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 Dec.qu2019 Balance Sheet 2018 $19,743 $9,829 $14,832 2019 Common Size 21.1% 10.5% 15.8% $9,022 $8,053 $15, 150 $44,404 $32 225 $84.380 ($35,023) 47.4% 90.0% -37.4% $77,880 ($29,397) $48.483 $49,357 52.6% $93,761 100.0% $80,707 DEFINITIONS: Common Size: The common size column ASSETS smply 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 Cash and payment of your products. Inventories: The current Accounts Receivable value of your inventory across all products. A zero indicates Inventory your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment The current Total Current Assets value of your plant. Accum Deprec The total accumulated plepreciation from your plant. Accts Payable: What the Plant & Equipment company currently owes suppliers for materials and Accumulated Depreciation services Current Debt: The debt the company is obligated to pay during the next year of operations. It includes Total Fixed Assets 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 debe is in the form of bonds, and this Total Assets represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the LIABILITIES & OWNERS' EQUITY company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as Accounts Payable dividends. Current Debt Long Term Debt Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. &0. Equity $6,382 $18.4 8.8% 19.7% 20.8% $5,385 $10.483 $20.135 $44,293 $9,102 $40,387 47.2% 9.7% 43.1% $36.003 $0,400 $35,216 $49,469 52.8% $44.706 $93,761 100.0% $80.707 Cash Flow Statement 2019 $11,057 $5.625 $0 $997 $318 ($1.778) 2018 $7,798 $5,192 $0 ($2,888 $484 ($500 The Cash Flow Statement examines what happened in the Cash Account during the Cash Flows from Operating Activities: year. Cash injections appear as positive numbers and cash withdrawals as negative Net Income (Loss) numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans Depreciation When negative cash flows exceed positives you are forced to seek emergency funding. Extraordinary gains losses/writeoffs For example, if sales are bad and you find yourself carrying an abundance of excess Accounts Payable nventory, the report would show the increase in inventory as a huge negative cash flow. Inventory Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and Accounts Receivable force you to beg for money to keep your company afloat. Net cash from operations Cash Flows from Investing Activities: Cash Flow Summary Plant Improvements Cash Flows from Financing Activities: Baldwin Dividends Paid Sales of Common Stock Purchase of Common Stock 15,000 Cash from long term debt Retirement of Tong term debt 10,000 Change in current debt (net) Net cash from financing activities 5,000 Net change in cash position Closing cash position $16,221 ($6,500) (54,465) ($1,829) $5,675 ($6,331) $7,046 $1,000 $10,721 $19,743 $10,082 ($12,220) ($3,866 $0 ($1,172) $2,504 $0 $514 ($2,020) ($4,171) $9,022 0 -5,000 Operations Operations Chg. Cash Finance Chg. Cash Investment Finance Annual Report Dec Row 2018 Baldwin C59559 2019 Income Statement BI Boat 535,505 533,713 Common Na Bat $33,821 Beetle $16.545 Na SO Na 50 Na $0 2019 Total $119.585 100.0% (Product Name:) Sales Variable Cocte: irect Labor Direct Material Inventory Carry Total Variable $10,436 $14.559 $236 $25,231 56.ON $384 $9,841 58.271 514.554 5609 523,435 57.002 $13,585 $551 521,239 512,475 88888 $29.072 $48.893 $1,780 $79.744 40.99 24.39 1.5% 66.79 $0 Contribution Margin $8,590 $6,704 512.072 SO 50 $0 $39.841 Period Cocte: epreciation SGSA RSD Promotions Sales $1,292 $876 $1,100 $400 $1,213 $963 $1,100 $400 51,473 5938 51,100 51.200 55.039 $1,647 5939 $1,100 $1.200 $254 $5,150 3.19 3.79 $5625 $3,765 $4400 53.200 5935 $17.925 $21.914 Total Period $3,805 15.0% $3,931 54,558 Net Margin $2,899 57,033 57,325 SD 50 $0 18.39 per incons: alec: Unt sales ames 15 price. Dreat Labor. Labor costs incurred to produce the product that was sold. Inventory Carry Coct the cost to carry unsold goods in Inventory. Depreolation: Calculated on straight-line 15year depreciation of plant value. R&D Cocte: 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: Charpes not included in other categories such as Fees, Write Offs, and TOM. The fees nclude 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 actualy made money on the liquidation of capacity or inventory. EBIT: Esmings Before Interest and Taxes Short Term Interact: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency oans. Long Term Interest Interest paid on outstanding bonds. Taxoc: 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 Other EBIT Short Term Interest Long Term interest Taxes Proft Sharing Net Profit $311 $21.503 $1.60s $2.439 $6.675 $11.057 18.1% 1.5% 5.1% Variable Margins 2008 Baldwin 40 0% 30.0% 20.0% 10.0% 0.0% Bill Boat Na Bat Bootlo Na Profit History Market Share History 25% 510.000 $5,000 20% 15% 10% 5% 0% SO 2015 2016 2017 2018 2019 2015 2018 2017 2010 2019 ROE History Asset Turnover History 1.0 20% 15% 10% 5% 0% 0.5 0.0 2015 2016 2017 2010 2019 2015 2016 2017 2010 2019 ROS History ROA History 10.0% 8% 6% 4% 2% 0% 5.0% 0.0% 2015 2016 2017 2018 2019 2015 2016 2017 2010 2019