Review the Inquirer to determine Baldwin's current strategy. Where 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 Save Answer Seek high automation level:s Increase demand through TQM initiatives Seek high plant utilization, even if it risks occasional small stockouts O Seek the lowest price in their target market while maintaining a competitive contribution margin Reduce labor costs through training and recruitment Seek excellent product designs, high awareness, and high accessibility Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand Offer attractive credit terms Add additional products Reduce cost of goods through TQM initiatives Selected Financial Statistics Digby 4.2% Andrews Baldwin Chester ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A Sales Contrib. Margin % 1.55 13.3% 0.97 10.3% $0 $134,948,851 $16,116,007 $8,127,607 $8,127,607 12.4% 29.2% 23.9% $148,904,414 $24,182,257 $12,786,729 $12,786,729 $0 $162,141,523 $21,856,475 $6,487,267 $6,487.267 $0 $122,256,868 $17,909,637 $5,098,063 $5,098,063 12.5% 30.1% 335% 29.9% Percent of Sales $ Market Share 100% Profit Other SGA 80% Var Costs 60% 50% 4% 30% 20% Andrews 23.75% Baldwin 26.2% Chester 28.53% Digby 21.61% Andrews Baldwin Chester Di COMP-XM INQUIRER Top Round: 1 Stocks & Bonds INQUTRER Michelle White December 31,2018 Stock Market Summary MarketCap Book Value Change Yield Company Andrews Baldwin Chester Digby Close Shares EPS Dividend $76.60 $66.55 $40.45 $46.83 ($18.78) 2,051,289 1,881,190 ($4.05)2,633,987 ($6.34)2,250,657 $157 $125 $107 $105 $38.62 $28.46 $24.34 $27.80 $3.96 $6.80 $2.46 $2.27 $0.00 $3.75 $0.00 $0.00 $10.82 55% 20.7 Closing Stock Price COMP-XM Financial Summary Round: 1 December 31, 2018 Michelle White INQUIRER Digby Cash Flow Statement Survey Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items Andrews Baldwin Chester $8,128 $12,787 $6,487 $5,098 Depreciation S6,455 $11,837 $9,887 Extraordinary gains/losses/writeoffs Changes in current assets and liabilities $1,795 ($2.234) $4,365 $2,329 $722 ($2,238) ($276) $13,192 Accounts payable Inventory $8,417 Accounts receivable Net cash from operations ($2,518) $19,803 $26,054 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 (S9.580) ($7,057) ($34,660) ($40,900) $0 $2,982 $4,220 $0 ($1,553) $17,785 $0 ($25,558) $21,757 $0 $0 S0 ($18,303) $14,271 $0 $0 ($29,231) $25,182 $0 $0 Net cash from financing activities ($1,507) $3,326 Andrews $34,869 $11,092 $21,783 $67,744 ($9,504) Digby $23,128 Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Baldwin $24,488 $12,239 Chester $30,453 $13,327 $8,402 182 $8,675 41,852 Plant and equipment Accumulated Depreciation Total Fixed Assets $96,824 ($50,864) $45,960 $93,960 $52,673 $95,980 $177,560 ($63,102) $114,458 $165,300 $108,124 $149,976 Total Assets $113,703 $166,640 Accounts Payable Current Debt Long Term Debt Total Liabilities $7,283 $27,209 $34,492 2,080 $67,132 $9,078 $25,182 $68,263 $102,523 $6,519 $21,757 $59,140 $87,415 $14,271 $20,790 $42,444 Common Stock Retained Earnings $8,804 $44,732 $53,536 $27,672 $36,445 $62,561 Total Liabilities & Owners' Equity $113,703 $95,980 $166,640 $149,976 COMP-XM Market Share Report Michelle White INQUIRER December 31, 2018 Units Sold vs Demand Chart Market Share 7,000 6,000 4,000 096 ri Nano Industry Unit Sales Total Unit Demand Thrift CoreNano O Elite Actual Market Share in Units Potential Market Share in Units Total 21,197 100.0% Thrift Core Nano Elite Total Industry Unit Sales %of Market 5,662 7,344 4,159 4,033 26.7% 34.6% 19.6% 19.0% Thrift CoreNano Elite 5,662 7,344 4,159 4,033 26.7% 34.6% 19.6% 19.0% 100.0% % of Market 15.8% 2.6% 5.8% 22.6% cre 4.8% Acre 3.9% Adam 6.790 Ark 19.6% Able 28.5% 2.2% 10.4% 21.4% 12.2% 0.6% 12.8% 1.8% 15.6% 17.3% 4.5 2.8% 21.2% 2.9% 31.3% 12.0% 0.6% 12.6% 1.8% 15.5% 17.2% le 6.5% 2.4% 33.1% 2.7% 34.6% 22.4% 5.0% 0.0% 13.6% 6.9% 20.9% 4.9% 46.3% 7.2% 16.1% 5.4% 19.1% 47.9% 5.0% 5.5% 12.5% 5.8% 17.4% 4.1 39.7% 7.1% 15.3% 5.2% ra 51% Baker 4.6% Bead Bead 4.4% 4.2% 18.2% 5.0% 19.9% Bid Total 5.0% 45.7% 10.9% 28.4% 30.3% 0.1% 0.0% 58.8% 9.7% 11.7% 13.0% 14.7% 49.2% 12.2% Crimp 6.0% Cake 6.9% City Cake 29.8% 29.7% 0.1% 10.2% 11.7% 12.9% 14.7% 49.5% 5.7% 6.0% 11.8% 1.9% 3.2% 5.1% 4.8% 5.1% 9.8% 1.8% 3.0% 4.8% 12.0% 5.8 36.0% Cid Total 59.6% 35.9% 18.9% 9.5% Daze Dell Dixie 6.3% 22.0% 0.2% 0.0% 28.5% 10.2% Drat 4,0% Daze 3.1% Dell 24.5% Dixie 15.4% 5.3% 20.8% 5.0% 10.7% 15.7% 18.5% 9.3% 6.2% 21.9% 0.2% 12.9% 4.5% 17.4% 4.7% 10.2% 14.9% 28.4% 27.8% 28.3% 23.5% COMP-XM INQUIRER o keep your company afloat Cash Flows trom 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 ($9,580) ($6,500) Cash Flow Summary Baldwin ($7,057) ($4,520) ($1,553) ($1,902) $1,279 $5,786 $0 ($6,335) ($4,032) $7,612 20,000 Change in current debt (net) 10,000 Net cash from financing activities Net change in cash position Closing cash position ($11,364) $641 $5,110 $10,223 $24,488 $19,378 10,000 Operations Finance Chg. Cash OOperations Investment Finance Chg. Cash nnual Report To nnual Report Round: 1 Dec. 31, 2018 Baldwin 59559 2018 Income Statement 2018 Total $148,904 mmon (Product Name:) $37,807 $32,885 $40,251$37,962 $0 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry $7,657 $16,184 $13,958 $16,470 $15,329 $456 $27,957 $21,955 $25,677 $23,442 $7,855 T12 1343s25 $36.300 $61,941 $790 $99,031 24.4% 41.6% 0.5% 66.5% $0 $0 otal Variable Contribution $9,850 $10,930 $14,574 $14,520 $49,874 33.5% Period Costs: Depreciation SG&A: R&D $1,69 $1,213 $1,587$1,773 $804 $928 $1,250 $1,000 $1,250 $900 $255 $3.535 $5,000 $3,400 2.4% 3.4% 2.3% Promotions $0 $0 $1,250$1,250 $800 $800 Admin Total Period $293 $0 $0 $0 $5,062 $4,618 $4,752$4,921 $4,788 $6,311 $9,821 $9,599 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D each product. Other: Charges not included in other categories such as Fees, Write Offs, and $19,354 13.0% Net Margin $0 $0 $30,519 20.5% Other $6,337 $24,182 $1,513 $2.596 $7,026 $261 $12,787 4.3% 16.2% 1.0% 1.7% 4.7% 0.2% 8.6% product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. E Short Term Interest Long lerm Interest department expenditures or each product. Admin: Administration overhead is estimated at 1.5% f sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Taxes Profit Sharing Net Proft QM. 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 Annual Report To nnual Report Round: 1 Dec. 31, 2018 Baldwin C59559 Balance Sheet SSETS 2018 Common 2017 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 Accounts Receivable and payment of your products. Inventories: The Inventory current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course all to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: Accumulated Depreciation($41,287) $24,488 $12,239 $6,580 $19,378 $9,824 $14,99 otal Current Assets $43,307 lant & Equipment $93,960 97 991 $84,380 ($35,023) $49,357 $93,556 he total accumulated depreciation from your plant. Accts Payable: What the company 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 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 otal Fixed Assets $52,673 $95,980 100.0% $7,383 ccounts Payable urrent Debt ong Term Debt $6,382 $18,303 $19,512 $20,790 otal Liabilities $42,444 44.2% $44,19 $9,091 $40,269 ommon Stock Retained Earnings Total Equity Total Liab. & O. Equity $44,732 $53,536 55.8% $49,360 $95,980 100.0% $93,556 Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Cash Flows from Operating Activities: 2018 $12,787 $11,05 $6,264 $5,62 ccount during the year. Cash injections appear as positive numbers and Net Income (Loss) sh withdrawals as negative numbers. The Cash Flow Statement is an Depreciation xcellent tool for diagnosing emergency loans. When negative caslh ows exceed positives, you are forced to seek emergency funding. For xample, if sales are bad and you find yourself carrying an abundance of nventory xcess inventory, the report would show the increase in inventory as a $0 $0 Extraordinary gains/losses/writeoffs Accounts Payable $1,001 $93 $8,417 $24 ($2,415) ($1,776 Accounts Receivable huge negative cash flow. Too much unexpected inventory could outsti