| | 1,711 | | | 529 | | | 518 | | | 508 | Annual Report | Chester | C59559 | Round: 3 Dec. 31, 2019 | | | | | 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 | | | 2019 | 2018 | | | | | Common Size | | | Cash | $24,670 | | 16.5% | $39,443 | | Accounts Receivable | $15,682 | | 10.5% | $13,050 | | Inventory | $23,018 | | 15.4% | $11,397 | | | | | | | | Total Current Assets | | $63,370 | 42.5% | $63,890 | | | | | | | | Plant & Equipment | $143,960 | | 96.5% | $109,560 | | Accumulated Depreciation | ($58,188) | | -39.0% | ($48,591) | | | | | | | | Total Fixed Assets | | $85,772 | 57.5% | $60,969 | | | | | | | | Total Assets | | $149,142 | 100.0% | $124,860 | | | | | | | | LIABILITIES & OWNERS' EQUITY | | | | | | | | | | | | Accounts Payable | $10,496 | | 7.0% | $7,981 | | Current Debt | $21,266 | | 14.3% | $27,573 | | Long Term Debt | $32,556 | | 21.8% | $23,827 | | | | | | | | Total Liabilities | | $64,318 | 43.1% | $59,381 | | | | | | | | Common Stock | $8,566 | | 5.7% | $8,797 | | Retained Earnings | $76,258 | | 51.1% | $56,682 | | | | | | | | Total Equity | | $84,824 | 56.9% | $65,479 | | | | | | | | Total Liab. & O. Equity | | $149,142 | 100.0% | $124,860 | | | | | | | | | | | | The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. | | | Cash Flows from Operating Activities: | 2019 | 2018 | | Net Income (Loss) | $22,992 | $15,421 | | Depreciation | $9,597 | $7,304 | | Extraordinary gains/losses/writeoffs | $0 | $0 | | Accounts Payable | $2,515 | $803 | | Inventory | ($11,620) | $3,917 | | Accounts Receivable | ($2,632) | ($1,993) | | Net cash from operations | $20,852 | $25,452 | | Cash Flows from Investing Activities: | | | Plant Improvements | ($34,400) | ($15,600) | | Cash Flows from Financing Activities: | | | Dividends Paid | ($1,928) | $0 | | Sales of Common Stock | $0 | $0 | | Purchase of Common Stock | ($1,718) | ($14) | | Cash from long term debt | $8,728 | $14,277 | | Retirement of long term debt | $0 | ($11,300) | | Change in current debt (net) | ($6,307) | $13,601 | | Net cash from financing activities | ($1,225) | $16,564 | | Net change in cash position | ($14,773) | $26,416 | | Closing cash position | $24,670 | $39,443 | | | | Annual Report | Chester | C59559 | Round: 3 Dec. 31, 2019 | | | | | | | (Product Name:) | Cent | Clack | Cone | Creak | Na | Na | Na | Na | 2019 Total | Common Size | | Sales | $55,269 | $41,425 | $43,003 | $51,105 | $0 | $0 | $0 | $0 | $190,803 | 100.0% | | | | | | | | | | | | | Variable Costs: | | | | | | | | | | | | Direct Labor | $12,920 | $8,559 | $8,716 | $10,456 | $0 | $0 | $0 | $0 | $40,651 | 21.3% | | Direct Material | $21,157 | $17,665 | $16,414 | $20,199 | $0 | $0 | $0 | $0 | $75,435 | 39.5% | | Inventory Carry | $32 | $555 | $996 | $1,179 | $0 | $0 | $0 | $0 | $2,762 | 1.4% | | Total Variable | $34,109 | $26,780 | $26,126 | $31,834 | $0 | $0 | $0 | $0 | $118,849 | 62.3% | | | | | | | | | | | | | | Contribution Margin | $21,160 | $14,645 | $16,877 | $19,272 | $0 | $0 | $0 | $0 | $71,954 | 37.7% | | | | | | | | | | | | | | | Period Costs: | | | | | | | | | | | | Depreciation | $2,684 | $1,700 | $2,493 | $2,720 | $0 | $0 | $0 | $0 | $9,597 | 5.0% | | SG&A: R&D | $858 | $655 | $510 | $571 | $0 | $0 | $0 | $0 | $2,595 | 1.4% | | Promotions | $1,350 | $1,350 | $1,350 | $1,350 | $0 | $0 | $0 | $0 | $5,400 | 2.8% | | Sales | $1,000 | $1,000 | $900 | $900 | $0 | $0 | $0 | $0 | $3,800 | 2.0% | | Admin | $426 | $319 | $331 | $394 | $0 | $0 | $0 | $0 | $1,470 | 0.8% | | Total Period | $6,318 | $5,025 | $5,585 | $5,934 | $0 | $0 | $0 | $0 | $22,862 | 12.0% | | | | | | | | | | | | | | Net Margin | $14,842 | $9,621 | $11,293 | $13,337 | $0 | $0 | $0 | $0 | $49,092 | 25.7% | | | | | | | | | | | | | | Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory.Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. | | | | | Other | $6,712 | 3.5% | | EBIT | $42,380 | 22.2% | | Short Term Interest | $2,360 | 1.2% | | LongTerm Interest | $3,925 | 2.1% | | Taxes | $12,633 | 6.6% | | Profit Sharing | $469 | 0.2% | | Net Profit | $22,992 | 12.1% | | | | | | Name | Primary Segment | Units Sold | Unit Inven tory | Revision Date | Age Dec.31 | MTBF | Pfmn Coord | Size Coord | Price | Material Cost | Labor Cost | Contr. Marg. | 2nd Shift & Over- time | Auto mation Next Round | Capacity Next Round | Plant Utiliz. | | | Cent | Nano | 1,626 | 13 | 11/5/2019 | 1.2 | 23000 | 13.5 | 4.7 | $34.00 | $13.66 | $7.91 | 38% | 100% | 7.0 | 1,050 | 198% | | Clack | Elite | 1,218 | 215 | 8/24/2019 | 1.9 | 25000 | 16.3 | 6.7 | $34.00 | $14.56 | $6.96 | 35% | 80% | 7.0 | 750 | 178% | | Cone | Nano | 1,162 | 384 | 7/3/2019 | 1.3 | 23000 | 14.0 | 4.2 | $37.00 | $14.04 | $7.47 | 39% | 56% | 7.0 | 1,100 | 154% | | Creak | Elite | 1,381 | 443 | 7/25/2019 | 1.3 | 25000 | 16.1 | 6.4 | $37.00 | $14.57 | $7.58 | 38% | 65% | 7.0 | 1,200 | 163% | | |
