Review the Inquirer to determine Baldwins 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

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

Annual Report Baldwin C59559 Round: 1 Dec. 31, 2020 Balance Sheet 2019 $14.312 $ 11,344 $14,709 2020 Common Size 15.496 12.2% 15.8% $19,743 $9,829 $14,8321 S40,385 43.496 $44,404 S93.900 ($41.287) 101.0% -44.496 $84,380 ($35,023) S52,673 56.6% $49,3571 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 s 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 ponds, and this represents the total value of Current Debt your 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 shareholders as dividends. Common Stock Retained Earnings Total Equity 893,039 100.0% $93,761 $7,491 $14,285 $20,787 8.1% 15.4% 22.3% $6,382 $18,4321 $19,470 $42.583 45.7% S44,293 $8,818 $41,658 9.5% 44.896 $9,102 $40.367 $50,476 54.396 $49,4601 Total Liab. & O. Equity S93,039 100.0% 93.781 Cash Flow Statement 2020 2019 $9,716 $11,057 $6,264 $5,625 SO SO $1,110 1997 $123 $318 ($1.515) ($1,776) $15,697 $16.221 ($9.580) ($6.500) 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 15,000 Cash from long term debt 10.000 Retirement of long term debt Change in current debt (net) 5,000 Net cash from financing activities 0 Net change in cash position -5,000 Closing cash position - 10,000 Operations Finance Chg. Cash Operations Investment Finance Chg. Cash ($7.169) ($4.465) SO SO ($1.539) ($1.829) $1,308 $5,675 SO ($6.331) ($4,147) $7.9491 ($11.547) ($5,431) $14,312 $1,000 $10,721 $19,743 Annual Report Page 1 Annual Report Baldwin C59559 Round: 1 Dec. 31, 20201 (Product Name:) Sales Na Bat $35,777 Beetle $30,741 2020 Income Statement Bill Boat Na Na S35,736 $35,766 $o $0 Na $o 2020 Common Total Size $138,020 100.0% SO Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $11,141 $15,316 $174 $28,632 $7,347 $13,052 S308 $20,707 $8,133 $14.623 S672 $23,428 $7,214 $14,442 $611 $22,286 $0 SO $0 $0 So so SO $0 SO So so SO SO SO SO SO $33,835 $57,433 $1,785 S93,033 24.5% 41.896 1.3% 67.496 Contribution Margin $9,145 $10,034 $12,307 $13,500 SO SO SO SO $44,986 32.6% SO Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1,691 S928 $1,250 S900 S282 $5,050 $1,213 $1,000 $1,250 S900 $242 $4,605 $1,587 5804 $1,250 8800 S281 $4,722 $1,773 $804 $1,250 8800 S282 $4.900 SO SO SO SO $0 SO SO $o SO SO SO SO so $0 SO $0 SO SO SO SO SO $0 $6,284 $3,535 $5,000 $3,400 $1,086 $19.286 4.596 2.6% 3.6% 2.5% 0.8% 14.0% Net Margin $4,094 $5,429 $7.580 $8,591 SO $0 $0 $0 S25,701 18.6% 4.896 14.094 1.1% 1.9% 3.9% 0.1% 7.096 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other $6,338 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 EBIT $19,382 $1,514 department expenditures for each product. Admin: Administration overhead is estimated at 1.5% Short Term Interest $2,598 of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Long Term Interest each product. Other. Charges not included in other categories such as Fees, Write Offs, and Taxes $5,338 TOM. The fees include money paid to investment bankers and brokerage firms to issue new Profit Sharing S198 stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you Net Profit $9,716 might experience when you sell capacity or liquidate inventory as the result of eliminating a Variable Margins 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 2008 Baldwin Interest: Interest expense based on last year's current debt, including short term debt, long term hotes 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 30.0% with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit 20.0% Sharing 10.0% 0.0% Profit History Market Share History $10,000 $5,000 25% 20% 15% 10% 5% 0% SO 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 ROE History Asset Turnover History 1.5 1.0 20% 15% 10% 5% 0% 0.5 0.0 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 ROS History ROA History 10.0% 8% 6% 4% 2% 0% 5.0% 0.0%