see attachment
Andrews Corp. ended the year carrying $77,986,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.? Select: 1 $7,652,000 $166,416,520 $209,684,815 $77,986,000 It is January 2nd. Senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (=assets/equity) to a new target of 2.7. Assume the stock can be issued at yesterday's stock price ($49.00). Which of the following statements are true? Check all that apply. Select: 3 The Chester bond issue will be $4,165,000 Chester will issue stock totaling $2,450,000 Total investment for Chester will be $6,615,000 Total Assets will rise to $244,414,000 The Chester Working Capital will be unchanged at $17,573 Long term debt will increase from $86,499,456 to $88,949,456 The Chester's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be? Assume Chester spends the same amount extra above the $1,000 recruiting base as they did last year. Select: 1 $610,000 $732,000 $3,665,000 $4,398,000 The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin's accounts payable goes down: Select: 1 It is a source of cash and will be shown in the financing section as an addition. It is a use of cash, and will be shown in the operating section as a subtraction. It is a use of cash, and will be shown in the financing section as a subtraction. It is a source of cash, and will be shown in the operating section as an addition. This year Baldwin achieved an ROE of 2.3%. Suppose the Board of Directors of Baldwin mandates that management take measures to decrease financial Leverage (Assets/Equity) next year. Assuming Sales, Profits, and Assets remain the same next year, what effect would you expect this new Leverage policy will have on Baldwin's ROE? Select: 1 Baldwin ROE will remain the same Baldwin ROE will decrease Baldwin ROE will increase This year, Baldwin paid their workers $26.81 per hour. How much will they be paying them 3 rounds from now? Select: 1 $31.04 $28.36 $28.15 $29.56 Which description best fits Baldwin? For clarity: - A differentiator competes through good designs, high awareness, and easy accessibility. - A cost leader competes on price by reducing costs and passing the savings to customers. - A broad player competes in all parts of the market. - A niche player competes in selected parts of the market. Which of these four statements best describes this competitor? Select: 1 Baldwin is a niche differentiator Baldwin is a broad cost leader Baldwin is a niche cost leader Baldwin is a broad differentiator On the Income Statement, which of the following would be classified as a variable cost? Select: 1 R&D Expense Promotion Expense Direct Labor Expense Depreciation Expense " Round: 2 Dec. 31, 2015 Andrews Baldwin Chester Digby Selected Financial Statistics ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Andrews -19.0% 0.62 -11.8% Baldwin 1.1% 0.76 0.8% Chester 3.2% 0.77 2.5% Digby 8.8% 1.22 10.7% 2.7 2.8 2.5 2.0 -32.3% $31,044,870 2.3% $0 6.3% $0 21.0% $0 Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % $84,120,667 ($13,806,402) ($16,006,598) ($26,601,570) 24.8% 26.3% $178,340,267 $20,539,867 $1,994,978 $13,435,966 7.7% 32.5% COMP-XM INQUIRER $170,982,474 $23,765,227 $5,531,744 $14,546,730 10.5% 34.1% $178,280,628 $31,232,075 $15,676,840 $29,302,431 6.9% 33.5% Page 1 Top Round: 2 Stocks & Bonds December 31 , 2015 Stock Market Summary Company Close Change Shares Andrews Baldwin Chester Digby $1.00 ($27.58) 2,226,181 $39.82 ($8.22) 2,923,164 $49.00 ($4.74) 2,552,882 $80.71 $12.38 1,950,871 MarketCap ($M) $2 $116 $125 $157 Book EPS Dividend Yield Value $22.27 ($7.19) $0.00 0.0% $29.08 $0.68 $0.00 0.0% $34.50 $2.17 $0.00 0.0% $38.32 $8.04 $0.00 0.0% P/E -0.1 58.3 22.6 10.0 Bond Market Summary Company Series# Face Yield Close$ S&P 11.2S2020 11.9S2021 10.9S2024 $8,837,000 $7,072,000 $10,000,000 12.4% 13.0% 12.9% 90.39 91.83 84.67 C C C 11.3S2020 12.5S2021 12.5S2022 12.5S2023 12.9S2024 13.2S2025 $10,417,600 $14,665,611 $7,981,720 $9,473,587 $14,407,694 $34,619,000 12.5% 13.3% 13.4% 13.4% 13.6% 13.8% 90.73 94.17 93.57 93.04 94.56 95.83 C C C C C C 11.2S2020 12.4S2021 11.9S2023 12.5S2024 13.0S2025 $8,639,846 $5,828,840 $15,600,742 $17,783,553 $38,646,475 12.3% 13.1% 13.1% 13.4% 13.6% 91.03 94.53 91.13 93.52 95.79 CC CC CC CC CC 11.1S2022 11.2S2023 11.5S2024 11.6S2025 $2,504,080 $5,675,277 $1,307,561 $20,959,005 11.9% 12.0% 12.2% 12.3% 93.28 93.19 94.27 94.49 B B B B Andrews Baldwin Chester Digby Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey 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 Round: 2 December 31, 2015 Andrews Baldwin Chester Digby ($16,007) $1,995 $5,532 $15,677 $7,319 $0 $15,827 $0 $13,844 $0 $8,624 $0 ($2,605) ($9,501) ($60) ($20,854) $320 ($6,005) $850 $12,986 $2,280 ($2,164) ($2,764) $16,728 $2,000 ($10,100) ($1,676) $14,525 ($4,400) ($59,840) ($62,720) ($35,400) $0 $5,000 $0 $0 $0 ($23,791) $13,000 $31,045 $0 $13,958 $0 $34,619 $0 ($25,203) $37,746 $0 $0 $16,077 $0 $38,646 $0 ($21,740) $25,659 $0 $0 $4,693 $0 $20,959 $0 ($14,285) $19,352 $0 $25,254 $61,120 $58,643 $30,719 $0 $14,267 $12,651 $9,844 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $0 $6,914 $77,986 $84,900 Baldwin $56,821 $14,658 $6,005 $77,485 Chester $41,276 $14,053 $8,555 $63,885 Digby $30,674 $14,653 $21,443 $66,771 Plant and equipment $109,792 $237,400 $228,020 $129,360 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 Accumulated Depreciation Total Fixed Assets ($58,755) $51,037 ($78,929) $158,471 ($71,019) $157,000 ($49,911) $79,449 Total Assets $135,937 $235,956 $220,885 $146,220 Accounts Payable Current Debt Long Term Debt Total Liabilities $5,111 $55,345 $25,909 $86,364 $10,324 $49,046 $91,565 $150,935 $9,353 $36,959 $86,499 $132,811 $10,367 $30,652 $30,446 $71,464 Common Stock Retained Earnings Total Equity $17,080 $32,493 $49,573 $41,589 $43,431 $85,020 $34,724 $53,350 $88,074 $13,512 $61,244 $74,756 Total Liabilities & Owners' Equity $135,937 $235,956 $220,885 $146,220 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 $84,121 $62,035 $7,319 $20,823 $7,750 ($13,806) $10,819 ($8,619) $0 ($16,007) Baldwin $178,340 $120,320 $15,827 $13,725 $7,929 $20,540 $17,408 $1,096 $41 $1,995 Chester $170,982 $112,653 $13,844 $17,985 $2,736 $23,765 $15,081 $3,039 $113 $5,532 Digby $178,281 $118,603 $8,624 $12,289 $7,533 $31,232 $6,622 $8,614 $320 $15,677 COMP-XM INQUIRER Page 3 Top Production Analysis Round: 2 December 31, 2015 Production Information Prim Contr ary Unit Revis Age Pfmn Size Mate Labo . Nam Segm Units Inven ion Dec. MTB Coor Coor rial r Marg e ent Sold tory Date 31 F d d Price Cost Cost . 11/23 /2016 Thrif 5/12/ Ant 232 2,267 t 2016 5/26/ Ace 0 2,000 2016 9/27/ Axe Nano 849 448 2015 Art Elite 1,495 Thrif 2,079 t Thrif Bell 2,475 t 0 4/11/ 2015 4/11/ 0 2015 12/16 Bill Core 1,907 172 /2015 12/18 Bolt Core 2,129 197 /2015 Bam 0 Thrif 12/19 2,274 102 t /2016 Cell Core 2,673 0 12/7/ Cat 2600 $28.4 $13.0 13.5 8.7 $5.91 0 9 4 2000 $31.0 7.1 6.0 14.0 $6.20 $6.01 0 0 2200 $39.0 4.2 8.7 11.3 $8.92 $7.21 0 0 2600 $40.4 $12.5 1.7 12.8 9.2 $8.41 0 9 5 3.1 2nd Auto Shift matio Capa & n city Over Next Next Plant - Roun Roun Utiliz time d d . 31% 93% 0% 6.0 1,130 71% NA 0% 5.0 1,200 61% 39% 0% 4.0 928 90% 1700 $17.0 100 8.1 11.9 $7.76 $3.97 31% 0 0 % 1700 $17.0 100 2.6 8.3 11.7 $7.94 $3.97 30% 0 0 % 1800 $25.0 $11.0 100 1.1 11.2 8.2 $5.08 36% 0 0 7 % 2000 $25.0 $11.7 1.1 11.9 8.7 $5.02 33% 88% 0 0 5 1400 0 2.1 1600 $18.0 $6.26 $2.89 48% 92% 0 9.7 10.3 $20.0 $9.01 $5.70 25% 80% 7.3 12.7 191 % 1% 2.7 3.5 7.0 714 198 % 198 8.5 1,947 % 198 7.8 1,050 % 186 7.8 1,250 % 8.5 1,849 190 % 7.0 1,799 178 9.1 1,399 City Nano 1,096 Cozy Elite 826 Cute Core 743 Crim p 0 2014 12/17 192 /2015 12/18 186 /2015 4/1/2 0 015 2/10/ 0 2016 12/3/ 2015 1/4/2 Deal Elite 837 283 015 9/19/ Dim Nano 1,354 299 2015 Dom 8/17/ Elite 1,236 327 e 2015 Daft Nano 1,584 0 0 1800 1.0 12.4 0 2000 1.0 15.2 0 1600 0.8 10.3 0 0 $30.0 $13.1 5.2 $6.73 34% 44% 0 7 $34.0 $14.0 7.4 $7.25 37% 6% 0 5 $21.0 100 9.7 $9.54 $5.82 26% 0 % % 142 6.0 949 % 105 5.0 899 % 149 7.0 1,039 % 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 7.0 599 0% $32.0 $13.9 $9.33 0 6 $35.0 $15.3 7.2 $8.84 0 2 $37.0 $14.9 4.5 $8.27 0 6 $39.0 $15.4 6.7 $7.88 0 1 100 % 6.0 1,000 0 2300 0 2500 2.4 0 2300 1.2 0 2500 1.2 0 1.3 0.0 12.3 15.5 13.4 15.3 5.7 30% 27% 57% 36% 71% 38% 42% COMP-XM INQUIRER 198 % 156 6.5 900 % 169 6.0 1,050 % 141 6.0 1,150 % Page 4 Top Thrift Market Segment Analysis Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,287 6,287 26.4% Next Year's Segment Growth Rate 11.0% Round: 2 December 31, 2015 1. 2. 3. 4. Thrift Customer Buying Criteria Expectations Importanc e Price $14.00 - 26.00 55% Reliability MTBF 14000-20000 20% Ideal Pfmn 7.8 Size 12.2 15% Position Age Ideal Age = 3.0 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Mark Units Revisi et Sold on Stock Name Share to Seg Date Out 12/19/ Cat 32% 2,004 2016 4/11/2 Bell 29% 1,819 YES 015 4/11/2 Bam 25% 1,590 YES 015 12/7/2 Cell 10% 611 YES 014 Pfmn Size Coord Coord 7.3 12.7 8.3 11.7 8.1 11.9 9.7 10.3 Prom Cust. Age o Aware List MTB Dec.3 Budg Price F 1 et ness $18.0 $1,05 14000 3.48 61% 0 0 $17.0 $1,20 17000 2.64 74% 0 0 $17.0 $1,20 17000 2.74 73% 0 0 $20.0 $1,05 16000 2.11 61% 0 0 Cust. Dec. Sales Acces Cust. Budg s- Surve et ibility y $1,00 66% 26 0 $1,10 67% 42 0 $1,10 67% 44 0 $1,00 66% 14 0 Ant 4% Cute 1% 5/12/2 $31.0 $2,50 $2,50 6.0 14.0 20000 7.11 100% 35% 016 0 0 0 4/1/20 $21.0 $1,05 32 YES 10.3 9.7 16000 0.75 48% $900 66% 15 0 0 232 COMP-XM INQUIRER 1 3 Page 5 Top Core Market Segment Analysis Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 8,081 8,081 34.0% Next Year's Segment Growth Rate 10.0% 1. 2. 3. 4. Core Customer Buying Criteria Expectations Importanc e Price $20.00 - 32.00 46% Age Ideal Age = 2.0 20% Reliability MTBF 16000-22000 18% Ideal Pfmn 10.5 Size 9.5 16% Position Round: 2 December 31, 2015 Perceptual Map for Core Segment Top Products in Core Segment Mark Units Revisi et Sold on Stock Name Share to Seg Date Out 12/7/2 Cell 26% 2,063 YES 014 12/18/ Bolt 24% 1,904 2015 12/16/ Bill 21% 1,696 2015 4/1/20 Cute 9% 711 YES 15 4/11/2 Bell 8% 657 YES 015 4/11/2 Bam 6% 489 YES 015 12/19/ Cat 3% 270 2016 12/3/2 Daft 3% 235 YES 015 11/23/ Art 1% 55 YES 2016 Pfmn Size Coord Coord 9.7 10.3 11.9 8.7 11.2 8.2 10.3 9.7 8.3 11.7 8.1 11.9 7.3 12.7 12.3 5.7 13.5 8.7 Prom Cust. Age o Aware List MTB Dec.3 Budg Price F 1 et ness $20.0 $1,05 16000 2.11 61% 0 0 $25.0 $1,20 20000 1.10 73% 0 0 $25.0 $1,20 18000 1.09 73% 0 0 $21.0 $1,05 16000 0.75 48% 0 0 $17.0 $1,20 17000 2.64 74% 0 0 $17.0 $1,20 17000 2.74 73% 0 0 $18.0 $1,05 14000 3.48 61% 0 0 $32.0 $1,30 23000 1.35 82% 0 0 $28.4 $2,00 26000 3.09 94% 9 0 Cust. Dec. Sales Acces Cust. Budg s- Surve et ibility y $1,00 65% 38 0 $900 70% 30 $900 70% 26 $900 65% 33 $1,10 70% 0 $1,10 70% 0 $1,00 65% 0 18 14 0 $900 17% 0 $2,00 38% 0 5 COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 4,743 4,743 19.9% Next Year's Segment Growth Rate 14.0% 1. 2. 3. 4. Nano Customer Buying Criteria Expectations Importanc e Ideal Pfmn 12.4 Size 5.0 35% Position Price $28.00 - 40.00 27% Age Ideal Age = 1.0 20% Reliability MTBF 18000-24000 18% Round: 2 December 31, 2015 Perceptual Map for Nano Segment Top Products in Nano Segment Mark Units Revisi et Sold on Stock Name Share to Seg Date Out 9/19/2 Dim 25% 1,183 015 12/3/2 Daft 20% 962 YES 015 12/17/ City 19% 911 2015 11/23/ Art 11% 515 YES 2016 9/27/2 Axe 10% 489 015 12/16/ Bill 4% 183 2015 12/18/ Cozy 4% 179 2015 12/18/ Bolt 4% 170 2015 8/17/2 Dome 3% 149 015 Prom Cust. Age o Aware Pfmn Size List MTB Dec.3 Budg Coord Coord Price F 1 et ness $37.0 $1,30 13.4 4.5 23000 1.20 82% 0 0 $32.0 $1,30 12.3 5.7 23000 1.35 82% 0 0 $30.0 $1,05 12.4 5.2 18000 1.04 61% 0 0 $28.4 $2,00 13.5 8.7 26000 3.09 94% 9 0 $40.4 $1,00 12.8 9.2 26000 1.68 75% 9 0 $25.0 $1,20 11.2 8.2 18000 1.09 73% 0 0 $34.0 $1,05 15.2 7.4 20000 1.05 61% 0 0 $25.0 $1,20 11.9 8.7 20000 1.10 73% 0 0 $39.0 $1,30 15.3 6.7 25000 1.24 81% 0 0 Cust. Dec. Sales Acces Cust. Budg s- Surve et ibility y $800 85% 45 $900 85% 64 $900 65% 41 $2,00 73% 0 $1,30 73% 0 16 6 $900 24% 8 $1,50 65% 0 2 $900 24% 9 $800 85% 4 COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 4,679 4,679 19.7% Next Year's Segment Growth Rate 16.0% 1. 2. 3. 4. Elite Customer Buying Criteria Expectations Importanc e Age Ideal Age = 0.0 34% Price $30.00 - 42.00 24% Ideal Pfmn 15.0 Size 7.6 22% Position Reliability MTBF 20000-26000 20% Round: 2 December 31, 2015 Perceptual Map for Elite Segment Top Products in Elite Segment Mark Units Revisi et Sold on Stock Name Share to Seg Date Out 8/17/2 Dome 23% 1,086 015 11/23/ Art 20% 924 YES 2016 1/4/20 Deal 18% 837 15 12/18/ Cozy 14% 648 2015 12/3/2 Daft 8% 387 YES 015 9/27/2 Axe 8% 359 015 12/17/ City 4% 185 2015 9/19/2 Dim 4% 171 015 12/18/ Bolt 1% 55 2015 12/16/ Bill 1% 28 2015 Prom Cust. Age o Aware Pfmn Size List MTB Dec.3 Budg Coord Coord Price F 1 et ness $39.0 $1,30 15.3 6.7 25000 1.24 81% 0 0 $28.4 $2,00 13.5 8.7 26000 3.09 94% 9 0 $35.0 $1,30 15.5 7.2 25000 2.45 82% 0 0 $34.0 $1,05 15.2 7.4 20000 1.05 61% 0 0 $32.0 $1,30 12.3 5.7 23000 1.35 82% 0 0 $40.4 $1,00 12.8 9.2 26000 1.68 75% 9 0 $30.0 $1,05 12.4 5.2 18000 1.04 61% 0 0 $37.0 $1,30 13.4 4.5 23000 1.20 82% 0 0 $25.0 $1,20 11.9 8.7 20000 1.10 73% 0 0 $25.0 $1,20 11.2 8.2 18000 1.09 73% 0 0 Cust. Dec. Sales Acces Cust. Budg s- Surve et ibility y $800 87% 41 $2,00 79% 0 28 $900 87% 36 $1,50 60% 0 30 $900 87% 18 $1,30 79% 0 22 $900 60% 4 $800 87% 1 $900 11% 3 $900 11% 1 COMP-XM INQUIRER Page 8 Top Market Share Report Actual Market Share in Units Thrift Core Nano Elite Industry 6,287 8,081 4,743 4,679 Unit Sales % of 26.4%34.0%19.9%19.7% Market Art Ant Ace Axe Total Bam Bell Bill Bolt 0.7%10.9%19.8% Potential Market Share in Units Total 23,790 100.0% 6.3% 1.0% Thrift Core Nano Elite 6,287 8,081 4,743 4,679 Units Demande d % of 26.4%34.0%19.9%19.7% Market 10.3% 7.7% 3.7% 0.7%21.2%27.4% 3.6% 10.8% Art Ant Ace Axe Total 25.3% 6.1% 28.9% 8.1% 21.0% 3.9% 0.6% 23.6% 3.6% 1.2% 8.7% 10.4% 8.0% 8.9% Bam Bell Bill Bolt 3.7% Round: 2 December 31, 2015 Total 23,790 100.0% 0.7%10.9%19.9% 6.3% 0.3% 10.2% 7.6% 1.0% 0.7%21.1%27.5% 3.5% 10.1% 34.3% 8.3% 33.5% 9.4% 17.5% 3.8% 0.6% 19.7% 3.5% 1.2% 11.9% 12.0% 6.8% 7.6% 1.0% Total 54.2%58.7% 7.5% 1.8% 36.1% Total 67.8%54.9% 7.3% 1.8% 38.4% Cat Cell City Cozy Cute Total 31.9% 3.4% 9.7%25.5% Cat Cell City Cozy Cute Total 22.3% 3.0% 8.1%24.5% 0.5% 8.8% 42.1%37.7%23.0%17.8% 9.6% 11.2% 4.6% 3.5% 3.1% 32.0% 0.8%14.0% 31.2%41.5%22.5%17.6% 6.9% 10.5% 4.5% 3.4% 5.0% 30.3% 2.9%20.3% 8.3% 17.9% 24.9% 3.6% 3.1%23.2% 2.9%48.4%53.0% 6.7% 3.5% 5.7% 5.2% 21.1% Daft Deal Dim Dome Total 2.9%21.5% 8.7% 17.7% 24.5% 3.6% 3.1%23.0% 2.9%49.1%53.1% 7.0% 3.5% 5.6% 5.1% 21.2% 19.2% 4.0% 3.8%13.8% Daft Deal Dim Dome Total 18.8% 3.9% 3.7%13.7% COMP-XM INQUIRER Page 9 Top Perceptual Map Round: 2 December 31, 2015 Perceptual Map for All Segments Andrews Baldwin Name Pfmn Size Revised Name Pfmn Size Revised Name Art 13.5 8.7 11/23/2016 Bam 8.1 11.9 4/11/2015 Cat Ant 6.0 14.0 5/12/2016 Bell 8.3 11.7 4/11/2015 Cell Ace 8.7 11.3 5/26/2016 Bill 11.2 8.2 12/16/2015 City Axe 12.8 9.2 9/27/2015 Bolt 11.9 8.7 12/18/2015 Cozy Cute Digby Name Pfmn Size Daft 12.3 5.7 Revised 12/3/2015 Chester Pfmn 7.3 9.7 12.4 15.2 10.3 Size Revised 12.7 12/19/2016 10.3 12/7/2014 5.2 12/17/2015 7.4 12/18/2015 9.7 4/1/2015 Deal Dim Dome 15.5 13.4 15.3 7.2 4.5 6.7 1/4/2015 9/19/2015 8/17/2015 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 2 December 31, 2015 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 395 395 339 56 Baldwin 571 571 291 280 Chester 611 611 390 221 Digby 674 674 403 271 Overtime% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.0% 6.9% 27 278 $5,000 80 107.3% 0.0% 8.0% 46 119 $2,500 40 113.0% 0.0% 6.2% 177 0 $5,000 80 122.0% 0.0% 10.0% 137 0 $0 0 100.0% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $163 $1,390 $632 $2,185 $159 $596 $457 $1,212 $1,061 $0 $977 $2,038 $137 $0 $0 $137 Labor Contract Next Year Wages $28.15 $28.15 $28.15 $28.15 Benefits Profit Sharing Annual Raise 2,500 2.0% 5.0% 2,500 2.0% 5.0% 2,500 2.0% 5.0% 2,500 2.0% 5.0% 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 Andrews Process Mgt Budgets Last Year CPI Systems Vendor/JIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs TQM Budgets Last Year Baldwin Chester Digby $1,500 $0 $1,500 $0 $0 $1,500 $1,250 $1,250 $0 $1,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,250 $1,250 $1,250 $0 Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures $0 $0 $0 $0 $0 $0 $0 $1,500 $750 $0 $1,250 $1,500 $750 $0 $1,250 $7,500 $5,500 $0 $6,250 10.04% 13.57% 0.00% 0.00% 3.17% Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase $0 1.40% 0.33% 0.00% 3.25% 1.16% 0.00% 0.00% 0.00% 0.00% 0.00% 2.92% 11.25% 32.13% 0.00% 4.56% COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews C59559 Round: 2 Dec. 31, 2015 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 ASSETS Cash Accounts Receivable Inventory Total Current Assets 2015 Common $0 $6,914 $77,986 $84,900 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. Plant & Equipment $109,792 Accumulated Depreciation ($58,755) Total Fixed Assets $51,037 Total Assets $135,937 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $5,111 $55,345 $25,909 Total Liabilities Common Stock Retained Earnings $86,365 $17,080 $32,493 Total Equity $49,573 Total Liab. & O. Equity $135,937 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. Cash Flows from Operating Activities: Net Income (Loss) Depreciation 2015 ($16,007) $7,319 2014 ($10,595) $7,026 Extraordinary gains/losses/writeoffs Accounts Payable Inventory 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. 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 $0 $0 ($2,605) ($9,501) ($60) ($1,801) ($42,513) $6,576 ($20,854) ($41,306) ($4,400) ($8,568) $0 $5,000 $0 $0 $0 $0 $0 $10,000 ($11,300) $0 $31,554 $8,074 $25,254 $18,074 $0 ($31,800) $0 $0 Page 1 Top Annual Report Andrews C59559 Round: 2 Dec. 31, 2015 2015 Income Statement Commo Sales $42,581 $7,182 $0 $34,357 $0 $0 $0 $0 $84,121 100.0% $8,041 $0 $0 $0 $0 $18,933 22.5% $11,767 $0 $0 $0 $0 $33,744 40.1% $1,254 $0 $0 $0 $0 $9,358 11.1% $21,062 $0 $0 $0 $0 $62,035 73.7% $61 ($4,258) $13,295 $0 $0 $0 $0 $22,086 26.3% $1,618 $2,260 $2,080 $1,361 $0 $0 $0 $0 $7,319 8.7% $1,000 $1,000 $1,000 $749 $0 $0 $0 $0 $3,749 4.5% $2,000 $2,500 $1,500 $1,000 $0 $0 $0 $0 $7,000 8.3% $2,000 $2,500 $1,500 $1,300 $0 $0 $0 $0 $7,300 8.7% $1,404 $0 $1,133 $0 $0 $0 $0 $2,774 3.3% $8,023 $8,497 $6,080 $5,543 $0 $0 $0 $0 $28,142 33.5% ($10,338 $7,752 ) $0 $0 $0 $0 ($6,056) -7.2% Variable Costs: Direct $9,326 $1,566 $0 Labor Direct $20,267 $1,710 $0 Material Inventor $0 $3,846 $4,258 y Carry Total $29,593 $7,121 $4,258 Variable Contribu tion $12,988 Margin Period Costs: Deprecia tion SG&A: R&D Promo tions Sales Admi n Total Period Net Margin $237 $4,965 ($8,436) Definitions: Sales: Unit sales times list price. Direct Labor costs incurred to produce the product that was sold. 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. Other EBIT Short Term Interest LongTerm $7,750 9.2% ($13,806) 16.4% $7,898 9.4% $2,921 3.5% Interest The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. Taxes ($8,619) 10.2% The fees include money paid to investment bankers and brokerage Profit Sharing $0 0.0% firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might Net Profit ($16,007) 19.0% 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. Annual Report Page 2 PRINT Annual Report Top Annual Report Baldwin C59559 Round: 2 Dec. 31, 2015 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 2015 Common $56,821 $14,658 $6,005 Total Current Assets $77,484 Plant & Equipment $237,400 Accumulated Depreciation ($78,929) Total Fixed Assets $158,471 Total Assets $235,956 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $10,324 $49,046 $91,565 Total Liabilities Common Stock Retained Earnings $150,935 $41,589 $43,431 Total Equity $85,020 Total Liab. & O. Equity $235,956 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 2015 2014 $1,995 $15,827 $11,441 $11,837 $0 $0 $320 ($6,005) $850 $2,721 $10,445 ($4,690) $12,986 $31,755 ($59,840) ($34,660) $0 $13,958 $0 $2,946 $0 $0 $34,619 $14,408 ($11,300) $0 $23,843 ($4,036) $61,120 $13,318 $14,267 $10,412 $56,821 $42,554 Annual Report Page 1 Top Annual Report Baldwin Round: 2 Dec. 31, 2015 C59559 2015 Income Statement (Product Name:) Sales Bam Bell Bill 2015 Total Commo n Size Bolt Na Na Na Na $35,349 $42,082 $47,672 $53,237 $0 $0 $0 $0 $0 $0 $0 $0 $38,434 21.6% $0 $0 $0 $0 $81,165 45.5% $0 $0 $0 $0 $721 0.4% $0 $0 $0 $0 $120,32 0 67.5% $0 $0 $0 $0 $58,020 32.5% $0 $0 $0 $0 $15,827 8.9% $0 $0 $0 $0 $2,505 1.4% $0 $0 $0 $0 $4,800 2.7% $0 $0 $0 $0 $4,000 2.2% Variable Costs: Direct $8,249 $9,821 $9,683 $10,681 Labor Direct $16,231 $19,770 $20,646 $24,518 Material Inventor $0 $0 $329 $392 y Carry Total $24,480 $29,590 $30,659 $35,590 Variable Contribu tion $10,868 $12,491 $17,014 $17,647 Margin Period Costs: Deprecia $4,931 $5,192 $2,604 $3,100 tion SG&A: $279 $279 $970 $976 R&D Promo $1,200 $1,200 $1,200 $1,200 tions Sales $1,100 $1,100 $900 $900 $178,34 100.0% 0 Admi n Total Period Net Margin $480 $571 $647 $722 $0 $0 $0 $0 $2,420 1.4% $7,989 $8,342 $6,321 $6,899 $0 $0 $0 $0 $29,551 16.6% $2,879 $4,149 $10,692 $10,748 $0 $0 $0 $0 $28,469 16.0% Definitions: Sales: Unit sales times list price. Direct Labor Other costs incurred to produce the product that was sold. EBIT Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of Short Term plant value. R&D Costs: R&D department expenditures for each Interest product. Admin: Administration overhead is estimated at 1.5% of LongTerm Interest sales. Promotions: The promotion budget for each product. Taxes The sales force budget for each product. Other: Charges not Profit Sharing included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage Net Profit 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. $7,929 4.4% $20,540 11.5% $5,787 3.2% $11,621 6.5% $1,096 0.6% $41 0.0% $1,995 1.1% Annual Report Page 2 PRINT Annual Report Top Annual Report Chester C59559 Round: 2 Dec. 31, 2015 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 ASSETS Cash Accounts Receivable Inventory 2015 Common $41,276 $14,053 $8,555 Total Current Assets $63,884 Plant & Equipment $228,020 Accumulated Depreciation ($71,019) 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. Total Fixed Assets $157,001 Total Assets $220,885 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $9,353 $36,959 $86,499 Total Liabilities Common Stock Retained Earnings $132,811 $34,724 $53,350 Total Equity $88,074 Total Liab. & O. Equity $220,885 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 Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable 2015 2014 $5,532 $13,844 $9,015 $9,887 $0 $0 $2,280 ($2,164) ($2,764) $1,276 $56 ($1,524) Net cash from inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money operations Cash Flows from to keep your company afloat. 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 $16,728 $18,710 ($62,720) ($40,900) $0 $16,077 $0 $4,258 $0 $0 $38,646 $17,784 ($11,300) $0 $15,219 ($3,749) $58,643 $18,293 $12,651 ($3,898) $41,276 $28,625 Annual Report Page 1 Top Annual Report Chester Round: 2 Dec. 31, 2015 C59559 2015 Income Statement (Product Name:) Sales Cat Cell City Cozy Cute Crimp Na Na $40,941 $53,469 $32,881 $28,096 $15,596 $0 $0 $0 2015 Total Commo n Size $170,98 100.0% 2 Variable Costs: Direct $6,570 $15,237 $7,313 $5,948 $4,325 Labor Direct $14,824 $24,902 $14,004 $11,221 $7,281 Material Inventor $115 $0 $449 $463 $0 y Carry Total $21,509 $40,139 $21,766 $17,632 $11,607 Variable $0 $0 $0 $39,393 23.0% $0 $0 $0 $72,233 42.2% $0 $0 $0 $1,027 0.6% $0 $0 $0 $112,65 3 65.9% $0 $0 $0 $58,330 34.1% $0 $0 $0 $13,844 8.1% $250 $1,000 $0 $0 $4,200 2.5% Contribu tion $19,432 $13,329 $11,116 $10,464 $3,989 Margin Period Costs: Deprecia tion SG&A: R&D Promo tions Sales Admi n Total Period Net Margin $3,955 $4,078 $1,898 $1,558 $2,355 $1,000 $0 $973 $977 $1,050 $1,050 $1,050 $1,050 $1,050 $0 $0 $0 $5,250 3.1% $1,000 $1,000 $900 $1,500 $900 $0 $0 $0 $5,300 3.1% $622 $295 $0 $0 $0 $3,235 1.9% $7,779 $7,139 $5,443 $5,616 $4,850 $1,000 $0 $0 $31,828 18.6% $0 $0 $26,501 15.5% $775 $1,012 $532 $11,653 $6,190 $5,672 $4,847 ($861) ($1,000) Definitions: Sales: Unit sales times list price. Direct Labor costs incurred to produce the product that was sold. 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. The sales force budget for each product. Other: Charges not Other EBIT Short Term Interest LongTerm Interest Taxes $2,736 1.6% $23,765 13.9% $4,287 2.5% $10,794 6.3% $3,039 1.8% Profit Sharing included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage Net Profit 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. Annual Report $113 0.1% $5,532 3.2% Page 2 PRINT Annual Report Top Annual Report Digby C59559 Round: 2 Dec. 31, 2015 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 2015 Common $30,674 $14,653 $21,443 Total Current Assets $66,770 Plant & Equipment $129,360 Accumulated Depreciation ($49,911) Total Fixed Assets $79,449 Total Assets $146,220 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $10,367 $30,652 $30,446 Total Liabilities Common Stock Retained Earnings $71,465 $13,512 $61,244 Total Equity $74,756 Total Liab. & O. Equity $146,220 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 2015 2014 $15,677 $8,624 $13,626 $6,264 $0 $0 $2,000 ($10,100) ($1,676) $1,984 $3,489 ($3,148) $14,525 $22,215 ($35,400) ($9,580) $0 $4,693 ($7,169) $0 $0 ($1,539) $20,959 $1,308 ($11,300) $0 $16,367 ($4,147) $30,719 ($11,547) $9,844 $1,088 $30,674 $20,831 Page 1 Top Annual Report Digby Round: 2 Dec. 31, 2015 C59559 2015 Income Statement (Product Name:) Sales Daft Deal Dim 2015 Total Commo n Size Dome Na Na Na Na $50,696 $29,293 $50,106 $48,185 $0 $0 $0 $0 $0 $0 $0 $0 $43,290 24.3% $0 $0 $0 $0 $72,740 40.8% $0 $0 $0 $0 $2,573 1.4% $0 $0 $0 $0 $118,60 3 66.5% $0 $0 $0 $0 $59,678 33.5% $0 $0 $0 $0 $8,624 4.8% $0 $0 $0 $0 $2,304 1.3% $0 $0 $0 $0 $5,200 2.9% $0 $0 $0 $0 $3,400 1.9% $0 $0 $0 $0 $1,385 0.8% $0 $0 $0 $0 $20,913 11.7% Variable Costs: Direct $14,789 $7,397 $11,290 $9,814 Labor Direct $20,709 $13,125 $19,947 $18,959 Material Inventor $0 $832 $828 $913 y Carry Total $35,498 $21,354 $32,065 $29,686 Variable Contribu tion $15,198 $7,939 $18,041 $18,499 Margin Period Costs: Deprecia $2,304 $1,920 $2,100 $2,300 tion SG&A: $934 $9 $727 $634 R&D Promo $1,300 $1,300 $1,300 $1,300 tions Sales $900 $900 $800 $800 Admi $394 $228 $389 $374 n Total $5,832 $4,356 $5,316 $5,408 Period $178,28 100.0% 1 Net Margin $9,366 $3,583 $12,725 $13,091 $0 $0 $0 $0 $38,765 Definitions: Sales: Unit sales times list price. Direct Labor Other costs incurred to produce the product that was sold. EBIT Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of Short Term plant value. R&D Costs: R&D department expenditures for each Interest product. Admin: Administration overhead is estimated at 1.5% of LongTerm Interest sales. Promotions: The promotion budget for each product. Taxes The sales force budget for each product. Other: Charges not Profit Sharing included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage Net Profit 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. Annual Report 21.7% $7,533 4.2% $31,232 17.5% $3,126 1.8% $3,495 2.0% $8,614 4.8% $320 0.2% $15,677 8.8% Page 2
