Digby Corp. ended the year carrying $9,684,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Digby Corp.?

A) $21,100,500

B)$5,792,000

C)$15,630,000

D)$9,684,000

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 PRINT Annual Report Digby Top " Round: 2 Dec. 31, 2017 Sandra Bescos Student: Sandra Bescos Andrews Sandra Bescos Baldwin Chester Digby Selected Financial Statistics ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % COMP-XM INQUIRER Andrews 12.3% 1.37 16.8% 1.7 28.7% $0 $183,293,101 $40,553,387 $22,502,710 $30,675,860 12.5% 42.7% Baldwin -0.8% 0.73 -0.6% 2.9 -1.7% $0 $149,768,235 $14,036,882 ($1,202,957) $3,580,626 9.2% 33.1% Chester 0.5% 0.68 0.3% 2.5 0.9% $0 $136,068,828 $15,154,948 $687,084 $3,748,991 12.3% 34.9% Digby 9.9% 1.25 12.4% 1.9 23.6% $0 $167,816,122 $32,000,729 $16,565,789 $27,472,674 7.2% 35.3% Page 1 Top Stocks & Bonds Round: 2 Sandra Bescos December 31 , 2017 Stock Market Summary Company Andrews Baldwin Chester Digby Close $90.67 $26.88 $33.16 $78.05 Change $16.23 ($11.04) ($10.01) $15.49 Shares 1,852,158 2,878,163 2,674,368 1,912,644 MarketCap ($M) $168 $77 $89 $149 Book Value $42.34 $24.50 $29.67 $36.67 EPS $12.15 ($0.42) $0.26 $8.66 Dividend $3.50 $0.00 $0.00 $0.00 Yield 3.9% 0.0% 0.0% 0.0% P/E 7.5 -64.5 128.6 9.0 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 11.2S2022 11.9S2023 10.9S2026 11.4S2027 $8,837,000 $7,072,000 $6,000,000 $8,000,000 11.4% 11.9% 11.5% 11.7% 97.83 100.41 95.17 97.72 BBB BBB BBB BBB 11.3S2022 12.5S2023 12.5S2024 12.5S2025 12.9S2026 13.4S2027 $10,417,600 $14,665,611 $7,981,720 $9,473,587 $14,407,694 $28,638,146 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 12.5S2026 13.2S2027 $8,639,846 $5,828,840 $15,600,742 $17,783,553 $33,662,563 12.3% 13.1% 13.1% 13.4% 13.6% 91.03 94.53 91.13 93.52 96.85 CC CC CC CC CC 11.1S2024 11.2S2025 11.5S2026 11.7S2027 $2,504,080 $5,675,277 $1,307,561 $16,883,698 11.8% 12.0% 12.1% 12.2% 93.71 93.65 94.77 95.57 B B B B Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 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 Round: 2 December 31, 2017 Sandra Bescos Andrews Baldwin Chester Digby $22,503 ($1,203) $687 $16,566 $8,069 $0 $14,367 $0 $13,024 $0 $7,811 $0 ($1,005) $18,181 ($1,511) $46,236 ($1,335) $9,101 $245 $21,175 $205 $7,218 ($1,789) $19,344 $668 $4,236 ($1,911) $27,369 ($24,568) ($37,940) ($50,460) ($23,200) ($6,483) $0 ($7,256) $8,000 $0 ($10,000) $7,000 $0 $0 $9,313 $0 $28,638 $0 ($25,203) $30,360 $0 $0 $18,162 $0 $33,663 $0 ($21,740) $21,437 $0 $0 $1,905 $0 $16,884 $0 ($14,285) $17,394 $0 Net cash from financing activities ($8,739) $43,107 $51,521 $21,897 Net change in cash position $12,929 $26,342 $20,406 $26,066 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $38,529 $15,065 $0 $53,594 Baldwin $52,349 $12,310 $2,539 $67,198 Chester $38,135 $11,184 $5,372 $54,690 Digby $42,149 $13,793 $9,684 $65,627 Plant and equipment Accumulated Depreciation Total Fixed Assets $135,428 ($55,270) $80,158 $215,500 ($77,469) $138,031 $215,760 ($70,200) $145,560 $117,160 ($49,097) $68,063 Total Assets $133,752 $205,229 $200,251 $133,689 Accounts Payable Current Debt Long Term Debt Total Liabilities $7,131 $18,300 $29,909 $55,340 $7,466 $41,660 $85,584 $134,711 $6,637 $32,737 $81,516 $120,890 $8,487 $28,694 $26,371 $63,551 Common Stock Retained Earnings Total Equity $9,347 $69,065 $78,412 $36,943 $33,576 $70,519 $36,808 $42,552 $79,361 $10,723 $59,415 $70,138 Total Liabilities & Owners' Equity $133,752 $205,229 $200,251 $133,689 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 $183,293 $104,940 $8,069 $22,923 $6,809 $40,553 $5,227 $12,364 $459 $22,503 Baldwin $149,768 $100,247 $14,367 $13,720 $7,398 $14,037 $15,888 ($648) $0 ($1,203) Chester $136,069 $88,615 $13,024 $16,684 $2,591 $15,155 $14,076 $378 $14 $687 Digby $167,816 $108,658 $7,811 $12,158 $7,189 $32,001 $5,995 $9,102 $338 $16,566 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 COMP-XM INQUIRER Page 3 Top Production Analysis Round: 2 December 31, 2017 Sandra Bescos Production Information Name Primary Segment Units Sold Unit Inven tory Revision Date Age Dec.31 MTBF Pfmn Coord Size Coord Price Material Cost Labor Cost 2nd Shift & Contr. OverMarg. time Auto mation Capacity Next Next Round Round Plant Utiliz. Ark Ant Ace Awe Alicia Core Nano Elite Thrift 1,719 1,123 1,196 1,770 0 0 0 0 0 0 7/9/2017 7/30/2017 5/2/2017 7/12/2017 3/16/2018 1.6 1.4 1.6 2.4 0.0 22000 24000 26000 19000 0 10.5 12.4 14.5 7.3 0.0 9.5 5.0 8.0 12.7 0.0 $31.00 $39.00 $41.00 $21.00 $0.00 $10.57 $13.83 $14.01 $7.12 $0.00 $6.36 $7.54 $7.79 $5.69 $0.00 42% 44% 46% 38% 0% 14% 37% 54% 83% 0% 7.5 7.0 7.0 7.5 6.5 1,100 728 714 900 450 113% 136% 153% 182% 0% Bit Bolt Best Brat Thrift Thrift Core Core 2,162 2,263 1,405 1,577 0 98 54 32 4/11/2017 4/11/2017 12/16/2017 12/18/2017 2.7 2.6 1.1 1.1 17000 17000 18000 20000 8.1 8.3 11.2 11.9 11.9 11.7 8.2 8.7 $17.00 $17.00 $25.00 $25.00 $7.76 $7.94 $11.07 $11.75 $3.93 $3.83 $4.37 $4.27 31% 30% 37% 35% 100% 76% 19% 12% 9.0 9.0 8.0 8.0 1,450 1,600 1,050 1,250 198% 174% 118% 111% City Cozy Cute Crimp Cake Cedar Thrift Core Nano Elite Core 1,261 2,082 994 774 743 0 212 22 48 109 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 7.3 9.7 12.4 15.2 10.3 0.0 12.7 10.3 5.2 7.4 9.7 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 $2.34 $5.19 $6.15 $7.01 $5.79 $0.00 49% 27% 37% 38% 26% 0% 0% 30% 13% 0% 100% 0% 9.5 8.0 6.0 6.0 7.0 7.0 1,250 1,500 800 800 1,040 600 91% 129% 111% 87% 149% 0% Dim Dome Dug Drat Nano Elite Nano Elite 1,525 802 1,223 1,172 10 113 153 146 12/3/2017 1/4/2017 9/19/2017 8/17/2017 1.3 2.4 1.2 1.2 23000 25000 23000 25000 12.3 15.5 13.4 15.3 5.7 7.2 4.5 6.7 $32.00 $35.00 $37.00 $39.00 $13.96 $15.32 $14.96 $15.41 $9.28 $7.98 $7.77 $7.36 30% 31% 38% 41% 94% 14% 35% 16% 6.0 6.5 6.0 6.0 900 800 950 1,050 192% 113% 134% 115% COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Sandra Bescos Thrift Statistics 6,287 6,287 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 7.8 Size 12.2 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 Bit Bolt Awe City Cozy Cake Ark Market Share 26% 25% 25% 17% 6% 0% 0% Units Sold to Seg 1,605 1,600 1,572 1,066 388 29 25 COMP-XM INQUIRER Revision Date Stock Out 4/11/2017 YES 4/11/2017 7/12/2017 YES 12/20/2018 12/6/2016 4/1/2017 YES 7/9/2017 YES Pfmn Coord 8.1 8.3 7.3 7.3 9.7 10.3 10.5 Size Coord 11.9 11.7 12.7 12.7 10.3 9.7 9.5 List Price $17.00 $17.00 $21.00 $18.00 $20.00 $21.00 $31.00 MTBF 17000 17000 19000 14000 16000 16000 22000 Age Dec.31 2.74 2.64 2.39 3.48 2.11 0.75 1.64 Promo Cust. AwareBudget ness $1,200 73% $1,200 74% $1,800 100% $1,050 61% $1,050 61% $1,050 48% $1,800 98% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 67% 44 $1,100 67% 42 $2,500 78% 44 $1,000 66% 26 $1,000 66% 14 $900 66% 3 $2,500 78% 0 Page 5 Top Core Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Sandra Bescos Core Statistics 8,081 8,081 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 10.5 Size 9.5 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 Cozy Brat Ark Best Cake Bolt Bit Dim Awe City Market Share 21% 17% 16% 15% 9% 8% 7% 3% 2% 2% Units Sold to Seg 1,694 1,372 1,273 1,214 713 662 557 203 197 195 COMP-XM INQUIRER Revision Date Stock Out 12/6/2016 12/18/2017 7/9/2017 YES 12/16/2017 4/1/2017 YES 4/11/2017 4/11/2017 YES 12/3/2017 7/12/2017 YES 12/20/2018 Pfmn Coord 9.7 11.9 10.5 11.2 10.3 8.3 8.1 12.3 7.3 7.3 Size Coord 10.3 8.7 9.5 8.2 9.7 11.7 11.9 5.7 12.7 12.7 List Price $20.00 $25.00 $31.00 $25.00 $21.00 $17.00 $17.00 $32.00 $21.00 $18.00 MTBF 16000 20000 22000 18000 16000 17000 17000 23000 19000 14000 Age Dec.31 2.11 1.10 1.64 1.09 0.75 2.64 2.74 1.35 2.39 3.48 Promo Cust. AwareBudget ness $1,050 61% $1,200 73% $1,800 98% $1,200 73% $1,050 48% $1,200 74% $1,200 73% $1,300 82% $1,800 100% $1,050 61% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 65% 38 $900 70% 30 $2,500 81% 39 $900 70% 26 $900 65% 33 $1,100 70% 18 $1,100 70% 14 $900 17% 0 $2,500 81% 2 $1,000 65% 0 Page 6 Top Nano Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Sandra Bescos Nano Statistics 4,743 4,743 19.9% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 12.4 Size 5.0 $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 Dug Ant Dim Cute Ark Best Crimp Brat Drat Ace Market Share 23% 20% 20% 17% 4% 3% 3% 3% 3% 3% Units Sold to Seg 1,069 961 936 819 204 165 163 153 138 135 COMP-XM INQUIRER Revision Date Stock Out 9/19/2017 7/30/2017 YES 12/3/2017 12/17/2017 7/9/2017 YES 12/16/2017 12/18/2017 12/18/2017 8/17/2017 5/2/2017 YES Pfmn Coord 13.4 12.4 12.3 12.4 10.5 11.2 15.2 11.9 15.3 14.5 Size Coord 4.5 5.0 5.7 5.2 9.5 8.2 7.4 8.7 6.7 8.0 List Price $37.00 $39.00 $32.00 $30.00 $31.00 $25.00 $34.00 $25.00 $39.00 $41.00 MTBF 23000 24000 23000 18000 22000 18000 20000 20000 25000 26000 Age Dec.31 1.20 1.43 1.35 1.04 1.64 1.09 1.05 1.10 1.24 1.55 Promo Cust. AwareBudget ness $1,300 82% $1,800 98% $1,300 82% $1,050 61% $1,800 98% $1,200 73% $1,050 61% $1,200 73% $1,300 81% $1,800 97% Sales Cust. Access- Dec. Cust. Budget ibility Survey $800 85% 45 $2,500 91% 65 $900 85% 64 $900 65% 41 $2,500 91% 10 $900 24% 8 $1,500 65% 2 $900 24% 9 $800 85% 4 $2,500 91% 7 Page 7 Top Elite Market Segment Analysis Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry Sandra Bescos Elite Statistics 4,679 4,679 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 15.0 Size 7.6 MTBF 20000-26000 Age Price Ideal Position Reliability Round: 2 December 31, 2017 Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Ace Drat Dome Crimp Dim Ark Cute Ant Dug Brat Best Market Share 23% 22% 17% 13% 8% 5% 4% 3% 3% 1% 1% Units Sold to Seg 1,061 1,034 802 611 386 217 174 162 154 52 26 COMP-XM INQUIRER Revision Date Stock Out 5/2/2017 YES 8/17/2017 1/4/2017 12/18/2017 12/3/2017 7/9/2017 YES 12/17/2017 7/30/2017 YES 9/19/2017 12/18/2017 12/16/2017 Pfmn Coord 14.5 15.3 15.5 15.2 12.3 10.5 12.4 12.4 13.4 11.9 11.2 Size Coord 8.0 6.7 7.2 7.4 5.7 9.5 5.2 5.0 4.5 8.7 8.2 List Price $41.00 $39.00 $35.00 $34.00 $32.00 $31.00 $30.00 $39.00 $37.00 $25.00 $25.00 MTBF 26000 25000 25000 20000 23000 22000 18000 24000 23000 20000 18000 Age Dec.31 1.55 1.24 2.45 1.05 1.35 1.64 1.04 1.43 1.20 1.10 1.09 Promo Cust. AwareBudget ness $1,800 97% $1,300 81% $1,300 82% $1,050 61% $1,300 82% $1,800 98% $1,050 61% $1,800 98% $1,300 82% $1,200 73% $1,200 73% Sales Cust. Access- Dec. Cust. Budget ibility Survey $2,500 96% 49 $800 87% 41 $900 87% 36 $1,500 60% 30 $900 87% 18 $2,500 96% 9 $900 60% 4 $2,500 96% 5 $800 87% 1 $900 11% 3 $900 11% 1 Page 8 Top Market Share Report Industry Unit Sales % of Market Actual Market Share in Units Thrift Core Nano Elite 6,287 26.4% 8,081 34.0% 4,743 19.9% 4,679 19.7% 0.4% 15.8% 25.0% 25.4% 2.4% 18.2% 4.3% 20.3% 2.9% 4.6% 3.5% 22.7% 27.4% Bit Bolt Best Brat Total 25.5% 25.4% 51.0% 6.9% 8.2% 15.0% 17.0% 47.1% City Cozy Cute Crimp Cake Total 17.0% 6.2% 2.4% 21.0% 0.5% 23.6% 8.8% 32.2% Ark Ant Ace Awe Total Dim Dome Dug Drat Total COMP-XM INQUIRER Round: 2 December 31, 2017 Sandra Bescos 3.5% 3.2% 6.7% Total 23,790 100.0% Units Demanded % of Market Potential MarketNano Share inElite Units Thrift Core 8,081 34.0% 4,743 19.9% 4,679 19.7% 0.4% 17.8% 25.9% 26.3% 2.5% 20.4% 5.1% 26.6% 3.2% 5.5% 4.2% 26.6% 34.9% 36.3% 8.3% 6.1% 5.9% 7.7% 28.0% 0.5% 1.0% 1.5% 9.0% 9.2% 5.5% 6.1% 29.8% 30.8% 7.2% 4.7% 5.0% 7.4% 24.4% Ark Ant Ace Awe Total 0.6% 1.1% 1.7% 9.1% 9.5% 5.9% 6.6% 31.1% Bit Bolt Best Brat Total 25.5% 24.9% 50.4% 6.7% 7.6% 14.0% 15.8% 44.0% City Cozy Cute Crimp Cake Total 16.6% 6.0% 2.3% 19.6% 0.6% 23.3% 11.4% 33.3% Dim Dome Dug Drat Total 17.3% 3.4% 3.7% 13.1% 20.7% 16.8% 5.3% 8.8% 4.2% 3.3% 3.1% 24.6% 2.5% 19.7% 2.5% 22.5% 2.9% 45.2% 8.3% 17.1% 3.3% 22.1% 50.8% 6.4% 3.4% 5.1% 4.9% 19.9% Total 23,790 100.0% 6,287 26.4% 3.1% 2.9% 6.1% 15.4% 3.0% 3.4% 12.1% 18.5% 15.5% 5.2% 8.2% 3.8% 3.0% 4.0% 24.2% 2.3% 17.7% 2.3% 20.1% 2.7% 40.5% 7.7% 15.5% 3.1% 20.3% 46.6% 5.8% 3.1% 4.6% 4.5% 18.0% Page 9 Top Perceptual Map Round: 2 December 31, 2017 Sandra Bescos Perceptual Map for All Segments Andrews Name Ark Ant Ace Awe Pfmn 10.5 12.4 14.5 7.3 Name Dim Dome Dug Drat Pfmn 12.3 15.5 13.4 15.3 Size 9.5 5.0 8.0 12.7 Baldwin Revised 7/9/2017 7/30/2017 5/2/2017 7/12/2017 Name Bit Bolt Best Brat Pfmn 8.1 8.3 11.2 11.9 Size 11.9 11.7 8.2 8.7 Chester Revised 4/11/2017 4/11/2017 12/16/2017 12/18/2017 Name City Cozy Cute Crimp Cake Pfmn 7.3 9.7 12.4 15.2 10.3 Size 12.7 10.3 5.2 7.4 9.7 Revised 12/20/2018 12/6/2016 12/17/2017 12/18/2017 4/1/2017 Digby COMP-XM INQUIRER Size 5.7 7.2 4.5 6.7 Revised 12/3/2017 1/4/2017 9/19/2017 8/17/2017 Page 10 Top HR/TQM Report Sandra Bescos Round: 2 December 31, 2017 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 515 516 361 155 Baldwin 423 423 288 135 Chester 449 449 371 78 Digby 565 565 403 162 Overtime% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.0% 6.9% 36 199 $5,000 80 107.3% 0.0% 8.0% 34 189 $2,500 40 113.9% 0.0% 6.3% 44 0 $5,000 80 125.3% 0.0% 10.0% 56 5 $0 0 100.0% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $213 $995 $826 $2,034 $119 $944 $338 $1,401 $263 $0 $719 $982 $56 $23 $0 $79 Labor Contract Next Year Wages Benefits Profit Sharing Annual Raise $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% $28.15 2,500 2.0% 5.0% Starting Negotiation Position Wages Benefits Profit Sharing Annual Raise Ceiling Negotiation Position Wages Benefits Profit Sharing Annual Raise Adjusted Labor Demands Wages Benefits Profit Sharing Annual Raise Strike Days TQM SUMMARY Process Mgt Budgets Last Year CPI Systems Vendor/JIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase COMP-XM INQUIRER Andrews Baldwin Chester Digby $1,500 $0 $0 $0 $1,100 $1,200 $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 $1,000 $750 $750 $6,300 $0 $0 $750 $750 $5,500 $0 $0 $0 $0 $0 $0 $0 $1,250 $1,250 $6,250 8.27% 3.95% 39.97% 45.09% 10.05% 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% Page 11 PRINT Annual Report 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 28.8% 11.3% 0.0% $25,600 $13,554 $18,181 40.1% $57,335 101.3% -41.3% $110,860 ($47,202) $80,158 59.9% $63,658 $133,752 100.0% $120,993 5.3% 13.7% 22.4% $8,136 $10,000 $33,209 41.4% $51,345 7.0% 51.6% $10,434 $59,214 $78,412 58.6% $69,648 $133,752 100.0% $120,993 $38,529 $15,065 $0 Total Current Assets $53,594 Plant & Equipment Accumulated Depreciation $135,428 ($55,270) Total Fixed Assets Total Assets 2016 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $7,131 $18,300 $29,909 Total Liabilities Common Stock Retained Earnings $55,340 $9,347 $69,065 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 2017 $22,503 $8,069 $0 ($1,005) $18,181 ($1,511) 2016 $8,173 $7,391 ($1,273) ($1,380) $7,791 ($123) $46,236 $20,578 ($24,568) ($17,361) ($6,483) $0 ($7,256) $8,000 ($11,300) $8,300 $0 $0 ($9,700) $6,000 $0 ($5,717) ($8,739) $12,929 $38,529 ($9,417) ($6,200) $25,600 Page 1 Top Annual Report Andrews Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Sales Ark $53,284 Ant $43,796 Ace $49,052 Awe $37,160 Alicia $0 Na $0 Na $0 Na $0 2017 Total $183,293 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $12,481 $18,346 $0 $30,827 $8,824 $15,595 $0 $24,419 $9,581 $17,172 $0 $26,753 $10,292 $12,648 $0 $22,941 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $41,178 $63,762 $0 $104,940 22.5% 34.8% 0.0% 57.3% Contribution Margin $22,457 $19,377 $22,299 $14,219 $0 $0 $0 $0 $78,353 42.7% $2,640 $527 $1,800 $2,500 $796 $8,263 $1,650 $584 $1,800 $2,500 $654 $7,189 $1,618 $338 $1,800 $2,500 $733 $6,989 $2,160 $534 $1,800 $2,500 $555 $7,550 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $8,069 $2,984 $7,200 $10,000 $2,739 $30,991 4.4% 1.6% 3.9% 5.5% 1.5% 16.9% $14,194 $12,189 $15,310 $6,670 ($1,000) $0 $0 $0 $47,362 25.8% $6,809 $40,553 $1,830 $3,397 $12,364 $459 $22,503 3.7% 22.1% 1.0% 1.9% 6.7% 0.3% 12.3% (Product Name:) Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report 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 $52,349 $12,310 $2,539 Total Current Assets $67,198 Plant & Equipment Accumulated Depreciation $215,500 ($77,469) 2017 Common Size 25.5% 6.0% 1.2% 2016 $26,008 $12,555 $11,640 32.7% $50,203 105.0% -37.7% $177,560 ($63,102) Total Fixed Assets $138,031 67.3% $114,458 Total Assets $205,229 100.0% $164,660 3.6% 20.3% 41.7% $8,802 $25,203 $68,246 65.6% $102,251 18.0% 16.4% $27,630 $34,779 $70,519 34.4% $62,409 $205,229 100.0% $164,660 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $7,466 $41,660 $85,584 Total Liabilities Common Stock Retained Earnings $134,710 $36,943 $33,576 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 2017 ($1,203) $14,367 $0 ($1,335) $9,101 $245 2016 $4,784 $11,837 $0 $1,518 ($1,195) ($1,736) $21,175 $15,208 ($37,940) ($34,660) $0 $9,313 $0 $28,638 ($11,300) $16,456 $0 $2,946 $0 $14,408 $0 ($4,036) $43,107 $26,342 $52,349 $13,318 ($6,134) $26,008 Page 1 Top Annual Report Baldwin Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Sales Bit $36,758 Bolt $38,463 Best $35,130 Brat $39,416 Na $0 Na $0 Na $0 Na $0 2017 Total $149,768 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $8,553 $16,880 $0 $25,434 $8,775 $18,081 $140 $26,996 $6,729 $15,289 $101 $22,120 $7,400 $18,235 $63 $25,697 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $31,457 $68,486 $305 $100,247 21.0% 45.7% 0.2% 66.9% Contribution Margin $11,325 $11,467 $13,011 $13,719 $0 $0 $0 $0 $49,521 33.1% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,060 $279 $1,200 $1,100 $593 $7,232 $4,480 $279 $1,200 $1,100 $620 $7,679 $2,660 $970 $1,200 $900 $567 $6,297 $3,167 $976 $1,200 $900 $636 $6,879 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14,367 $2,505 $4,800 $4,000 $2,415 $28,087 9.6% 1.7% 3.2% 2.7% 1.6% 18.8% Net Margin $4,093 $3,788 $6,714 $6,840 $0 $0 $0 $0 $21,434 14.3% $7,398 $14,037 $4,999 $10,888 ($648) $0 ($1,203) 4.9% 9.4% 3.3% 7.3% -0.4% 0.0% -0.8% (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 Page 2 Annual Report PRINT Annual Report 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 $38,135 $11,184 $5,372 Total Current Assets $54,691 Plant & Equipment Accumulated Depreciation $215,760 ($70,200) 2017 Common Size 19.0% 5.6% 2.7% 2016 $17,729 $9,395 $12,589 27.3% $39,713 107.7% -35.1% $165,300 ($57,176) Total Fixed Assets $145,560 72.7% $108,124 Total Assets $200,251 100.0% $147,837 3.3% 16.3% 40.7% $6,433 $21,740 $59,153 60.4% $87,326 18.4% 21.2% $18,647 $41,865 $79,360 39.6% $60,512 $200,251 100.0% $147,837 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $6,637 $32,737 $81,516 Total Liabilities Common Stock Retained Earnings $120,890 $36,808 $42,552 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 2017 $687 $13,024 $0 $205 $7,218 ($1,789) 2016 $3,062 $9,887 $0 $636 ($6,142) $370 $19,344 $7,813 ($50,460) ($40,900) $0 $18,162 $0 $33,663 ($11,300) $10,997 $0 $4,258 $0 $17,784 $0 ($3,749) $51,521 $20,406 $38,135 $18,293 ($14,794) $17,729 Page 1 Top Annual Report Chester Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Sales City $22,706 Cozy $41,641 Cute $29,808 Crimp $26,319 Cake $15,596 Cedar $0 Na $0 Na $0 2017 Total $136,069 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $3,066 $8,304 $230 $11,600 $10,877 $19,423 $38 $30,339 $6,087 $12,702 $108 $18,896 $5,413 $10,518 $269 $16,200 $4,298 $7,281 $0 $11,579 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $29,741 $58,229 $645 $88,615 21.9% 42.8% 0.5% 65.1% Contribution Margin $11,106 $11,301 $10,911 $10,119 $4,016 $0 $0 $0 $47,454 34.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,667 $1,000 $1,050 $1,000 $323 $7,039 $3,800 $0 $1,050 $1,000 $592 $6,442 $1,600 $973 $1,050 $900 $424 $4,947 $1,600 $977 $1,050 $1,500 $374 $5,501 $2,357 $250 $1,050 $900 $222 $4,779 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $13,024 $4,200 $5,250 $5,300 $1,934 $29,708 9.6% 3.1% 3.9% 3.9% 1.4% 21.8% Net Margin $4,067 $4,859 $5,964 $4,618 ($763) ($1,000) $0 $0 $17,746 13.0% $2,591 $15,155 $3,863 $10,213 $378 $14 $687 1.9% 11.1% 2.8% 7.5% 0.3% 0.0% 0.5% (Product Name:) Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2 Annual Report PRINT Annual Report 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 31.5% 10.3% 7.2% $16,083 $11,882 $13,920 49.1% $41,885 87.6% -36.7% $93,960 ($41,287) $68,063 50.9% $52,673 $133,689 100.0% $94,558 6.3% 21.5% 19.7% $7,819 $14,285 $20,787 47.5% $42,891 8.0% 44.4% $8,818 $42,849 $70,138 52.5% $51,667 $133,689 100.0% $94,558 $42,149 $13,793 $9,684 Total Current Assets $65,626 Plant & Equipment Accumulated Depreciation $117,160 ($49,097) Total Fixed Assets Total Assets 2016 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,487 $28,694 $26,371 Total Liabilities Common Stock Retained Earnings $63,552 $10,723 $59,415 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 2017 $16,566 $7,811 $0 $668 $4,236 ($1,911) 2016 $10,907 $6,264 $0 $1,437 $912 ($2,053) $27,369 $17,467 ($23,200) ($9,580) $0 $1,905 $0 $16,884 ($11,300) $14,409 ($7,169) $0 ($1,539) $1,308 $0 ($4,147) $21,897 $26,066 $42,149 ($11,547) ($3,660) $16,083 Page 1 Top Annual Report Digby Round: 2 Dec. 31, 2017 C59559 2017 Income Statement Sales Dim $48,791 Dome $28,082 Dug $45,244 Drat $45,700 Na $0 Na $0 Na $0 Na $0 2017 Total $167,816 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $14,144 $19,931 $27 $34,102 $6,463 $12,510 $320 $19,292 $9,661 $18,034 $415 $28,110 $8,754 $17,998 $401 $27,153 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $39,023 $68,473 $1,162 $108,658 23.3% 40.8% 0.7% 64.7% Contribution Margin $14,689 $8,789 $17,134 $18,547 $0 $0 $0 $0 $59,159 35.3% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,104 $934 $1,300 $900 $365 $5,603 $1,707 $9 $1,300 $900 $210 $4,125 $1,900 $727 $1,300 $800 $338 $5,065 $2,100 $634 $1,300 $800 $342 $5,175 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,811 $2,304 $5,200 $3,400 $1,254 $19,968 4.7% 1.4% 3.1% 2.0% 0.7% 11.9% Net Margin $9,086 $4,664 $12,068 $13,372 $0 $0 $0 $0 $39,190 23.4% $7,189 $32,001 $2,955 $3,039 $9,102 $338 $16,566 4.3% 19.1% 1.8% 1.8% 5.4% 0.2% 9.9% (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. Annual Report Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 2