Question (1) - 30 points

1.1-Follow the steps explained in class 13-adjusted Forecasting and calculate a sales forecast for product Asese in the high Tech segment in 2024 (show the difference between traditional and adjusted forecasting, and calculate both the best case and worst case in both).(20 points)

1.2-Follow the steps explained in class 13-adjusted Forecasting and calculate the expected market share for the New product Bold in the high Tech segment in 2024.(10 points)

Question (2) - 16 points

Conduct a full SWOT analysis for company Andrews and company Digby.Explain at least 2 strengths, 2 weaknesses, 2 opportunities and 2 strengths for each company.Remember that strengths and weaknesses come from factors inside the company that the company can control to a great extent.On the other hand, opportunities and threats come from factors external to the company and are therefore not entirely under its control.

Question (3) 34 points

Compare the performance of the two companies: Andrews and Digby on the following performance outcomes and measures:

Sales and Sales growth (put in mind that all companies started out with $40 million in sales and the industry was growing at an average of 15% per year) (4 points)

Profits (2 points)

Profitability (ROS, Net Margin and Contribution Margin) (6 points)

Company

Andrews

Digby

ROS

Contribution Margin

Net Margin

Costs (Labor and material costs) (4 points)

SG&A (absolute value and as a percentage of sales revenue) (4 points)

Asset turnover (how efficiently the assets of the company are being used to generate sales) (4 points)

Market Share (2 points)

Stock price (2 points

Capital Structure (2 points)

Comment on the variation between the two companies and offer recommendations for improvement for the weaker company.(4 points)

Round: 4 Dec. 31, 2023 F112300 Andrews Nourhan El Hadba Ziad Ellaithy Mark Naguib hana salah Salma Shoukry Baldwin Farida Abdelbaky Nabil Attalla Yara Hassan seif saleh Chester Salma Abdelsalam Yasmina Gohar Mohamed Harb Abdelhamid Sewid Farida Yehia Digby Mohamed ElAwadly Nada El-khodery omar khalil Mahmoud Shaker Erie Hazem El Fakharany Sara El Hawary Mira Elchammaa Zeina Elmasry Maged Khalaf Ayaa Touny Ferris Nour Hanafy Ahmed Harash Shrouk Moner Rashad Tosson Selected Financial Statistics ROS Asset Turnover ROA Leverage ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews 6.3% 2.26 14.1% 1.6 22.4% $0 $107,679,938 $11,669,930 $6,733,216 $18,145,755 13.9% 28.0% FOUNDATION FAST TRACK Baldwin -0.2% 1.59 -0.4% 1.6 -0.6% $0 $54,953,899 $720,811 ($124,923) $11,698,336 25.7% 31.8% Chester 8.6% 1.85 15.9% 1.7 27.1% $0 $109,907,799 $16,644,705 $9,437,519 $21,121,235 10.6% 28.7% Digby 3.1% 1.64 5.1% 1.5 7.7% $2,371,823 $43,765,087 $2,988,246 $1,358,574 $7,369,469 24.8% 36.9% Erie 11.3% 1.29 14.6% 1.8 26.0% $0 $80,202,988 $16,336,377 $9,081,655 $18,469,477 16.1% 40.5% Ferris 5.1% 0.76 3.8% 1.3 4.9% $0 $22,571,429 $2,258,350 $1,141,557 $11,988,951 24.1% 40.6% Page 1 Stock & Bonds F112300 Round: 4 Dec. 31, 2023 Stock Market Summary Company Close Change Shares Andrews Baldwin Chester Digby Erie Ferris $29.00 $15.37 $32.95 $8.48 $30.34 $12.80 $9.80 ($5.73) $14.25 $3.95 $15.00 ($2.63) 2,110,155 2,004,477 2,198,601 2,000,000 2,399,875 2,045,673 MarketCap ($M) $61 $31 $72 $17 $73 $26 Book Value Per Share $14.22 $11.03 $15.82 $8.86 $14.57 $11.41 EPS Dividend Yield P/E $3.19 ($0.06) $4.29 $0.68 $3.78 $0.56 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 9.1 -250.7 7.7 12.5 8.0 22.9 Bond Market Summary Company Andrews Series# Face Yield Close$ S&P 13.0S2025 9.0S2033 $2,600,000 $7,000,000 12.3% 9.5% 105.39 94.45 A A 13.0S2025 8.9S2033 $2,600,000 $5,000,000 12.3% 9.4% 105.75 95.02 A A 13.0S2025 9.4S2031 9.4S2032 10.3S2033 $2,600,000 $2,579,000 $7,260,000 $4,000,000 12.4% 9.9% 9.9% 10.3% 104.67 95.25 94.88 100.00 BBB BBB BBB BBB Company Digby Face Yield Close$ S&P 13.0S2025 $2,600,000 12.3% 106.11 A 13.0S2025 $2,600,000 8.9S2033 $12,781,000 12.5% 9.9% 104.13 89.82 BB BB 13.0S2025 12.1% 107.59 AAA Erie Baldwin Chester Series# Ferris $2,600,000 Next Year's Prime Rate7.00% FOUNDATION FAST TRACK Page 2 Financial Summary Cash Flow Statement Survey CashFlows from operating activities Net Income(Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liablilities Accounts payable Inventory Accounts Receivable Net cash from operations F112300 Round: 4 Dec. 31, 2023 Andrews Baldwin Chester Digby Erie Ferris $6,733 ($125) $9,438 $1,359 $9,082 $1,142 $3,141 $0 $2,379 $0 $3,027 $0 $2,333 $0 $2,280 $19 $1,467 $0 $2,039 $0 ($2,747) $9,166 $17 $0 $480 $2,752 $2,737 $0 ($3,537) $11,664 ($237) $0 $0 $3,455 $1,288 $0 ($2,490) $10,179 ($230) $0 $0 $2,378 ($13,610) ($15,140) ($14,000) $0 ($6,400) $0 $0 $500 $0 $7,000 $0 $0 $0 $0 $0 $0 $0 $5,000 $0 $0 $0 $0 $0 $30 $0 $4,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($5,827) $0 $2,372 $0 $6,132 $0 $12,781 ($700) $0 $7,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,500 $5,000 $4,030 ($3,455) $25,213 $0 Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets $3,056 Andrews $4,428 $8,850 $0 $13,278 ($7,388) Baldwin $6,364 $3,764 $0 $10,128 $1,694 Chester $17,169 $9,034 $0 $26,203 $0 Digby $0 $3,597 $0 $3,597 $28,993 Erie $32,378 $6,592 $0 $38,970 $2,378 Ferris $14,448 $3,092 $0 $17,540 Plant and equipment Accumulated Depreciation Total Fixed Assets $47,120 ($12,685) $34,435 $35,684 ($11,288) $24,396 $45,400 ($12,200) $33,200 $35,000 ($11,893) $23,107 $34,200 ($10,853) $23,347 $22,000 ($9,653) $12,347 $47,714 $34,524 $59,403 $26,704 $62,316 $29,887 $6,374 $1,733 $8,107 $3,083 $1,733 $4,816 $6,439 $1,733 $8,172 $2,269 $4,105 $6,374 $3,920 $8,053 $11,973 $2,205 $1,733 $3,938 Long Term Debt Total Liabilities $9,600 $17,708 $7,600 $12,416 $16,439 $24,612 $2,600 $8,974 $15,381 $27,354 $2,600 $6,538 Common Stock Retained Earnings Total Equity $3,823 $26,183 $30,006 $2,373 $19,735 $22,108 $5,633 $29,158 $34,791 $2,323 $15,406 $17,729 $8,455 $26,506 $34,961 $3,323 $20,026 $23,349 Total Liabilities & Owners Equity $47,714 $34,524 $59,403 $26,704 $62,316 $29,887 Andrews $107,680 $77,556 $30,124 $3,141 $14,938 $375 $11,670 $1,100 $3,700 $137 $6,733 Baldwin $54,954 $37,504 $17,450 $2,379 $14,100 $250 $721 $913 ($67) $0 ($125) Chester $109,908 $78,346 $31,562 $3,027 $11,689 $202 $16,645 $1,829 $5,185 $193 $9,438 Digby $43,765 $27,608 $16,157 $2,333 $10,835 $0 $2,988 $855 $746 $28 $1,359 Erie $80,203 $47,695 $32,508 $2,280 $12,916 $976 $16,336 $2,079 $4,990 $185 $9,082 Ferris $22,571 $13,411 $9,160 $1,467 $5,435 $0 $2,258 $466 $627 $23 $1,142 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 Total Assets Accounts Payable Current Debt Total Current Liabilities Income Statement Survey Sales Variable Costs(Labor,Material,Carry) Contribution Margin Depreciation SGA(R&D,Promo,Sales,Admin) Other(Fees,Writeoffs,TQM,Bonuses) EBIT Interest(Short term,Long term) Taxes Profit Sharing Net Profit FOUNDATION FAST TRACK Page 3 MTBF 20000 22000 Pfmn Coord 6.6 8.8 Size Coord Price 12.0 $32.50 10.0 $45.00 Material Labor Cost Cost $12.56 $11.06 $17.17 $12.88 Contr. Marg. 26% 32% 2nd Shift & Overtime 91% 4% 2.8 1.3 1.4 21000 23000 18000 8.4 9.3 6.0 12.1 $37.00 10.4 $42.00 12.7 $34.00 $14.39 $11.29 $0.00 $0.00 $0.00 $0.00 32% 0% 0% 40% 0% 0% 3.8 1.0 1.0 1,070 500 800 139% 0% 0% 5/16/2023 6/18/2023 1.9 0.8 19000 23000 6.8 10.2 13.2 $34.00 9.8 $43.00 $11.15 $10.74 $18.96 $15.95 35% 19% 67% 100% 5.0 1.0 1,400 900 165% 198% 0 0 6/27/2021 8/25/2022 4.8 1.3 21000 21000 7.1 9.0 12.9 $34.00 11.0 $37.00 $12.33 $0.00 $8.58 $0.00 37% 0% 30% 0% 5.0 1.0 1,000 900 129% 0% 1,188 743 0 0 2/18/2024 2/25/2024 3.1 1.8 21000 17000 8.0 5.3 12.0 $45.00 14.7 $36.00 $14.08 $12.75 $7.63 $12.27 39% 43% 26% 67% 2.0 5.0 1,150 450 125% 165% 645 0 3/20/2022 4.4 19000 6.5 13.5 $35.00 $10.56 41% 0% 4.0 1,000 64% Unit Inven tory 0 0 Primary Segment Low High Units Sold 2,079 891 Baker Bold Bro Low 1,485 0 0 0 8/25/2023 0 12/15/2023 0 11/28/2023 Cake Champ Low High 1,980 990 0 0 Daze Duck Low 1,287 0 Eat Eagle High Low Fast Low Name Able Asese Round: 4 Dec. 31, 2023 F112300 Production Analysis FOUNDATION FAST TRACK Revision Age Date Dec.31 1/15/2023 2.8 1/27/2023 1.8 $9.71 Auto mation Next Round 4.0 1.2 Capacity Next Round 1,700 900 Plant Utiliz. 189% 103% Page 4 Low Tech Segment Analysis F112300 Round: 4 Dec. 31, 2023 Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 7,379 |6,941 |62.2% Next Year's Segment Growth Rate |10.0% Low Tech Customer Buying Criteria 1. Price 2. Age 3. Reliability 4. Ideal Position Expectations $15.00 - 35.00 Ideal Age = 3.0 MTBF 14000-20000 Pfmn 6.8 Size 13.2 Importance 41% 29% 21% 9% Top Products in Low Tech Segment Name Able Cake Baker Daze Eagle Fast Market Share 25% 23% 17% 16% 11% 9% Units Sold to Seg 1,703 1,619 1,174 1,105 743 597 FOUNDATION FAST TRACK Revision Date 1/15/2023 5/16/2023 8/25/2023 6/27/2021 2/25/2024 3/20/2022 Stock Out YES YES YES YES YES YES Pfmn Coord 6.6 6.8 8.4 7.1 5.3 6.5 Size Coord 12.0 13.2 12.1 12.9 14.7 13.5 List Price $32.50 $34.00 $37.00 $34.00 $36.00 $35.00 MTBF 20000 19000 21000 21000 17000 19000 Cust. Age Promo A wareDec.31 Budget n ess 2.83 $3,000 100% 1.93 $1,500 99% 2.78 $1,500 100% 4.80 $2,000 100% 1.80 $1,000 68% 4.44 $2,000 100% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $3,000 74% 37 $2,500 69% 28 $2,000 82% 23 $3,000 80% 25 $2,500 43% 9 $2,000 51% 20 Page 5 High Tech Segment Analysis F112300 Round: 4 Dec. 31, 2023 High Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 4,479 |4,348 |37.8% Next Year's Segment Growth Rate |20.0% High Tech Customer Buying Criteria 1. Ideal Position 2. Age 3. Price 4. Reliability Expectations Pfmn 10.2 Size 9.8 Ideal Age = 0.0 $25.00 - 45.00 MTBF 17000-23000 Importance 33% 29% 25% 13% Top Products in High Tech Segment Name Eat Champ Asese Able Cake Baker Daze Fast Market Share 27% 23% 20% 9% 8% 7% 4% 1% Units Sold to Seg 1,188 990 891 376 361 311 183 48 FOUNDATION FAST TRACK Revision Date 2/18/2024 6/18/2023 1/27/2023 1/15/2023 5/16/2023 8/25/2023 6/27/2021 3/20/2022 Stock Out YES YES YES YES YES YES YES YES Pfmn Coord 8.0 10.2 8.8 6.6 6.8 8.4 7.1 6.5 Size Coord 12.0 9.8 10.0 12.0 13.2 12.1 12.9 13.5 List Price $45.00 $43.00 $45.00 $32.50 $34.00 $37.00 $34.00 $35.00 MTBF 21000 23000 22000 20000 19000 21000 21000 19000 Cust. Age Promo A wareDec.31 Budget n ess 3.13 $3,000 100% 0.84 $2,300 95% 1.75 $3,000 100% 2.83 $3,000 100% 1.93 $1,500 99% 2.78 $1,500 100% 4.80 $2,000 100% 4.44 $2,000 100% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $3,000 73% 6 $2,600 83% 54 $3,000 89% 29 $3,000 89% 13 $2,500 83% 11 $2,000 82% 13 $3,000 83% 10 $2,000 46% 3 Page 6 Market Share F112300 Actual Market Share in Units Low 6,941 61.5% High 4,348 38.5% Able Asese Total 24.5% 24.5% 8.6% 20.5% 29.1% Baker Total 16.9% 16.9% 7.2% 7.2% Cake Champ Total 23.3% 23.3% 8.3% 22.8% 31.1% Daze Total 15.9% 15.9% Eat Eagle Total 10.7% 10.7% Fast Total 8.6% 8.6% Industry Unit Sales % of Market FOUNDATION FAST TRACK Round: 4 Dec. 31, 2023 Potential Market Share in Units Total 11,289 Units Demanded 100.0% % of Market Low 7,379 62.2% High 4,479 37.8% Total 11,858 100.0% 18.4% Able 7.9% Asese 26.3% Total 23.3% 23.3% 7.8% 18.4% 26.2% 17.5% 6.9% 24.4% 13.2% Baker 13.2% Total 13.3% 13.3% 5.6% 5.6% 10.3% 10.3% 17.5% Cake 8.8% Champ 26.3% Total 18.8% 18.8% 6.5% 27.2% 33.7% 14.1% 10.3% 24.4% 4.2% 4.2% 11.4% Daze 11.4% Total 19.8% 22.8% 5.1% 27.8% 14.2% 24.7% 27.3% 4.6% 27.3% 10.5% Eat 6.6% Eagle 17.1% Total 5.0% 5.0% 4.6% 1.7% 3.1% 4.8% 1.1% 1.1% 5.7% Fast 5.7% Total 16.9% 16.9% 2.1% 2.1% 11.3% 11.3% Page 7 Perceptual Map F112300 Andrews Name Able Asese Pfmn 6.6 8.8 Name Daze Duck Pfmn 7.1 9.0 Size 12.0 10.0 Digby Size 12.9 11.0 FOUNDATION FAST TRACK Baldwin Revised Name 1/15/2023 Baker 1/27/2023 Bold Bro Pfmn 8.4 9.3 6.0 Revised Name 6/27/2021 Eat 8/25/2022 Eagle Pfmn 8.0 5.3 Size 12.1 10.4 12.7 Erie Size 12.0 14.7 Round: 4 Dec. 31, 2023 Chester Revised 8/25/2023 12/15/2023 11/28/2023 Revised 2/18/2024 2/25/2024 Name Cake Champ Pfmn 6.8 10.2 Name Fast Pfmn 6.5 Size 13.2 9.8 Ferris Size 13.5 Revised 5/16/2023 6/18/2023 Revised 3/20/2022 Page 8 HR/TQM Report F112300 Round: 4 Dec. 31, 2023 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 565 565 388 177 Baldwin 278 278 198 80 Chester 577 577 322 255 Digby 187 187 144 43 Erie 404 404 292 112 Ferris 118 118 118 0 Overtime Percent Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.1% 10.0% 209 0 $0 0 100.0% 0.0% 10.0% 30 0 $0 0 100.0% 0.0% 10.0% 297 0 $0 0 100.0% 0.3% 10.0% 19 32 $0 0 100.0% 0.0% 10.0% 213 0 $0 0 100.0% 0.0% 10.0% 12 17 $0 0 100.0% $209 $0 $0 $209 $30 $0 $0 $30 $297 $0 $0 $297 $19 $160 $0 $179 $213 $0 $0 $213 $12 $85 $0 $97 Baldwin Chester Digby Erie Ferris Recruiting Cost Separation Cost Training Cost Total HR Admin Cost Strike Days TQM SUMMARY Andrews Process Mgt Budgets Last Year CPI Systems VendorJIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase FOUNDATION FAST TRACK Page 9 Annual Report Annual Report Andrews F112300 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 companys long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Account Receivable Inventory Total Current Assets $13,278 2023 Common Size 9.3% 18.5% 0.0% 27.8% $1,372 $6,104 $0 $7,476 $34,435 $47,714 98.8% -26.6% 72.2% 100.0% $33,510 ($9,543) $23,967 $31,442 $17,707 13.4% 3.6% 20.1% 37.1% $4,336 $0 $4,333 $8,669 $30,006 $47,714 8.0% 54.9% 62.9% 100.0% $3,323 $19,449 $22,772 $31,442 $4,428 $8,850 $0 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY Accounts Payable Current Debt Long Term Debt Total Liabilities $47,120 ($12,685) $6,374 $1,733 $9,600 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $3,823 $26,183 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. Annual Report Round: 4 Dec. 31, 2023 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2022 2023 $6,733 $3,141 $0 $2,039 $0 ($2,747) $9,166 2022 $5,430 $2,234 $0 $1,487 $0 ($2,273) $6,878 ($13,610) ($10,270) $0 $500 $0 $7,000 ($1,733) $1,733 $7,500 $3,056 $4,428 $0 $1,000 $0 $0 $0 ($867) $133 ($3,258) $1,372 Page 10 Annual Report Andrews Round: 4 Dec. 31, 2023 F112300 2023 Income Statement (Product Name) $0 2023 Total $107,680 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $34,482 $43,074 $0 $77,556 32.0% 40.0% 0.0% 72.0% Able Asese Add Sales $67,578 $40,101 $0 $0 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $23,005 $27,239 $0 $50,244 $11,477 $15,835 $0 $27,312 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $17,335 $12,789 $0 $0 $0 $0 $0 $0 $30,124 28.0% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,493 $40 $3,000 $3,000 $1,145 $9,678 $648 $74 $3,000 $3,000 $679 $7,401 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,141 $1,114 $6,000 $6,000 $1,824 $18,079 2.9% 1.0% 5.6% 5.6% 1.7% 16.8% Net Margin $7,657 $5,388 ($1,000) $0 $0 $0 $0 $0 $12,045 11.2% $375 $11,670 $132 $968 $3,700 $137 $6,733 0.3% 10.8% 0.1% 0.9% 3.4% 0.1% 6.3% Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years current debt, including short term debt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 11 Annual Report Annual Report Baldwin F112300 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 companys long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Account Receivable Inventory Total Current Assets $10,128 2023 Common Size 18.4% 10.9% 0.0% 29.3% $13,752 $4,244 $0 $17,996 $24,396 $34,524 103.0% -32.7% 70.7% 100.0% $20,544 ($8,909) $11,635 $29,632 $12,416 8.9% 5.0% 22.0% 36.0% $3,065 $0 $4,333 $7,398 $22,108 $34,524 6.9% 57.2% 64.0% 100.0% $2,373 $19,860 $22,233 $29,632 $6,364 $3,764 $0 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY Accounts Payable Current Debt Long Term Debt Total Liabilities $35,684 ($11,288) $3,083 $1,733 $7,600 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $2,373 $19,735 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. Annual Report Round: 4 Dec. 31, 2023 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2022 2023 ($125) $2,379 $0 $17 $0 $480 $2,752 2022 $4,540 $1,370 $0 ($105) $0 $0 $5,804 ($15,140) $0 $0 $0 $0 $5,000 ($1,733) $1,733 $5,000 ($7,388) $6,364 $0 $0 $0 $0 $0 ($867) ($867) $4,937 $13,752 Page 12 Annual Report Baldwin Round: 4 Dec. 31, 2023 F112300 2023 Income Statement (Product Name) $0 2023 Total $54,954 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $16,764 $20,740 $0 $37,504 30.5% 37.7% 0.0% 68.2% $0 $0 $0 $17,449 31.8% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,379 $2,546 $4,500 $6,200 $854 $16,479 4.3% 4.6% 8.2% 11.3% 1.6% 30.0% $0 $0 $0 $0 $971 1.8% $250 $721 $130 $783 ($67) $0 ($125) 0.5% 1.3% 0.2% 1.4% -0.1% 0.0% -0.2% Baker Bold Sales $54,954 $0 $0 $0 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $16,764 $20,740 $0 $37,504 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $17,449 $0 $0 $0 $0 $1,512 $657 $1,500 $2,000 $854 $6,523 $333 $967 $1,500 $2,200 $0 $5,001 $0 $0 $0 $0 $0 $0 $533 $922 $1,500 $2,000 $0 $4,955 $10,926 ($5,001) $0 ($4,955) Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Bro Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years current debt, including short term debt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 13 Annual Report Annual Report Chester F112300 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 companys long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Account Receivable Inventory Total Current Assets $26,203 2023 Common Size 28.9% 15.2% 0.0% 44.1% $15,475 $5,497 $0 $20,972 $33,200 $59,403 76.4% -20.5% 55.9% 100.0% $31,400 ($9,173) $22,227 $43,198 $24,611 10.8% 2.9% 27.7% 41.4% $3,702 $0 $14,172 $17,874 $34,791 $59,403 9.5% 49.1% 58.6% 100.0% $5,603 $19,721 $25,324 $43,198 $17,169 $9,034 $0 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY $45,400 ($12,200) Accounts Payable Current Debt Long Term Debt Total Liabilities $6,439 $1,733 $16,439 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $5,633 $29,158 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. Annual Report Round: 4 Dec. 31, 2023 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2022 2023 $9,438 $3,027 $0 $2,737 $0 ($3,537) $11,664 2022 $4,666 $2,093 $0 $1,718 $0 ($2,380) $6,097 ($14,000) ($6,600) $0 $30 $0 $4,000 ($1,733) $1,733 $4,030 $1,694 $17,169 $0 $60 $0 $7,260 $0 ($867) $6,453 $5,951 $15,475 Page 14 Annual Report Chester Round: 4 Dec. 31, 2023 F112300 2023 Income Statement (Product Name) $0 2023 Total $109,908 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $37,061 $41,285 $0 $78,346 33.7% 37.6% 0.0% 71.3% $0 $0 $0 $31,562 28.7% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,027 $844 $3,800 $5,100 $1,945 $14,716 2.8% 0.8% 3.5% 4.6% 1.8% 13.4% $0 $0 $0 $0 $16,846 15.3% $202 $16,645 $154 $1,675 $5,185 $193 $9,438 0.2% 15.1% 0.1% 1.5% 4.7% 0.2% 8.6% Cake Champ Sales $67,331 $42,577 $0 $0 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $21,264 $22,468 $0 $43,732 $15,796 $18,817 $0 $34,613 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $23,598 $7,963 $0 $0 $0 $2,427 $377 $1,500 $2,500 $1,192 $7,995 $600 $467 $2,300 $2,600 $754 $6,720 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,603 $1,243 $0 $0 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years current debt, including short term debt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 15 Annual Report Annual Report Digby F112300 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 companys long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Account Receivable Inventory Total Current Assets $3,597 2023 Common Size 0.0% 13.5% 0.0% 13.5% $0 $3,597 $0 $3,597 $23,107 $26,704 131.0% -44.5% 86.5% 100.0% $35,000 ($9,560) $25,440 $29,037 $8,974 8.5% 15.4% 9.7% 33.6% $2,506 $5,827 $4,333 $12,666 $17,729 $26,704 8.7% 57.7% 66.4% 100.0% $2,323 $14,048 $16,371 $29,037 $0 $3,597 $0 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY Accounts Payable Current Debt Long Term Debt Total Liabilities $35,000 ($11,893) $2,269 $4,105 $2,600 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $2,323 $15,406 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. Annual Report Round: 4 Dec. 31, 2023 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2022 2023 $1,359 $2,333 $0 ($237) $0 $0 $3,455 2022 ($1,239) $2,333 $0 ($239) $0 $240 $1,095 $0 ($13,000) $0 $0 $0 $0 ($1,733) ($1,722) ($3,455) $0 $0 $0 $0 $0 $0 $0 $4,961 $4,961 ($6,944) $0 Page 16 Annual Report Digby Round: 4 Dec. 31, 2023 F112300 2023 Income Statement (Product Name) $0 2023 Total $43,765 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $11,042 $16,566 $0 $27,608 25.2% 37.9% 0.0% 63.1% Daze Duck Sales $43,765 $0 $0 $0 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $11,042 $16,566 $0 $27,608 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $16,157 $0 $0 $0 $0 $0 $0 $0 $16,157 36.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1,733 $0 $2,000 $3,000 $835 $7,569 $600 $0 $2,000 $3,000 $0 $5,600 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,333 $0 $4,000 $6,000 $835 $13,169 5.3% 0.0% 9.1% 13.7% 1.9% 30.1% Net Margin $8,588 ($5,600) $0 $0 $0 $0 $0 $0 $2,988 6.8% $0 $2,988 $517 $338 $746 $28 $1,359 0.0% 6.8% 1.2% 0.8% 1.7% 0.1% 3.1% Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years current debt, including short term debt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 17 Annual Report Annual Report Erie F112300 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 companys long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Account Receivable Inventory Total Current Assets $38,970 2023 Common Size 52.0% 10.6% 0.0% 62.5% $3,385 $4,102 $0 $7,487 $23,347 $62,316 54.9% -17.4% 37.5% 100.0% $27,800 ($8,573) $19,227 $26,713 $27,354 6.3% 12.9% 24.7% 43.9% $2,632 $0 $4,333 $6,965 $34,961 $62,316 13.6% 42.5% 56.1% 100.0% $2,323 $17,425 $19,748 $26,713 $32,378 $6,592 $0 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY $34,200 ($10,853) Accounts Payable Current Debt Long Term Debt Total Liabilities $3,920 $8,053 $15,381 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $8,455 $26,506 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. Annual Report Round: 4 Dec. 31, 2023 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2022 2023 $9,082 $2,280 $19 $1,288 $0 ($2,490) $10,179 2022 $4,416 $1,853 $0 $1,946 $0 ($2,680) $5,535 ($6,400) ($12,900) $0 $6,132 $0 $12,781 ($1,753) $8,053 $25,213 $28,993 $32,378 $0 $0 $0 $0 $0 ($867) ($867) ($8,232) $3,385 Page 18 Annual Report Erie Round: 4 Dec. 31, 2023 F112300 2023 Income Statement (Product Name) $0 2023 Total $80,203 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $24,264 $23,430 $0 $47,695 30.3% 29.2% 0.0% 59.5% $0 $0 $0 $32,508 40.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,280 $2,000 $4,000 $5,500 $1,416 $15,196 2.8% 2.5% 5.0% 6.9% 1.8% 18.9% $0 $0 $0 $0 $17,312 21.6% $976 $16,336 $604 $1,476 $4,990 $185 $9,082 1.2% 20.4% 0.8% 1.8% 6.2% 0.2% 11.3% Eat Eagle Sales $53,469 $26,734 $0 $0 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $15,150 $17,401 $0 $32,551 $9,115 $6,029 $0 $15,144 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $20,918 $11,590 $0 $0 $0 $1,500 $1,000 $3,000 $3,000 $944 $9,444 $780 $1,000 $1,000 $2,500 $472 $5,752 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $11,474 $5,838 $0 $0 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years current debt, including short term debt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 19 Annual Report Annual Report Ferris F112300 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 companys long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Account Receivable Inventory Total Current Assets $14,448 $3,092 $0 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY $22,000 ($9,653) Accounts Payable Current Debt Long Term Debt Total Liabilities $17,540 2023 Common Size 48.3% 10.3% 0.0% 58.7% $12,070 $3,092 $0 $15,162 $12,347 $29,887 73.6% -32.3% 41.3% 100.0% $22,000 ($8,187) $13,813 $28,975 $6,538 7.4% 5.8% 8.7% 21.9% $2,435 $0 $4,333 $6,768 $23,349 $29,887 11.1% 67.0% 78.1% 100.0% $3,323 $18,884 $22,207 $28,975 $2,205 $1,733 $2,600 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $3,323 $20,026 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. Annual Report Round: 4 Dec. 31, 2023 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2022 2023 $1,142 $1,467 $0 ($230) $0 $0 $2,378 2022 ($290) $1,467 $0 ($220) $0 $745 $1,701 $0 ($7,600) $0 $0 $0 $0 ($1,733) $1,733 $0 $2,378 $14,448 $0 $1,000 $0 $0 $0 ($867) $133 ($5,765) $12,070 Page 20 Annual Report Ferris Round: 4 Dec. 31, 2023 F112300 2023 Income Statement (Product Name) $0 2023 Total $22,571 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $6,262 $7,149 $0 $13,411 27.7% 31.7% 0.0% 59.4% $0 $0 $0 $9,160 40.6% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,467 $1,000 $2,000 $2,000 $435 $6,902 6.5% 4.4% 8.9% 8.9% 1.9% 30.6% $0 $0 $0 $0 $2,258 10.0% $0 $2,258 $128 $338 $627 $23 $1,142 0.0% 10.0% 0.6% 1.5% 2.8% 0.1% 5.1% Fast Faster Sales $22,571 $0 $0 $0 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $6,262 $7,149 $0 $13,411 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $9,160 $0 $0 $0 $0 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1,467 $0 $2,000 $2,000 $435 $5,902 $0 $1,000 $0 $0 $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Margin $3,258 ($1,000) $0 $0 Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years current debt, including short term debt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Annual Report Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 21