Please provide me answers to the questions on Final round based on the information on round 4 results.

1. Which of the following statements would BEST characterize an individual who is culturally competent in working with others from different cultures? Select: 1 Culturally competent people pay more attention to their verbal than their non-verbal behavior. Culturally competent people fill the \"silence\" during conversations. Culturally competent people avoid smiling too much. Culturally competent people often vary the rate of their speaking. 2. Your boss recently told you that you needed to be more "culturally intelligent." Specifically he said, "I received some feedback from a major client, Palo, who said after a meeting him that you seemed not be very interested in his business anymore." You replied that meeting with Palo is very uncomfortable because he is a "close talker" and invades your personal space so you end up backing up all the time. Your boss said, "well you better figure out what to do and fast, he's giving you another chance to meet next week." Which of the following actions would be MOST EFFECTIVE in your next communication with Palo? Select: 1 Follow Palo's lead and maintain a closer distance when speaking than you normally would. Express appreciation for Palo's business and communicate your dedication. Ask a colleague to accompany you during the next meeting to diffuse the situation's discomfort. Explain to Palo that you didn't mean to offend him, but you are not experienced in working with people from his country. 3. Currently Chester is paying a dividend of $17.08 (per share). If this dividend were raised by $3.64, given its current stock price what would be the Dividend Yield? Select: 1 8.9% 10.7% $3.64 $20.72 4. Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Digby to pull the product Dug entirely off the market this year. Assume Digby scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Digby or other companies. Without Digby's product Dug how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000). Select: 1 9,495 8,518 7,268 8,245 4,872 4,112 9,744 5. The Baldwin's balance sheet has $115,944,000 in equity. Further, the company is expecting $3,000,000 in net income next year. Assuming no dividends are paid and no stock is issued, what would their Book Value be next year? Select: 1 $37.64 $36.69 $19.77 $80.49 6. One of the least desirable and routine tasks members of your team must do is taking minutes (n team meetings. Proof that this task is disagreeable can be seen in the repeated arguments amo members before every meeting about who should take the minutes. Which of the following woul most effective way for the team to address this situation? Select: 1 Ask your manager to decide in order to minimize any personal bias among team members. Randomly assign a person to be the official note taker at the beginning of each meeting. Create a rotating assignment so each team member shares note taking. Assign note taking to whichever person enters last at each meeting. 7. In the Month of March, Baldwin received orders of 109 units at a price of $15.00 for their product Bead. Baldwin uses the accrual method of accounting and offers 30 day credit terms. Baldwin delivers 109 units in April. They received payment for 55 units in March, and 55 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands) Select: 1 0, $1,635 $1,635 , 0 0, $818 $818 , $818 8. You've received your raise pool for the year and it's not as big as you had hoped. You fear that you won't be able to provide the kind of raises you think most of your employees deserve. The only problem is that the human resources department requires that performance evaluation scores be aligned with raises. Thus, you won't be able to give your employees high performance scores and low raises, but rather you'll have to downgrade their performance scores to match their raise amounts. Which of the following actions is most likely to help you promote a greater sense of fairness among your employees? Select: 1 Present an accurate performance appraisal and explain why raises are not commensurate with their actual performance. Tell HR that you won't participate in performance appraisals this year. Tell employees the situation and have them each file grievances with the HR department. Find support for giving lower performance evaluations so as to send a consistent message. 9. One of your employees has performed well this year. At performance appraisal time, she asks you about how raise and bonus amounts will be determined. In this situation, she is most likely to be concerned about which of the following methods for fair distribution of resources? Select: 1 Need Equity Equality Loyalty 10. Last year Acre charged $2,964,000 Depreciation on the Income Statement of Andrews. If Acre sold a fully depreciated piece of equipment at a loss, the effect on Andrews's financial statements would be (all other items remaining equal): Select: 1 Decrease Net Cash from operations on the Cash Flow Statement Increase Net Cash from operations Just impact the Balance Sheet No impact on Net Cash from operations 11. Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) n from various strategic initiatives. Digby is planning to conduct exit interviews to learn more abo they can improve in processes and increase productivity. The exit interviews are estimated to co per employee in additional to normal separation costs of $5000. How much will the company pa separation costs if these exit interviews are implemented next year? Select: 1 $616,140 $1,496,340 $166,260 $68,460 12. The Baldwin company wants to decrease its plant utilization for Bid by 15%. How many units would need to be produced next year to meet this production goal? Ignore impact of accounts payable on plant utilization. Select: 1 1,059 1,485 1,725 1,245 13. Which company has the least efficient SG&A/Sales ratio? Select: 1 Digby Baldwin Andrews Chester 14. You've dreaded it for a while, but now you feel prepared. In 30 minutes you'll have to terminate Tim, a 12-year employee who is beloved by everyone in the firm. Unfortunately, he just hasn't performed very well since his wife died three years ago and while he was given every chance to regain his performance, he has just continued to slide. Which of the following elements of communication is MOST likely to influence Tim's perception of your communication effectiveness? Select: 1 Tone. Indirect non-verbals. Formality. Pace. 15. Sally was recently given feedback from her boss that the content of her quarterly financial presentation is excellent; however, she really needs to work on the "execution." Which of the following aspects of communication effectiveness is Sally's boss NOT referring to when talking about execution? Select: 1 Her level of enthusiasm when presenting. The accuracy of her data. Her non-verbal presentation behavior. The format of her slides. 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 " Sovin Shresth a Round: 4 Dec. 31, 2019 Andrews Sovin Shrestha Student: Sovin Shrestha 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 % Andrews 6.9% 0.80 5.5% 1.4 7.5% $0 $126,838,372 $17,661,778 $8,784,527 $46,195,712 15.0% 38.4% Baldwin 5.8% 0.79 4.6% 2.2 10.2% $0 $202,093,692 $34,915,325 $11,769,513 $21,058,326 10.8% 39.9% Chester 18.6% 1.45 27.0% 1.7 44.5% $0 $278,770,431 $88,677,103 $51,927,775 $110,660,316 5.2% 43.1% Digby 6.2% 0.74 4.6% 2.4 11.1% $0 $161,079,675 $31,270,452 $10,026,118 $17,531,985 9.8% 43.0% COMP-XM INQUIRER Page 1 Top Round: 4 Stocks & Bonds Sovin Shrestha December 31 , 2019 Stock Market Summary Company Andrews Baldwin Chester Digby Close Change Shares $84.13 $49.39 $192.96 $39.49 ($2.12) $12.56 $76.09 $11.54 2,051,466 3,160,351 1,873,278 3,399,143 MarketCap Book Value ($M) $173 $57.10 $156 $36.69 $361 $62.25 $134 $26.66 EPS Dividend Yield P/E $4.28 $3.72 $27.72 $2.95 $0.00 $0.17 $17.08 $3.20 0.0% 0.3% 8.9% 8.1% 19.6 13.3 7.0 13.4 Bond Market Summary Company Series# Face Yield Close$ S&P 11.2S2022 11.9S2023 10.2S2027 $8,837,000 $7,072,000 $20,000,000 11.1% 11.6% 10.6% 100.49 102.79 95.88 AA AA AA 12.4S2023 12.0S2025 12.5S2026 13.1S2027 13.8S2028 $744,173 $15,724,747 $17,727,657 $35,887,067 $23,894,903 12.9% 12.9% 13.2% 13.5% 13.7% 96.19 93.33 94.81 97.19 100.50 CCC CCC CCC CCC CCC 11.2S2025 11.5S2026 11.7S2027 12.5S2028 $2,676,884 $1,297,616 $18,567,575 $11,734,080 11.6% 11.8% 11.9% 12.2% 96.31 97.27 98.02 102.12 BBB BBB BBB BBB 12.5S2023 12.5S2024 12.5S2025 12.9S2026 13.4S2027 14.1S2028 $13,668,925 $7,999,360 $9,474,919 $14,403,416 $34,605,238 $10,547,832 13.1% 13.2% 13.3% 13.6% 13.8% 14.1% 95.35 94.52 93.80 94.87 96.76 100.00 CC CC CC CC CC CC Andrews Baldwin Chester Digby Next Year's Prime Rate 9.00% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 4 December 31, 2019 Sovin Shrestha Andrews Baldwin Chester Digby $8,785 $11,770 $51,928 $10,026 $9,061 $0 $18,500 ($816) $10,844 ($180) $17,393 ($807) ($1,087) $2,386 ($924) $18,221 ($366) $2,340 ($1,249) $30,179 $1,171 $4,735 ($4,827) $63,671 ($1,882) $6,239 ($265) $30,705 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($529) $0 $0 $0 ($12,811) ($28,826) $34,795 $0 ($31,996) $0 ($4,296) $0 ($5,357) ($22,185) $29,235 $0 ($10,872) $0 $0 $0 ($10,608) ($31,691) $29,480 $0 $0 ($7,372) ($34,600) ($23,690) $18,221 $22,807 $29,072 $7,015 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $80,603 $10,425 $10,224 $101,252 Baldwin $55,917 $16,610 $11,892 $84,419 Chester $63,956 $22,913 $14,202 $101,070 Digby $51,174 $13,239 $5,826 $70,239 Plant and equipment Accumulated Depreciation Total Fixed Assets $135,916 ($78,007) $57,909 $277,500 ($107,526) $169,974 $162,660 ($71,092) $91,568 $260,900 ($113,349) $147,551 Total Assets $159,161 $254,392 $192,638 $217,790 Accounts Payable Current Debt Long Term Debt Total Liabilities $6,124 $0 $35,909 $42,033 $9,675 $34,795 $93,979 $138,448 $12,509 $29,235 $34,276 $76,020 $6,973 $29,480 $90,700 $127,153 Common Stock Retained Earnings Total Equity $12,079 $105,049 $117,129 $56,449 $59,495 $115,944 $11,100 $105,519 $116,619 $54,009 $36,628 $90,637 Total Liabilities & Owners' Equity $159,161 $254,392 $192,638 $217,790 Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) Andrews $126,838 $78,117 $9,061 $18,998 $3,000 Baldwin $202,094 $121,483 $18,500 $21,819 $5,376 Chester $278,770 $158,631 $10,844 $14,403 $6,215 Digby $161,080 $91,778 $17,393 $15,786 $4,852 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 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 Net cash from financing activities Net change in cash position EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit $17,662 $3,871 $4,827 $179 $8,785 $34,915 $16,439 $6,467 $240 $11,770 $88,677 $7,158 $28,532 $1,060 $51,928 $31,270 $15,531 $5,509 $205 $10,026 COMP-XM INQUIRER Page 3 Top Production Analysis Sovin Shrestha Round: 4 December 31, 2019 Production Information Primary Segme nt Units Sold Acre Thrift 1,149 0 Adam Core 1,500 0 Aft Nano 575 525 Agape Elite 1,249 0 Apple Elite 216 0 Bead Thrift 1,311 80 Bid Thrift 1,545 167 Bold Nano 1,769 330 Buddy Elite 1,171 150 Bat Core 1,644 92 Beetle Core 1,779 3 Cedar Nano 2,367 9 Cid Elite 1,838 Name Unit Inven Revisio Age tory n Date Dec.31 9/30/20 19 8/3/201 9 3/14/20 18 10/23/2 019 4/8/201 9 12/20/2 018 12/6/20 16 12/21/2 019 12/21/2 019 12/14/2 019 12/14/2 019 9/13/20 19 8/21/20 0 19 MTBF Pfmn Coord 1.6 20000 1.5 Size Coord 2nd Auto Shift & mation Capacit Contr. OverNext y Next Marg. time Round Round Price Material Cost Labor Cost Plant Utiliz. 8.3 12.0 $17.00 $7.33 $3.81 29% 0% 8.0 1,170 13% 22000 10.7 10.0 $23.00 $9.47 $4.83 38% 22% 7.5 1,240 121% 2.7 24000 11.2 7.3 $37.00 $11.21 $7.99 42% 43% 5.5 768 142% 1.4 26000 15.0 7.5 $35.00 $13.07 $8.31 40% 66% 5.5 754 164% 0.7 22000 15.0 8.0 $36.00 $11.80 $8.65 43% 100% 5.5 150 144% 3.2 14000 8.7 11.5 $15.00 $5.93 $1.24 50% 0% 10.0 1,250 83% 4.1 16000 9.6 10.6 $17.00 $7.14 $1.24 46% 0% 10.0 1,599 93% 1.0 18000 13.8 3.4 $28.00 $11.83 $6.04 35% 86% 7.0 1,047 184% 1.0 20000 17.2 6.2 $34.00 $12.62 $5.27 46% 16% 7.0 948 115% 1.0 16000 11.6 8.4 $19.00 $8.63 $4.34 32% 55% 8.0 1,099 153% 1.0 16000 11.3 8.8 $20.00 $8.38 $4.46 37% 74% 8.0 1,033 173% 1.3 23000 14.5 3.2 $34.00 $13.04 $6.63 43% 100% 7.0 1,200 198% 1.6 25000 17.6 5.7 $34.00 $13.82 $6.63 40% 100% 7.0 850 198% Coat Nano 1,816 Cure Elite 1,854 Dell Thrift 1,929 Dixie Thrift 1,951 Dug Core 2,178 Dune Core 2,112 8/13/20 19 8/21/20 187 19 517 6/10/20 19 6/10/20 45 19 12/14/2 146 019 12/14/2 217 019 53 1.4 23000 14.9 2.9 $37.00 $13.28 $6.31 45% 60% 7.0 1,250 158% 1.3 25000 17.4 5.4 $37.00 $13.83 $5.87 45% 26% 7.0 1,350 125% 2.6 17000 9.0 11.2 $15.00 $6.69 $1.36 46% 16% 10.0 1,600 114% 2.6 17000 9.2 11.0 $15.00 $6.82 $1.28 44% 0% 10.0 1,800 94% 1.6 18000 11.7 7.8 $23.00 $9.03 $4.59 41% 68% 8.0 1,250 166% 1.6 20000 12.4 8.3 $25.00 $9.64 $4.37 43% 40% 8.0 1,500 139% COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Sovin Shrestha Round: 4 December 31, 2019 Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 7,738 7,738 25.8% 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 8.7 Size 11.5 Ideal Age = 3.0 Price Reliability Ideal Position Age Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Market Share Units Sold to Revision Date Stock Out Pfmn Size Coord Coord List Price MTBF Age Dec.31 Promo Budget Cust. Aware- Sales Cust. Budget Access- Dec. Cust. Dell Dixie Bead Acre Bid Adam Beetle Bat Dug 24% 24% 16% 15% 13% 5% 3% 1% 0% Seg 1,851 1,829 1,266 1,149 974 351 207 106 4 6/10/2019 6/10/2019 12/20/2018 9/30/2019 12/6/2016 8/3/2019 12/14/2019 12/14/2019 12/14/2019 YES YES 9.0 9.2 8.7 8.3 9.6 10.7 11.3 11.6 11.7 11.2 11.0 11.5 12.0 10.6 10.0 8.8 8.4 7.8 $15.00 $15.00 $15.00 $17.00 $17.00 $23.00 $20.00 $19.00 $23.00 17000 17000 14000 20000 16000 22000 16000 16000 18000 2.65 2.60 3.25 1.58 4.11 1.55 0.96 0.96 1.56 $1,300 $1,300 $1,200 $1,400 $1,200 $1,400 $1,200 $1,200 $1,300 ness 83% 83% 72% 100% 72% 100% 62% 67% 83% $1,600 $1,600 $1,000 $1,500 $1,000 $1,500 $900 $900 $1,400 ibility 83% 83% 78% 84% 78% 84% 78% 78% 83% COMP-XM INQUIRER Survey 69 67 46 66 36 22 2 0 0 Page 5 Top Core Market Segment Analysis Sovin Shrestha Round: 4 December 31, 2019 Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 9,768 9,768 32.6% 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 12.0 Size 8.2 Price Age Reliability Ideal Position Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Market Name Share Dug 22% Dune 22% Beetle 16% Units Sold to Seg 2,168 2,102 1,572 Revision Stock Date Out 12/14/2019 12/14/2019 12/14/2019 Pfmn Size Coord Coord 11.7 7.8 12.4 8.3 11.3 8.8 List Price $23.00 $25.00 $20.00 MTBF 18000 20000 16000 Age Dec.31 1.56 1.57 0.96 Promo Budget $1,300 $1,300 $1,200 Cust. Awareness 83% 83% 62% Cust. Sales AccessBudget ibility $1,400 81% $1,400 81% $900 73% Dec. Cust. Survey 53 52 39 Bat Adam Bid Agape Aft Dixie Dell Bead Apple 16% 12% 6% 3% 2% 1% 1% 0% 0% 1,538 1,150 571 268 151 122 78 45 5 12/14/2019 8/3/2019 12/6/2016 10/23/2019 3/14/2018 6/10/2019 6/10/2019 12/20/2018 4/8/2019 YES YES YES 11.6 10.7 9.6 15.0 11.2 9.2 9.0 8.7 15.0 8.4 10.0 10.6 7.5 7.3 11.0 11.2 11.5 8.0 $19.00 $23.00 $17.00 $35.00 $37.00 $15.00 $15.00 $15.00 $36.00 16000 22000 16000 26000 24000 17000 17000 14000 22000 0.96 1.55 4.11 1.39 2.68 2.60 2.65 3.25 0.73 $1,200 $1,400 $1,200 $1,400 $1,400 $1,300 $1,300 $1,200 $1,400 67% 100% 72% 100% 100% 83% 83% 72% 58% $900 $1,500 $1,000 $1,500 $1,300 $1,600 $1,600 $1,000 $1,500 73% 70% 73% 70% 70% 81% 81% 73% 70% COMP-XM INQUIRER 37 51 10 2 4 3 2 0 1 Page 6 Top Nano Market Segment Analysis Sovin Shrestha Round: 4 December 31, 2019 Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,157 6,157 20.6% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 13.9 Size 3.1 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Ideal Position Price Age Reliability Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Market Name Share Cedar 35% Coat 28% Bold 28% Aft 7% Units Sold to Seg 2,165 1,753 1,749 413 Revision Stock Date Out 9/13/2019 8/13/2019 12/21/2019 3/14/2018 Pfmn Size Coord Coord 14.5 3.2 14.9 2.9 13.8 3.4 11.2 7.3 List Price $34.00 $37.00 $28.00 $37.00 MTBF 23000 23000 18000 24000 Age Dec.31 1.27 1.36 1.02 2.68 Promo Budget $1,400 $1,400 $1,200 $1,400 Cust. Awareness 92% 92% 73% 100% Cust. Sales AccessBudget ibility $1,100 80% $1,000 80% $2,400 74% $1,300 57% Dec. Cust. Survey 66 51 56 4 Agape Cure Dug Dune Apple 1% 0% 0% 0% 0% 48 20 5 3 1 10/23/2019 8/21/2019 12/14/2019 12/14/2019 4/8/2019 YES YES 15.0 17.4 11.7 12.4 15.0 7.5 5.4 7.8 8.3 8.0 $35.00 $37.00 $23.00 $25.00 $36.00 26000 25000 18000 20000 22000 1.39 1.35 1.56 1.57 0.73 $1,400 $1,400 $1,300 $1,300 $1,400 100% 91% 83% 83% 58% $1,500 $1,000 $1,400 $1,400 $1,500 57% 80% 12% 12% 57% COMP-XM INQUIRER 3 0 0 0 0 Page 7 Top Elite Market Segment Analysis Sovin Shrestha Round: 4 December 31, 2019 Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,290 6,290 21.0% 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 17.1 Size 6.3 MTBF 20000-26000 Age Price Ideal Position Reliability Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Cid Cure Buddy Agape Apple Cedar Coat Bold Market Share 29% 29% 19% 15% 3% 3% 1% 0% Units Sold to Seg 1,838 1,833 1,171 934 211 202 64 20 Revision Stock Date Out 8/21/2019 YES 8/21/2019 12/21/2019 10/23/2019 YES 4/8/2019 YES 9/13/2019 8/13/2019 12/21/2019 Pfmn Size Coord Coord 17.6 5.7 17.4 5.4 17.2 6.2 15.0 7.5 15.0 8.0 14.5 3.2 14.9 2.9 13.8 3.4 List Price $34.00 $37.00 $34.00 $35.00 $36.00 $34.00 $37.00 $28.00 MTBF 25000 25000 20000 26000 22000 23000 23000 18000 Age Dec.31 1.63 1.35 1.03 1.39 0.73 1.27 1.36 1.02 Promo Budget $1,400 $1,400 $1,200 $1,400 $1,400 $1,400 $1,400 $1,200 Cust. Awareness 92% 91% 72% 100% 58% 92% 92% 73% Cust. Sales AccessBudget ibility $1,000 87% $1,000 87% $2,400 74% $1,500 84% $1,500 84% $1,100 87% $1,000 87% $2,400 74% Dec. Cust. Survey 54 50 37 44 27 0 0 0 Aft Dune 0% 0% 11 7 3/14/2018 12/14/2019 11.2 12.4 7.3 8.3 $37.00 $25.00 24000 20000 2.68 1.57 $1,400 $1,300 100% 83% $1,300 $1,400 84% 5% COMP-XM INQUIRER 0 0 Page 8 Top Market Share Report Actual Market Share in Units Core Nano Elite Total 7,738 9,768 6,157 Industry Unit Sales % of Market 6,290 29,954 25.8% 32.6% 20.6% 21.0% 100.0% Acre Adam Aft Agape Apple Total 14.8% 4.5% 11.8% 1.6% 2.7% 0.1% 19.4% 16.1% Bead Bid Bold Buddy Bat Beetle Total 16.4% 12.6% Dell Dixie Dug Dune Total 6.7% 0.2% 0.8% 14.8% 0.0% 3.4% 7.5% 18.4% 0.5% 5.8% 28.4% 0.3% 18.6% 1.4% 15.7% 2.7% 16.1% 33.0% 38.1% 28.4% 18.9% 35.2% 3.2% 29.2% 28.5% 1.0% 0.3% 29.1% 64.0% 62.6% 23.9% 0.8% 23.6% 1.2% 0.1% 22.2% 21.5% 47.6% 45.8% 0.1% 0.1% 0.1% 0.1% 0.1% Round: 4 December 31, 2019 Potential Market Share in Units Thrift Cedar Cid Coat Cure Total Sovin Shrestha 3.8% 5.0% 1.9% 4.2% 0.7% 15.7% 4.4% 5.2% 5.9% 3.9% 5.5% 5.9% 30.8% 7.9% 6.1% 6.1% 6.2% 26.3% 6.4% 6.5% 7.3% 7.0% 27.3% Units Demanded % of Market Thrift Core Nano Elite Total 7,738 9,768 6,157 6,290 29,954 25.8% 32.6% 20.6% 21.0% 100.0% 0.2% 16.8% 11.9% 28.9% 5.2% 8.4% 1.9% 4.7% 2.6% 22.7% Acre Adam Aft Agape Apple Total 20.1% 7.6% 27.7% 19.8% 1.4% 2.9% 0.2% 24.2% Bead Bid Bold Buddy Bat Beetle Total 14.6% 11.3% 0.4% 5.3% 1.2% 2.6% 29.7% 14.1% 14.9% 34.7% Cedar Cid Coat Cure Total Dell Dixie Dug Dune Total 6.7% 1.0% 0.1% 7.7% 28.1% 0.3% 16.0% 28.1% 16.2% 3.9% 4.6% 5.8% 3.4% 4.9% 5.5% 28.2% 35.5% 3.2% 25.9% 0.9% 24.8% 54.7% 8.0% 5.4% 6.0% 5.3% 24.7% 0.1% 0.1% 5.8% 5.8% 6.5% 6.3% 24.4% 28.2% 0.3% 64.0% 21.4% 21.2% 42.6% 0.7% 1.1% 19.9% 19.3% 41.1% 0.1% 0.1% 0.1% COMP-XM INQUIRER Page 9 Top Perceptual Map Sovin Shrestha Round: 4 December 31, 2019 Perceptual Map for All Segments Andrews Name Acre Adam Aft Agape Apple Pfmn 8.3 10.7 11.2 15.0 15.0 Name Dell Dixie Dug Dune Pfmn 9.0 9.2 11.7 12.4 Size 12.0 10.0 7.3 7.5 8.0 Baldwin Revised 9/30/2019 8/3/2019 3/14/2018 10/23/2019 4/8/2019 Name Bead Bid Bold Buddy Bat Beetle Pfmn 8.7 9.6 13.8 17.2 11.6 11.3 Size 11.5 10.6 3.4 6.2 8.4 8.8 Chester Revised 12/20/2018 12/6/2016 12/21/2019 12/21/2019 12/14/2019 12/14/2019 Name Cedar Cid Coat Cure Pfmn 14.5 17.6 14.9 17.4 Size 3.2 5.7 2.9 5.4 Revised 9/13/2019 8/21/2019 8/13/2019 8/21/2019 Digby Size 11.2 11.0 7.8 8.3 Revised 6/10/2019 6/10/2019 12/14/2019 12/14/2019 COMP-XM INQUIRER Page 10 Top HR/TQM Report Sovin Shrestha HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 406 501 645 326 Complement 406 501 645 326 1st Shift Complement 281 336 385 233 2nd Shift Complement 125 165 260 93 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 6.4% 6.0% 10.0% 8.0% 26 30 64 26 112 114 13 135 $5,000 $5,000 $0 $2,500 80 80 0 40 117.3% 129.9% 100.0% 118.4% Recruiting Cost $156 $180 $64 $91 Separation Cost $560 $569 $65 $676 New Employees Separated Employees Recruiting Spend Training Hours Productivity Index Training Cost $650 $802 $0 $261 $1,366 $1,551 $129 $1,028 Wages $31.04 $31.04 $31.04 $31.04 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% 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 Process Mgt Budgets Last Year CPI Systems Andrews Baldwin Chester Digby $0 $1,500 $0 $1,250 Round: 4 December 31, 2019 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 $0 $0 $0 $750 $750 $1,500 $0 $0 $0 $1,500 $0 $1,250 $1,250 $1,250 $0 $1,250 $0 $1,500 $0 $0 $0 $750 $0 $750 $3,000 $1,500 $0 $0 $0 $6,000 $0 $0 $1,250 $1,250 $6,250 $0 $0 $750 $750 $5,500 5.77% 8.46% 38.78% 0.00% 4.85% 6.07% 0.28% 0.00% 60.02% 2.35% 9.48% 14.00% 40.01% 0.00% 12.78% 10.20% 4.39% 0.00% 34.91% 10.57% COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews Round: 4 Dec. 31, 2019 C59559 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Cash Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your Total Current competitors. Plant & Equipment: The current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Plant & Payable: What the company currently owes Equipment suppliers for materials and services. Current Accumulated Debt: The debt the company is obligated to payDepreciation during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets year.Long Term Debt: The company's long term debt is in the form of bonds, and this represents Total Assets the total value of your bonds.Common Stock: The amount of capital invested by shareholders in the company.Retained Earnings: The profitsLIABILITIES & that the company chose to keep instead of OWNERS' paying to shareholders as dividends. EQUITY Accounts Payable Current Debt Long Term Debt $80,603 2019 Common Size 50.6% $10,425 6.5% $9,501 $10,224 6.4% $12,610 63.6% $84,494 $135,916 85.4% $135,916 ($78,007) -49.0% ($68,946) $57,909 36.4% $66,970 $159,161 100.0% $151,464 3.8% 0.0% 22.6% $7,211 $0 $35,909 26.4% $43,120 7.6% 66.0% $12,079 $96,265 $101,252 $6,124 $0 $35,909 Total Liabilities Common Stock Retained $42,033 $12,079 $105,049 2018 $62,383 Earnings Total Equity $117,128 73.6% $108,344 Total Liab. & O. Equity $159,161 100.0% $151,464 Cash Flow Statement Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2018 $14,552 $8,781 $0 $0 ($1,087) $2,386 ($924) $2,007 ($7,747) $494 $18,221 $18,087 $0 ($11,500) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($11,300) $0 ($11,300) $18,221 $80,603 ($4,713) $62,383 Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position 2019 $8,785 $9,061 Page 1 Annual Report Top Annual Report Andrews Round: 4 Dec. 31, 2019 C59559 2019 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventor y Carry Total Variable Contribu tion Margin $0 2019 Total $126,838 Common Size 100.0% $0 $0 $29,569 23.3% $0 $0 $0 $47,321 37.3% $0 $0 $0 $0 $1,227 1.0% $26,083 $4,471 $0 $0 $0 $78,117 61.6% $17,645 $3,322 $0 $0 $0 $48,721 38.4% Acre Adam Aft Agape Apple Na Na Na $19,537 $34,502 $21,278 $43,728 $7,793 $0 $0 $5,474 $7,246 $4,595 $10,381 $1,873 $0 $8,352 $14,069 $6,601 $15,701 $2,598 $0 $0 $1,227 $0 $13,826 $21,315 $12,423 $5,711 $13,187 $8,855 Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period Net Margin $2,964 $2,976 $1,434 $1,407 $280 $0 $0 $0 $9,061 7.1% $756 $597 $0 $821 $271 $0 $0 $0 $2,445 1.9% $1,400 $1,400 $1,400 $1,400 $1,400 $0 $0 $0 $7,000 5.5% $1,500 $1,500 $1,300 $1,500 $1,500 $0 $0 $0 $7,300 5.8% $347 $613 $378 $777 $138 $0 $0 $0 $2,254 1.8% $6,967 $7,086 $4,512 $5,905 $3,590 $0 $0 $0 $28,059 22.1% ($1,256) $6,101 $4,344 $11,740 ($267) $0 $0 $0 $20,662 16.3% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory.Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest Costs: R&D department expenditures for each product. Admin: Administration overhead is LongTerm Interest estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The Taxes sales force budget for each product. Other: Charges not included in other categories such as Profit Sharing Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage Net Profit 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. $3,000 $17,662 $0 $3,871 $4,827 $179 $8,785 Annual Report 2.4% 13.9% 0.0% 3.1% 3.8% 0.1% 6.9% Page 2 PRINT Annual Report Top Annual Report Baldwin Round: 4 Dec. 31, 2019 C59559 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Cash Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your Total Current competitors. Plant & Equipment: The current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Plant & Payable: What the company currently owes Equipment suppliers for materials and services. Current Accumulated Debt: The debt the company is obligated to payDepreciation during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets year.Long Term Debt: The company's long term $55,917 2019 Common Size 22.0% $33,110 $16,610 6.5% $15,362 $11,892 4.7% $14,232 33.2% $62,704 $277,500 109.1% $277,500 ($107,526) -42.3% ($89,026) 66.8% $188,474 $84,419 $169,974 2018 debt is in the form of bonds, and this representsTotal Assets the total value of your bonds.Common Stock: The amount of capital invested by shareholdersLIABILITIES & in the company.Retained Earnings: The profitsOWNERS' that the company chose to keep instead of EQUITY paying to shareholders as dividends. $254,392 Accounts Payable Current Debt Long Term Debt 100.0% $251,177 3.8% 13.7% 36.9% $10,042 $28,826 $107,606 54.4% $146,474 $56,449 22.2% $56,449 $59,495 23.4% $48,255 $9,675 $34,795 $93,979 Total Liabilities $138,449 Common Stock Retained Earnings Total Equity $115,944 45.6% $104,704 Total Liab. & O. Equity $254,392 100.0% $251,177 Cash Flow Statement Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2019 2018 $11,770 $18,500 $2,155 $18,500 ($816) $0 ($366) $2,340 ($1,249) $2,169 ($5,680) ($2,988) $30,179 $14,157 $0 ($56,840) ($529) $0 $0 $0 ($12,811) $5,968 $0 $20,113 $0 $23,895 $0 ($5,605) ($7,372) $38,403 $22,807 $55,917 ($4,280) $33,110 Page 1 Annual Report Top Annual Report Baldwin Round: 4 Dec. 31, 2019 C59559 2019 Income Statement (Product Name:) Sales Variable Bead Bid Bold Buddy Bat Beetle Na Na $19,664 $26,271 $49,528 $39,806 $31,234 $35,590 $0 $0 2019 Total $202,094 Common Size 100.0% Costs: Direct Labor Direct Material Inventor y Carry Total Variable Contribu tion Margin Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period Net Margin $1,837 $2,505 $10,832 $6,409 $7,196 $7,944 $0 $0 $36,724 18.2% $8,009 $11,591 $20,578 $14,653 $13,916 $14,585 $0 $0 $83,332 41.2% $72 $183 $704 $323 $141 $4 $0 $0 $1,427 0.7% $9,918 $14,279 $32,114 $21,386 $21,254 $22,533 $0 $0 $121,483 60.1% $9,746 $11,992 $17,414 $18,420 $9,981 $13,057 $0 $0 $80,610 39.9% $3,833 $4,904 $2,373 $2,149 $2,784 $2,457 $0 $0 $18,500 9.2% $0 $0 $985 $985 $966 $966 $0 $0 $3,902 1.9% $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $0 $0 $7,200 3.6% $1,000 $1,000 $2,400 $2,400 $900 $900 $0 $0 $8,600 4.3% $206 $275 $519 $417 $327 $373 $0 $0 $2,117 1.0% $6,239 $7,379 $7,477 $7,151 $6,177 $5,896 $0 $0 $40,319 20.0% $3,507 $4,613 $9,938 $11,270 $3,803 $7,161 $0 $0 $40,292 19.9% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory.Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest Costs: R&D department expenditures for each product. Admin: Administration overhead is LongTerm Interest estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The Taxes sales force budget for each product. Other: Charges not included in other categories such as Profit Sharing Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage Net Profit 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 $5,376 $34,915 $4,245 $12,194 $6,467 $240 $11,770 2.7% 17.3% 2.1% 6.0% 3.2% 0.1% 5.8% Page 2 PRINT Annual Report Top Annual Report Chester Round: 4 Dec. 31, 2019 C59559 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Cash Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery Accounts $63,956 $22,913 2019 Common Size 33.2% 11.9% 2018 $34,884 $18,085 Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your Total Current competitors. Plant & Equipment: The current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Plant & Payable: What the company currently owes Equipment suppliers for materials and services. Current Accumulated Debt: The debt the company is obligated to payDepreciation during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets year.Long Term Debt: The company's long term debt is in the form of bonds, and this represents Total Assets the total value of your bonds.Common Stock: The amount of capital invested by shareholders in the company.Retained Earnings: The profitsLIABILITIES & that the company chose to keep instead of OWNERS' paying to shareholders as dividends. EQUITY Accounts Payable Current Debt Long Term Debt $14,202 7.4% $18,937 52.5% $71,906 $162,660 84.4% $162,660 ($71,092) -36.9% ($60,248) $91,568 47.5% $102,412 $192,638 100.0% $174,319 6.5% 15.2% 17.8% $11,338 $22,185 $39,813 39.5% $73,336 $11,100 5.8% $11,593 $105,519 54.8% $89,389 $101,071 $12,509 $29,235 $34,276 Total Liabilities Common Stock Retained Earnings $76,020 Total Equity $116,619 60.5% $100,982 Total Liab. & O. Equity $192,638 100.0% $174,319 Cash Flow Statement Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2019 2018 $51,928 $10,844 $29,095 $10,844 ($180) $0 $1,171 $4,735 ($4,827) $1,714 ($4,151) ($3,333) $63,671 $34,169 $0 ($40,900) ($31,996) $0 ($4,296) $0 ($5,357) $7,049 $0 $0 ($1,450) $11,734 $0 ($6,937) ($34,600) $3,347 $29,072 $63,956 ($3,384) $34,884 Page 1 Annual Report Top Annual Report Chester Round: 4 Dec. 31, 2019 C59559 2019 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventor y Carry Total Variable Contribu tion Margin Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period Net Margin $0 2019 Total $278,770 Common Size 100.0% $0 $0 $51,153 18.3% $0 $0 $0 $105,774 37.9% $0 $0 $0 $0 $1,704 0.6% $37,634 $0 $0 $0 $0 $158,631 56.9% $29,916 $30,954 $0 $0 $0 $0 $120,139 43.1% $1,927 $2,833 $3,060 $0 $0 $0 $0 $10,844 3.9% $710 $645 $623 $645 $0 $0 $0 $0 $2,622 0.9% $1,400 $1,400 $1,400 $1,400 $0 $0 $0 $0 $5,600 2.0% $1,100 $1,000 $1,000 $1,000 $0 $0 $0 $0 $4,100 1.5% $601 $467 $502 $512 $0 $0 $0 $0 $2,081 0.7% $6,834 $5,438 $6,358 $6,617 $0 $0 $0 $0 $25,247 9.1% $27,535 $19,462 $23,558 $24,337 $0 $0 $0 $0 $94,892 34.0% Cedar Cid Coat Cure Na Na Na Na $80,476 $62,507 $67,200 $68,587 $0 $0 $0 $15,686 $12,239 $11,811 $11,417 $0 $0 $30,399 $25,368 $24,242 $25,765 $0 $22 $0 $1,231 $451 $46,106 $37,607 $37,284 $34,370 $24,900 $3,024 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory.Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest Costs: R&D department expenditures for each product. Admin: Administration overhead is LongTerm Interest estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The Taxes sales force budget for each product. Other: Charges not included in other categories such as Profit Sharing Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage Net Profit 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 $6,215 $88,677 $3,070 $4,088 $28,532 $1,060 $51,928 2.2% 31.8% 1.1% 1.5% 10.2% 0.4% 18.6% Page 2 PRINT Annual Report Top Annual Report Digby Round: 4 Dec. 31, 2019 C59559 Balance Sheet ASSETS DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Cash Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery Accounts Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your Total Current competitors. Plant & Equipment: The current Assets value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Plant & Payable: What the company currently owes Equipment suppliers for materials and services. Current Accumulated Debt: The debt the company is obligated to payDepreciation during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets year.Long Term Debt: The company's long term debt is in the form of bonds, and this represents Total Assets the total value of your bonds.Common Stock: The amount of capital invested by shareholders in the company.Retained Earnings: The profitsLIABILITIES & that the company chose to keep instead of OWNERS' paying to shareholders as dividends. EQUITY Accounts Payable Current Debt Long Term Debt $51,174 2019 Common Size 23.5% $44,159 $13,239 6.1% $12,975 $5,826 2.7% $12,065 32.3% $69,199 $260,900 119.8% $260,900 ($113,349) -52.0% ($95,956) $147,551 67.7% $164,944 $217,790 100.0% $234,143 3.2% 13.5% 41.6% $8,855 $31,691 $102,114 58.4% $142,660 $54,009 24.8% $54,009 $36,628 16.8% $37,474 $90,637 41.6% $91,483 $217,790 100.0% $234,143 $70,239 $6,973 $29,480 $90,700 Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $127,153 Cash Flow Statement 2018 Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2019 2018 $10,026 $17,393 $1,743 $17,393 ($807) $0 ($1,882) $6,239 ($265) $441 ($8,829) $388 $30,705 $11,136 $0 ($29,000) ($10,872) $0 $0 $0 ($10,608) ($2,211) $0 $13,244 $0 $10,548 $0 ($12,163) ($23,690) $11,629 $7,015 $51,174 ($6,234) $44,159 Page 1 Annual Report Top Annual Report Digby Round: 4 Dec. 31, 2019 C59559 2019 Income Statement (Product Name:) Sales $0 2019 Total $161,080 Common Size 100.0% Dell Dixie Dug Dune Na Na Na Na $28,934 $29,261 $50,084 $52,801 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventor y Carry Total Variable $2,865 $3,015 $10,001 $9,274 $0 $0 $0 $0 $25,155 15.6% $12,788 $13,278 $19,578 $20,280 $0 $0 $0 $0 $65,924 40.9% $52 $45 $239 $364 $0 $0 $0 $0 $699 0.4% $15,705 $16,338 $29,819 $29,917 $0 $0 $0 $0 $91,778 57.0% Contribu tion Margin $13,230 $12,923 $20,266 $22,884 $0 $0 $0 $0 $69,302 43.0% $4,907 $5,520 $3,167 $3,800 $0 $0 $0 $0 $17,393 10.8% $446 $446 $966 $966 $0 $0 $0 $0 $2,824 1.8% $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 3.2% $1,600 $1,600 $1,400 $1,400 $0 $0 $0 $0 $6,000 3.7% $316 $320 $548 $578 $0 $0 $0 $0 $1,762 1.1% $8,569 $9,186 $7,381 $8,044 $0 $0 $0 $0 $33,179 20.6% Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period Net Margin $4,661 $3,737 $12,885 $14,840 $0 $0 $0 $0 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory.Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest Costs: R&D department expenditures for each product. Admin: Administration overhead is LongTerm Interest estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The Taxes sales force budget for each product. Other: Charges not included in other categories such as Profit Sharing Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage Net Profit 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 $36,123 $4,852 $31,270 $3,656 $11,875 $5,509 $205 $10,026 22.4% 3.0% 19.4% 2.3% 7.4% 3.4% 0.1% 6.2% Page 2