COMP-XM QUESTION PLEASE SEE ATTACHMENT It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday?s stock price ($34.90) and leverage changes to 2.8. Which of the following statements are true? Select all that apply.

Select: 3

Chester will issue stock totaling $2,617,500

Total liabilities will be 147,223,411

Total assets will rise to $229,420,656

Working capital will remain the same at $11,762,602

The total investment for Chester will be $25,897,839

COMP-XM INQUIRER Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews 12/8/16, 12(27 PM 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=6&Report=CapCourier|AnnReport Page 1 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top " Round: 2 Dec. 31, 2017 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 11.6% 1.54 17.8% 1.5 26.4% $0 $183,716,927 $36,557,409 $21,271,530 $22,420,722 12.2% 41.9% Baldwin -1.4% 0.71 -1.0% 2.9 -3.0% $0 $148,813,748 $12,932,304 ($2,144,635) $3,962,754 9.1% 32.7% Chester -0.1% 0.68 -0.1% 2.6 -0.3% $0 $137,942,456 $13,950,284 ($204,721) $5,143,782 12.6% 34.1% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Digby 8.4% 1.18 9.9% 2.0 20.0% $0 $163,824,073 $27,905,542 $13,709,035 $28,464,477 7.5% 33.8% Page 1 Page 2 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Stocks & Bonds Round: 2 Heriberto Haddock December 31 , 2017 Stock Market Summary Company Andrews Baldwin Chester Digby Close $78.08 $27.20 $34.90 $77.89 Change $17.03 ($12.85) ($12.32) $7.64 Shares 1,878,998 2,867,424 2,605,085 1,867,732 MarketCap ($M) $147 $78 $91 $145 Book Value $42.95 $24.80 $30.39 $36.73 EPS $11.32 ($0.75) ($0.08) $7.34 Dividend $0.00 $0.00 $0.00 $0.00 Yield 0.0% 0.0% 0.0% 0.0% P/E 6.9 -36.4 -449.9 10.6 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 11.2S2022 11.9S2023 10.5S2027 $8,837,000 $7,072,000 $2,900,000 11.1% 11.4% 10.8% 101.11 104.24 97.63 AA AA AA 11.3S2022 12.5S2023 12.5S2024 12.5S2025 12.9S2026 13.4S2027 $10,417,600 $14,665,611 $7,969,218 $9,570,210 $14,272,791 $30,386,904 12.5% 13.4% 13.5% 13.6% 13.8% 14.0% 90.09 93.42 92.75 92.17 93.62 95.86 C C C C C C 11.2S2022 12.4S2023 11.9S2025 12.6S2026 13.1S2027 $8,635,154 $5,826,767 $15,600,517 $17,807,701 $34,386,651 12.3% 13.1% 13.1% 13.4% 13.6% 91.03 94.53 91.13 94.02 96.32 CC CC CC CC CC 11.1S2024 11.2S2025 11.5S2026 11.5S2027 $2,507,689 $5,667,039 $1,377,083 $17,478,318 12.0% 12.1% 12.3% 12.4% 92.44 92.27 93.28 92.89 B B B B Next Year's Prime Rate 8.50% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 2 Page 3 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM 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: 2 December 31, 2017 Heriberto Haddock Andrews Baldwin Chester Digby $21,272 ($2,145) ($205) $13,709 $9,138 $0 $14,647 $0 $13,224 $0 $8,117 $0 $3,330 $1,458 ($5,454) $29,743 ($750) $1,913 $733 $14,398 $1,512 ($4,686) ($1,391) $8,454 $2,755 ($16,012) ($642) $7,927 ($17,240) ($42,140) ($53,460) ($27,800) $0 $0 ($6,037) $2,900 $0 $0 $0 $0 $0 $9,509 $0 $30,387 $0 ($25,256) $31,332 $0 $0 $16,594 $0 $34,387 $0 ($21,716) $22,638 $0 $0 $0 ($897) $17,478 $0 ($13,962) $21,402 $0 ($3,137) $45,973 $51,902 $24,021 $9,366 $18,231 $6,896 $4,148 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $19,509 $23,153 $831 $43,493 Baldwin $49,202 $12,231 $5,668 $67,100 Chester $32,515 $11,338 $10,903 $54,756 Digby $33,686 $13,465 $18,869 $66,020 Plant and equipment Accumulated Depreciation Total Fixed Assets $137,064 ($61,095) $75,969 $219,700 ($77,751) $141,949 $218,760 ($70,400) $148,360 $121,760 ($49,404) $72,356 Total Assets $119,462 $209,050 $203,116 $138,376 Accounts Payable Current Debt Long Term Debt Total Liabilities $8,645 $11,300 $18,809 $38,754 $8,019 $42,632 $87,282 $137,933 $7,749 $33,938 $82,257 $123,943 $10,042 $32,702 $27,030 $69,774 Common Stock Retained Earnings Total Equity $9,891 $70,818 $80,709 $37,058 $34,059 $71,116 $35,261 $43,913 $79,173 $8,659 $59,943 $68,602 Total Liabilities & Owners' Equity $119,462 $209,050 $203,116 $138,376 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 $183,717 $106,733 $9,138 $22,353 $8,936 $36,557 $3,164 $11,688 $434 $21,272 Baldwin $148,814 $100,153 $14,647 $13,587 $7,495 $12,932 $16,232 ($1,155) $0 ($2,145) Chester $137,942 $90,898 $13,224 $17,321 $2,549 $13,950 $14,265 ($110) $0 ($205) Digby $163,824 $108,428 $8,117 $12,236 $7,137 $27,906 $6,384 $7,532 $280 $13,709 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 3 Page 4 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Production Analysis Round: 2 December 31, 2017 Heriberto Haddock Production Information Primary Segment Units Sold Unit Inven tory Attic Axe Art Ant Ace Thrift Core Nano Elite Elite 1,659 1,401 1,173 1,173 396 Best Bam Beetle Bit Thrift Thrift Core Core Creak Cat Cell City Cozy Cute Drum Daft Deal Dim Name Revision Date Age Dec.31 0 60 0 0 0 5/6/2017 8/3/2017 7/14/2017 7/18/2017 2/26/2017 2,079 2,490 1,341 1,504 0 25 178 159 Thrift Core Nano Elite Core 1,434 2,061 987 756 743 0 Nano Elite Nano Elite 1,484 766 1,220 1,138 Labor Cost Contr. Marg. 2nd Shift & Overtime $7.48 $8.56 $13.11 $13.57 $11.93 $6.94 $4.80 $9.95 $10.00 $9.88 42% 51% 38% 38% 43% 48% 0% 63% 66% 58% 8.0 7.0 4.0 4.0 4.0 1,230 1,400 728 714 500 147% 96% 161% 164% 132% $17.00 $17.00 $25.00 $25.00 $7.76 $7.94 $11.07 $11.75 $3.93 $3.90 $4.54 $4.38 31% 30% 37% 34% 100% 92% 33% 20% 9.0 9.0 8.0 8.0 1,500 1,650 1,050 1,250 198% 190% 132% 119% 13.3 10.9 5.8 8.0 10.3 0.0 $18.00 $20.00 $30.00 $34.00 $21.00 $0.00 $6.26 $9.01 $13.17 $14.05 $9.54 $0.00 $2.37 $5.26 $6.83 $7.19 $5.77 $0.00 49% 27% 33% 38% 26% 0% 4% 37% 56% 6% 100% 0% 9.5 8.0 6.0 6.0 7.0 7.0 1,250 1,500 850 850 1,040 600 103% 135% 155% 105% 149% 0% 6.3 7.8 5.1 7.3 $32.00 $35.00 $37.00 $39.00 $13.96 $15.32 $14.96 $15.41 $9.28 $8.48 $8.34 $7.88 30% 29% 36% 39% 94% 36% 76% 42% 6.0 6.5 6.0 6.0 850 850 1,050 1,100 192% 134% 175% 141% MTBF Pfmn Coord Size Coord Material Price Cost 2.4 1.6 1.5 1.5 0.8 20000 16000 24000 26000 20000 7.1 9.8 11.6 13.9 13.8 12.9 10.2 6.1 8.6 8.6 $24.90 $27.90 $36.90 $38.00 $38.99 4/11/2017 4/11/2017 12/16/2017 12/18/2017 2.7 2.6 1.1 1.1 17000 17000 18000 20000 7.5 7.7 10.6 11.3 12.5 12.3 8.8 9.3 173 74 263 151 0 0 12/20/2018 12/6/2016 12/17/2017 12/18/2017 4/1/2017 2/10/2018 3.5 2.1 1.0 1.0 0.8 0.0 14000 16000 18000 20000 16000 0 6.7 9.1 11.8 14.6 9.7 0.0 51 175 334 252 12/3/2017 1/4/2017 9/19/2017 8/17/2017 1.3 2.4 1.2 1.2 23000 25000 23000 25000 11.7 14.9 12.8 14.7 Auto mation Capacity Next Next Round Round COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Plant Utiliz. Page 4 Page 5 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Thrift Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Heriberto Haddock Thrift Statistics 6,291 6,291 26.4% 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 7.2 Size 12.8 Ideal Age = 3.0 Price Reliability Ideal Position Age Round: 2 December 31, 2017 Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Bam Best Creak Attic Cat Axe Cozy Market Share 30% 25% 20% 16% 7% 1% 1% Units Sold to Seg 1,864 1,603 1,244 1,010 452 85 32 Revision Date Stock Out 4/11/2017 4/11/2017 YES 12/20/2018 5/6/2017 YES 12/6/2016 8/3/2017 4/1/2017 YES Pfmn Coord 7.7 7.5 6.7 7.1 9.1 9.8 9.7 Size Coord 12.3 12.5 13.3 12.9 10.9 10.2 10.3 List Price $17.00 $17.00 $18.00 $24.90 $20.00 $27.90 $21.00 MTBF 17000 17000 14000 20000 16000 16000 16000 Age Dec.31 2.64 2.74 3.48 2.39 2.11 1.57 0.75 Promo Cust. AwareBudget ness $1,200 74% $1,200 73% $1,050 61% $1,600 100% $1,050 61% $1,600 100% $1,050 48% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 67% 42 $1,100 67% 44 $1,000 66% 26 $1,600 81% 31 $1,000 66% 14 $1,600 81% 1 $900 66% 3 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 5 Page 6 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Core Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Heriberto Haddock Core Statistics 8,086 8,086 34.0% 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 9.9 Size 10.1 Price Age Reliability Ideal Position Round: 2 December 31, 2017 Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Cat Bit Axe Beetle Cozy Attic Bam Best Drum Creak Market Share 20% 16% 15% 14% 9% 8% 8% 6% 2% 2% Units Sold to Seg 1,608 1,300 1,184 1,151 710 648 626 476 193 189 Revision Date Stock Out 12/6/2016 12/18/2017 8/3/2017 12/16/2017 4/1/2017 YES 5/6/2017 YES 4/11/2017 4/11/2017 YES 12/3/2017 12/20/2018 Pfmn Coord 9.1 11.3 9.8 10.6 9.7 7.1 7.7 7.5 11.7 6.7 Size Coord 10.9 9.3 10.2 8.8 10.3 12.9 12.3 12.5 6.3 13.3 List Price $20.00 $25.00 $27.90 $25.00 $21.00 $24.90 $17.00 $17.00 $32.00 $18.00 MTBF 16000 20000 16000 18000 16000 20000 17000 17000 23000 14000 Age Dec.31 2.11 1.10 1.57 1.09 0.75 2.39 2.64 2.74 1.35 3.48 Promo Cust. AwareBudget ness $1,050 61% $1,200 73% $1,600 100% $1,200 73% $1,050 48% $1,600 100% $1,200 74% $1,200 73% $1,300 82% $1,050 61% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 65% 38 $900 70% 30 $1,600 76% 32 $900 70% 26 $900 65% 33 $1,600 76% 16 $1,100 70% 18 $1,100 70% 14 $900 17% 0 $1,000 65% 0 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 6 Page 7 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Nano Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Heriberto Haddock Nano Statistics 4,746 4,746 19.9% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 11.8 Size 5.6 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Ideal Position Price Age Reliability Round: 2 December 31, 2017 Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Deal Art Drum Cell Ant Beetle City Bit Dim Axe Ace Market Share 22% 20% 19% 17% 5% 3% 3% 3% 3% 2% 1% Units Sold to Seg 1,065 943 921 817 236 165 162 154 139 99 45 Revision Date Stock Out 9/19/2017 7/14/2017 YES 12/3/2017 12/17/2017 7/18/2017 YES 12/16/2017 12/18/2017 12/18/2017 8/17/2017 8/3/2017 2/26/2017 YES Pfmn Coord 12.8 11.6 11.7 11.8 13.9 10.6 14.6 11.3 14.7 9.8 13.8 Size Coord 5.1 6.1 6.3 5.8 8.6 8.8 8.0 9.3 7.3 10.2 8.6 List Price $37.00 $36.90 $32.00 $30.00 $38.00 $25.00 $34.00 $25.00 $39.00 $27.90 $38.99 MTBF 23000 24000 23000 18000 26000 18000 20000 20000 25000 16000 20000 Age Dec.31 1.20 1.48 1.35 1.04 1.46 1.09 1.05 1.10 1.24 1.57 0.84 Promo Cust. AwareBudget ness $1,300 82% $1,600 100% $1,300 82% $1,050 61% $1,600 100% $1,200 73% $1,050 61% $1,200 73% $1,300 81% $1,600 100% $2,000 70% Sales Cust. Access- Dec. Cust. Budget ibility Survey $800 85% 45 $1,600 90% 70 $900 85% 64 $900 65% 41 $1,600 90% 10 $900 24% 8 $1,500 65% 2 $900 24% 9 $800 85% 4 $1,600 90% 4 $2,000 90% 6 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 7 Page 8 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Elite Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Elite Statistics 4,683 4,683 19.7% 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 14.4 Size 8.2 MTBF 20000-26000 Age Price Ideal Position Reliability Round: 2 December 31, 2017 Heriberto Haddock Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Dim Ant Daft City Drum Ace Art Cell Deal Bit Axe Beetle Market Share 21% 20% 16% 13% 8% 8% 5% 4% 3% 1% 1% 1% Units Sold to Seg 999 937 766 594 370 351 230 170 155 50 33 26 Revision Date Stock Out 8/17/2017 7/18/2017 YES 1/4/2017 12/18/2017 12/3/2017 2/26/2017 YES 7/14/2017 YES 12/17/2017 9/19/2017 12/18/2017 8/3/2017 12/16/2017 Pfmn Coord 14.7 13.9 14.9 14.6 11.7 13.8 11.6 11.8 12.8 11.3 9.8 10.6 Size Coord 7.3 8.6 7.8 8.0 6.3 8.6 6.1 5.8 5.1 9.3 10.2 8.8 List Price $39.00 $38.00 $35.00 $34.00 $32.00 $38.99 $36.90 $30.00 $37.00 $25.00 $27.90 $25.00 MTBF 25000 26000 25000 20000 23000 20000 24000 18000 23000 20000 16000 18000 Age Dec.31 1.24 1.46 2.45 1.05 1.35 0.84 1.48 1.04 1.20 1.10 1.57 1.09 Promo Cust. AwareBudget ness $1,300 81% $1,600 100% $1,300 82% $1,050 61% $1,300 82% $2,000 70% $1,600 100% $1,050 61% $1,300 82% $1,200 73% $1,600 100% $1,200 73% Sales Cust. Access- Dec. Cust. Budget ibility Survey $800 87% 41 $1,600 96% 60 $900 87% 36 $1,500 60% 30 $900 87% 18 $2,000 96% 35 $1,600 96% 13 $900 60% 4 $800 87% 1 $900 11% 3 $1,600 96% 1 $900 11% 1 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 8 Page 9 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Market Share Report Actual Market Share in Units Industry Unit Sales % of Market Thrift Core Nano Elite Total 6,291 26.4% 8,086 34.0% 4,746 19.9% 4,683 19.7% 23,806 100.0% Attic Axe Art Ant Ace Total 16.1% 1.4% 8.0% 14.7% 17.4% 22.7% 2.1% 19.9% 5.0% 0.9% 27.9% 0.7% 4.9% 20.0% 7.5% 33.1% Best Bam Beetle Bit Total 25.5% 29.6% 55.1% 5.9% 7.7% 14.2% 16.1% 43.9% 3.5% 3.3% 6.7% 0.6% 1.1% 1.6% Creak Cat Cell City Cozy Total 19.8% 7.2% 2.3% 19.9% 0.5% 27.5% 8.8% 31.0% 17.2% 3.4% 3.6% 12.7% 20.6% 2.4% 19.4% 2.4% 22.4% 2.9% 44.8% Drum Daft Deal Dim Total Round: 2 December 31, 2017 Heriberto Haddock Potential Market Share in Units Units Demanded % of Market Thrift Core Nano Elite Total 6,291 26.4% 8,086 34.0% 4,746 19.9% 4,683 19.7% 23,806 100.0% 7.0% 5.9% 4.9% 4.9% 1.7% 24.4% Attic Axe Art Ant Ace Total 19.9% 1.2% 10.1% 13.8% 21.1% 23.9% 1.7% 27.9% 5.9% 1.9% 37.4% 0.6% 6.8% 24.3% 15.2% 46.7% 8.7% 5.4% 6.9% 5.9% 3.4% 30.3% 8.7% 10.5% 5.6% 6.3% 31.1% Best Bam Beetle Bit Total 27.3% 26.7% 54.0% 6.4% 7.2% 13.4% 15.1% 42.1% 3.0% 2.8% 5.8% 0.4% 0.9% 1.3% 9.4% 9.5% 5.2% 5.9% 30.0% Creak Cat Cell City Cozy Total 17.8% 6.5% 2.2% 18.7% 0.7% 24.9% 10.9% 31.8% 14.8% 2.9% 2.9% 10.1% 16.3% 6.0% 8.7% 4.2% 3.2% 3.1% 25.1% 7.9% 16.4% 3.3% 21.3% 48.9% 6.2% 3.2% 5.1% 4.8% 19.4% Drum Daft Deal Dim Total 17.8% 13.0% 5.5% 8.1% 3.5% 2.6% 3.9% 23.5% 2.2% 17.0% 2.2% 19.4% 2.6% 39.0% 6.5% 12.9% 2.7% 16.9% 39.0% 5.4% 2.5% 4.4% 3.8% 16.2% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 9 Page 10 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Perceptual Map Round: 2 December 31, 2017 Heriberto Haddock Perceptual Map for All Segments Andrews Name Attic Axe Art Ant Ace Pfmn 7.1 9.8 11.6 13.9 13.8 Name Drum Daft Deal Dim Pfmn 11.7 14.9 12.8 14.7 Size 12.9 10.2 6.1 8.6 8.6 Baldwin Revised 5/6/2017 8/3/2017 7/14/2017 7/18/2017 2/26/2017 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 4/11/2017 4/11/2017 12/16/2017 12/18/2017 Name Creak Cat Cell City Cozy Pfmn 6.7 9.1 11.8 14.6 9.7 Size 13.3 10.9 5.8 8.0 10.3 Revised 12/20/2018 12/6/2016 12/17/2017 12/18/2017 4/1/2017 Digby Size 6.3 7.8 5.1 7.3 Revised 12/3/2017 1/4/2017 9/19/2017 8/17/2017 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 10 Page 11 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top HR/TQM Report Heriberto Haddock Round: 2 December 31, 2017 HUMAN RESOURCES SUMMARY Andrews 703 Baldwin 451 Chester 517 Digby 654 Complement 703 451 517 654 1st Shift Complement 2nd Shift Complement 486 217 288 163 386 131 403 251 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 6.9% 8.0% 6.3% 10.0% 280 0 36 157 130 0 185 0 Recruiting Spend Training Hours $5,000 80 $2,500 40 $5,000 80 $0 0 Productivity Index 108.9% 114.0% 123.3% 100.0% Recruiting Cost $1,683 $127 $779 $185 Separation Cost Training Cost $0 $1,125 $787 $361 $0 $827 $0 $0 Total HR Admin Cost $2,808 $1,274 $1,606 $185 $28.15 2,500 $28.15 2,500 $28.15 2,500 $28.15 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 5.0% 5.0% Needed Complement New Employees Separated Employees 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 $1,450 $1,450 $1,450 $0 $0 $0 $1,250 $1,250 $0 $1,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,250 $1,250 $1,250 $0 $0 $1,450 $1,450 $1,450 $8,700 $0 $0 $750 $750 $5,500 $0 $0 $0 $0 $0 $0 $0 $1,250 $1,250 $6,250 11.10% 13.56% 37.22% 56.94% 10.29% 1.40% 0.33% 0.00% 3.25% 1.16% 0.00% 0.00% 0.00% 0.00% 0.00% 2.92% 11.25% 32.13% 0.00% 4.56% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 11 Page 12 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 13 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Andrews Round: 2 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 16.3% 19.4% 0.7% $19,509 $23,153 $831 Total Current Assets $43,493 Plant & Equipment Accumulated Depreciation Total Assets $10,143 $17,700 $2,289 36.4% $30,132 114.7% -51.1% $119,824 ($51,958) $75,969 63.6% $67,866 $119,462 100.0% $97,998 7.2% 9.5% 15.7% $5,315 $0 $27,209 32.4% $32,524 8.3% 59.3% $10,895 $54,579 $80,709 67.6% $65,474 $119,462 100.0% $97,998 $137,064 ($61,095) Total Fixed Assets 2016 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,645 $11,300 $18,809 Total Liabilities Common Stock Retained Earnings $38,754 $9,891 $70,818 Total Equity Total Liab. & O. Equity Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport 2017 $21,272 $9,138 $0 $3,330 $1,458 ($5,454) 2016 $1,149 $7,548 $0 ($4,201) $23,391 ($4,252) $29,743 $23,635 ($17,240) ($23,000) $0 $0 ($6,037) $2,900 ($11,300) $11,300 $0 $0 ($7,000) $0 $0 ($15,717) ($3,137) $9,366 $19,509 ($22,717) ($22,083) $10,143 Page 1 Page 14 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Andrews Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Attic Axe Art Ant Ace Na Na Na Sales $41,297 $39,094 $43,296 $44,587 $15,443 $0 $0 $0 2017 Total $183,717 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $11,504 $12,574 $0 $24,078 $7,199 $12,063 $100 $19,362 $11,678 $15,293 $0 $26,971 $11,733 $15,831 $0 $27,564 $3,913 $4,845 $0 $8,759 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $46,027 $60,606 $100 $106,733 25.1% 33.0% 0.1% 58.1% Contribution Margin $17,219 $19,733 $16,326 $17,023 $6,684 $0 $0 $0 $76,984 41.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,116 $349 $1,600 $1,600 $756 $7,420 $3,173 $594 $1,600 $1,600 $715 $7,683 $1,068 $541 $1,600 $1,600 $792 $5,601 $1,047 $550 $1,600 $1,600 $816 $5,613 $733 $157 $2,000 $2,000 $283 $5,173 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $9,138 $2,192 $8,400 $8,400 $3,361 $31,491 5.0% 1.2% 4.6% 4.6% 1.8% 17.1% Net Margin $9,798 $12,050 $10,724 $11,409 $1,511 $0 $0 $0 $45,493 24.8% $8,936 $36,557 $1,028 $2,136 $11,688 $434 $21,272 4.9% 19.9% 0.6% 1.2% 6.4% 0.2% 11.6% (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=6&Report=CapCourier|AnnReport Page 15 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 16 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Baldwin Round: 2 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 23.5% 5.9% 2.7% $49,202 $12,231 $5,668 Total Current Assets $67,101 Plant & Equipment Accumulated Depreciation $219,700 ($77,751) 2016 $30,971 $12,964 $7,581 32.1% $51,516 105.1% -37.2% $177,560 ($63,104) Total Fixed Assets $141,949 67.9% $114,456 Total Assets $209,050 100.0% $165,972 3.8% 20.4% 41.8% $8,769 $25,256 $68,195 66.0% $102,220 17.7% 16.3% $27,549 $36,203 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,019 $42,632 $87,282 Total Liabilities Common Stock Retained Earnings $137,933 $37,058 $34,059 Total Equity Total Liab. & O. Equity $71,117 34.0% $63,752 $209,050 100.0% $165,972 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=6&Report=CapCourier|AnnReport 2017 ($2,145) $14,647 $0 ($750) $1,913 $733 2016 $6,107 $11,837 $0 $1,570 $2,563 ($2,126) $14,398 $19,952 ($42,140) ($34,660) $0 $9,509 $0 $30,387 ($11,300) $17,377 $0 $2,874 $0 $14,273 $0 ($4,019) $45,973 $18,231 $49,202 $13,129 ($1,580) $30,971 Page 1 Page 17 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Baldwin Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Best Bam Beetle Bit Na Na Na Na Sales $35,349 $42,330 $33,529 $37,606 $0 $0 $0 $0 2017 Total $148,814 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $8,170 $16,231 $0 $24,401 $9,784 $19,896 $36 $29,716 $6,386 $14,562 $334 $21,281 $7,064 $17,380 $310 $24,754 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $31,404 $68,069 $680 $100,153 21.1% 45.7% 0.5% 67.3% Contribution Margin $10,948 $12,614 $12,247 $12,852 $0 $0 $0 $0 $48,661 32.7% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,200 $279 $1,200 $1,100 $542 $7,321 $4,620 $279 $1,200 $1,100 $649 $7,848 $2,660 $970 $1,200 $900 $514 $6,244 $3,167 $976 $1,200 $900 $577 $6,820 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14,647 $2,505 $4,800 $4,000 $2,282 $28,234 9.8% 1.7% 3.2% 2.7% 1.5% 19.0% Net Margin $3,626 $4,766 $6,003 $6,032 $0 $0 $0 $0 $20,427 13.7% $7,495 $12,932 $5,116 $11,116 ($1,155) $0 ($2,145) 5.0% 8.7% 3.4% 7.5% -0.8% 0.0% -1.4% (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=6&Report=CapCourier|AnnReport Page 18 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 19 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Chester Round: 2 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 16.0% 5.6% 5.4% $32,515 $11,338 $10,903 Total Current Assets $54,756 Plant & Equipment Accumulated Depreciation $218,760 ($70,400) 2016 $25,619 $9,947 $6,217 27.0% $41,783 107.7% -34.7% $165,300 ($57,176) Total Fixed Assets $148,360 73.0% $108,124 Total Assets $203,116 100.0% $149,907 3.8% 16.7% 40.5% $6,237 $21,716 $59,170 61.0% $87,123 17.4% 21.6% $18,667 $44,117 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $7,749 $33,938 $82,257 Total Liabilities Common Stock Retained Earnings $123,944 $35,261 $43,913 Total Equity Total Liab. & O. Equity $79,174 39.0% $62,784 $203,116 100.0% $149,907 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=6&Report=CapCourier|AnnReport 2017 ($205) $13,224 $0 $1,512 ($4,686) ($1,391) 2016 $5,349 $9,887 $0 $441 $149 ($192) $8,454 $15,633 ($53,460) ($40,900) $0 $16,594 $0 $34,387 ($11,300) $12,222 $0 $4,285 $0 $17,808 $0 ($3,784) $51,902 $6,896 $32,515 $18,309 ($6,958) $25,619 Page 1 Page 20 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Chester Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Creak Cat Cell City Cozy Cute Na Na Sales $25,806 $41,210 $29,613 $25,717 $15,596 $0 $0 $0 2017 Total $137,942 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $3,515 $9,426 $187 $13,128 $10,869 $19,211 $130 $30,210 $6,729 $12,589 $617 $19,935 $5,422 $10,260 $374 $16,057 $4,287 $7,281 $0 $11,569 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30,823 $58,767 $1,308 $90,898 22.3% 42.6% 0.9% 65.9% Contribution Margin $12,678 $11,000 $9,678 $9,660 $4,027 $0 $0 $0 $47,045 34.1% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,667 $1,000 $1,050 $1,000 $481 $7,198 $3,800 $0 $1,050 $1,000 $768 $6,618 $1,700 $973 $1,050 $900 $552 $5,175 $1,700 $977 $1,050 $1,500 $479 $5,706 $2,357 $250 $1,050 $900 $291 $4,848 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $13,224 $4,200 $5,250 $5,300 $2,571 $30,545 9.6% 3.0% 3.8% 3.8% 1.9% 22.1% Net Margin $5,481 $4,382 $4,503 $3,954 ($821) ($1,000) $0 $0 $16,499 12.0% $2,549 $13,950 $3,971 $10,295 ($110) $0 ($205) 1.8% 10.1% 2.9% 7.5% -0.1% 0.0% -0.1% (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=6&Report=CapCourier|AnnReport Page 21 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport Page 22 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Digby Round: 2 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 24.3% 9.7% 13.6% $29,538 $12,823 $2,857 47.7% $45,218 88.0% -35.7% $93,960 ($41,287) $72,356 52.3% $52,673 $138,376 100.0% $97,891 7.3% 23.6% 19.5% $7,287 $13,962 $20,852 50.4% $42,101 6.3% 43.3% $8,801 $46,989 $68,602 49.6% $55,790 $138,376 100.0% $97,891 $33,686 $13,465 $18,869 Total Current Assets $66,020 Plant & Equipment Accumulated Depreciation $121,760 ($49,404) Total Fixed Assets Total Assets 2016 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $10,042 $32,702 $27,030 Total Liabilities Common Stock Retained Earnings $69,774 $8,659 $59,943 Total Equity Total Liab. & O. Equity Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position Annual Report http://ww2.capsim.com/cgi-bin/CpCGIReports2011.exe?studentKey=1370463&simid=C59559&round=6&Report=CapCourier|AnnReport 2017 $13,709 $8,117 $0 $2,755 ($16,012) ($642) 2016 $14,755 $6,264 $0 $686 $14,118 ($2,986) $7,927 $32,837 ($27,800) ($9,580) $0 $0 ($897) $17,478 ($11,300) $18,739 ($6,489) $0 ($1,608) $1,377 $0 ($4,478) $24,021 $4,148 $33,686 ($11,198) $12,060 $29,538 Page 1 Page 23 of 25 COMP-XM INQUIRER 12/8/16, 12(27 PM Top Annual Report Digby Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Deal $45,135 Dim $44,379 Na $0 Na $0 Na $0 Na $0 2017 Total $163,824 Common Size 100.0% $6,498 $12,032 $506 $19,036 $10,169 $17,917 $922 $29,008 $8,972 $17,405 $700 $27,078 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $39,408 $66,756 $2,264 $108,428 24.1% 40.7% 1.4% 66.2% $14,189 $7,779 $16,127 $17,301 $0 $0 $0 $0 $55,396 33.8% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,004 $934 $1,300 $900 $386 $5,524 $1,813 $9 $1,300 $900 $218 $4,240 $2,100 $727 $1,300 $800 $367 $5,294 $2,200 $634 $1,300 $800 $361 $5,294 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,117 $2,304 $5,200 $3,400 $1,332 $20,353 5.0% 1.4% 3.2% 2.1% 0.8% 12.4% Net Margin $8,665 $3,539 $10,833 $12,007 $0 $0 $0 $0 $35,043 21.4% $7,137 $27,906 $3,303 $3,081 $7,532 $280 $13,709 4.4% 17.0% 2.0% 1.9% 4.6% 0.2% 8.4% (Product Name:) Sales Drum $47,495 Daft $26,815 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $13,769 $19,401 $136 $33,306 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. 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=6&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=6&Report=CapCourier|AnnReport 12/8/16, 12(27 PM Page 2 Page 25 of 25