I had played CAPSIM as a team, and we placed 4th out of 5 teams. At the end of the round 8, the stock price was $27.83 which is very low. So I want to find out what was wrong with finance. I attached the financial summaries of all 8 rounds, so please let me know what was the problem with financial decisions.
Income Statement (in thousands) Rd 8 Rd 1 Rd 2 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 68,984 68,650 15,123 60,473 9,933 Sales 49,686 58,017 64,505 50,249 58,606 14,427 Direct Labor 15,208 17,788 16,275 10,556 11,161 Direct Material 21,941 22,670 25,362 22,610 23,267 21,571 23,815 23,388 Inventory Carry 107 1,134 41,593 46 854 789 715 0 0 Total Variable Cost 38,483 32,842 37,256 41,683 38,587 34,976 33,320 Contribution Margin 23,630 12,430 16,425 27,301 30,063 26,022 3,680 1,753 17,407 27,153 Depreciation 2,400 1,140 2,187 3,400 3,693 3,960 3,960 R and D 1,000 726 914 0 35 0 798 3,500 3,500 3,000 6,000 Promo 2,000 4,000 3,000 3,000 3,000 Sales Budget 2,000 4,000 4,000 4,000 4,000 6,000 6,000 Admin 789 2,307 1,686 1,328 1,157 1,028 767 671 14,429 12,724 Total Period Costs 6,929 13,757 13,727 13,220 12,500 12,228 13,590 Net Margin 5,501 3,204 14,801 17,835 12,432 3,400 9,032 3,650 9,903 Other 100 275 8,200 15,350 - 89 221 2,049 EBIT 5,401 2,929 6,601 2,485 3,739 9,682 10,675 Interest Short Term Debt 215 885 0 492 0 14 0 0 1,271 Interest Long Term Debt 641 744 1,006 983 933 697 697 xes 1,591 455 1,958 354 2,717 977 3,145 3,492 Profit Sharing 59 17 73 13 101 36 117 130 1,779 Net Profit 2,895 828 3,564 644 4,944 5,724 6,356 Balance Sheet (in thousands) Rd 2 Rd 8 Rd 1 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 Cash 8,047 0 7,123 0 8,412 5,302 6,135 11,623 13,140 Accounts Receivable 4,084 4,769 5,670 5,642 4,130 4,817 4,970 Inventory 891 9,451 385 7,115 6,576 5,957 0 0 13,022 Total Current Assets 14,219 13,178 12,758 20,289 16,222 16,440 18,111 Plant & Equipment Accumulated Depreciation 36,000 32,800 51,000 59,400 21,300 - 5,940 15,360 55,200 55,400 - 19,079 59,400 -8,127 24,673 - 10,527 - 13,927 - 17,607 - 23,039 - 26,999 Total Fixed assets 36,321 36,361 32,401 25,473 37,073 37,593 38,893 52,801 Total Assets 28,382 2,933 38,651 49,831 57,883 52,543 50,512 Accounts Payable 4,029 2,677 3,654 3,054 1,295 1,193 1,369 Current Debt 2,500 6,453 0 4,292 0 191 0 0 5,200 9,100 12,100 15,154 7,141 7,141 Long Debt 6,333 8,833 9,500 8,511 Total Liabilities 10,633 16,815 11,510 17,047 10,986 8,334 4,323 15,545 Common Stock 7,823 9,323 14,323 19,323 23,406 17,989 16,771 Retained Earnings 13,425 14,254 17,818 18,461 23,568 27,696 26,456 Total Equity Total Liab And Equity 42,729 57,883 17,749 22,077 27,141 32,785 41,557 44,467 42,001 49,831 28,382 38,893 38,651 52,543 52,801 50,512 Cash Flow Statement (in thousands) Rd 1 Rd 2 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 Rd 8 Net Income 2,895 828 3,564 644 4,944 1,779 5,724 3,960 6,356 3,960 Depreciation 1,140 2,187 2,400 3,400 3,680 3,693 Gain Loss Write offs 0 0 0 0 0 141 0 - 170 Accounts Payable - 601 80 1,096 - 1,352 9,065 977 - 1,759 - 102 177 -8,560 -6,730 Inventory Accounts Receivable Cash Flow From Operations Plant Improvements 1,461 539 619 5,957 0 - 687 - 730 685 -901 27 341 1,172 -153 - 1,681 10,339 4,846 - 5,134 12,776 8,904 5,333 14,993 - 11,500 - 6,900 -3,200 - 15,000 -4,200 - 2,160 0 -4,000 - 5,572 Dividends 0 0 0 0 0 0 Stock Issue 1,500 2,000 3,500 5,000 5,000 0 0 - 2,950 - 3,250 Stock Retire 0 0 0 0 0 - 2,814 Long Term Debt Issue 0 2,000 2,500 2,000 3,000 0 0 0 - 1,733 4,292 Long Term Debt Retire -2,500 - 867 0 0 - 2,691 0 Change In Current Debt Cash From Financing 2,500 3,953 8,587 - 6,453 -4,292 191 - 191 0 - 2,453 -8,822 4,500 9,559 3,708 - 5,450 -5,505 Change In Cash Closing Cash - 8,047 1,518 2,446 7,123 - 7,123 8,412 - 2,277 5,487 8,047 7,123 11,623 13,140 0 0 8,412 6,135 Income Statement (in thousands) Rd 8 Rd 1 Rd 2 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 68,984 68,650 15,123 60,473 9,933 Sales 49,686 58,017 64,505 50,249 58,606 14,427 Direct Labor 15,208 17,788 16,275 10,556 11,161 Direct Material 21,941 22,670 25,362 22,610 23,267 21,571 23,815 23,388 Inventory Carry 107 1,134 41,593 46 854 789 715 0 0 Total Variable Cost 38,483 32,842 37,256 41,683 38,587 34,976 33,320 Contribution Margin 23,630 12,430 16,425 27,301 30,063 26,022 3,680 1,753 17,407 27,153 Depreciation 2,400 1,140 2,187 3,400 3,693 3,960 3,960 R and D 1,000 726 914 0 35 0 798 3,500 3,500 3,000 6,000 Promo 2,000 4,000 3,000 3,000 3,000 Sales Budget 2,000 4,000 4,000 4,000 4,000 6,000 6,000 Admin 789 2,307 1,686 1,328 1,157 1,028 767 671 14,429 12,724 Total Period Costs 6,929 13,757 13,727 13,220 12,500 12,228 13,590 Net Margin 5,501 3,204 14,801 17,835 12,432 3,400 9,032 3,650 9,903 Other 100 275 8,200 15,350 - 89 221 2,049 EBIT 5,401 2,929 6,601 2,485 3,739 9,682 10,675 Interest Short Term Debt 215 885 0 492 0 14 0 0 1,271 Interest Long Term Debt 641 744 1,006 983 933 697 697 xes 1,591 455 1,958 354 2,717 977 3,145 3,492 Profit Sharing 59 17 73 13 101 36 117 130 1,779 Net Profit 2,895 828 3,564 644 4,944 5,724 6,356 Balance Sheet (in thousands) Rd 2 Rd 8 Rd 1 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 Cash 8,047 0 7,123 0 8,412 5,302 6,135 11,623 13,140 Accounts Receivable 4,084 4,769 5,670 5,642 4,130 4,817 4,970 Inventory 891 9,451 385 7,115 6,576 5,957 0 0 13,022 Total Current Assets 14,219 13,178 12,758 20,289 16,222 16,440 18,111 Plant & Equipment Accumulated Depreciation 36,000 32,800 51,000 59,400 21,300 - 5,940 15,360 55,200 55,400 - 19,079 59,400 -8,127 24,673 - 10,527 - 13,927 - 17,607 - 23,039 - 26,999 Total Fixed assets 36,321 36,361 32,401 25,473 37,073 37,593 38,893 52,801 Total Assets 28,382 2,933 38,651 49,831 57,883 52,543 50,512 Accounts Payable 4,029 2,677 3,654 3,054 1,295 1,193 1,369 Current Debt 2,500 6,453 0 4,292 0 191 0 0 5,200 9,100 12,100 15,154 7,141 7,141 Long Debt 6,333 8,833 9,500 8,511 Total Liabilities 10,633 16,815 11,510 17,047 10,986 8,334 4,323 15,545 Common Stock 7,823 9,323 14,323 19,323 23,406 17,989 16,771 Retained Earnings 13,425 14,254 17,818 18,461 23,568 27,696 26,456 Total Equity Total Liab And Equity 42,729 57,883 17,749 22,077 27,141 32,785 41,557 44,467 42,001 49,831 28,382 38,893 38,651 52,543 52,801 50,512 Cash Flow Statement (in thousands) Rd 1 Rd 2 Rd 3 Rd 4 Rd 5 Rd 6 Rd 7 Rd 8 Net Income 2,895 828 3,564 644 4,944 1,779 5,724 3,960 6,356 3,960 Depreciation 1,140 2,187 2,400 3,400 3,680 3,693 Gain Loss Write offs 0 0 0 0 0 141 0 - 170 Accounts Payable - 601 80 1,096 - 1,352 9,065 977 - 1,759 - 102 177 -8,560 -6,730 Inventory Accounts Receivable Cash Flow From Operations Plant Improvements 1,461 539 619 5,957 0 - 687 - 730 685 -901 27 341 1,172 -153 - 1,681 10,339 4,846 - 5,134 12,776 8,904 5,333 14,993 - 11,500 - 6,900 -3,200 - 15,000 -4,200 - 2,160 0 -4,000 - 5,572 Dividends 0 0 0 0 0 0 Stock Issue 1,500 2,000 3,500 5,000 5,000 0 0 - 2,950 - 3,250 Stock Retire 0 0 0 0 0 - 2,814 Long Term Debt Issue 0 2,000 2,500 2,000 3,000 0 0 0 - 1,733 4,292 Long Term Debt Retire -2,500 - 867 0 0 - 2,691 0 Change In Current Debt Cash From Financing 2,500 3,953 8,587 - 6,453 -4,292 191 - 191 0 - 2,453 -8,822 4,500 9,559 3,708 - 5,450 -5,505 Change In Cash Closing Cash - 8,047 1,518 2,446 7,123 - 7,123 8,412 - 2,277 5,487 8,047 7,123 11,623 13,140 0 0 8,412 6,135
