Could you solve the board query 2 questions by looking the comp-xm inquirer?
1) If Baldwin issued 1000 shares of common stock at last year's end price, the effect on the balance sheet would be: Select: 1 Equity would decrease by $6,468 Equity would increase by $64,679 Retained earnings would increase by $6,468 Retained earnings would increase by $64,679 2) The Andrews Company has just purchased $49,500,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,950,000. What will the depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use? (Use FASB GAAP) Select: 1 $5,940,000 $6,600,000 $3,300,000 $2,970,000 3) Baldwin has an asset turnover of 1.55 (Asset Turnover = Sales/Assets). That means: Select: 1 Every $1.55 of assets in the firm generates $1.00 of sales. Every $1.55 of profit in the firm comes from each $1.00 of sales. Each $1.00 of assets in the firm generates $1.55 of sales revenue. Every $1.00 of assets in the firm generates $1.55 of profit. 4) Which mission statement best represents the Baldwin company? Select: 1 Consistency and affordability are our goals. Our central mission is to offer dependable, low-price products that our customers can count on. Lasting innovation is our motivation. We build premium products that are elegantly designed to meet the needs of a variety of market segments. Innovation meets revolution. We create value for our customers through breakthrough designs that lead to unique high-performance products. Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide variety of market segments. 5) Review the Inquirer to determine Chester's current strategy. How will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Chester would be most likely to pursue. Select: 5 Seek the lowest price in their target market while maintaining a competitive contribution margin Seek high automation levels Reduce labor costs through training and recruitment Increase demand through TQM initiatives Offer attractive credit terms Reduce cost of goods through TQM initiatives Seek high plant utilization, even if it risks occasional small stockouts Seek excellent product designs, high awareness, and high accessibility Add additional products Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand 6) What is the Working Capital of Chester? -$19,593 $31,245 $19,593 -$11,652 7) on July 31st, the Chester Corporation's balance sheet reported: Total Assets of $252.893 million Total Common Stock of $7.620 million Cash of $12.060 million Retained Earnings of $57.252 million. What were the Chester Corporation's total liabilities? Select: 1 $175.961 million. $195.641 million. $200.081 million. $188.021 million. Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews Page 5 Thrift Segment Analysis Page 6 Core Segment Analysis Page 7 Nano Segment Analysis Page 8 Elite Segment Analysis Annual Report Baldwin Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report Annual Report Chester Annual Report Digby PRINT Top " Round: 1 Student: songhyun Kim Dec. 31, 2015 Andrews songhyun Kim Baldwin songhyun Kim Chester Digby Selected Financial Statistics Andrews Baldwin Chester Digby -9.5% 8.0% 4.8% 5.7% 0.84 1.55 1.01 0.85 -8.0% 12.4% 4.9% 4.9% 2.4 1.8 2.6 2.3 -19.6% 22.6% 12.5% 11.5% $51,166,425 $0 $0 $0 Sales $121,809,810 $148,033,734 $170,991,460 $130,472,369 EBIT ($6,689,737) $22,661,661 $24,340,592 $21,425,335 Profits ($11,621,558) $11,870,212 $8,199,617 $7,453,122 Cumulative Profit ($11,621,558) $11,870,212 $8,199,617 $7,453,122 SG&A / Sales 15.1% 8.9% 8.2% 11.8% Contrib. Margin % 33.6% 32.7% 29.9% 36.6% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan COMP-XM INQUIRER Page 1 Top Round: 1 Stocks & Bonds songhyun Kim December 31 , 2015 Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E Andrews $13.01 ($82.16) 2,051,466 $27 $28.91 ($5.67) $0.00 0.0% -2.3 Baldwin $64.68 $8.63 1,881,104 $122 $27.93 $6.31 $3.72 5.7% 10.3 Chester $43.04 ($1.41) 2,633,517 $113 $24.98 $3.11 $0.00 0.0% 13.8 Digby $50.96 ($2.10) 2,250,712 $115 $28.85 $3.31 $0.00 0.0% 15.4 Bond Market Summary Company Series# Face Yield Close$ S&P Andrews 13.5S2016 $11,300,000 13.5% 100.27 CC 11.2S2021 $8,837,000 12.2% 92.05 CC 11.9S2022 $7,072,000 12.6% 94.29 CC 13.5S2016 $11,300,000 13.3% 101.61 BB 11.1S2023 $2,364,604 11.4% 96.99 BB 11.2S2024 $5,849,052 11.5% 97.31 BB 11.5S2025 $1,297,616 11.6% 98.86 BB 13.5S2016 $11,300,000 13.5% 100.18 CC 11.3S2021 $10,417,600 12.3% 92.07 CC 12.5S2022 $14,665,611 13.0% 96.50 CC 12.5S2023 $7,999,360 13.0% 96.20 CC 12.5S2024 $9,474,919 13.0% 95.94 CC 12.9S2025 $14,403,416 13.2% 97.86 CC 13.5S2016 $11,300,000 13.4% 100.44 CC 11.2S2021 $8,612,210 12.1% 92.80 CC 12.4S2022 $5,758,930 12.7% 97.35 CC 12.0S2024 $15,724,747 12.6% 94.87 CC 12.5S2025 $17,727,657 12.8% 97.29 CC Baldwin Chester Digby Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 1 December 31, 2015 songhyun Kim Andrews Baldwin Chester Digby ($11,622) $11,870 $8,200 $7,453 $9,755 $6,264 $11,837 $9,887 $0 $0 $0 $0 ($1,926) $1,423 $2,182 $932 ($16,664) $3,208 $4,651 $19 $3,393 ($2,351) ($3,264) ($940) ($17,064) $20,414 $23,605 $17,350 ($49,500) ($9,580) ($34,660) ($40,900) Dividends paid $0 ($6,994) $0 $0 Sales of common stock $0 $0 $2,922 $4,189 Purchase of common stock $0 ($1,596) $0 $0 Cash from long term debt issued $0 $1,298 $14,403 $17,728 Early retirement of long term debt $0 $0 $0 $0 ($15,717) ($18,344) ($29,217) ($25,504) $0 $14,206 $25,132 $21,783 Cash from emergency loan $51,166 $0 $0 $0 Net cash from financing activities $35,449 ($11,431) $13,240 $18,196 ($31,115) ($597) $2,186 ($5,354) 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 Retirement of current debt Cash from current debt borrowing Net change in cash position Balance Sheet Survey Andrews Baldwin Chester Digby $0 $19,535 $34,415 $27,231 Accounts Receivable $10,012 $12,167 $14,054 $10,724 Inventory $43,106 $11,003 $5,668 $6,500 Total Current Assets $53,117 $42,705 $54,138 $44,455 Plant and equipment $146,324 $93,960 $177,560 $165,300 Accumulated Depreciation ($54,164) ($41,287) ($63,102) ($57,176) $92,160 $52,673 $114,458 $108,124 $145,277 $95,378 $168,595 $152,579 $7,590 $7,819 $9,413 $6,729 Current Debt $51,166 $14,206 $25,132 $21,783 Long Term Debt $27,209 $20,811 $68,261 $59,124 Total Liabilities $85,966 $42,836 $102,805 $87,635 Common Stock $12,079 $8,799 $27,622 $18,524 Retained Earnings $47,232 $43,743 $38,168 $46,419 Total Equity $59,311 $52,542 $65,790 $64,944 $145,277 $95,378 $168,595 $152,579 Andrews Baldwin Chester Digby $121,810 $148,034 $170,991 $130,472 $80,858 $99,655 $119,855 $82,669 $9,755 $6,264 $11,837 $9,887 SGA (R&D, Promo, Sales, Admin) $18,387 $13,115 $14,092 $15,395 Other (Fees, Writeoffs, TQM, Bonuses) $19,500 $6,339 $866 $1,096 EBIT ($6,690) $22,662 $24,341 $21,425 Cash Total Fixed Assets Total Assets Accounts Payable Total Liabilities & Owners' Equity Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation Interest (Short term, Long term) $11,190 $4,027 $11,468 $9,725 Taxes ($6,258) $6,522 $4,505 $4,095 $0 $242 $167 $152 ($11,622) $11,870 $8,200 $7,453 Profit Sharing Net Profit COMP-XM INQUIRER Page 3 Top Production Analysis Round: 1 December 31, 2015 songhyun Kim Production Information 2nd Shift & Unit Age Units Inven Dec.3 Pfmn Size Sold tory Revision Date 1 MTBF Coord Coord Name Primary Segment Apple Core Agape Nano 1,194 Abby Elite Alan Buddy 794 1,049 Auto mation Capacity Material Labor Contr. OverNext Next Price Cost Cost Marg. time Round Round 3/4/2016 3.2 22000 7.4 12.6 $34.00 461 3/4/2015 1.5 24000 10.1 7.6 $39.00 $14.24 1,013 0 4/5/2015 1.4 24000 12.3 Thrift 337 723 6/12/2016 6.1 20000 Nano 1,224 0 12/1/2015 1.6 23000 Plant Utiliz. $10.07 $8.73 35% 50% 5.0 1,400 149% $10.8 0 32% 92% 4.0 1,128 190% 9.5 $38.00 $14.35 $9.24 36% 12% 4.0 964 111% 4.7 15.3 $29.00 $7.02 $6.28 33% 0% 6.0 9.5 8.6 $31.00 $13.95 $9.68 26% 100% 5.0 2,130 26% 800 198% Bat Elite 951 93 1/4/2016 2.9 25000 11.6 10.6 $35.00 $14.61 $8.80 32% 36% 5.0 700 134% Beetle Nano 1,017 191 10/17/2015 1.1 23000 11.0 7.0 $37.00 $15.44 $8.38 35% 18% 5.5 850 116% Bill Elite 1,005 181 10/17/2015 1.1 25000 13.0 9.0 $39.00 $16.04 $8.00 38% 5% 5.5 950 104% Cure Thrift 2,325 0 4/10/2016 3.8 17000 5.8 14.2 $18.00 $7.63 $4.59 31% 100% 8.5 1,050 198% Camp Thrift 2,723 0 4/10/2016 3.6 17000 6.0 14.0 $18.00 $7.83 $4.59 30% 100% 8.5 1,250 198% Cedar Core 1,382 162 11/19/2015 1.2 18000 9.2 10.2 $27.00 $11.55 $7.22 31% 56% 7.8 1,050 154% Clack Core 1,586 139 11/17/2015 1.2 20000 10.0 10.8 $27.00 $12.25 $7.42 28% 74% 7.8 1,250 172% Dune Thrift 1,869 134 6/28/2015 2.5 14000 6.0 14.0 $19.00 $6.93 $2.85 49% 100% 9.0 1,250 198% Dart Core 2,291 0 12/7/2015 1.1 16000 8.4 11.6 $21.00 $9.87 $5.69 28% 100% 7.0 1,500 198% Deft Nano 811 144 12/17/2015 1.0 18000 10.3 7.6 $30.00 $13.41 $5.92 35% 7% 6.0 800 106% Dim Elite 662 120 12/18/2015 1.1 20000 12.7 9.6 $34.00 $14.22 $6.90 38% 0% 5.0 800 80% 0 0 3/31/2016 $0.00 $0.00 0% 0% 7.0 500 0% Don 0.0 0 0.0 0.0 $0.00 COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis songhyun Kim Round: 1 December 31, 2015 Thrift Statistics Total Industry Unit Demand 5,658 Actual Industry Unit Sales 5,658 Perceptual Map for Thrift Segment Segment % of Total Industry 26.7% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria Expectations 1. Price 2. Importance $14.00 - 26.00 55% Reliability MTBF 14000-20000 20% 3. Ideal Position Pfmn 6.0 Size 14.0 15% 4. Age Ideal Age = 3.0 10% Top Products in Thrift Segment Name Market Share Units Sold to Seg Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey Camp 32% 1,814 4/10/2016 YES 6.0 14.0 $18.00 17000 3.56 $1,150 69% $1,000 64% 37 Cure 28% 1,609 4/10/2016 YES 5.8 14.2 $18.00 17000 3.76 $1,150 68% $1,000 64% 36 Dune 24% 1,341 6/28/2015 6.0 14.0 $19.00 14000 2.48 $1,000 56% $1,000 72% 24 Dart 10% 571 12/7/2015 8.4 11.6 $21.00 16000 1.11 $1,000 56% $1,800 72% 5 Alan 6% 316 6/12/2016 4.7 15.3 $29.00 20000 6.11 $1,500 89% $1,800 56% 5 Cedar 0% 7 11/19/2015 9.2 10.2 $27.00 18000 1.16 $1,150 68% $700 64% 0 Revision Date Stock Out YES Pfmn Size Coord Coord List Price COMP-XM INQUIRER Page 5 Top Core Market Segment Analysis Round: 1 December 31, 2015 songhyun Kim Core Statistics Total Industry Unit Demand 7,339 Actual Industry Unit Sales 7,339 Segment % of Total Industry 34.6% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria Expectations Importance 1. Price $20.00 - 32.00 46% 2. Age Ideal Age = 2.0 20% 3. Reliability MTBF 16000-22000 18% 4. Ideal Position Pfmn 8.4 Size 11.6 16% Perceptual Map for Core Segment Top Products in Core Segment Name Dart Market Share Units Sold to Seg 23% 1,720 Revision Date 12/7/2015 Stock Out YES Pfmn Size Coord Coord 8.4 11.6 List Price $21.00 Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey 16000 $1,000 56% $1,800 63% 39 1.11 Clack 17% 1,220 11/17/2015 10.0 10.8 $27.00 20000 1.18 $1,150 68% $700 69% 22 Cedar 15% 1,077 11/19/2015 9.2 10.2 $27.00 18000 1.16 $1,150 68% $700 69% 18 Camp 12% 910 4/10/2016 6.0 14.0 $18.00 17000 3.56 $1,150 69% $1,000 69% 15 Apple 10% 729 3/4/2016 7.4 12.6 $34.00 22000 3.24 $1,700 94% $1,800 67% 12 Cure 10% 715 4/10/2016 5.8 14.2 $18.00 17000 3.76 $1,150 68% $1,000 69% 11 Dune 7% 528 6/28/2015 6.0 14.0 $19.00 14000 2.48 $1,000 56% $1,000 63% 13 Buddy 5% 395 12/1/2015 9.5 8.6 $31.00 23000 1.63 $1,250 77% $900 20% 2 Alan 0% 21 6/12/2016 4.7 15.3 $29.00 20000 6.11 $1,500 89% $1,800 67% 0 Deft 0% 18 12/17/2015 10.3 7.6 $30.00 18000 1.05 $1,000 57% $900 63% 0 Bat 0% 3 1/4/2016 11.6 10.6 $35.00 25000 2.91 $1,250 77% $900 20% 0 Dim 0% 2 12/18/2015 12.7 9.6 $34.00 20000 1.07 $1,000 57% $1,200 63% 0 YES YES YES COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis songhyun Kim Round: 1 December 31, 2015 Nano Statistics Total Industry Unit Demand 4,156 Actual Industry Unit Sales 4,156 Perceptual Map for Nano Segment Segment % of Total Industry 19.6% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria Expectations 1. Ideal Position 2. Importance Pfmn 10.3 Size 7.4 35% Price $28.00 - 40.00 27% 3. Age Ideal Age = 1.0 20% 4. Reliability MTBF 18000-24000 18% Top Products in Nano Segment Name Market Share Units Sold to Seg Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey Agape 22% 930 3/4/2015 10.1 7.6 $39.00 24000 1.47 $1,500 88% $1,800 85% 55 Beetle 19% 785 10/17/2015 11.0 7.0 $37.00 23000 1.12 $1,250 76% $800 85% 46 Deft 14% 582 12/17/2015 10.3 7.6 $30.00 18000 1.05 $1,000 57% $900 64% 40 Buddy 13% 536 12/1/2015 9.5 8.6 $31.00 23000 1.63 $1,250 77% $900 85% 52 Bat 6% 261 1/4/2016 11.6 10.6 $35.00 25000 2.91 $1,250 77% $900 85% 13 Clack 6% 229 11/17/2015 10.0 10.8 $27.00 20000 1.18 $1,150 68% $700 28% 17 Cedar 5% 217 11/19/2015 9.2 10.2 $27.00 18000 1.16 $1,150 68% $700 28% 15 Dim 5% 202 12/18/2015 12.7 9.6 $34.00 20000 1.07 $1,000 57% $1,200 64% 7 Abby 5% 195 4/5/2015 12.3 9.5 $38.00 24000 1.42 $1,500 88% $1,800 85% 20 Bill 4% 185 10/17/2015 13.0 9.0 $39.00 25000 1.12 $1,250 76% $800 85% 7 Apple 1% 35 3/4/2016 7.4 12.6 $34.00 22000 3.24 $1,700 94% $1,800 85% 0 Revision Date Stock Out YES YES Pfmn Size Coord Coord List Price COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis songhyun Kim Round: 1 December 31, 2015 Elite Statistics Total Industry Unit Demand 4,030 Actual Industry Unit Sales 4,030 Segment % of Total Industry 19.0% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age = 0.0 34% 2. Price $30.00 - 42.00 24% 3. Ideal Position Pfmn 12.6 Size 9.7 22% 4. Reliability MTBF 20000-26000 20% Perceptual Map for Elite Segment Top Products in Elite Segment Market Share Units Sold to Seg Bill 20% 820 10/17/2015 Abby 20% 818 4/5/2015 Bat 17% 687 Dim 11% Buddy Name Revision Date Stock Out Pfmn Size Coord Coord List Price Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey 13.0 9.0 $39.00 25000 1.12 $1,250 76% $800 85% 40 12.3 9.5 $38.00 24000 1.42 $1,500 88% $1,800 90% 45 1/4/2016 11.6 10.6 $35.00 25000 2.91 $1,250 77% $900 85% 26 458 12/18/2015 12.7 9.6 $34.00 20000 1.07 $1,000 57% $1,200 55% 28 7% 293 12/1/2015 9.5 8.6 $31.00 23000 1.63 $1,250 77% $900 85% 23 Agape 7% 264 3/4/2015 10.1 7.6 $39.00 24000 1.47 $1,500 88% $1,800 90% 12 Beetle 6% 232 10/17/2015 11.0 7.0 $37.00 23000 1.12 $1,250 76% $800 85% 7 Deft 5% 211 12/17/2015 10.3 7.6 $30.00 18000 1.05 $1,000 57% $900 55% 8 Clack 3% 137 11/17/2015 10.0 10.8 $27.00 20000 1.18 $1,150 68% $700 15% 8 Cedar 2% 81 11/19/2015 9.2 10.2 $27.00 18000 1.16 $1,150 68% $700 15% 5 Apple 1% 30 3/4/2016 7.4 12.6 $34.00 22000 3.24 $1,700 94% $1,800 90% 0 YES YES COMP-XM INQUIRER Page 8 Top Market Share Report songhyun Kim Actual Market Share in Units Thrift Core Nano Elite Total Round: 1 December 31, 2015 Industry Unit Sales % of Market 5,658 4,030 21,183 26.7% 34.6% 19.6% 19.0% 100.0% Apple 7,339 9.9% 4,156 3.8% 6.5% 5.6% 4.7% 20.3% Abby 0.8% 22.4% Agape 0.8% 4.8% Alan 5.6% 0.3% Total 5.6% 10.2% 27.9% 27.6% 15.8% Buddy 5.4% 12.9% 7.3% 5.8% Bat 0.0% 6.3% 17.1% 4.5% Beetle 1.6% 18.9% 5.8% 4.8% 4.5% 20.3% 4.7% 5.4% 42.5% 50.4% 19.8% Bill Total Cure 28.4% 9.8% 11.0% Camp 32.0% 12.4% 12.9% Cedar 0.1% 14.7% 5.2% 2.0% 6.5% Clack 0.0% 16.6% 5.5% 3.4% 7.5% Total 60.6% 53.5% 10.7% 5.4% 37.8% Dune 23.7% 7.2% 8.8% Dart 10.1% 23.4% 10.8% Deft 0.2% 14.0% Dim 0.0% Total 5.2% 3.8% 4.9% 11.4% 3.1% 33.8% 30.9% 18.9% 16.6% 26.6% Potential Market Share in Units Thrift Units Demanded % of Market Apple Agape Core Nano Elite Total 5,658 7,339 4,156 4,030 21,183 26.7% 34.6% 19.6% 19.0% 100.0% 9.6% 0.8% 0.8% 3.6% 21.9% 6.1% 5.4% Abby 6.1% 25.0% 5.9% Alan 4.8% 0.3% Total 4.8% 9.9% 28.8% 31.8% 16.4% 5.4% 13.3% 7.4% 5.9% 6.2% 16.0% 4.3% 18.5% 5.4% 4.7% 4.4% 18.9% 4.5% 42.3% 47.6% 19.3% Buddy Bat Beetle Bill Total 5.4% 1.4% Cure 32.5% 11.0% 12.5% Camp 32.3% 12.7% 13.0% Cedar 0.1% 14.1% 5.1% 1.9% 6.3% 16.0% 5.4% 3.2% 7.2% 10.5% 5.0% 39.0% Clack Total 64.9% 53.8% Dune 20.1% 6.8% 7.7% Dart 10.2% 23.8% 11.0% Deft 0.2% Total 30.3% 30.9% 4.9% 3.7% 4.8% Dim 13.7% 10.6% 3.0% 18.5% 15.5% 25.4% COMP-XM INQUIRER Page 9 Top Perceptual Map songhyun Kim Round: 1 December 31, 2015 Perceptual Map for All Segments Andrews Name Chester Pfmn Size Revised Apple 7.4 12.6 3/4/2016 Agape 10.1 7.6 Abby 12.3 Alan 4.7 Pfmn Size Revised Name Cure 5.8 14.2 4/10/2016 3/4/2015 Camp 6.0 14.0 9.5 4/5/2015 Cedar 9.2 15.3 6/12/2016 Clack 10.0 Baldwin Name Pfmn Size Revised Buddy 9.5 8.6 12/1/2015 Bat 11.6 10.6 1/4/2016 Beetle 11.0 7.0 10/17/2015 Bill 13.0 9.0 10/17/2015 Name Digby Pfmn Size Revised Dune 6.0 14.0 6/28/2015 4/10/2016 Dart 8.4 11.6 12/7/2015 10.2 11/19/2015 Deft 10.3 7.6 12/17/2015 10.8 11/17/2015 Dim 12.7 9.6 12/18/2015 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 1 December 31, 2015 songhyun Kim HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 642 569 651 448 Complement 643 569 651 448 1st Shift Complement 436 427 362 303 2nd Shift Complement 207 142 289 146 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 7.0% 10.0% 8.1% 6.4% 45 143 168 79 161 0 0 0 $5,000 $0 $2,500 $5,000 80 0 40 80 102.0% 100.0% 110.6% 121.1% Recruiting Cost $270 $143 $587 $472 Separation Cost $805 $0 $0 $0 New Employees Separated Employees Recruiting Spend Training Hours Productivity Index Training Cost $1,029 $0 $520 $717 Total HR Admin Cost $2,104 $143 $1,108 $1,189 Wages $26.81 $26.81 $26.81 $26.81 Benefits 2,500 2,500 2,500 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 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 Andrews Baldwin Chester Digby CPI Systems $2,000 $0 $0 $0 Vendor/JIT $2,000 $0 $0 $0 Quality Initiative Training $2,000 $1,250 $0 $0 Channel Support Systems $1,500 $1,250 $0 $0 Concurrent Engineering $2,000 $1,250 $0 $0 UNEP Green Programs $2,000 $0 $0 $0 Benchmarking $2,000 $0 $0 $0 Quality Function Deployment Effort $2,000 $0 $0 $0 CCE/6 Sigma Training $2,000 $1,250 $0 $0 GEMI TQEM Sustainability Initiatives $2,000 $1,250 $0 $0 $19,500 $6,250 $0 $0 Material Cost Reduction 5.86% 0.58% 0.00% 0.00% Labor Cost Reduction 7.22% 3.47% 0.00% 0.00% Reduction R&D Cycle Time 30.30% 9.91% 0.00% 0.00% Reduction Admin Costs 47.54% 0.00% 0.00% 0.00% 7.23% 0.94% 0.00% 0.00% Process Mgt Budgets Last Year TQM Budgets Last Year Total Expenditures Cumulative Impacts Demand Increase COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews C59559 Round: 5 Dec. 31, 2015 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 2015 2014 Common Size $0 0.0% $31,115 Accounts Receivable $10,012 6.9% $13,404 Inventory $43,106 29.7% $26,442 36.6% $70,961 Cash Total Current Assets $53,118 Plant & Equipment $146,324 100.7% $96,824 Accumulated Depreciation ($54,164) -37.3% ($44,409) $92,160 63.4% $52,415 $145,277 100.0% $123,376 $7,590 5.2% $9,516 Current Debt $51,166 35.2% $15,717 Long Term Debt $27,209 18.7% $27,209 Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $85,965 59.2% $52,442 Common Stock $12,079 8.3% $12,079 Retained Earnings $47,232 32.5% $58,854 $59,311 40.8% $70,933 $145,277 100.0% $123,376 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 2015 2014 ($11,622) $20,035 $9,755 $6,455 $0 $0 ($1,926) $735 ($16,664) ($11,489) $3,393 $34 ($17,064) $15,770 Cash Flows from Investing Activities: Plant Improvements ($49,500) ($3,520) Cash Flows from Financing Activities: Dividends Paid $0 ($13,335) Sales of Common Stock $0 $0 Purchase of Common Stock $0 ($1,935) Cash from long term debt $0 $0 Retirement of long term debt $0 ($7,533) $35,449 $9,992 Change in current debt (net) Net cash from financing activities $35,449 ($12,811) Net change in cash position ($31,115) ($560) $0 $31,115 Closing cash position Page 1 Annual Report Top Annual Report Andrews Round: 5 Dec. 31, 2015 C59559 2015 Income Statement (Product Name:) 2015 Common Total Size Apple Agape Abby Alan Na Na Na Na $26,985 $46,557 $38,495 $9,773 $0 $0 $0 $0 $121,810 100.0% Direct Labor $6,933 $12,780 $9,500 $2,509 $0 $0 $0 $0 $31,722 26.0% Direct Material $8,278 $17,618 $15,335 $2,732 $0 $0 $0 $0 $43,963 36.1% Inventory Carry $2,413 $1,410 $0 $1,350 $0 $0 $0 $0 $5,173 4.2% $17,624 $31,808 $24,835 $6,591 $0 $0 $0 $0 $80,858 66.4% Sales Variable Costs: Total Variable Contribution Margin $9,361 $14,748 $13,660 $3,182 $0 $0 $0 $0 $40,952 33.6% Depreciation $2,427 $1,654 $1,414 $4,260 $0 $0 $0 $0 $9,755 8.0% SG&A: R&D $1,000 $174 $262 $1,000 $0 $0 $0 $0 $2,435 2.0% Promotions $1,700 $1,500 $1,500 $1,500 $0 $0 $0 $0 $6,200 5.1% Sales $1,800 $1,800 $1,800 $1,800 $0 $0 $0 $0 $7,200 5.9% $565 $975 $806 $205 $0 $0 $0 $0 $2,551 2.1% Total Period $7,492 $6,103 $5,782 $8,765 $0 $0 $0 $0 $28,142 23.1% Net Margin $1,869 $8,645 $7,878 ($5,583) $0 $0 $0 $0 $12,810 10.5% Period Costs: Admin 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 $19,500 16.0% EBIT ($6,690) -5.5% Short Term Interest $7,833 6.4% LongTerm Interest $3,357 2.8% ($6,258) -5.1% $0 0.0% ($11,622) -9.5% Taxes Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report Top Annual Report Baldwin 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 2015 2014 Common Size Cash $19,535 20.5% $20,132 Round: 5 Dec. 31, 2015 Accounts Receivable $12,167 12.8% $9,816 Inventory $11,003 11.5% $14,211 44.8% $44,159 $93,960 98.5% $84,380 ($41,287) -43.3% ($35,023) Total Current Assets Plant & Equipment Accumulated Depreciation $42,705 Total Fixed Assets $52,673 55.2% $49,357 Total Assets $95,378 100.0% $93,516 $7,819 8.2% $6,396 Current Debt $14,206 14.9% $18,344 Long Term Debt $20,811 21.8% $19,514 44.9% $44,254 $8,799 9.2% $9,094 $43,743 45.9% $40,169 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities Common Stock Retained Earnings $42,836 Total Equity $52,542 55.1% $49,263 Total Liab. & O. Equity $95,378 100.0% $93,516 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 2015 2014 $11,870 $11,095 $6,264 $5,625 $0 $0 Accounts Payable $1,423 $989 Inventory $3,208 $8 Extraordinary gains/losses/writeoffs Accounts Receivable Net cash from operations ($2,351) ($1,774) $20,414 $15,943 Cash Flows from Investing Activities: Plant Improvements ($9,580) ($6,500) 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 ($6,994) ($4,733) $0 $0 ($1,596) ($1,911) $1,298 $5,849 $0 ($6,344) ($4,138) $7,504 ($11,431) $365 ($597) $9,808 $19,535 $20,132 Page 1 Annual Report Top Annual Report Baldwin Round: 5 Dec. 31, 2015 C59559 2015 Income Statement (Product Name:) 2015 Common Total Size Buddy Bat Beetle Bill Na Na Na Na $37,935 $33,288 $37,616 $39,194 $0 $0 $0 $0 $148,034 100.0% Direct Labor $11,811 $8,267 $8,578 $8,061 $0 $0 $0 $0 $36,716 24.8% Direct Material $16,236 $14,164 $15,392 $15,826 $0 $0 $0 $0 $61,618 41.6% $0 $263 $541 $517 $0 $0 $0 $0 $1,320 0.9% $28,047 $22,694 $24,510 $24,403 $0 $0 $0 $0 $99,655 67.3% $9,888 $10,595 $13,105 $14,791 $0 $0 $0 $0 $48,379 32.7% Depreciation $1,691 $1,213 $1,587 $1,773 $0 $0 $0 $0 $6,264 4.2% SG&A: R&D $928 $1,000 $804 $804 $0 $0 $0 $0 $3,535 2.4% $1,250 $1,250 $1,250 $1,250 $0 $0 $0 $0 $5,000 3.4% Sales $900 $900 $800 $800 $0 $0 $0 $0 $3,400 2.3% Admin $302 $265 $300 $312 $0 $0 $0 $0 $1,179 0.8% Total Period $5,071 $4,629 $4,740 $4,939 $0 $0 $0 $0 $19,379 13.1% Net Margin $4,818 $5,966 $8,365 $9,852 $0 $0 $0 $0 $29,000 19.6% Sales Variable Costs: Inventory Carry Total Variable Contribution Margin Period Costs: Promotions 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 $6,339 4.3% EBIT $22,662 15.3% Short Term Interest $1,435 1.0% LongTerm Interest $2,592 1.8% Taxes $6,522 4.4% $242 0.2% $11,870 8.0% Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report Top Annual Report Chester 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 2015 2014 Common Size Cash $34,415 20.4% $32,230 Accounts Receivable $14,054 8.3% $10,790 $5,668 3.4% $10,319 32.1% $53,339 Inventory Total Current Assets $54,137 Plant & Equipment $177,560 105.3% $142,900 Accumulated Depreciation ($63,102) -37.4% ($51,265) Total Fixed Assets $114,458 67.9% $91,635 Total Assets $168,595 100.0% $144,974 Round: 5 Dec. 31, 2015 LIABILITIES & OWNERS' EQUITY $9,413 5.6% $7,231 Current Debt $25,132 14.9% $29,217 Long Term Debt $68,261 40.5% $53,857 61.0% $90,305 Accounts Payable Total Liabilities $102,806 Common Stock $27,622 16.4% $24,700 Retained Earnings $38,168 22.6% $29,968 $65,790 39.0% $54,668 $168,595 100.0% $144,974 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: 2015 2014 Net Income (Loss) $8,200 $7,462 $11,837 $9,527 $0 $0 Accounts Payable $2,182 $1,405 Inventory $4,651 ($2,311) ($3,264) ($1,021) $23,605 $15,062 Depreciation Extraordinary gains/losses/writeoffs Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements ($34,660) ($15,800) Cash Flows from Financing Activities: Dividends Paid $0 ($12,576) Sales of Common Stock $2,922 $0 $0 $0 $14,403 $9,475 $0 ($7,533) ($4,085) $7,075 $13,240 ($3,559) $2,186 ($4,297) $34,415 $32,230 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 Page 1 Annual Report Top Annual Report Chester Round: 5 Dec. 31, 2015 C59559 2015 Income Statement (Product Name:) Cure Camp Cedar Clack Na Na Na Na 2015 Common Total Size Sales $41,844 $49,021 $37,305 $42,821 $0 $0 $0 $0 $170,991 100.0% Direct Labor $10,529 $12,399 $10,001 $11,774 $0 $0 $0 $0 $44,704 26.1% Direct Material $18,201 $21,973 $15,443 $18,854 $0 $0 $0 $0 $74,471 43.6% $0 $0 $357 $323 $0 $0 $0 $0 $680 0.4% Total Variable $28,730 $34,372 $25,801 $30,951 $0 $0 $0 $0 $119,855 70.1% Contribution Margin $13,114 $14,649 $11,505 $11,869 $0 $0 $0 $0 $51,137 29.9% Depreciation $2,800 $3,333 $2,604 $3,100 $0 $0 $0 $0 $11,837 6.9% SG&A: R&D $1,000 $1,000 $896 $891 $0 $0 $0 $0 $3,788 2.2% Promotions $1,150 $1,150 $1,150 $1,150 $0 $0 $0 $0 $4,600 2.7% Sales $1,000 $1,000 $700 $700 $0 $0 $0 $0 $3,400 2.0% $564 $661 $503 $577 $0 $0 $0 $0 $2,305 1.3% Total Period $6,514 $7,144 $5,853 $6,419 $0 $0 $0 $0 $25,930 15.2% Net Margin $6,600 $7,505 $5,651 $5,451 $0 $0 $0 $0 $25,207 14.7% Variable Costs: Inventory Carry Period Costs: Admin 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 $866 0.5% EBIT $24,341 14.2% Short Term Interest $2,890 1.7% LongTerm Interest $8,578 5.0% Taxes $4,505 $167 Net Profit 0.1% $8,200 Profit Sharing 2.6% 4.8% Page 2 Annual Report PRINT Annual Report Top Annual Report Digby 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 Round: 5 Dec. 31, 2015 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 2015 2014 Common Size Cash $27,231 17.8% $32,585 Accounts Receivable $10,724 7.0% $9,783 $6,500 4.3% $6,518 29.1% $48,886 Inventory Total Current Assets $44,455 Plant & Equipment $165,300 108.3% $124,400 Accumulated Depreciation ($57,176) -37.5% ($47,289) Total Fixed Assets $108,124 70.9% $77,111 Total Assets $152,579 100.0% $125,998 $6,729 4.4% $5,797 Current Debt $21,783 14.3% $25,504 Long Term Debt $59,124 38.7% $41,396 57.4% $72,697 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $87,636 Common Stock $18,524 12.1% $14,335 Retained Earnings $46,419 30.4% $38,966 42.6% $53,301 Total Equity $64,943 Total Liab. & O. Equity $152,579 100.0% $125,998 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: 2015 2014 Net Income (Loss) $7,453 $10,215 Depreciation $9,887 $8,293 $0 $0 $932 $542 $19 $1,568 ($940) ($978) $17,350 $19,640 Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements ($40,900) ($26,642) Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock $0 ($5,996) $4,189 $0 $0 $0 Cash from long term debt $17,728 $15,725 $0 ($5,901) ($3,721) $9,693 Net cash from financing activities $18,196 $13,521 Net change in cash position ($5,354) $6,520 Closing cash position $27,231 $32,585 Retirement of long term debt Change in current debt (net) Page 1 Annual Report Top Annual Report Digby Round: 5 Dec. 31, 2015 C59559 2015 Income Statement (Product Name:) 2015 Common Total Size Dune Dart Deft Dim Don Na Na Na $35,509 $48,121 $24,334 $22,509 $0 $0 $0 $0 $130,472 100.0% $5,320 $13,046 $4,852 $4,597 $0 $0 $0 $0 $27,815 21.3% $12,720 $21,744 $10,528 $9,083 $0 $0 $0 $0 $54,074 41.4% $155 $0 $328 $297 $0 $0 $0 $0 $780 0.6% Total Variable $18,195 $34,790 $15,708 $13,977 $0 $0 $0 $0 $82,669 63.4% Contribution Margin $17,315 $13,331 $8,626 $8,531 $0 $0 $0 $0 $47,803 36.6% $3,500 $3,400 $1,600 $1,387 $0 $0 $0 $0 $9,887 7.6% Sales Variable Costs: Direct Labor Direct Material Inventory Carry Period Costs: Depreciation SG&A: R&D $496 $947 $973 $977 $1,000 $0 $0 $0 $4,393 3.4% Promotions $1,000 $1,000 $1,000 $1,000 $0 $0 $0 $0 $4,000 3.1% Sales $1,000 $1,800 $900 $1,200 $0 $0 $0 $0 $4,900 3.8% $572 $776 $392 $363 $0 $0 $0 $0 $2,103 1.6% Total Period $6,568 $7,922 $4,865 $4,926 $1,000 $0 $0 $0 $25,282 19.4% Net Margin $10,746 $5,409 $3,761 $3,605 ($1,000) $0 $0 $0 $22,521 17.3% Admin 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 $1,096 0.8% EBIT $21,425 16.4% Short Term Interest $2,418 1.9% LongTerm Interest $7,307 5.6% Taxes $4,095 3.1% $152 0.1% $7,453 5.7% Profit Sharing Net Profit Annual Report Page 2
