Report Page Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews 5/9/16, 11:42 AM 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 http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 1 of 25 Report Page 5/9/16, 11:42 AM Top " Round: 3 Dec. 31, 2018 Kevin Vu Student: Kevin Vu Andrews Kevin Vu 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 11.0% 1.44 15.7% 1.2 18.4% $0 $191,678,504 $34,199,823 $21,028,027 $49,605,837 7.1% 31.9% Baldwin 0.2% 0.66 0.1% 2.6 0.4% $0 $148,829,554 $17,183,122 $323,742 $4,439,697 9.0% 36.4% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Chester -0.1% 0.71 -0.1% 2.4 -0.2% $0 $171,482,453 $16,314,998 ($188,284) $5,786,472 12.3% 37.0% Digby 12.3% 1.24 15.3% 1.7 26.5% $0 $197,211,601 $44,831,082 $24,322,833 $51,266,729 6.7% 38.1% Page 1 Page 2 of 25 Report Page 5/9/16, 11:42 AM Top Stocks & Bonds Round: 3 Kevin Vu December 31 , 2018 Stock Market Summary Company Andrews Baldwin Chester Digby Close $106.40 $24.74 $32.61 $103.95 Change $21.92 ($3.15) ($3.73) $27.43 Shares 1,975,084 3,389,309 3,166,884 1,880,327 MarketCap ($M) $210 $84 $103 $195 Book Value $57.72 $25.67 $31.52 $48.90 EPS $10.65 $0.10 ($0.06) $12.94 Dividend $0.00 $0.00 $0.00 $0.00 Yield 0.0% 0.0% 0.0% 0.0% P/E 10.0 256.3 -557.9 8.0 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 11.2S2022 11.9S2023 $3,100,212 $7,072,000 10.8% 11.1% 103.80 107.20 AAA AAA 11.3S2022 12.5S2023 12.5S2024 12.5S2025 12.9S2026 13.4S2027 14.2S2028 $10,417,600 $14,665,611 $7,963,435 $9,569,958 $14,262,838 $34,685,144 $7,575,308 12.2% 13.1% 13.2% 13.3% 13.5% 13.7% 14.0% 92.41 95.18 94.54 93.98 95.35 97.52 101.57 CC CC CC CC CC CC CC 11.2S2022 12.4S2023 12.0S2025 12.6S2026 13.1S2027 13.8S2028 $8,632,724 $5,825,802 $15,610,279 $17,788,546 $34,262,859 $20,997,385 12.0% 12.9% 12.9% 13.2% 13.4% 13.7% 92.95 95.84 93.05 95.30 97.49 101.06 CC CC CC CC CC CC 11.1S2024 11.2S2025 11.5S2026 11.7S2027 12.6S2028 $2,509,600 $5,662,814 $1,377,976 $17,254,856 $10,309,832 11.5% 11.6% 11.7% 11.8% 12.1% 96.70 96.80 98.01 98.93 103.97 BBB BBB BBB BBB BBB Next Year's Prime Rate 9.00% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 2 Page 3 of 25 Report Page 5/9/16, 11:42 AM Top Financial Summary Cash Flow Statement Survey Round: 3 December 31, 2018 Kevin Vu Andrews Baldwin Chester Digby $21,028 $324 ($188) $24,323 $7,015 $172 $17,013 $0 $18,028 $0 $10,277 $0 $623 $15,747 ($1,656) $42,929 $347 ($9,188) $648 $9,144 $1,923 ($7,853) ($2,228) $9,682 $1,012 ($4,853) ($2,418) $28,341 $0 ($27,100) ($53,160) ($35,500) $0 $0 ($2,000) $0 ($5,909) ($6,513) $0 $0 $0 $12,542 $0 $7,575 $0 ($43,171) $30,542 $0 $0 $19,184 $0 $20,997 $0 ($33,804) $27,538 $0 $0 $0 ($1,947) $10,310 $0 ($29,353) $20,166 $0 ($14,422) $7,489 $33,916 ($825) 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 $28,506 ($10,467) ($9,563) ($7,984) Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $73,032 $15,754 $2,991 $91,777 Baldwin $39,849 $12,233 $13,126 $65,208 Chester $26,932 $14,094 $16,737 $57,763 Digby $27,206 $16,209 $21,354 $64,769 Plant and equipment Accumulated Depreciation Total Fixed Assets $105,224 ($63,421) $41,803 $255,200 ($95,324) $159,876 $270,420 ($88,328) $182,092 $154,160 ($59,475) $94,685 Total Assets $133,580 $225,083 $239,855 $159,454 Accounts Payable Current Debt Long Term Debt Total Liabilities $9,400 $0 $10,172 $19,572 $8,409 $30,542 $99,140 $138,092 $9,364 $27,538 $103,118 $140,020 $10,218 $20,166 $37,115 $67,499 Common Stock Retained Earnings Total Equity $10,999 $103,009 $114,007 $52,421 $34,571 $86,992 $55,236 $44,599 $99,835 $10,111 $81,844 $91,955 Total Liabilities & Owners' Equity $133,580 $225,083 $239,855 $159,454 Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit Andrews $191,679 $130,471 $7,015 $13,702 $6,291 $34,200 $1,189 $11,554 $429 $21,028 Baldwin $148,830 $94,702 $17,013 $13,426 $6,506 $17,183 $16,675 $178 $7 $324 Chester $171,482 $108,089 $18,028 $21,041 $8,009 $16,315 $16,605 ($101) $0 ($188) Digby $197,212 $122,028 $10,277 $13,280 $6,795 $44,831 $6,648 $13,364 $496 $24,323 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 3 Page 4 of 25 Report Page 5/9/16, 11:42 AM Top Production Analysis Round: 3 December 31, 2018 Kevin Vu Production Information Name Primary Segment Units Sold Unit Inven tory Revision Date Age Dec.31 MTBF Pfmn Coord Size Coord Material Price Cost Labor Cost Contr. Marg. 2nd Shift & Overtime Auto mation Capacity Next Next Round Round Plant Utiliz. Ace Awe Art Ant Nano Elite Thrift Core 1,620 1,400 1,327 1,675 13 104 0 0 5/19/2018 5/19/2018 6/24/2018 7/12/2018 1.6 1.6 1.9 1.6 24000 26000 20000 22000 14.0 16.0 9.5 12.0 4.0 6.0 11.0 8.0 $37.00 $40.00 $23.00 $27.00 $14.15 $14.73 $8.32 $11.11 $10.91 $10.72 $7.16 $7.73 32% 35% 33% 27% 78% 65% 30% 0% 4.0 4.0 6.0 5.0 928 914 1,030 1,300 176% 164% 129% 59% Bell Bit Boat Buzz Thrift Thrift Core Core 2,174 2,264 1,534 1,708 153 332 278 274 6/10/2019 6/10/2019 12/16/2017 12/18/2017 3.7 3.6 2.1 2.1 17000 17000 18000 20000 8.8 9.0 11.9 12.6 11.2 11.0 7.5 8.0 $16.00 $16.00 $24.00 $24.00 $6.80 $6.96 $9.72 $10.36 $2.96 $2.97 $4.55 $4.48 37% 35% 38% 36% 47% 49% 62% 52% 10.0 10.0 8.0 8.0 1,600 1,800 1,200 1,400 145% 147% 160% 151% Cell City Cozy Cute Crimp Cake Thrift Core Nano Elite Core Core 1,078 1,893 1,149 773 1,539 1,027 360 261 235 222 95 26 12/20/2018 12/6/2016 12/17/2018 12/17/2018 12/25/2018 2/10/2018 2.2 3.1 1.0 1.0 0.9 0.9 14000 16000 18000 20000 16000 16000 9.5 10.4 13.9 17.0 11.8 11.5 10.5 9.6 3.4 5.9 8.1 8.5 $17.00 $19.00 $30.00 $36.00 $21.00 $22.00 $6.82 $8.14 $12.74 $13.59 $9.31 $9.03 $1.79 $4.08 $6.89 $6.15 $5.63 $4.45 52% 33% 34% 44% 30% 37% 0% 40% 47% 6% 59% 100% 10.0 10.0 7.0 7.0 8.0 8.0 1,250 1,550 1,000 900 1,050 1,040 99% 139% 146% 105% 157% 176% Deal Dim Dome Dug Nano Elite Nano Elite 1,700 1,238 1,222 1,408 130 131 347 380 11/5/2018 8/24/2018 7/3/2018 7/25/2018 1.2 1.9 1.3 1.3 23000 25000 23000 25000 14.5 17.3 15.0 17.1 3.5 5.5 3.0 5.2 $34.00 $34.00 $37.00 $37.00 $13.66 $14.56 $14.04 $14.57 $7.91 $6.66 $7.17 $7.37 38% 36% 40% 39% 100% 50% 35% 48% 7.0 7.0 7.0 7.0 1,150 800 1,200 1,250 198% 149% 134% 146% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 4 Page 5 of 25 Report Page 5/9/16, 11:42 AM Top Thrift Market Segment Analysis Kevin Vu Round: 3 December 31, 2018 Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,985 6,985 26.1% 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 9.0 Size 11.0 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 Bell Bit Cell Art City Crimp Ant Cake Market Share 29% 29% 15% 12% 12% 3% 1% 0% Units Sold to Seg 2,001 2,001 1,054 815 804 214 62 34 Revision Date Stock Out 6/10/2019 6/10/2019 12/20/2018 6/24/2018 YES 12/6/2016 12/25/2018 7/12/2018 YES 2/10/2018 Pfmn Coord 8.8 9.0 9.5 9.5 10.4 11.8 12.0 11.5 Size Coord 11.2 11.0 10.5 11.0 9.6 8.1 8.0 8.5 List Price $16.00 $16.00 $17.00 $23.00 $19.00 $21.00 $27.00 $22.00 MTBF 17000 17000 14000 20000 16000 16000 22000 16000 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Age Dec.31 3.74 3.64 2.25 1.91 3.11 0.88 1.57 0.89 Promo Cust. AwareBudget ness $1,250 78% $1,250 79% $1,140 66% $1,400 100% $1,140 67% $1,140 58% $1,400 100% $1,140 51% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,400 75% 54 $1,400 75% 55 $1,000 72% 31 $1,000 37% 26 $1,000 72% 24 $900 72% 0 $1,000 37% 0 $900 72% 3 Page 5 Page 6 of 25 Report Page 5/9/16, 11:42 AM Top Core Market Segment Analysis Kevin Vu Round: 3 December 31, 2018 Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 8,898 8,898 33.3% 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 8.0 Price Age Reliability Ideal Position Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Buzz Ant Boat Crimp City Cake Art Bit Bell Cell Deal Market Share 18% 16% 16% 15% 12% 11% 6% 3% 2% 0% 0% Units Sold to Seg 1,627 1,452 1,437 1,324 1,088 994 512 263 173 24 3 Revision Date Stock Out 12/18/2017 7/12/2018 YES 12/16/2017 12/25/2018 12/6/2016 2/10/2018 6/24/2018 YES 6/10/2019 6/10/2019 12/20/2018 11/5/2018 Pfmn Coord 12.6 12.0 11.9 11.8 10.4 11.5 9.5 9.0 8.8 9.5 14.5 Size Coord 8.0 8.0 7.5 8.1 9.6 8.5 11.0 11.0 11.2 10.5 3.5 List Price $24.00 $27.00 $24.00 $21.00 $19.00 $22.00 $23.00 $16.00 $16.00 $17.00 $34.00 MTBF 20000 22000 18000 16000 16000 16000 20000 17000 17000 14000 23000 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Age Dec.31 2.10 1.57 2.09 0.88 3.11 0.89 1.91 3.64 3.74 2.25 1.24 Promo Cust. AwareBudget ness $1,250 78% $1,400 100% $1,250 78% $1,140 58% $1,140 67% $1,140 51% $1,400 100% $1,250 79% $1,250 78% $1,140 66% $1,350 87% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 76% 50 $1,000 43% 43 $1,100 76% 44 $900 72% 38 $1,000 72% 26 $900 72% 31 $1,000 43% 16 $1,400 76% 2 $1,400 76% 0 $1,000 72% 8 $1,000 11% 0 Page 6 Page 7 of 25 Report Page 5/9/16, 11:42 AM Top Nano Market Segment Analysis Kevin Vu Round: 3 December 31, 2018 Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,412 5,412 20.3% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 13.9 Size 3.2 $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 Name Deal Ace Dome Cozy Awe Ant Boat Dug Buzz Cute Dim Market Share 25% 23% 22% 19% 3% 2% 2% 2% 2% 1% 0% Units Sold to Seg 1,339 1,264 1,171 1,033 165 100 97 86 81 60 17 Revision Date Stock Out 11/5/2018 5/19/2018 7/3/2018 12/17/2018 5/19/2018 7/12/2018 YES 12/16/2017 7/25/2018 12/18/2017 12/17/2018 8/24/2018 Pfmn Coord 14.5 14.0 15.0 13.9 16.0 12.0 11.9 17.1 12.6 17.0 17.3 Size Coord 3.5 4.0 3.0 3.4 6.0 8.0 7.5 5.2 8.0 5.9 5.5 List Price $34.00 $37.00 $37.00 $30.00 $40.00 $27.00 $24.00 $37.00 $24.00 $36.00 $34.00 MTBF 23000 24000 23000 18000 26000 22000 18000 25000 20000 20000 25000 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Age Dec.31 1.24 1.56 1.34 1.03 1.57 1.57 2.09 1.34 2.10 1.04 1.90 Promo Cust. AwareBudget ness $1,350 87% $1,400 100% $1,350 87% $1,140 67% $1,400 100% $1,400 100% $1,250 78% $1,350 87% $1,250 78% $1,140 67% $1,350 87% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,000 83% 62 $1,000 53% 49 $900 83% 48 $1,900 70% 46 $1,000 53% 8 $1,000 53% 3 $1,100 18% 2 $900 83% 0 $1,100 18% 1 $2,200 70% 0 $1,000 83% 0 Page 7 Page 8 of 25 Report Page 5/9/16, 11:42 AM Top Elite Market Segment Analysis Kevin Vu Round: 3 December 31, 2018 Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,434 5,434 20.3% 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 16.8 Size 6.1 MTBF 20000-26000 Age Price Ideal Position Reliability Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Dug Awe Dim Cute Deal Ace Cozy Ant Dome Market Share 24% 23% 22% 13% 7% 7% 2% 1% 1% Units Sold to Seg 1,322 1,234 1,221 713 359 356 116 61 51 Revision Date Stock Out 7/25/2018 5/19/2018 8/24/2018 12/17/2018 11/5/2018 5/19/2018 12/17/2018 7/12/2018 YES 7/3/2018 Pfmn Coord 17.1 16.0 17.3 17.0 14.5 14.0 13.9 12.0 15.0 Size Coord 5.2 6.0 5.5 5.9 3.5 4.0 3.4 8.0 3.0 List Price $37.00 $40.00 $34.00 $36.00 $34.00 $37.00 $30.00 $27.00 $37.00 MTBF 25000 26000 25000 20000 23000 24000 18000 22000 23000 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Age Dec.31 1.34 1.57 1.90 1.04 1.24 1.56 1.03 1.57 1.34 Promo Cust. AwareBudget ness $1,350 87% $1,400 100% $1,350 87% $1,140 67% $1,350 87% $1,400 100% $1,140 67% $1,400 100% $1,350 87% Sales Cust. Access- Dec. Cust. Budget ibility Survey $900 87% 48 $1,000 65% 40 $1,000 87% 47 $2,200 69% 30 $1,000 87% 8 $1,000 65% 10 $1,900 69% 1 $1,000 65% 1 $900 87% 1 Page 8 Page 9 of 25 Report Page 5/9/16, 11:42 AM Top Market Share Report Actual Market Share in Units Industry Unit Sales % of Market Thrift Core Nano Elite Total 6,985 26.1% 8,898 33.3% 5,412 20.3% 5,434 20.3% 26,729 100.0% Ace Awe Art Ant Total 11.7% 0.9% 12.6% 5.8% 16.3% 22.1% 23.4% 3.1% 6.6% 22.7% 1.9% 28.3% 1.1% 30.4% Bell Bit Boat Buzz Total 28.6% 28.6% 57.3% 1.9% 3.0% 16.1% 18.3% 39.3% Cell City Cozy Cute Crimp Cake Total 15.1% 11.5% 0.3% 12.2% 3.1% 0.5% 30.1% 14.9% 11.2% 38.6% Deal Dim Dome Dug Total Round: 3 December 31, 2018 Kevin Vu 0.0% 0.0% 1.8% 1.5% 3.3% Potential Market Share in Units Units Demanded % of Market Thrift Core Nano Elite Total 6,985 26.1% 8,898 33.3% 5,412 20.3% 5,434 20.3% 26,729 100.0% 6.1% 5.2% 5.0% 6.3% 22.5% Ace Awe Art Ant Total 13.3% 0.9% 14.2% 6.9% 16.7% 23.5% 23.4% 3.1% 6.6% 22.7% 1.9% 28.4% 1.1% 30.4% 6.1% 5.2% 5.8% 6.4% 23.5% 8.1% 8.5% 5.7% 6.4% 28.7% Bell Bit Boat Buzz Total 28.2% 28.0% 56.3% 1.9% 2.9% 15.8% 17.9% 38.6% Cell City Cozy Cute Crimp Cake Total 14.8% 11.3% 0.2% 12.0% 3.0% 0.5% 29.5% 14.6% 10.9% 37.8% Deal Dim Dome Dug Total 19.1% 1.1% 2.1% 13.1% 20.2% 15.3% 4.0% 7.1% 4.3% 2.9% 5.8% 3.8% 27.9% 24.7% 0.3% 21.6% 1.6% 48.3% 6.6% 22.5% 0.9% 24.3% 54.4% 6.4% 4.6% 4.6% 5.3% 20.8% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 0.0% 8.0% 8.3% 5.6% 6.3% 28.2% 1.8% 1.5% 3.3% 19.1% 1.1% 2.1% 13.1% 20.2% 15.2% 3.9% 6.9% 4.3% 2.9% 5.7% 3.8% 27.5% 24.7% 0.3% 21.6% 1.6% 48.2% 6.6% 22.5% 0.9% 24.3% 54.3% 6.4% 4.6% 4.6% 5.3% 20.8% Page 9 Page 10 of 25 Report Page 5/9/16, 11:42 AM Top Perceptual Map Round: 3 December 31, 2018 Kevin Vu Perceptual Map for All Segments Andrews Name Ace Awe Art Ant Pfmn 14.0 16.0 9.5 12.0 Name Deal Dim Dome Dug Pfmn 14.5 17.3 15.0 17.1 Size 4.0 6.0 11.0 8.0 Baldwin Revised 5/19/2018 5/19/2018 6/24/2018 7/12/2018 Name Bell Bit Boat Buzz Pfmn 8.8 9.0 11.9 12.6 Size 11.2 11.0 7.5 8.0 Chester Revised 6/10/2019 6/10/2019 12/16/2017 12/18/2017 Name Cell City Cozy Cute Crimp Cake Pfmn 9.5 10.4 13.9 17.0 11.8 11.5 Size 10.5 9.6 3.4 5.9 8.1 8.5 Revised 12/20/2018 12/6/2016 12/17/2018 12/17/2018 12/25/2018 2/10/2018 Digby Size 3.5 5.5 3.0 5.2 Revised 11/5/2018 8/24/2018 7/3/2018 7/25/2018 COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 10 Page 11 of 25 Report Page 5/9/16, 11:42 AM Top HR/TQM Report Kevin Vu Round: 3 December 31, 2018 HUMAN RESOURCES SUMMARY Andrews 727 Baldwin 439 Chester 573 Digby 598 Complement 727 439 573 598 1st Shift Complement 2nd Shift Complement 493 234 288 150 410 163 380 218 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 6.8% 8.0% 6.2% 10.0% 49 0 35 16 110 0 60 9 Recruiting Spend Training Hours $5,000 80 $2,500 40 $5,000 80 $0 0 Productivity Index 112.6% 116.2% 126.2% 100.0% Needed Complement New Employees Separated Employees Recruiting Cost $295 $123 $663 $60 Separation Cost Training Cost $0 $1,163 $80 $351 $0 $917 $45 $0 Total HR Admin Cost $1,458 $553 $1,580 $105 $29.56 2,500 $29.56 2,500 $29.56 2,500 $29.56 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 5.0% 5.0% Labor Contract Next Year Wages Benefits 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 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 Andrews Baldwin Chester Digby $0 $0 $1,500 $0 $1,500 $0 $1,250 $1,250 $0 $1,500 $0 $0 $1,500 $1,500 $0 $0 $0 $1,500 $0 $0 $1,250 $1,250 $1,250 $0 $1,500 $0 $1,500 $0 $6,000 $0 $0 $750 $750 $5,500 $1,500 $0 $0 $0 $6,000 $0 $0 $1,250 $1,250 $6,250 2.34% 6.71% 40.01% 36.12% 9.58% 6.03% 1.78% 0.00% 16.23% 5.47% 1.41% 0.05% 0.00% 43.11% 0.45% 6.43% 13.93% 39.79% 0.00% 9.37% COMP-XM INQUIRER http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 11 Page 12 of 25 Report Page 5/9/16, 11:42 AM PRINT Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 13 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Andrews Round: 7 Dec. 31, 2018 C59559 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory 2018 Common Size 54.7% 11.8% 2.2% $73,032 $15,754 $2,991 Total Current Assets $91,777 Plant & Equipment Accumulated Depreciation $105,224 ($63,421) Total Fixed Assets Total Assets 2017 $44,525 $14,099 $18,737 68.7% $77,361 78.8% -47.5% $105,224 ($56,407) $41,803 31.3% $48,817 $133,580 100.0% $126,179 7.0% 0.0% 7.6% $8,777 $6,513 $15,909 14.7% $31,199 8.2% 77.1% $11,235 $83,744 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $9,400 $0 $10,172 Total Liabilities Common Stock Retained Earnings $19,572 $10,999 $103,009 Total Equity $114,008 85.3% $94,979 Total Liab. & O. Equity $133,580 100.0% $126,179 Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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 Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2018 $21,028 $7,015 $172 $623 $15,747 ($1,656) 2017 $16,728 $7,015 ($596) $767 $6,273 ($1,739) $42,929 $28,449 $0 ($6,850) $0 $0 ($2,000) $0 ($5,909) ($6,513) $0 $0 $0 $0 ($6,513) $6,513 ($14,422) $28,506 $73,032 $0 $21,599 $44,525 Page 1 Page 14 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Andrews Round: 7 Dec. 31, 2018 C59559 2018 Income Statement (Product Name:) $0 2018 Total $191,679 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $56,631 $73,482 $359 $130,471 29.5% 38.3% 0.2% 68.1% $0 $0 $0 $61,207 31.9% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $7,015 $1,787 $5,600 $4,000 $2,315 $20,716 3.7% 0.9% 2.9% 2.1% 1.2% 10.8% $0 $0 $0 $0 $40,491 21.1% $6,291 $34,200 $0 $1,189 $11,554 $429 $21,028 3.3% 17.8% 0.0% 0.6% 6.0% 0.2% 11.0% Ace Awe Art Ant Na Na Na Na Sales $59,954 $55,987 $30,517 $45,220 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $17,678 $23,132 $40 $40,850 $15,017 $20,830 $318 $36,165 $9,496 $10,988 $0 $20,485 $14,440 $18,531 $0 $32,971 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $19,104 $19,822 $10,032 $12,249 $0 $1,361 $384 $1,400 $1,000 $724 $4,869 $1,341 $384 $1,400 $1,000 $676 $4,801 $2,060 $484 $1,400 $1,000 $369 $5,312 $2,253 $535 $1,400 $1,000 $546 $5,735 $14,235 $15,021 $4,720 $6,515 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 to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 15 of 25 Report Page 5/9/16, 11:42 AM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 16 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Baldwin Round: 7 Dec. 31, 2018 C59559 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory 2018 Common Size 17.7% 5.4% 5.8% $39,849 $12,233 $13,126 Total Current Assets $65,208 Plant & Equipment Accumulated Depreciation $255,200 ($95,324) 2017 $50,317 $12,881 $3,938 29.0% $67,136 113.4% -42.4% $228,100 ($78,311) Total Fixed Assets $159,876 71.0% $149,789 Total Assets $225,083 100.0% $216,924 3.7% 13.6% 44.0% $8,062 $43,171 $91,565 61.4% $142,798 23.3% 15.4% $39,879 $34,247 $86,992 38.6% $74,126 $225,083 100.0% $216,924 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $8,409 $30,542 $99,140 Total Liabilities $138,091 Common Stock Retained Earnings $52,421 $34,571 Total Equity Total Liab. & O. Equity Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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 Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2018 $324 $17,013 $0 $347 ($9,188) $648 2017 ($1,783) $15,207 $0 ($1,178) $7,184 $272 $9,144 $19,702 ($27,100) ($50,540) $0 $12,542 $0 $7,575 $0 ($12,628) $0 $12,370 $0 $34,685 ($11,300) $17,894 $7,489 ($10,467) $39,849 $53,649 $22,811 $50,317 Page 1 Page 17 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Baldwin Round: 7 Dec. 31, 2018 C59559 2018 Income Statement (Product Name:) $0 2018 Total $148,830 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $27,860 $65,267 $1,575 $94,702 18.7% 43.9% 1.1% 63.6% $0 $0 $0 $54,128 36.4% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $17,013 $2,000 $5,000 $5,000 $1,426 $30,439 11.4% 1.3% 3.4% 3.4% 1.0% 20.5% $0 $0 $0 $0 $23,689 15.9% $6,506 $17,183 $3,909 $12,765 $178 $7 $324 4.4% 11.5% 2.6% 8.6% 0.1% 0.0% 0.2% Bell Bit Boat Buzz Na Na Na Na Sales $34,781 $36,225 $36,828 $40,996 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $6,427 $15,278 $183 $21,889 $6,735 $16,285 $405 $23,424 $7,022 $15,442 $488 $22,953 $7,676 $18,261 $499 $26,436 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $12,892 $12,800 $13,875 $14,561 $0 Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,907 $1,000 $1,250 $1,400 $333 $8,890 $5,520 $1,000 $1,250 $1,400 $347 $9,517 $3,040 $0 $1,250 $1,100 $353 $5,743 $3,547 $0 $1,250 $1,100 $393 $6,289 Net Margin $4,002 $3,283 $8,132 $8,271 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 18 of 25 Report Page 5/9/16, 11:42 AM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 19 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Chester Round: 7 Dec. 31, 2018 C59559 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory 2018 Common Size 11.2% 5.9% 7.0% $26,932 $14,094 $16,737 Total Current Assets $57,763 Plant & Equipment Accumulated Depreciation $270,420 ($88,328) 2017 $36,494 $11,867 $8,884 24.1% $57,245 112.7% -36.8% $217,260 ($70,300) Total Fixed Assets $182,092 75.9% $146,960 Total Assets $239,855 100.0% $204,205 3.9% 11.5% 43.0% $7,442 $33,804 $82,120 58.4% $123,366 23.0% 18.6% $36,051 $44,787 $99,835 41.6% $80,838 $239,855 100.0% $204,205 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $9,364 $27,538 $103,118 Total Liabilities $140,020 Common Stock Retained Earnings $55,236 $44,599 Total Equity Total Liab. & O. Equity Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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 Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2018 ($188) $18,028 $0 $1,923 ($7,853) ($2,228) 2017 $1,671 $13,124 $0 $838 $3,117 ($2,008) $9,682 $16,742 ($53,160) ($51,960) $0 $19,184 $0 $20,997 $0 ($6,266) $0 $17,308 $0 $34,263 ($11,300) $12,094 $33,916 ($9,563) $26,932 $52,365 $17,147 $36,494 Page 1 Page 20 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Chester Round: 7 Dec. 31, 2018 C59559 2018 Income Statement $18,328 $35,960 $34,459 $27,814 $32,318 $22,604 $0 $0 2018 Total $171,482 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $2,044 $6,486 $342 $8,872 $7,803 $15,966 $394 $24,162 $7,865 $14,251 $543 $22,659 $4,851 $10,253 $522 $15,626 $8,663 $13,787 $166 $22,616 $4,568 $9,544 $42 $14,154 $0 $0 $0 $0 $0 $0 $0 $0 $35,794 $70,287 $2,008 $108,089 20.9% 41.0% 1.2% 63.0% Contribution Margin $9,456 $11,798 $11,800 $12,188 $9,702 $8,450 $0 $0 $63,393 37.0% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,833 $983 $1,140 $1,000 $242 $7,198 $4,753 $0 $1,140 $1,000 $474 $7,368 $2,267 $973 $1,140 $1,900 $455 $6,735 $2,040 $973 $1,140 $2,200 $367 $6,720 $2,660 $995 $1,140 $900 $426 $6,122 $2,475 $114 $1,140 $900 $298 $4,927 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $18,028 $4,039 $6,840 $7,900 $2,263 $39,069 10.5% 2.4% 4.0% 4.6% 1.3% 22.8% Net Margin $2,258 $4,430 $5,065 $5,468 $3,580 $3,523 $0 $0 $24,324 14.2% $8,009 $16,315 $3,415 $13,190 ($101) $0 ($188) 4.7% 9.5% 2.0% 7.7% -0.1% 0.0% -0.1% (Product Name:) Sales Cell City Cozy Cute Crimp Cake Na Na Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Common Size 100.0% Page 21 of 25 Report Page 5/9/16, 11:42 AM Page 2 Annual Report PRINT Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Page 22 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Digby Round: 7 Dec. 31, 2018 C59559 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory 2018 Common Size 17.1% 10.2% 13.4% $27,206 $16,209 $21,354 Total Current Assets $64,769 Plant & Equipment Accumulated Depreciation $154,160 ($59,475) Total Fixed Assets Total Assets 2017 $35,190 $13,791 $16,501 40.6% $65,482 96.7% -37.3% $118,660 ($49,197) $94,685 59.4% $69,463 $159,454 100.0% $134,944 6.4% 12.6% 23.3% $9,206 $29,353 $26,805 42.3% $65,364 6.3% 51.3% $10,402 $59,177 $91,955 57.7% $69,579 $159,454 100.0% $134,944 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $10,218 $20,166 $37,115 Total Liabilities $67,499 Common Stock Retained Earnings $10,111 $81,844 Total Equity Total Liab. & O. Equity Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations 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 Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 2018 $24,323 $10,277 $0 $1,012 ($4,853) ($2,418) 2017 $15,476 $7,911 $0 $1,606 ($3,899) ($1,800) $28,341 $19,293 ($35,500) ($24,700) $0 $0 ($1,947) $10,310 $0 ($9,188) $0 $1,603 $0 $17,255 ($11,300) $15,382 ($825) ($7,984) $27,206 $22,940 $17,533 $35,190 Page 1 Page 23 of 25 Report Page 5/9/16, 11:42 AM Top Annual Report Digby Round: 7 Dec. 31, 2018 C59559 2018 Income Statement (Product Name:) $0 2018 Total $197,212 Common Size 100.0% $0 $0 $0 $0 $0 $0 $0 $0 $41,365 $78,101 $2,562 $122,028 21.0% 39.6% 1.3% 61.9% $0 $0 $0 $75,183 38.1% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,277 $2,595 $5,400 $3,800 $1,485 $23,557 5.2% 1.3% 2.7% 1.9% 0.8% 11.9% $0 $0 $0 $0 $51,626 26.2% $6,795 $44,831 $2,259 $4,389 $13,364 $496 $24,323 3.4% 22.7% 1.1% 2.2% 6.8% 0.3% 12.3% Deal Dim Dome Dug Na Na Na Na Sales $57,812 $42,091 $45,210 $52,099 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $13,510 $22,130 $326 $35,966 $8,497 $18,048 $338 $26,882 $8,932 $17,292 $892 $27,116 $10,426 $20,632 $1,006 $32,065 $0 $0 $0 $0 $0 $0 $0 $0 Contribution Margin $21,847 $15,209 $18,094 $20,034 $0 $2,911 $858 $1,350 $1,000 $435 $6,554 $1,813 $655 $1,350 $1,000 $317 $5,136 $2,720 $510 $1,350 $900 $341 $5,821 $2,833 $571 $1,350 $900 $392 $6,047 $15,292 $10,073 $12,273 $13,987 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 to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage Other EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Page 24 of 25 Report Page Annual Report http://ww2.capsim.com/cgi-bin/displayReport.cfm?Report=CapCourier|AnnReport#frontpage 5/9/16, 11:42 AM Page 2 Page 25 of 25