Review the Inquirer to determine Baldwin's current strategy. How will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Baldwin would be most likely to pursue.Select: 5

	Increase demand through TQM initiatives
	Offer attractive credit terms
	Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand
	Seek high automation levels
	Seek high plant utilization, even if it risks occasional small stockouts
	Reduce cost of goods through TQM initiatives
	Reduce labor costs through training and recruitment
	Seek excellent product designs, high awareness, and high accessibility
	Add additional products
	Seek the lowest price in their target market while maintaining a competitive contribution margin

Balance Sheet 2019 2020 Common Size 15.3% 6.4% 5.5% $22,645 $9,467 $8,129 $32,6121 $9.778 $6,4781 $40,241 27.1% $48.868 $165,300 ($57,176) 111.4% -38.5% $124,4001 ($47,289) $108,124 72.9% $77,111 DEFINITIONS: Common Size: The common ASSETS size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Cash 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 Total Current Assets stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: Plant & Equipment The current value of your plant. Accum Deprec: Accumulated Depreciation The total accumulated depreciation from your plant. Accts Payable: What the company Total Fixed Assets currently owes suppliers for materials and services. Current Debt: The debt the company Total Assets is obligated to pay during the next year of operations. It includes emergency loans used to LIABILITIES & OWNERS' keep your company solvent should you run out EQUITY of cash during the year. Long Term Debt: The company's long term debt is in the form of Accounts Payable bonds, and this represents the total value of Current Debt Ilyour bonds. Common Stock: The amount of Long Term Debt capital invested by shareholders in the company. Retained Earnings: The profits that the Total Liabilities company chose to keep instead of paying to I shareholders as dividends. Common Stock Retained Earnings $148,367 100.0% $125,979 $6,067 $21,771 $59,132 4.1% 14.7% 39.9% $5,797 $25,509 $41,392 S86,970 58.6% $72,698 $18,534 $42,863 12.5% 28.9% $14,332 $38.949 Total Equity $61,397 41.4% $53,281 Total Liab. & O. Equity $148,367 100.0% $125,979 Cash Flow Statement 2020 $3.914 $9,887 So $270 ($1,652) $311 2019 $10.2031 $8,293 $0 $542 $1,527 ($970) $12.729 $19,596 ($40.900) ($26,642) The Cash Flow Statement examines what happened in the Cash Cash Flows from Operating Activities: Account during the year. Cash injections appear as positive numbers and Net Income (Loss) cash withdrawals as negative numbers. The Cash Flow Statement is an Depreciation excellent tool for diagnosing emergency loans. When negative cash Extraordinary gains/losses/writeoffs flows exceed positives, you are forced to seek emergency funding. For Accounts Payable example, if sales are bad and you find yourself carrying an abundance of Inventory excess inventory, the report would show the increase in inventory as a Accounts Receivable huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money Net cash from operations to keep your company afloat. Cash Flows from Investing Activities: Plant Improvements Cash Flow Summary Cash Flows from Financing Activities: Dividends Paid Baldwin Sales of Common Stock Purchase of Common Stock Cash from long term debt 10,000 Retirement of long term debt 0 Change in current debt (net) - 10,000 Net cash from financing activities -20,000 Net change in cash position Closing cash position -30,000 -40,000 Operations Finance Chg. Cash o Operations Investment Finance Chg. Cash So $4,203 SO $17.740 SO ($3,738) ($6,015) $0 $0 $15,725 ($5,900) $9,693 $18,204 ($9.967) $22,645 $13,502 $6.456 $32,612 2020 Income Statement Bolt Baker (Product Name:) Sales Bit $27,360 Buzz $24,219 Brat $21.750 Na $O Na SO Na $0 2020 Common Total Size $115,184 100.0% $41,855 50 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $3,840 $9,802 $77 $13,718 $11,083 $18.913 $92 $30,087 $4,829 $10,478 $334 $15.641 $4,440 $8.775 $473 $13.688 $0 $0 $0 $0 $0 $0 SO $O so SO SO SO so $0 $0 $0 $24.192 $47,967 $976 $73,134 21.0% 41.6% 0.8% 63.5% Contribution Margin $13,642 $11,768 $8,578 $8,062 $0 SO SO $0 $42,050 36.5% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,500 $496 $1,000 $1,000 $406 $6,402 $3,400 $947 $1,000 $1,800 $620 $7,767 $1,600 $973 $1,000 S900 $359 $4,832 $1,387 $977 $1,000 $1,200 $322 $4,886 $0 $1,000 $0 $0 $0 $1,000 SO SO SO SO SO SO SO SO SO SO SO SO $0 $0 $0 $0 $0 $0 $9.887 $4,393 $4.000 $4.900 $1.707 $24,887 8.6% 3.8% 3.5% 4.3% 1.5% 21.6% Net Margin $7,240 $4,001 $3,746 $3,177 ($1,000) $0 SO 30 $17,164 14.9% 1.0% 13.9% 2.2% 6.4% 1.9% 0.1% 3.4% $3.914 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. Other $1,097 Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D EBIT $16,066 department expenditures for each product. Admin: Administration overhead is estimated at 1.5% Short Term Interest $2,525 of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Long Term Interest $7,397 each product. Other: Charges not included in other categories such as Fees, Write Offs, and Taxes $2,150 TOM. The fees include money paid to investment bankers and brokerage firms to issue new Profit Sharing $80 stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit 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 Variable Margins the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term 2008 Baldwin 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 40.0% with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit 30.0% sharing 20.0% 10.0% 0.0% Na Profit History Market Share History $10,000 $8,000 $6,000 $4,000 $2,000 SO 25% 20% 15% 10% 5% 0% 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 ROE History Asset Turnover History 1.0 20% 15% 10% 5% 0% 0.5 0.0 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020