400 $329 $9,193 $2,787 $0 $1,250 $1,100 $363 $5,500 $3,293 $0 $1,250 $1,100 $404 $6,048 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,893 $2,000 $5,000 $5,000 $1,409 $29,302 10.6% 1.3% 3.3% 3.3% 0.9% 19.6% Net Margin $3,714 $2,949 $8,938 $9,091 $0 $0 $0 $0 $24,692 16.5% $6,049 $18,644 $3,701 $11,440 $1,226 $46 $2,231 4.0% 12.5% 2.5% 7.6% 0.8% 0.0% 1.5% (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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 18 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 19 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report Chester Round: 3 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 10.7% 6.0% 8.2% $24,995 $14,065 $19,140 Total Current Assets $58,200 Plant & Equipment Accumulated Depreciation $264,340 ($88,022) 2017 $32,515 $11,338 $10,903 24.8% $54,756 112.7% -37.5% $218,760 ($70,400) Total Fixed Assets $176,318 75.2% $148,360 Total Assets $234,517 100.0% $203,116 4.0% 11.2% 43.3% $7,749 $33,938 $82,257 58.6% $123,944 22.8% 18.7% $35,261 $43,913 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $9,421 $26,330 $101,577 Total Liabilities Common Stock Retained Earnings $137,328 $53,445 $43,744 Total Equity Total Liab. & O. Equity $97,189 41.4% $79,174 $234,517 100.0% $203,116 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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport 2018 ($169) $17,623 $0 $1,673 ($8,236) ($2,727) 2017 ($205) $13,224 $0 $1,512 ($4,686) ($1,391) $8,163 $8,454 ($45,580) ($53,460) $0 $18,185 $0 $19,320 $0 ($7,608) $0 $16,594 $0 $34,387 ($11,300) $12,222 $29,897 ($7,520) $24,995 $51,902 $6,896 $32,515 Page 1 Page 20 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report Chester Round: 3 Dec. 31, 2018 C59559 2018 Income Statement Creak Cat Cell City Cozy Cute Na Na $17,522 $36,239 $34,365 $26,352 $33,479 $23,167 $0 $0 2018 Total $171,124 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $1,969 $6,186 $407 $8,563 $7,955 $16,088 $447 $24,491 $7,763 $14,246 $590 $22,599 $4,532 $9,711 $607 $14,850 $9,163 $14,282 $245 $23,690 $4,711 $9,782 $0 $14,493 $0 $0 $0 $0 $0 $0 $0 $0 $36,094 $70,295 $2,297 $108,686 21.1% 41.1% 1.3% 63.5% Contribution Margin $8,959 $11,748 $11,766 $11,502 $9,789 $8,674 $0 $0 $62,438 36.5% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,833 $983 $1,140 $1,000 $225 $7,181 $4,600 $0 $1,140 $1,000 $465 $7,205 $2,153 $973 $1,140 $1,900 $441 $6,608 $1,927 $973 $1,140 $2,200 $338 $6,578 $2,635 $995 $1,140 $900 $430 $6,100 $2,475 $114 $1,140 $900 $297 $4,926 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $17,623 $4,039 $6,840 $7,900 $2,196 $38,597 10.3% 2.4% 4.0% 4.6% 1.3% 22.6% Net Margin $1,778 $4,543 $5,158 $4,924 $3,689 $3,749 $0 $0 $23,841 13.9% $7,875 $15,966 $3,265 $12,961 ($91) $0 ($169) 4.6% 9.3% 1.9% 7.6% -0.1% 0.0% -0.1% (Product Name:) 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. Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 21 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 22 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report Digby Round: 3 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 18.9% 10.2% 12.6% $29,205 $15,724 $19,478 Total Current Assets $64,407 Plant & Equipment Accumulated Depreciation Total Assets $33,686 $13,465 $18,869 41.8% $66,020 96.7% -38.5% $121,760 ($49,404) $89,719 58.2% $72,356 $154,125 100.0% $138,376 6.2% 12.4% 22.8% $10,042 $32,702 $27,030 41.4% $69,774 5.5% 53.1% $8,659 $59,943 $149,060 ($59,341) Total Fixed Assets 2017 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $9,532 $19,185 $35,109 Total Liabilities Common Stock Retained Earnings $63,826 $8,421 $81,878 Total Equity Total Liab. & O. Equity $90,299 58.6% $68,602 $154,125 100.0% $138,376 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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport 2018 $23,587 $9,937 $0 ($510) ($609) ($2,259) 2017 $13,709 $8,117 $0 $2,755 ($16,012) ($642) $30,147 $7,927 ($27,300) ($27,800) $0 $0 ($1,891) $8,079 $0 ($13,516) $0 $0 ($897) $17,478 ($11,300) $18,739 ($7,328) ($4,481) $29,205 $24,021 $4,148 $33,686 Page 1 Page 23 of 25 COMP-XM INQUIRER 12/10/16, 7)49 AM Top Annual Report (Product Name:) Digby Dim $49,182 Na $0 Na $0 Na $0 Na $0 2018 Total $191,305 Common Size 100.0% $7,864 $17,056 $369 $25,290 $8,761 $17,310 $900 $26,972 $9,613 $19,474 $941 $30,028 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $39,617 $75,749 $2,337 $117,703 20.7% 39.6% 1.2% 61.5% $21,818 $14,453 $18,176 $19,154 $0 $0 $0 $0 $73,602 38.5% $2,797 $858 $1,350 $1,000 $555 $6,561 $1,927 $655 $1,350 $1,000 $386 $5,318 $2,493 $510 $1,350 $900 $438 $5,691 $2,720 $571 $1,350 $900 $477 $6,018 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $9,937 $2,595 $5,400 $3,800 $1,856 $23,588 5.2% 1.4% 2.8% 2.0% 1.0% 12.3% $15,257 $9,136 $12,485 $13,136 $0 $0 $0 $0 $50,014 26.1% $6,682 $43,331 $2,187 $4,116 $12,960 $481 $23,587 3.5% 22.7% 1.1% 2.2% 6.8% 0.3% 12.3% Daft $39,743 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $13,379 $21,908 $127 $35,414 Contribution Margin Net Margin 2018 Income Statement Deal $45,148 Sales Drum $57,231 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Round: 3 Dec. 31, 2018 C59559 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 http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport Page 24 of 25 COMP-XM INQUIRER Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=7&Report=CapCourier|AnnReport 12/10/16, 7)49 AM Page 2 Page 25 of 25

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