I need explanation for the answers The Chester's workforce complement will grow by 10% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be? Assume Chester spends the same amount extra above the $1,000 recruiting base as they did last year. Select: 1 $3,594,000 $324,000 $2,995,000 $270,000 Digby Corp. ended the year carrying $19,971,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Digby Corp.? Select: 1 $41,964,780 $10,761,000 $19,971,000 $31,317,000
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 Annual Report Digby PRINT Top " Round: 2 Student: Naseem Sultana Dec. 31, 2016 Andrews Naseem Sultana Baldwin Chester Digby Naseem Sultana Selected Financial Statistics Andrews Baldwin Chester Digby 12.3% -0.4% 1.4% 9.3% 1.12 0.74 0.73 1.26 13.8% -0.3% 1.0% 11.7% 1.6 2.9 2.5 2.0 22.0% -1.0% 2.7% 22.9% $0 $0 $0 $0 Sales $136,340,097 $161,484,529 $151,850,063 $183,582,463 EBIT $30,646,419 $15,825,413 $17,919,246 $33,435,323 Profits $16,722,334 ($721,685) $2,189,547 $17,128,838 Cumulative Profit $19,025,482 $5,872,532 $7,679,968 $31,346,356 SG&A / Sales 11.4% 8.5% 11.5% 6.7% Contrib. Margin % 43.0% 32.5% 33.8% 33.5% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan COMP-XM INQUIRER Page 1 Top Round: 2 Stocks & Bonds Naseem Sultana December 31 , 2016 Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E Andrews $69.71 $6.62 1,962,055 $137 $38.81 $8.52 $3.00 4.3% 8.2 Baldwin $30.02 ($10.65) 2,921,700 $88 $25.75 ($0.25) $0.00 0.0% -122.0 Chester $38.93 ($8.53) 2,617,034 $102 $31.54 $0.84 $0.00 0.0% 46.5 Digby $84.64 $14.88 1,921,313 $163 $38.93 $8.92 $0.00 0.0% 9.5 Bond Market Summary Company Series# Face Yield Close$ S&P Andrews 11.2S2021 $8,837,000 11.3% 99.27 A 11.9S2022 $7,072,000 11.7% 102.09 A 10.9S2025 $10,000,000 11.2% 97.27 A 11.3S2021 $10,417,600 12.5% 90.09 C 12.5S2022 $14,665,611 13.4% 93.42 C 12.5S2023 $7,993,507 13.5% 92.75 C 12.5S2024 $9,474,649 13.6% 92.17 C 12.9S2025 $14,393,597 13.8% 93.62 C 13.4S2026 $34,621,180 14.0% 95.86 C 11.2S2021 $8,609,806 12.3% 91.03 CC 12.4S2022 $5,757,941 13.1% 94.53 CC 12.0S2024 $15,724,719 13.1% 91.59 CC 12.5S2025 $17,739,700 13.4% 93.52 CC 13.1S2026 $35,353,782 13.6% 96.32 CC 11.1S2023 $2,366,375 11.9% 93.28 B 11.2S2024 $5,881,308 12.0% 93.19 B 11.4S2025 $1,210,724 12.2% 93.75 B 11.6S2026 $19,603,373 12.3% 94.49 B Baldwin Chester Digby Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 2 December 31, 2016 Naseem Sultana Andrews Baldwin Chester Digby $16,722 ($722) $2,190 $17,129 $8,879 $15,180 $13,324 $8,424 $0 $0 $0 $0 $2,200 ($635) $1,381 $2,522 ($5,201) $4,349 $132 ($11,519) ($968) $104 ($2,211) ($2,002) $21,632 $18,276 $14,815 $14,554 ($12,268) ($50,140) ($54,960) ($32,400) ($5,886) $0 $0 $0 $0 $11,774 $17,388 $2,797 ($1,000) $0 $0 $0 Cash from long term debt issued $0 $34,621 $35,354 $19,603 Early retirement of long term debt $0 $0 $0 $0 ($10,000) ($25,153) ($21,771) ($14,416) $9,000 $32,415 $23,468 $20,191 $0 $0 $0 $0 ($7,886) $53,657 $54,439 $28,176 $1,478 $21,793 $14,294 $10,329 Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Dividends paid Sales of common stock Purchase of common stock Retirement of current debt Cash from current debt borrowing Cash from emergency loan Net cash from financing activities Net change in cash position Balance Sheet Survey Andrews Baldwin Chester Digby Cash $29,218 $51,954 $36,672 $34,416 Accounts Receivable $11,206 $13,273 $12,481 $15,089 $9,317 $4,424 $9,748 $19,971 Total Current Assets $49,742 $69,650 $58,901 $69,476 Plant and equipment $133,180 $227,700 $220,260 $126,360 Accumulated Depreciation ($61,349) ($78,282) ($70,500) ($49,711) $71,831 $149,418 $149,760 $76,649 $121,573 $219,068 $208,662 $146,125 $4,481 $8,555 $8,156 $10,777 Current Debt $15,035 $43,715 $34,768 $31,491 Long Term Debt $25,909 $91,566 $83,186 $29,062 Total Liabilities $45,425 $143,835 $126,111 $71,329 Common Stock $10,725 $39,355 $35,922 $11,598 Retained Earnings $65,424 $35,877 $46,629 $63,197 Total Equity $76,148 $75,232 $82,551 $74,796 $121,573 $219,068 $208,662 $146,125 Andrews Baldwin Chester Digby $136,340 $161,485 $151,850 $183,582 $77,693 $108,960 $100,536 $121,994 $8,879 $15,180 $13,324 $8,424 $15,607 $13,699 $17,433 $12,359 $3,515 $7,820 $2,637 $7,370 $30,646 $15,825 $17,919 $33,435 Inventory Total Fixed Assets Total Assets Accounts Payable Total Liabilities & Owners' Equity 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) $4,395 $16,936 $14,482 $6,545 Taxes $9,188 ($389) $1,203 $9,411 $341 $0 $45 $350 $16,722 ($722) $2,190 $17,129 Profit Sharing Net Profit COMP-XM INQUIRER Page 3 Top Production Analysis Round: 2 December 31, 2016 Naseem Sultana Production Information 2nd Shift & Name Primary Segment Unit Age Units Inven Dec.3 Pfmn Size Sold tory Revision Date 1 MTBF Coord Coord Auto mation Capacity Material Labor Contr. OverNext Next Price Cost Cost Marg. time Round Round Plant Utiliz. Ace Nano 917 0 11/27/2016 1.1 23500 13.8 5.3 $39.00 $14.54 $8.47 42% 26% 6.0 728 126% Awe Elite 1,017 0 4/12/2016 1.6 26000 13.7 8.5 $40.00 $13.90 $8.81 43% 43% 6.0 714 142% Art Thrift 854 413 5/25/2017 4.1 18000 7.2 14.1 $24.00 $6.59 $5.14 45% 0% 7.0 1,130 97% Ant Core 1,313 251 1/13/2016 2.6 21000 9.6 10.6 $30.00 $9.84 $6.42 43% 0% 7.0 1,500 99% 0 0 6/4/2016 0.6 24000 15.5 8.2 $37.00 $0.00 $0.00 0% 0% 1.0 50 0% Awe2 Bell Thrift 2,079 0 4/10/2016 2.7 17000 8.0 12.2 $17.00 $7.76 $3.95 31% 100% 9.0 1,550 198% Bit Thrift 2,660 0 4/10/2016 2.6 17000 8.2 12.0 $17.00 $7.94 $3.95 30% 100% 9.0 1,700 198% Boat Core 1,526 138 12/15/2016 1.1 18000 11.1 8.5 $25.00 $11.07 $4.66 36% 43% 8.0 1,100 141% Buzz Core 1,711 137 12/17/2016 1.1 20000 11.8 9.0 $25.00 $11.75 $4.59 34% 36% 8.0 1,300 135% Cell Thrift 1,515 150 12/20/2017 3.5 14000 7.2 13.0 $18.00 $6.26 $2.39 49% 4% 9.5 1,250 103% City Core 2,303 24 12/7/2015 2.1 16000 9.6 10.6 $20.00 $9.01 $5.40 26% 47% 8.0 1,500 145% Cozy Nano 1,120 208 12/16/2016 1.0 18000 12.3 5.5 $30.00 $13.17 $6.86 33% 56% 6.0 900 155% Cute Elite 862 188 12/17/2016 1.0 20000 15.1 7.7 $34.00 $14.05 $7.56 36% 19% 6.0 850 118% Crimp Core 743 0 3/31/2016 0.8 16000 10.2 10.0 $21.00 $9.54 $5.80 26% 100% 7.0 1,040 149% 0 0 2/10/2017 0.0 0 0.0 Cake 0.0 $0.00 $0.00 $0.00 0% 0% 7.0 600 0% Deal Nano 1,584 0 12/2/2016 1.3 23000 12.2 6.0 $32.00 $13.96 $9.33 30% 100% 6.0 900 198% Dim Elite 889 258 1/4/2016 2.4 25000 15.4 7.5 $35.00 $15.32 $8.84 28% 57% 6.5 900 156% Dome Nano 1,379 303 9/18/2016 1.2 23000 13.3 4.8 $37.00 $14.96 $8.40 36% 82% 6.0 1,050 181% Dug Elite 1,302 284 8/16/2016 1.2 25000 15.2 7.0 $39.00 $15.41 $8.04 39% 53% 6.0 1,150 151% COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Naseem Sultana Round: 2 December 31, 2016 Thrift Statistics Total Industry Unit Demand 6,282 Actual Industry Unit Sales 6,282 Segment % of Total Industry 26.4% Next Year's Segment Growth Rate 11.0% Perceptual Map for Thrift Segment Thrift Customer Buying Criteria Expectations 1. Price 2. Importance $14.00 - 26.00 55% Reliability MTBF 14000-20000 20% 3. Ideal Position Pfmn 7.7 Size 12.5 15% 4. Age Ideal Age = 3.0 10% Top Products in Thrift Segment Market Share Units Sold to Seg Bit 31% 1,948 4/10/2016 YES 8.2 12.0 Bell 25% 1,586 4/10/2016 YES 8.0 Cell 21% 1,302 12/20/2017 Art 13% 830 City 8% Ant Crimp Name Age MTBF Dec.31 Promo Budget Cust. Awareness Sales Budget Cust. Accessibility Dec. Cust. Survey $17.00 17000 2.64 $1,200 74% $1,100 67% 42 12.2 $17.00 17000 2.74 $1,200 73% $1,100 67% 44 7.2 13.0 $18.00 14000 3.48 $1,050 61% $1,000 66% 26 5/25/2017 7.2 14.1 $24.00 18000 4.07 $1,300 87% $1,500 69% 15 474 12/7/2015 9.6 10.6 $20.00 16000 2.11 $1,050 61% $1,000 66% 14 2% 112 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 69% 3 0% 31 3/31/2016 10.2 10.0 $21.00 16000 0.75 $1,050 48% $900 66% 3 COMP-XM INQUIRER Revision Date Stock Out YES Pfmn Size Coord Coord List Price Page 5 Top Core Market Segment Analysis Round: 2 December 31, 2016 Naseem Sultana Core Statistics Total Industry Unit Demand 8,076 Actual Industry Unit Sales 8,076 Segment % of Total Industry 34.0% 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 10.4 Size 9.8 16% Perceptual Map for Core Segment Top Products in Core Segment Name Market Share Units Sold to Seg 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 City 23% 1,829 12/7/2015 9.6 10.6 $20.00 16000 2.11 $1,050 61% $1,000 65% 38 Buzz 18% 1,480 12/17/2016 11.8 9.0 $25.00 20000 1.10 $1,200 73% $900 70% 30 Boat 16% 1,310 12/15/2016 11.1 8.5 $25.00 18000 1.09 $1,200 73% $900 70% 26 Ant 13% 1,088 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 51% 21 Bit 9% 712 4/10/2016 YES 8.2 12.0 $17.00 17000 2.64 $1,200 74% $1,100 70% 18 Crimp 9% 712 3/31/2016 YES 10.2 10.0 $21.00 16000 0.75 $1,050 48% $900 65% 33 Bell 6% 493 4/10/2016 YES 8.0 12.2 $17.00 17000 2.74 $1,200 73% $1,100 70% 14 Deal 3% 214 12/2/2016 YES 12.2 6.0 $32.00 23000 1.35 $1,300 82% $900 17% 0 Cell 3% 213 12/20/2017 7.2 13.0 $18.00 14000 3.48 $1,050 61% $1,000 65% 0 Art 0% 25 5/25/2017 7.2 14.1 $24.00 18000 4.07 $1,300 87% $1,500 51% 0 COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Naseem Sultana Round: 2 December 31, 2016 Nano Statistics Total Industry Unit Demand 4,740 Actual Industry Unit Sales 4,740 Segment % of Total Industry 19.9% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria Expectations 1. Ideal Position 2. Importance Pfmn 12.3 Size 5.3 35% Price $28.00 - 40.00 27% 3. Age Ideal Age = 1.0 20% 4. Reliability MTBF 18000-24000 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Market Share Units Sold to Seg Dome 25% 1,205 9/18/2016 Deal 20% 971 12/2/2016 Cozy 20% 925 12/16/2016 Ace 14% 681 11/27/2016 Awe 4% 204 4/12/2016 Boat 4% 187 Cute 4% Buzz 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 13.3 4.8 $37.00 23000 1.20 $1,300 82% $800 85% 45 12.2 6.0 $32.00 23000 1.35 $1,300 82% $900 85% 64 12.3 5.5 $30.00 18000 1.04 $1,050 61% $900 65% 41 YES 13.8 5.3 $39.00 23500 1.11 $1,200 81% $1,100 65% 32 YES 13.7 8.5 $40.00 26000 1.59 $1,200 81% $1,000 65% 11 12/15/2016 11.1 8.5 $25.00 18000 1.09 $1,200 73% $900 24% 8 183 12/17/2016 15.1 7.7 $34.00 20000 1.05 $1,050 61% $1,500 65% 2 4% 174 12/17/2016 11.8 9.0 $25.00 20000 1.10 $1,200 73% $900 24% 9 Dug 3% 155 8/16/2016 15.2 7.0 $39.00 25000 1.24 $1,300 81% $800 85% 4 Ant 1% 55 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 65% 0 YES COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Naseem Sultana Round: 2 December 31, 2016 Elite Statistics Total Industry Unit Demand 4,676 Actual Industry Unit Sales 4,676 Segment % of Total Industry 19.7% 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 14.9 Size 7.9 22% 4. Reliability MTBF 20000-26000 20% Perceptual Map for Elite Segment Top Products in Elite Segment Market Share Units Sold to Seg Dug 25% 1,147 8/16/2016 15.2 7.0 Dim 19% 889 1/4/2016 15.4 Awe 17% 813 4/12/2016 Cute 15% 679 12/17/2016 Deal 9% 400 12/2/2016 Name Revision Date YES YES Age MTBF Dec.31 Promo Budget Cust. Awareness $39.00 25000 1.24 $1,300 81% 7.5 $35.00 25000 2.45 $1,300 13.7 8.5 $40.00 26000 1.59 15.1 Stock Out 7.7 $34.00 20000 12.2 6.0 $32.00 23000 Pfmn Size Coord Coord List Price Cust. Accessibility Dec. Cust. Survey $800 87% 41 82% $900 87% 36 $1,200 81% $1,000 79% 33 1.05 $1,050 61% $1,500 60% 30 1.35 $1,300 82% $900 87% 18 Sales Budget Ace 5% 236 11/27/2016 Cozy 4% 194 Dome 4% Buzz YES 13.8 5.3 $39.00 23500 1.11 $1,200 81% $1,100 79% 10 12/16/2016 12.3 5.5 $30.00 18000 1.04 $1,050 61% $900 60% 4 174 9/18/2016 13.3 4.8 $37.00 23000 1.20 $1,300 82% $800 87% 1 1% 57 12/17/2016 11.8 9.0 $25.00 20000 1.10 $1,200 73% $900 11% 3 Ant 1% 57 1/13/2016 9.6 10.6 $30.00 21000 2.65 $1,200 82% $1,000 79% 0 Boat 1% 29 12/15/2016 11.1 8.5 $25.00 18000 1.09 $1,200 73% $900 11% 1 COMP-XM INQUIRER Page 8 Top Market Share Report Naseem Sultana Actual Market Share in Units Thrift Core Nano Industry Unit Sales % of Market Elite Total 4,676 23,774 26.4% 34.0% 19.9% 19.7% 100.0% 6,282 8,076 Ace 14.4% Ant Total 13.2% 5.0% 3.9% 4.3% 17.4% Awe Art 4,740 4.3% 0.3% 1.8% 13.5% 3.6% 1.2% 1.2% 5.5% 15.0% 13.8% 19.8% 23.7% 17.3% Round: 2 December 31, 2016 Bell 25.3% 6.1% 8.8% Bit 31.0% 8.8% 11.2% Boat 16.2% 3.9% 0.6% 6.4% Buzz 18.3% 3.7% 1.2% 7.2% Total 56.3% 49.5% 7.6% 1.9% 33.5% Cell 20.7% City 2.6% 6.4% 7.5% 22.6% 9.7% Cozy 19.5% Crimp 0.5% 4.7% 3.9% 14.5% Cute 4.2% 3.6% 8.8% 3.1% Total 28.8% 34.1% 23.4% 18.7% 27.5% Deal 2.6% 20.5% 8.6% 6.7% 19.0% 3.7% 3.7% 5.8% 3.3% 24.5% 5.5% 2.6% 49.2% 55.8% 21.7% Dim Dome 25.4% Dug Total Potential Market Share in Units Thrift Core Nano Elite Total 6,282 8,076 4,740 4,676 23,774 26.4% 34.0% 19.9% 19.7% 100.0% Ace 19.1% 6.7% 5.1% Awe 5.5% 22.0% 5.4% Units Demanded % of Market Art 12.4% 0.3% Ant 1.7% 12.7% 1.1% 1.1% 5.2% Total 14.0% 13.0% 25.6% 29.8% 19.1% Bell 29.8% 7.3% 10.4% Bit 29.1% 8.3% 10.5% Boat 15.3% 3.4% 3.6% 0.6% 6.0% Buzz 17.2% 3.3% 1.1% 6.7% 6.9% 1.7% 33.6% Total 58.8% 48.1% Cell 19.4% 2.5% 6.0% City 7.0% 21.3% 9.1% Cozy 17.7% 3.8% 4.3% Cute 3.5% 13.3% 3.3% Crimp 0.7% 12.4% Total 27.1% 36.3% 21.2% 17.1% 27.1% 2.6% 20.3% 8.4% 6.6% 17.3% 3.4% 23.0% 3.4% 5.3% 3.0% 22.4% 5.0% 46.3% 51.4% 20.2% Deal 4.4% Dim Dome Dug Total 2.6% COMP-XM INQUIRER Page 9 Top Perceptual Map Naseem Sultana Round: 2 December 31, 2016 Perceptual Map for All Segments Andrews Name Chester Pfmn Size Revised Ace 13.8 5.3 11/27/2016 Awe 13.7 8.5 Art 7.2 Ant Awe2 Pfmn Size Cell 7.2 13.0 12/20/2017 4/12/2016 City 9.6 10.6 12/7/2015 14.1 5/25/2017 Cozy 12.3 5.5 9.6 10.6 1/13/2016 Cute 15.1 15.5 8.2 6/4/2016 Crimp 10.2 Baldwin Name Pfmn Size Revised Bell 8.0 12.2 4/10/2016 Bit 8.2 12.0 4/10/2016 Boat 11.1 8.5 12/15/2016 Buzz 11.8 9.0 12/17/2016 Name Digby Revised Name Pfmn Size Revised Deal 12.2 6.0 12/2/2016 Dim 15.4 7.5 1/4/2016 12/16/2016 Dome 13.3 4.8 9/18/2016 7.7 12/17/2016 Dug 15.2 7.0 8/16/2016 10.0 3/31/2016 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 2 December 31, 2016 Naseem Sultana HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 531 479 545 698 Complement 531 479 545 698 1st Shift Complement 463 289 389 403 2nd Shift Complement 68 190 156 294 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 7.7% 8.0% 6.3% 10.0% 169 38 125 170 0 157 0 0 $2,000 $2,500 $5,000 $0 60 40 80 0 104.4% 113.6% 123.1% 100.0% $507 $134 $749 $170 New Employees Separated Employees Recruiting Spend Training Hours Productivity Index Recruiting Cost Separation Cost $0 $783 $0 $0 $637 $383 $871 $0 $1,144 $1,301 $1,621 $170 Wages $28.15 $28.15 $28.15 $28.15 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% Training Cost Total HR Admin Cost 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 $500 $1,250 $0 $0 Vendor/JIT $500 $1,250 $0 $0 Quality Initiative Training $500 $0 $0 $1,250 $0 $1,500 $0 $1,250 Concurrent Engineering $500 $0 $0 $1,250 UNEP Green Programs $0 $0 $0 $0 $0 $0 $0 $0 Quality Function Deployment Effort $500 $0 $0 $0 CCE/6 Sigma Training $500 $750 $0 $1,250 GEMI TQEM Sustainability Initiatives $500 $750 $0 $1,250 $3,500 $5,500 $0 $6,250 Material Cost Reduction 6.35% 1.40% 0.00% 2.92% Labor Cost Reduction 8.01% 0.33% 0.00% 11.25% 10.78% 0.00% 0.00% 32.13% Reduction Admin Costs 6.61% 3.25% 0.00% 0.00% Demand Increase 3.98% 1.16% 0.00% 4.56% Process Mgt Budgets Last Year Channel Support Systems TQM Budgets Last Year Benchmarking Total Expenditures Cumulative Impacts Reduction R&D Cycle Time COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews C59559 Round: 6 Dec. 31, 2016 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 2016 2015 Common Size Cash $29,218 24.0% $27,741 Accounts Receivable $11,206 9.2% $10,238 $9,317 7.7% $4,116 40.9% $42,095 Inventory Total Current Assets $49,741 Plant & Equipment $133,180 109.5% $120,912 Accumulated Depreciation ($61,349) -50.5% ($52,470) $71,831 59.1% $68,442 $121,573 100.0% $110,537 $4,481 3.7% $2,281 Current Debt $15,035 12.4% $10,000 Long Term Debt $25,909 21.3% $31,944 Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $45,425 37.4% $44,225 Common Stock $10,725 8.8% $10,889 Retained Earnings $65,424 53.8% $55,423 $76,149 62.6% $66,312 $121,573 100.0% $110,537 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 2016 2015 $16,722 $2,303 $8,879 $8,061 $0 $235 $2,200 ($7,235) ($5,201) $22,179 ($968) $3,174 $21,632 $28,716 Cash Flows from Investing Activities: Plant Improvements ($12,268) ($24,088) Cash Flows from Financing Activities: Dividends Paid ($5,886) $0 $0 $0 ($1,000) ($7,000) $0 $10,000 ($6,035) ($5,500) $5,035 ($5,717) ($7,886) ($8,217) $1,478 ($3,589) $29,218 $27,741 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 Page 1 Annual Report Top Annual Report Andrews Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Sales 2016 Common Total Size Ace Awe Art Ant Awe2 Na Na Na $35,775 $40,681 $20,506 $39,378 $0 $0 $0 $0 $136,340 100.0% $7,774 $8,960 $4,661 $8,540 $0 $0 $0 $0 $29,935 22.0% $12,901 $14,436 $5,981 $13,322 $0 $0 $0 $0 $46,640 34.2% $0 $0 $617 $501 $0 $0 $0 $0 $1,118 0.8% $20,675 $23,396 $11,259 $22,362 $0 $0 $0 $0 $77,693 57.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable Contribution Margin $15,101 $17,285 $9,247 $17,015 $0 $0 $0 $0 $58,647 43.0% Depreciation $1,456 $1,428 $2,561 $3,400 $33 $0 $0 $0 $8,879 6.5% SG&A: R&D $920 $284 $1,000 $36 $432 $0 $0 $0 $2,672 2.0% Promotions $1,200 $1,200 $1,300 $1,200 $700 $0 $0 $0 $5,600 4.1% Sales $1,100 $1,000 $1,500 $1,000 $700 $0 $0 $0 $5,300 3.9% $534 $607 $306 $588 $0 $0 $0 $0 $2,035 1.5% Total Period $5,210 $4,520 $6,667 $6,224 $1,865 $0 $0 $0 $24,486 18.0% Net Margin $9,891 $12,765 $2,579 $10,792 ($1,865) $0 $0 $0 $34,161 25.1% 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 $3,515 2.6% EBIT $30,646 22.5% Short Term Interest $1,473 1.1% LongTerm Interest $2,921 2.1% Taxes $9,188 6.7% $341 0.3% $16,722 12.3% 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 2016 2015 Common Size Cash $51,954 23.7% $30,160 Round: 6 Dec. 31, 2016 Accounts Receivable Inventory $13,273 6.1% $13,376 $4,424 2.0% $8,773 31.8% $52,309 Total Current Assets $69,651 Plant & Equipment $227,700 103.9% $177,560 Accumulated Depreciation ($78,282) -35.7% ($63,102) Total Fixed Assets $149,418 68.2% $114,458 Total Assets $219,068 100.0% $166,767 $8,555 3.9% $9,190 Current Debt $43,715 20.0% $25,153 Long Term Debt $91,566 41.8% $68,245 65.7% $102,588 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $143,836 Common Stock $39,355 18.0% $27,581 Retained Earnings $35,877 16.4% $36,599 $75,232 34.3% $64,180 $219,068 100.0% $166,767 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: 2016 2015 ($722) $6,594 $15,180 $11,837 $0 $0 Accounts Payable ($635) $1,958 Inventory $4,349 $1,394 $104 ($2,577) $18,276 $19,207 Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements ($50,140) ($34,660) Cash Flows from Financing Activities: Dividends Paid $0 $0 $11,774 $2,887 $0 $0 $34,621 $14,394 ($11,300) $0 $18,562 ($4,071) Net cash from financing activities $53,657 $13,209 Net change in cash position $21,793 ($2,243) Closing cash position $51,954 $30,160 Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Page 1 Annual Report Top Annual Report Baldwin Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) 2016 Common Total Size Bell Bit Boat Buzz Na Na Na Na $35,349 $45,219 $38,139 $42,778 $0 $0 $0 $0 $161,485 100.0% $8,203 $10,602 $7,520 $8,282 $0 $0 $0 $0 $34,607 21.4% $16,231 $21,258 $16,574 $19,759 $0 $0 $0 $0 $73,823 45.7% $0 $0 $261 $270 $0 $0 $0 $0 $531 0.3% Total Variable $24,434 $31,861 $24,355 $28,310 $0 $0 $0 $0 $108,960 67.5% Contribution Margin $10,915 $13,358 $13,784 $14,468 $0 $0 $0 $0 $52,524 32.5% Depreciation $4,340 $4,760 $2,787 $3,293 $0 $0 $0 $0 $15,180 9.4% SG&A: R&D $279 $279 $970 $976 $0 $0 $0 $0 $2,505 1.6% Promotions $1,200 $1,200 $1,200 $1,200 $0 $0 $0 $0 $4,800 3.0% Sales $1,100 $1,100 $900 $900 $0 $0 $0 $0 $4,000 2.5% $524 $670 $566 $634 $0 $0 $0 $0 $2,394 1.5% Total Period $7,443 $8,010 $6,422 $7,004 $0 $0 $0 $0 $28,879 17.9% Net Margin $3,471 $5,348 $7,362 $7,464 $0 $0 $0 $0 $23,645 14.6% Sales Variable Costs: Direct Labor Direct Material 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 $7,820 4.8% EBIT $15,825 9.8% Short Term Interest $5,246 3.2% LongTerm Interest $11,690 7.2% ($389) -0.2% $0 0.0% ($722) -0.4% Taxes 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 2016 2015 Common Size Cash $36,672 17.6% $22,378 Accounts Receivable $12,481 6.0% $10,269 $9,748 4.7% $9,880 28.2% $42,527 Inventory Total Current Assets $58,901 Plant & Equipment $220,260 105.6% $165,300 Accumulated Depreciation ($70,500) -33.8% ($57,176) Total Fixed Assets $149,760 71.8% $108,124 Total Assets $208,662 100.0% $150,652 Round: 6 Dec. 31, 2016 LIABILITIES & OWNERS' EQUITY $8,156 3.9% $6,775 Current Debt $34,768 16.7% $21,771 Long Term Debt $83,186 39.9% $59,132 60.4% $87,678 Accounts Payable Total Liabilities $126,110 Common Stock $35,922 17.2% $18,534 Retained Earnings $46,629 22.3% $44,439 $82,551 39.6% $62,973 $208,662 100.0% $150,652 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: 2016 2015 Net Income (Loss) $2,190 $13,324 $9,887 $0 $0 $1,381 $978 $132 ($3,402) ($2,211) ($492) $14,815 Depreciation $5,490 $12,462 Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements ($54,960) ($40,900) Cash Flows from Financing Activities: Dividends Paid $0 $0 $17,388 $4,203 $0 $0 $35,354 $17,740 ($11,300) $0 $12,998 ($3,738) Net cash from financing activities $54,439 $18,204 Net change in cash position $14,294 ($10,234) Closing cash position $36,672 Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) $22,378 Page 1 Annual Report Top Annual Report Chester Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Cell City Cozy Cute Crimp Cake Na Na 2016 Common Total Size Sales $27,278 $46,055 $33,597 $29,324 $15,596 $0 $0 $0 $151,850 100.0% Direct Labor $3,759 $12,472 $7,629 $6,463 $4,311 $0 $0 $0 $34,633 22.8% Direct Material $9,976 $21,475 $14,297 $11,703 $7,281 $0 $0 $0 $64,733 42.6% $163 $42 $490 $475 $0 $0 $0 $0 $1,170 0.8% Total Variable $13,898 $33,989 $22,416 $18,641 $11,592 $0 $0 $0 $100,536 66.2% Contribution Margin $13,380 $12,066 $11,181 $10,683 $4,004 $0 $0 $0 $51,314 33.8% Depreciation $3,667 $3,800 $1,800 $1,700 $2,357 $0 $0 $0 $13,324 8.8% SG&A: R&D $1,000 $0 $973 $977 $250 $1,000 $0 $0 $4,200 2.8% Promotions $1,050 $1,050 $1,050 $1,050 $1,050 $0 $0 $0 $5,250 3.5% Sales $1,000 $1,000 $900 $1,500 $900 $0 $0 $0 $5,300 3.5% $482 $814 $594 $518 $276 $0 $0 $0 $2,684 1.8% Total Period $7,199 $6,664 $5,317 $5,745 $4,833 $1,000 $0 $0 $30,757 20.3% Net Margin $6,181 $5,402 $5,864 $4,938 ($829) ($1,000) $0 $0 $20,556 13.5% 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 $2,637 1.7% EBIT $17,919 11.8% Short Term Interest $4,068 2.7% LongTerm Interest $10,414 6.9% Taxes $1,203 $45 Net Profit 0.0% $2,190 Profit Sharing 0.8% 1.4% 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: 6 Dec. 31, 2016 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 2016 2015 Common Size Cash $34,416 23.6% $24,087 Accounts Receivable $15,089 10.3% $13,087 Inventory $19,971 13.7% $8,452 47.5% $45,626 Total Current Assets $69,476 Plant & Equipment $126,360 86.5% $93,960 Accumulated Depreciation ($49,711) -34.0% ($41,287) $76,649 52.5% $52,673 $146,125 100.0% $98,299 Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable $10,777 7.4% $8,255 Current Debt $31,491 21.6% $14,416 Long Term Debt $29,062 19.9% $20,758 48.8% $43,429 Total Liabilities $71,330 Common Stock $11,598 7.9% $8,801 Retained Earnings $63,197 43.2% $46,069 51.2% $54,870 Total Equity $74,795 Total Liab. & O. Equity $146,125 100.0% $98,299 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 2016 2015 $17,129 $14,218 $8,424 $6,264 $0 $0 $2,522 $1,967 ($11,519) $5,599 ($2,002) ($3,267) $14,554 $24,781 ($32,400) ($9,580) $0 ($7,236) $2,797 $0 $0 ($1,529) 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 $19,603 ($11,300) Change in current debt (net) $0 $17,075 Retirement of long term debt $1,211 ($3,761) Net cash from financing activities $28,176 ($11,315) Net change in cash position $10,329 $3,886 Closing cash position $34,416 $24,087 Page 1 Annual Report Top Annual Report Digby Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) 2016 Common Total Size Deal Dim Dome Dug Na Na Na Na $50,696 $31,116 $51,010 $50,760 $0 $0 $0 $0 $183,582 100.0% Direct Labor $14,789 $7,861 $11,608 $10,485 $0 $0 $0 $0 $44,743 24.4% Direct Material $20,709 $13,926 $20,278 $19,942 $0 $0 $0 $0 $74,855 40.8% $0 $758 $842 $797 $0 $0 $0 $0 $2,396 1.3% Total Variable $35,498 $22,545 $32,728 $31,224 $0 $0 $0 $0 $121,994 66.5% Contribution Margin $15,198 $8,571 $18,282 $19,536 $0 $0 $0 $0 $61,588 33.5% $2,104 $1,920 $2,100 $2,300 $0 $0 $0 $0 $8,424 4.6% Sales Variable Costs: Inventory Carry Period Costs: Depreciation SG&A: R&D $934 $9 $727 $634 $0 $0 $0 $0 $2,304 1.3% $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 2.8% Sales $900 $900 $800 $800 $0 $0 $0 $0 $3,400 1.9% Admin $402 $247 $404 $402 $0 $0 $0 $0 $1,455 0.8% Total Period $5,640 $4,375 $5,331 $5,436 $0 $0 $0 $0 $20,783 11.3% Net Margin $9,558 $4,196 $12,951 $14,100 $0 $0 $0 $0 $40,805 22.2% 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 $7,370 4.0% EBIT $33,435 18.2% Short Term Interest $3,212 1.7% LongTerm Interest $3,333 1.8% Taxes $9,411 5.1% $350 0.2% $17,129 9.3% Profit Sharing Net Profit Annual Report Page 2
