Financial Analysis. Analysis of the companys financial statements/performance (show and discuss the tables).

Obstacles. The difficulties and hurdles that co-managers encountered in working on the business simulation game.

Industry 3) Income Statement (5000) AC Camera Revenues UAV Drone Revenues Total Revenues Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss) North America 323,520 374,907 698,427 329,194 15,226 33,000 4,563 316,444 Europe Asia Latin Africa Pacific America 240,782 227.600 163,010 258,707 203,738 112,671 499.489 431,338 275,000 257,705 212,539 157,577 35.092 39,211 29,164 32,000 29,500 24,000 3.644 3.300 2,616 171,048 146.788 82,333 Interest Income (Expense) Other Income (Expense) Pre-Tax Profit (Loss) Income Taxes Net Profit (Loss) Company Total Notes to Income Statement 954.921 Revenues listed here have been ad- 950.023 justed for promotional discounts and 1,904.944 exchange rates. See the Market Seg- ment Performance reports for detalls 957,015 on promotional discount and ex- 118,693 change rate adjustments to revenues 118,500 Other Income (Expense) will include 14,123 charitable contributions Instructor- Imposed fines (appearing as nega- 698.613 tive), and Instructor-awarded refunds (appearing as positive). 6.903 -8.es > The income tax rate is 30%. If a net loss was recorded in Year 12, the loss 698,550 is carried forward and may offset 208.985 some or all taxable Year 13 profit and reduce the company's tax liability in 487,585 Year 13 Profitability and Payout Earnings Per Share Dividends Per Share Year 12 Year 13 $20.84 $22.01 $0.00 $0.25 Balance Sheet Assets $000s Cash on Hand 402,788 Accounts Receivable see Note 1) 280,379 Component Inventories ser Note 2 59,195 Total Current Assets 1.242,340 Gross Investment in Plant and Equipment 672.000 Less Accumulated Depreciation 246,648 Total Fixed Asset Investment (see Note 2 425,352 Total Assets 1.667.692 Liabilities $000s Accounts Payable Bee Note 4) 162,786 Overdraft Loan Payable see Note 59 0 1-Year Bank Loan Payable see Note 0 Current Portion of Long-Term Loans see Note 7) 0 Total Current Liabilities 182.780 Long-Term Bank Loans (see Note 8 0 Total Liabilities 162.788 Shareholder Equity Beginning Change Balance In Year 18 $000s Common Stock see Note >> 11,275 -200 11.075 Additional Capital se Note 10) -210.184 -242,820 -453,005 Retained Earnings 1.464,789 +482,047 1.948.83 Total Shareholder Equity 1.265.880 +239,026 1.504.000 Return on Average Equity (see Note 11) 35.2% Notes to Balance Sheet (all dollar and share oures in thousands Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 13 (to be colected in Year 14). Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components used in Year 13 (to be paid in Year 14). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate Note : The company's 1-year bank loan interest rate In Year 13 was 3.6% Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 14. Note 3: Long-term bark loans outstanding Out Annua Year 14 Loan Intal Original interest standing Principal Interest No. Yes Principal Rate Term Principal Payment 1 Y1 60,000 7.51 10-Y 0 0 0 Y4 20.000 8.5% 10-YI YA 80.000 10-Yr Cash Flow Statement Cash Available in Year 13 $000s Beginning Cash Balance (cented aver from Year 12) 627,580 Cash Receipts from Sales see Note 1) 1,909,450 Inflows Bank Loan 1-Year 0 5-Year 0 10-Year 0 Stock Issue shares sued $607.55) 0 Loan to Cover Overdraft Interest on Year 12 Cash Balance 6.903 Cash Refund werded by instructor 0 Total Cash Available from sources 2.543.933 Cash Outlays in Year 13 $000s Payments to Component Suppliers (see Note 2) 604.949 Production and Assembly Expenses (ser Note 3) 315,413 Delivery, Marketing, and Administrative Expenses 251.316 Capital Outlays New Workstations 0 Robotics Upgrades 0 Facilities Expansion Facilities Improvements (CRC) 5.000 Repayment of - Overdraft Loan Bank Loan 1-Year Loan Principal 5-Year Loan 10-Year Loan Interest Payments - Year 13 Overdraft Loan 0 Bank Loans (year fryer, 10) Stock Repurchases (400 shares repurchased @ 9607.55) 243,020 Income Tax Payments 208,965 Dividend Payments to Shareholders 5,538 Charitable Contributions 8.988 Cash Finessessed by instruction Total Cash Outlays 1.641.167 Net Cash Balance (5000s at the end of Year 13) 902,766 Notes to Cash Flow Statement Note 1: Receipts from sales equals al drect sale drone revenues plus 75% of camera and 3d-party drone revenues generated in Year 13. Note 2 Paymeris to component suppliers equals 75% of the cost of components used in Year 13 and 25% of the cost of contponents used in Year 12 Note : Production and assembly expenses include all Year 13 production-related ex- penses except for depresiatich (which is a non-cash accounting charge) Note 4 Overdraft and 1-year loans received in Year 12 were recald in full in Year 13 Interest on overdraft and 1-year loans received in Y12 vis also paid in Y13. Selected Financial Statistics Credit Debt / Equity Percentage (Debt:Et 10:00 Rating Interest Coverage Ratio per protint p) 1,000.00 Measures Current Ratio current assets current abilities 7.63 Credit Rating at the end of Year 13) A+ Operating Profit Margin operating profit net sales revenues 36.65 Net Profit Margin inet profit net sales revenues) 25.69 Dividend Payout (dividend per share.earnings per sare) 1.15 Market Capitalization (547.69 stock price x 22,150 shares $14,346,334 Noto : There are 22,150 shares of stock Outstanding at a par value of 50.50 per share Note 10: Total amount above par value that shareholders paid to purchase stock Note 11: The formula for retum After-Tax Pront on Average Equity is (Beginning ETV + Endro Equity - 2 Industry 3) Income Statement (5000) AC Camera Revenues UAV Drone Revenues Total Revenues Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss) North America 323,520 374,907 698,427 329,194 15,226 33,000 4,563 316,444 Europe Asia Latin Africa Pacific America 240,782 227.600 163,010 258,707 203,738 112,671 499.489 431,338 275,000 257,705 212,539 157,577 35.092 39,211 29,164 32,000 29,500 24,000 3.644 3.300 2,616 171,048 146.788 82,333 Interest Income (Expense) Other Income (Expense) Pre-Tax Profit (Loss) Income Taxes Net Profit (Loss) Company Total Notes to Income Statement 954.921 Revenues listed here have been ad- 950.023 justed for promotional discounts and 1,904.944 exchange rates. See the Market Seg- ment Performance reports for detalls 957,015 on promotional discount and ex- 118,693 change rate adjustments to revenues 118,500 Other Income (Expense) will include 14,123 charitable contributions Instructor- Imposed fines (appearing as nega- 698.613 tive), and Instructor-awarded refunds (appearing as positive). 6.903 -8.es > The income tax rate is 30%. If a net loss was recorded in Year 12, the loss 698,550 is carried forward and may offset 208.985 some or all taxable Year 13 profit and reduce the company's tax liability in 487,585 Year 13 Profitability and Payout Earnings Per Share Dividends Per Share Year 12 Year 13 $20.84 $22.01 $0.00 $0.25 Balance Sheet Assets $000s Cash on Hand 402,788 Accounts Receivable see Note 1) 280,379 Component Inventories ser Note 2 59,195 Total Current Assets 1.242,340 Gross Investment in Plant and Equipment 672.000 Less Accumulated Depreciation 246,648 Total Fixed Asset Investment (see Note 2 425,352 Total Assets 1.667.692 Liabilities $000s Accounts Payable Bee Note 4) 162,786 Overdraft Loan Payable see Note 59 0 1-Year Bank Loan Payable see Note 0 Current Portion of Long-Term Loans see Note 7) 0 Total Current Liabilities 182.780 Long-Term Bank Loans (see Note 8 0 Total Liabilities 162.788 Shareholder Equity Beginning Change Balance In Year 18 $000s Common Stock see Note >> 11,275 -200 11.075 Additional Capital se Note 10) -210.184 -242,820 -453,005 Retained Earnings 1.464,789 +482,047 1.948.83 Total Shareholder Equity 1.265.880 +239,026 1.504.000 Return on Average Equity (see Note 11) 35.2% Notes to Balance Sheet (all dollar and share oures in thousands Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 13 (to be colected in Year 14). Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components used in Year 13 (to be paid in Year 14). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate Note : The company's 1-year bank loan interest rate In Year 13 was 3.6% Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 14. Note 3: Long-term bark loans outstanding Out Annua Year 14 Loan Intal Original interest standing Principal Interest No. Yes Principal Rate Term Principal Payment 1 Y1 60,000 7.51 10-Y 0 0 0 Y4 20.000 8.5% 10-YI YA 80.000 10-Yr Cash Flow Statement Cash Available in Year 13 $000s Beginning Cash Balance (cented aver from Year 12) 627,580 Cash Receipts from Sales see Note 1) 1,909,450 Inflows Bank Loan 1-Year 0 5-Year 0 10-Year 0 Stock Issue shares sued $607.55) 0 Loan to Cover Overdraft Interest on Year 12 Cash Balance 6.903 Cash Refund werded by instructor 0 Total Cash Available from sources 2.543.933 Cash Outlays in Year 13 $000s Payments to Component Suppliers (see Note 2) 604.949 Production and Assembly Expenses (ser Note 3) 315,413 Delivery, Marketing, and Administrative Expenses 251.316 Capital Outlays New Workstations 0 Robotics Upgrades 0 Facilities Expansion Facilities Improvements (CRC) 5.000 Repayment of - Overdraft Loan Bank Loan 1-Year Loan Principal 5-Year Loan 10-Year Loan Interest Payments - Year 13 Overdraft Loan 0 Bank Loans (year fryer, 10) Stock Repurchases (400 shares repurchased @ 9607.55) 243,020 Income Tax Payments 208,965 Dividend Payments to Shareholders 5,538 Charitable Contributions 8.988 Cash Finessessed by instruction Total Cash Outlays 1.641.167 Net Cash Balance (5000s at the end of Year 13) 902,766 Notes to Cash Flow Statement Note 1: Receipts from sales equals al drect sale drone revenues plus 75% of camera and 3d-party drone revenues generated in Year 13. Note 2 Paymeris to component suppliers equals 75% of the cost of components used in Year 13 and 25% of the cost of contponents used in Year 12 Note : Production and assembly expenses include all Year 13 production-related ex- penses except for depresiatich (which is a non-cash accounting charge) Note 4 Overdraft and 1-year loans received in Year 12 were recald in full in Year 13 Interest on overdraft and 1-year loans received in Y12 vis also paid in Y13. Selected Financial Statistics Credit Debt / Equity Percentage (Debt:Et 10:00 Rating Interest Coverage Ratio per protint p) 1,000.00 Measures Current Ratio current assets current abilities 7.63 Credit Rating at the end of Year 13) A+ Operating Profit Margin operating profit net sales revenues 36.65 Net Profit Margin inet profit net sales revenues) 25.69 Dividend Payout (dividend per share.earnings per sare) 1.15 Market Capitalization (547.69 stock price x 22,150 shares $14,346,334 Noto : There are 22,150 shares of stock Outstanding at a par value of 50.50 per share Note 10: Total amount above par value that shareholders paid to purchase stock Note 11: The formula for retum After-Tax Pront on Average Equity is (Beginning ETV + Endro Equity - 2