The Chester's workforce complement will grow by 10% (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 $3,318,000 $300,000 $2,765,000 $250,000

Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Page 5 Thrift Segment Analysis Page 6 Core Segment Analysis Page 7 Nano Segment Analysis Page 8 Elite Segment Analysis Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report Annual Report Andrews Annual Report Baldwin Annual Report Chester Annual Report Digby PRINT Top " Round: 2 Student: Ashley Abendschoen Dec. 31, 2014 Andrews Ashley Abendschoen Baldwin Chester Digby Ashley Abendschoen Selected Financial Statistics Andrews Baldwin Chester Digby 0.9% -1.3% 2.1% 10.6% 1.09 0.70 0.73 1.32 1.0% -0.9% 1.5% 13.9% 1.6 2.9 2.5 1.9 1.7% -2.6% 3.8% 26.6% $0 $0 $0 $0 Sales $130,356,308 $148,099,428 $148,152,384 $187,843,382 EBIT $6,383,936 $13,959,478 $19,300,228 $37,529,506 Profits $1,218,699 ($1,887,601) $3,130,014 $19,820,451 Cumulative Profit $5,032,958 $3,026,348 $8,119,198 $33,412,744 ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan SG&A / Sales 14.4% 9.4% 11.7% 6.6% Contrib. Margin % 35.5% 33.7% 35.0% 34.5% COMP-XM INQUIRER Page 1 Top Round: 2 Stocks & Bonds Ashley Abendschoen December 31 , 2014 Stock Market Summary Shares MarketCap ($M) Book Value Company Close Change EPS Dividend Yield P/E Andrews $41.41 ($25.29) 2,051,504 $85 $35.91 $0.59 $0.00 0.0% 69.6 Baldwin $26.73 ($12.56) 2,927,892 $78 $25.04 ($0.64) $0.00 0.0% -41.5 Chester $39.51 ($5.58) 2,595,732 $103 $31.44 $1.21 $0.00 0.0% 32.7 Digby $89.18 $21.24 1,874,500 $167 $39.72 $10.57 $0.00 0.0% 8.4 Bond Market Summary Company Series# Face Yield Close$ S&P 11.1S2019 $8,837,000 11.3% 98.54 BBB 11.9S2020 $7,072,000 11.7% 101.67 BBB 11.4S2023 $13,834,000 11.5% 99.46 BBB 11.3S2019 $9,416,000 12.5% 90.41 C 12.5S2020 $13,681,781 13.3% 93.80 C 12.5S2021 $12,413,327 13.4% 93.16 C 12.5S2022 $9,112,764 13.5% 92.60 C 13.4S2023 $15,955,273 13.9% 96.55 C 13.9S2024 $29,113,430 14.0% 98.96 C 11.2S2019 $8,044,881 12.3% 91.36 CC 12.4S2020 $7,997,731 13.1% 94.90 CC 12.0S2022 $16,568,420 13.0% 92.03 CC 13.0S2023 $15,859,805 13.5% 96.50 CC Andrews Baldwin Chester 13.6S2024 $32,690,583 13.7% 99.47 CC 11.2S2021 $3,596,962 11.9% 94.16 B 11.2S2022 $6,293,079 12.0% 93.65 B 12.0S2023 $1,598,747 12.3% 97.39 B 12.0S2024 $15,697,879 12.3% 97.23 B Digby Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Ashley Abendschoen Round: 2 December 31, 2014 Andrews Baldwin Chester Digby $1,219 ($1,888) $3,130 $19,820 $6,071 $14,647 $12,851 $7,873 $0 $0 $0 $0 ($375) ($1,915) $1,202 $3,370 $12,312 $9,803 $4,866 ($6,964) $899 $784 ($2,326) ($3,039) $20,125 $21,431 $19,722 $21,061 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 Cash flows from investing activities Plant improvements (net) $0 ($40,140) ($51,660) ($24,700) Dividends paid $0 $0 $0 $0 Sales of common stock $0 $8,475 $16,010 $0 Purchase of common stock $0 $0 $0 ($1,055) Cash from long term debt issued $0 $29,113 $32,691 $15,698 Early retirement of long term debt $0 $0 $0 $0 ($5,000) ($25,667) ($21,437) ($14,018) Cash from current debt borrowing $0 $31,410 $22,470 $20,180 Cash from emergency loan $0 $0 $0 $0 Net cash from financing activities ($5,000) $43,331 $49,732 $20,805 Net change in cash position $15,125 $24,622 $17,794 $17,166 Andrews Baldwin Chester Digby Cash $70,994 $54,786 $42,195 $46,015 Accounts Receivable $10,714 $12,173 $12,177 $15,439 $0 $0 $2,643 $9,674 Total Current Assets $81,708 $66,958 $57,015 $71,128 Plant and equipment $91,060 $219,700 $213,160 $118,100 ($53,147) ($74,684) ($67,140) ($46,527) Cash flows from financing activities Retirement of current debt Balance Sheet Survey Inventory Accumulated Depreciation Total Fixed Assets $37,913 $145,016 $146,020 $71,573 $119,622 $211,974 $203,035 $142,701 $5,904 $7,271 $7,489 $10,582 Current Debt $10,300 $41,710 $32,770 $30,480 Long Term Debt $29,743 $89,693 $81,161 $27,187 Total Liabilities $45,947 $138,673 $121,420 $68,249 Common Stock $11,192 $37,129 $32,506 $7,934 Retained Earnings $62,483 $36,172 $49,108 $66,519 Total Equity $73,675 $73,301 $81,614 $74,452 Total Liabilities & Owners' Equity $119,622 $211,974 $203,035 $142,701 Income Statement Survey Andrews Baldwin Chester Digby Sales $130,356 $148,099 $148,152 $187,843 $84,141 $98,264 $96,304 $122,947 $6,071 $14,647 $12,851 $7,873 SGA (R&D, Promo, Sales, Admin) $18,761 $13,850 $17,263 $12,443 Other (Fees, Writeoffs, TQM, Bonuses) $15,000 $7,379 $2,435 $7,051 EBIT $6,384 $13,959 $19,300 $37,530 Interest (Short term, Long term) $4,471 $16,863 $14,387 $6,414 $670 ($1,016) $1,720 $10,890 $25 $0 $64 $404 Total Assets Accounts Payable Variable Costs (Labor, Material, Carry) Depreciation Taxes Profit Sharing Net Profit $1,219 ($1,888) $3,130 $19,820 COMP-XM INQUIRER Page 3 Top Production Analysis Ashley Abendschoen Round: 2 December 31, 2014 Production Information Unit Age Primary Units Inven Revision Dec. Pfmn Size ame Segment Sold tory Date 31 MTBF Coord Coord 2nd Shift Auto & mation Capacity Material Labor Contr. Over- Next Next Price Cost Cost Marg. time Round Round U ft Core 1,323 0 7/12/201 4 1.7 22000 9.6 10.4 $26.00 ble Nano 891 0 7/19/201 4 1.4 24000 11.6 cre Elite 990 0 6/6/2014 1.5 26000 dam Thrift 1,258 0 6/20/201 4 aker Thrift 2,098 0 4/11/201 $9.74 $7.24 30% 0% 5.0 1,120 6.4 $35.00 $12.70 $9.39 37% 30% 4.0 690 1 13.6 8.3 $40.00 $13.27 $9.74 42% 47% 4.0 680 1 2.4 22000 7.2 12.8 $20.00 $7.83 $6.51 29% 20% 6.0 1,060 1 2.7 17000 7.8 12.2 $17.00 $7.76 $3.93 31% 100% 9.0 1,500 1 4 ead Thrift 2,165 0 4/11/201 4 2.7 17000 8.0 12.0 $17.00 $7.94 $3.68 31% 50% 9.0 1,650 1 olt Core 1,427 0 12/16/20 14 1.1 18000 10.9 8.5 $25.00 $11.07 $4.37 38% 19% 8.0 1,050 1 old Core 1,598 0 12/18/20 14 1.1 20000 11.6 9.0 $25.00 $11.75 $4.32 35% 16% 8.0 1,250 1 ake Thrift 1,419 0 12/20/20 15 3.5 14000 7.0 13.0 $18.00 $6.26 $2.33 50% 0% 9.5 1,200 edar Core 1,946 0 12/7/201 3 2.1 16000 9.4 10.6 $20.00 $9.01 $5.10 28% 24% 8.0 1,450 1 id Nano 1,239 0 12/17/20 14 1.0 18000 12.1 5.5 $30.00 $13.17 $6.77 35% 50% 6.0 850 1 oat Elite 910 125 12/18/20 14 1.0 20000 14.9 7.7 $34.00 $14.05 $7.67 37% 25% 6.0 800 1 ure Core 743 0 4/1/2014 0.8 16000 10.0 10.0 $21.00 $9.54 $5.78 26% 100% 7.0 1,040 1 $0.00 $0.00 0% 7.0 600 0 amp 0 2/10/201 5 0.0 0 0.0 0.0 $0.00 0 12/3/201 4 1.3 23000 12.0 6.0 $32.00 $13.96 $9.21 30% 88% 6.0 850 1 165 1/4/2014 2.4 25000 15.2 7.5 $35.00 $15.32 $8.84 28% 57% 6.5 800 1 0% aze Nano 1,485 ell Elite 924 ixie Nano 1,479 74 9/19/201 4 1.2 23000 13.1 4.8 $37.00 $14.96 $8.34 37% 76% 6.0 1,000 1 ot Elite 1,366 167 8/17/201 4 1.2 25000 15.0 7.0 $39.00 $15.41 $8.12 39% 58% 6.0 1,100 1 COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Ashley Abendschoen Thrift Statistics Total Industry Unit Demand 6,285 Actual Industry Unit Sales Round: 2 December 31, 2014 6,063 Segment % of Total Industry 26.4% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria Expectations Importanc e 1. Price 2. Reliability 3. Ideal Position 4. Age $14.00 - 26.00 55% MTBF 14000-20000 20% Pfmn 7.5 Size 12.5 15% Ideal Age = 3.0 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Units Sold Market to Revision Stoc Pfmn Size Name Share Seg Date k Out Coord Coord Age Cust. Cust. Dec. List Dec. Promo Aware- Sales Access- Cust. Price MTBF 31 Budget ness Budget ibility Survey Baker 26% 1,588 4/11/201 YES 4 7.8 12.2 $17.00 17000 2.74 $1,200 73% $1,100 67% 44 Bead 26% 1,582 4/11/201 YES 4 8.0 12.0 $17.00 17000 2.66 $1,200 74% $1,100 67% 42 Cake 20% 1,223 12/20/20 YES 15 7.0 13.0 $18.00 14000 3.49 $1,050 61% $1,000 66% 26 Adam 16% 968 6/20/201 YES 4 7.2 12.8 $20.00 22000 2.39 $1,000 71% $2,000 73% 47 Cedar 6% 392 12/7/201 YES 3 9.4 10.6 $20.00 16000 2.11 $1,050 61% $1,000 66% 14 Aft 5% 279 7/12/201 YES 4 9.6 10.4 $26.00 22000 1.74 $1,200 82% $2,000 73% 8 Cure 1% 31 4/1/2014 YES 10.0 10.0 $21.00 16000 0.75 $1,050 48% $900 66% 3 COMP-XM INQUIRER Page 5 Top Core Market Segment Analysis Ashley Abendschoen Core Statistics Total Industry Unit Demand 8,078 Actual Industry Unit Sales 7,778 Segment % of Total Industry 34.0% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria Expectations Importanc Round: 2 December 31, 2014 Perceptual Map for Core Segment e 1. Price $20.00 - 32.00 46% 2. Age Ideal Age = 2.0 20% MTBF 16000-22000 18% Pfmn 10.2 Size 9.8 16% 3. Reliability 4. Ideal Position Top Products in Core Segment Units Sold Market to Revision Stoc Pfmn Size Name Share Seg Date k Out Coord Coord Cedar 20% 1,554 12/7/201 YES 3 Bold 18% 1,372 12/18/20 YES 11.6 14 9.0 Bolt 16% 1,220 12/16/20 YES 10.9 14 8.5 Aft 13% 1,040 7/12/201 YES 4 9.4 Age Cust. Cust. Dec. List Dec. Promo Aware- Sales Access- Cust. Price MTBF 31 Budget ness Budget ibility Survey 10.6 $20.00 16000 2.11 $1,050 61% $1,000 65% 38 $25.00 20000 1.10 $1,200 73% $900 70% 30 $25.00 18000 1.10 $1,200 73% $900 70% 26 9.6 10.4 $26.00 22000 1.74 $1,200 82% $2,000 71% 51 Cure 9% 711 4/1/2014 YES 10.0 10.0 $21.00 16000 0.75 $1,050 48% $900 65% 33 Bead 8% 584 4/11/201 YES 12.0 $17.00 17000 2.66 $1,200 74% $1,100 70% 18 8.0 4 Baker 7% 509 4/11/201 YES 4 7.8 12.2 $17.00 17000 2.74 $1,200 73% $1,100 70% 14 Adam 4% 289 6/20/201 YES 4 7.2 12.8 $20.00 22000 2.39 $1,000 71% $2,000 71% 13 Daze 3% 214 12/3/201 YES 12.0 4 6.0 $32.00 23000 1.35 $1,300 82% $900 17% 0 Cake 3% 196 12/20/20 YES 15 13.0 $18.00 14000 3.49 $1,050 61% $1,000 65% 0 Cid 1% 58 12/17/20 YES 12.1 14 5.5 $30.00 18000 1.04 $1,050 61% $900 65% 0 Able 0% 30 7/19/201 YES 11.6 4 6.4 $35.00 24000 1.42 $2,500 100% $2,000 71% 0 7.0 COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Ashley Abendschoen Nano Statistics Total Industry Unit Demand 4,741 Actual Industry Unit Sales 4,741 Segment % of Total Industry 19.9% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria Expectations Importanc e 1. Ideal Position Pfmn 12.1 Size 5.3 35% Round: 2 December 31, 2014 Perceptual Map for Nano Segment 2. Price $28.00 - 40.00 27% 3. Age Ideal Age = 1.0 20% MTBF 18000-24000 18% 4. Reliability Top Products in Nano Segment Units Sold Market to Revision Stoc Pfmn Size Name Share Seg Date k Out Coord Coord Age Cust. Cust. Dec. List Dec. Promo Aware- Sales Access- Cust. Price MTBF 31 Budget ness Budget ibility Survey Dixie 27% 1,294 9/19/201 4 13.1 4.8 $37.00 23000 1.20 $1,300 82% $800 85% 45 Cid 21% 978 12/17/20 YES 12.1 14 5.5 $30.00 18000 1.04 $1,050 61% $900 65% 41 Daze 19% 891 12/3/201 YES 12.0 4 6.0 $32.00 23000 1.35 $1,300 82% $900 85% 64 Able 13% 599 7/19/201 YES 11.6 4 6.4 $35.00 24000 1.42 $2,500 100% $2,000 89% 67 Acre 6% 268 6/6/2014 YES 13.6 8.3 $40.00 26000 1.48 $2,500 100% $2,000 89% 17 Coat 4% 196 7.7 $34.00 20000 1.05 $1,050 61% 65% 2 12/18/20 14 14.9 $1,500 Bolt 4% 179 12/16/20 YES 10.9 14 8.5 $25.00 18000 1.10 $1,200 73% $900 24% 8 Bold 4% 169 12/18/20 YES 11.6 14 9.0 $25.00 20000 1.10 $1,200 73% $900 24% 9 Dot 3% 165 8/17/201 4 15.0 7.0 $39.00 25000 1.24 $1,300 81% $800 85% 4 Aft 0% 3 7/12/201 YES 4 9.6 10.4 $26.00 22000 1.74 $1,200 82% $2,000 89% 0 COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Ashley Abendschoen Elite Statistics Total Industry Unit Demand 4,678 Actual Industry Unit Sales Round: 2 December 31, 2014 4,678 Segment % of Total Industry 19.7% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria Expectations Importanc e 1. Age Ideal Age = 0.0 34% 2. Price $30.00 - 42.00 24% Pfmn 14.7 Size 7.9 22% MTBF 20000-26000 20% 3. Ideal Position 4. Reliability Perceptual Map for Elite Segment Top Products in Elite Segment Units Sold Market to Revision Stoc Pfmn Size Name Share Seg Date k Out Coord Coord Age Cust. Cust. Dec. List Dec. Promo Aware- Sales Access- Cust. Price MTBF 31 Budget ness Budget ibility Survey 8/17/201 4 15.0 7.0 $39.00 25000 1.24 $1,300 81% $800 87% 41 20% 924 1/4/2014 15.2 7.5 $35.00 25000 2.45 $1,300 82% $900 87% 36 Acre 15% 722 6/6/2014 YES 13.6 8.3 $40.00 26000 1.48 $2,500 100% $2,000 91% 49 Coat 15% 714 12/18/20 14 14.9 7.7 $34.00 20000 1.05 $1,050 61% $1,500 60% 30 Daze 8% 381 12/3/201 YES 12.0 4 6.0 $32.00 23000 1.35 $1,300 82% $900 87% 18 Able 6% 262 7/19/201 YES 11.6 4 6.4 $35.00 24000 1.42 $2,500 100% $2,000 91% 23 Cid 4% 203 12/17/20 YES 12.1 14 5.5 $30.00 18000 1.04 $1,050 61% $900 60% 4 Dixie 4% 185 9/19/201 4 13.1 4.8 $37.00 23000 1.20 $1,300 82% $800 87% 1 Bold 1% 57 12/18/20 YES 11.6 14 9.0 $25.00 20000 1.10 $1,200 73% $900 11% 3 Bolt 1% 29 12/16/20 YES 10.9 14 8.5 $25.00 18000 1.10 $1,200 73% $900 11% 1 Dot 26% 1,201 Dell Aft 0% 2 7/12/201 YES 4 9.6 10.4 $26.00 22000 1.74 $1,200 82% COMP-XM INQUIRER $2,000 91% Page 8 Top Market Share Report Ashley Abendschoen Actual Market Share in Units Thrift Core Nano Elite Industry Unit Sales % of Market Aft Total 6,063 7,778 4,741 4,678 23,260 26.1% 33.4 20.4 20.1 % % % 100.0 % 4.6% 13.4 0.1% 0.0% % 5.7% 12.6 5.6% % 3.8% 15.4 % 4.3% Able 0.4% Acre 5.7% Adam 16.0% 3.7% Total 20.6% 17.5 18.4 21.1 % % % 5.4% 19.2% Round: 2 December 31, 2014 0 Baker 26.2% 6.5% 9.0% Bead 26.1% 7.5% 9.3% Bolt 15.7 3.8% 0.6% % 6.1% Bold 17.6 3.6% 1.2% % 6.9% 47.4 7.3% 1.8% % 31.3% Total 52.3% Cake 20.2% 2.5% 6.1% 20.0 % 8.4% Cedar 6.5% Cid 0.7% Coat Cure Total Daze 20.6 4.3% % 5.3% 15.3 % 3.9% 4.1% 0.5% 9.1% 3.2% 32.4 24.8 19.6 % % % 26.9% 18.8 8.1% % 6.4% 19.8 % 4.0% 27.3 3.9% % 27.1% 6.4% 25.7 % 5.9% 49.6 57.5 % % 22.6% 2.8% Dell Dixie Dot Total 3.5% 2.8% Potential Market Share in Units Thrift Core Nano Elite Total Units 6,285 8,078 4,741 4,678 Demanded % of Market 23,782 26.4% 34.0% 19.9% 19.7% 100.0% 5.9% 20.3% 0.2% 0.1% 8.5% Able 0.7% 27.1% 11.8% 8.0% Acre 9.0% 24.9% 6.7% Aft Adam 25.9% 6.8% 9.1% Total 31.8% 27.8% 36.3% 36.9% Baker 23.6% 6.1% 8.3% Bead 23.0% 6.8% 8.4% 32.4% Bolt 12.7% 3.1% 0.5% 5.0% Bold 14.3% 2.9% 1.0% 5.6% Total 46.6% 39.9% 5.9% 1.5% 27.4% Cake 15.3% 2.1% 4.8% Cedar 5.6% 17.8% 7.5% Cid 15.1% 3.4% 3.7% Coat 3.0% 12.0% 3.0% Cure 0.6% 10.3% 3.6% Total 21.5% 30.2% 18.1% 15.4% 22.6% Daze 2.1% 17.3% 7.6% 5.7% 15.4% 3.0% 19.7% 3.1% 4.5% 2.6% 20.1% 4.5% 2.1% 39.7% 46.2% 17.7% Dell Dixie Dot Total COMP-XM INQUIRER Page 9 Top Perceptual Map Round: 2 December 31, 2014 Ashley Abendschoen Perceptual Map for All Segments Andrews Name Pfmn Size Chester Revised Name Pfmn Size Digby Revised Name Pfmn Size Revised Aft 9.6 10.4 7/12/2014 Cake 7.0 13.0 12/20/2015 Daze 12.0 6.0 12/3/2014 Able 11.6 6.4 7/19/2014 Cedar 9.4 10.6 15.2 7.5 1/4/2014 Acre 13.6 8.3 6/6/2014 Cid 12.1 5.5 12/17/2014 Dixie 13.1 4.8 9/19/2014 12/7/2013 Dell Adam 7.2 12.8 6/20/2014 Coat Baldwin Name Pfmn Size Cure 14.9 7.7 12/18/2014 Dot 10.0 10.0 15.0 7.0 8/17/2014 4/1/2014 Revised Baker 7.8 12.2 4/11/2014 Bead 8.0 12.0 4/11/2014 Bolt 10.9 8.5 12/16/2014 Bold 11.6 9.0 12/18/2014 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 2 December 31, 2014 Ashley Abendschoen HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 508 412 503 685 Complement 508 412 503 685 1st Shift Complement 407 291 377 403 2nd Shift Complement 101 121 126 282 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 6.9% 8.0% 6.3% 10.0% New Employees 35 33 112 224 Separated Employees 52 219 0 0 $2,500 $2,500 $5,000 $0 80 40 80 0 106.3% 114.0% 123.5% 100.0% Recruiting Cost $124 $116 $672 $224 Separation Cost $260 $1,097 $0 $0 Training Cost $813 $330 $804 $0 $1,196 $1,542 $1,476 $224 $28.15 $28.15 $28.15 $28.15 Benefits 2,500 2,500 2,500 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 5.0% 5.0% Recruiting Spend Training Hours Productivity Index Total HR Admin Cost Labor Contract Next Year Wages 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 Baldwin Chester Digby CPI Systems $1,500 $1,250 $0 $0 Vendor/JIT $1,500 $1,250 $0 $0 Quality Initiative Training $1,500 $0 $0 $1,250 Channel Support Systems $1,500 $1,500 $0 $1,250 Concurrent Engineering $1,500 $0 $0 $1,250 Process Mgt Budgets Last Year UNEP Green Programs $1,500 $0 $0 $0 Benchmarking $1,500 $0 $0 $0 Quality Function Deployment Effort $1,500 $0 $0 $0 CCE/6 Sigma Training $1,500 $750 $0 $1,250 GEMI TQEM Sustainability Initiatives $1,500 $750 $0 $1,250 $15,000 $5,500 $0 $6,250 Material Cost Reduction 11.35% 1.40% 0.00% 2.92% Labor Cost Reduction 13.57% 0.33% 0.00% 11.25% Reduction R&D Cycle Time 40.01% 0.00% 0.00% 32.13% Reduction Admin Costs 60.02% 3.25% 0.00% 0.00% Demand Increase 14.04% 1.16% 0.00% 4.56% TQM Budgets Last Year Total Expenditures Cumulative Impacts COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews C53395 Balance Sheet DEFINITIONS: Common Size: The common size column simply Round: 2 Dec. 31, 2014 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 2014 2013 Common Size Cash $70,994 59.3% $55,869 Accounts Receivable $10,714 9.0% $11,613 $0 0.0% $12,312 68.3% $79,794 76.1% $91,060 Inventory Total Current Assets Plant & Equipment $81,708 $91,060 -44.4% ($47,076) $37,913 31.7% $43,984 $119,622 100.0% $123,778 $5,904 4.9% $6,278 Current Debt $10,300 8.6% $5,000 Long Term Debt $29,743 24.9% $40,043 38.4% $51,321 Accumulated Depreciation ($53,147) Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $45,947 Common Stock $11,192 9.4% $11,192 Retained Earnings $62,483 52.2% $61,264 $73,675 61.6% $72,456 $119,622 100.0% $123,778 Total Equity Total Liab. & O. Equity 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: 2014 2013 Net Income (Loss) $1,219 $3,814 Depreciation $6,071 $6,071 $0 $0 Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations ($375) ($3,276) $12,312 $13,986 $899 $1,765 $20,125 $22,360 Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing $0 $0 Activities: Dividends Paid $0 $0 Sales of Common Stock $0 $0 Purchase of Common Stock $0 $0 Cash from long term debt $0 $13,834 ($10,300 ) $0 $5,300 ($10,051 ) Net cash from financing activities ($5,000) $3,783 Net change in cash position $15,125 $26,143 Closing cash position $70,994 $55,869 Retirement of long term debt Change in current debt (net) Annual Report Page 1 Top Annual Report Andrews Round: 2 Dec. 31, 2014 C53395 2014 Income Statement (Product Name:) Able Acre 2014 Common Total Size Adam Na Na Na Na $34,410 $31,190 $39,606 $25,150 $0 $0 $0 $0 $130,356 100.0% Direct Labor $10,604 $8,369 $9,645 $8,190 $0 $0 $0 $0 $36,808 Sales Aft Variable Costs: 28.2% Direct Material $0 $0 $0 $0 $47,333 $0 $0 $0 $0 $0 $0 0.0% $23,990 $19,583 $22,814 $17,754 $0 $0 $0 $0 $84,141 64.5% Contribution $10,420 $11,607 $16,792 $7,396 Margin $0 $0 $0 $0 $46,215 35.5% $997 $2,120 $0 $0 $0 $0 $6,071 4.7% $436 $475 $0 $0 $0 $0 $1,999 1.5% Promotions $1,200 $2,500 $2,500 $1,000 $0 $0 $0 $0 $7,200 5.5% Sales $0 $0 $0 $0 $8,000 6.1% $301 $0 $0 $0 $0 $1,561 1.2% Total Period $6,089 $6,439 $6,408 $5,896 $0 $0 $0 $0 $24,831 19.0% Net Margin $4,331 $5,168 $10,385 $1,500 $0 $0 $0 $0 $21,384 16.4% Inventory Carry Total Variable $13,386 $11,214 $13,169 $9,564 $0 $0 $0 36.3% Period Costs: Depreciation SG&A: R&D Admin $1,941 $1,012 $535 $553 $2,000 $2,000 $2,000 $2,000 $412 $374 $474 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. 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. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. 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 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. Other $15,000 11.5% EBIT $6,384 4.9% Short Term Interest $1,071 0.8% LongTerm Interest $3,400 2.6% Taxes Profit Sharing Net Profit Annual Report $670 0.5% $25 0.0% $1,219 0.9% Page 2 PRINT Annual Report Top Annual Report Baldwin C53395 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 2014 2013 Round: 2 Dec. 31, 2014 Common Size Cash $54,786 25.8% $30,164 Accounts Receivable $12,173 5.7% $12,956 $0 0.0% $9,803 31.6% $52,923 Inventory Total Current Assets $66,959 Plant & Equipment $219,700 103.6% $179,560 Accumulated Depreciation ($74,684) -35.2% ($60,038) Total Fixed Assets $145,016 68.4% $119,522 Total Assets $211,974 100.0% $172,445 $7,271 3.4% $9,185 Current Debt $41,710 19.7% $25,667 Long Term Debt $89,693 42.3% $70,879 65.4% $105,731 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $138,674 Common Stock $37,129 17.5% $28,654 Retained Earnings $36,172 17.1% $38,059 34.6% $66,713 Total Equity $73,301 Total Liab. & O. Equity $211,974 100.0% $172,445 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: 2014 2013 Net Income (Loss) ($1,888) $4,914 Depreciation $14,647 $11,971 Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable $0 $0 ($1,915) $2,066 $9,803 ($2,038) $784 ($1,977) Net cash from operations $21,431 $14,936 Cash Flows from Investing Activities: ($40,140) ($39,660 ) $0 $0 $8,475 Plant Improvements $4,815 $0 $0 Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt $29,113 $15,955 Retirement of long term debt ($10,300) $0 Change in current debt (net) $16,043 ($3,670) Net cash from financing activities $43,331 $17,100 Net change in cash position $24,622 ($7,624) Closing cash position $54,786 $30,164 Annual Report Page 1 Top Annual Report Baldwin Round: 2 Dec. 31, 2014 C53395 2014 Income Statement (Product Name:) Baker Bead Bolt Bold Na Na Na Na 2014 Common Total Size Sales $35,663 $36,810 $35,685 $39,942 $0 $0 $0 $0 $148,099 100.0% $8,250 $8,156 $6,787 $7,402 $0 $0 $0 $0 $30,596 20.7% $16,376 $17,316 $15,521 $18,456 $0 $0 $0 $0 $67,668 45.7% $0 $0 $0 $0 $0 $0 0.0% $24,626 $25,472 $22,308 $25,858 $0 $0 $0 $0 $98,264 66.4% Contribution $11,037 $11,337 $13,377 $14,085 Margin $0 $0 $0 $0 $49,836 33.7% $0 $0 $0 $0 $14,647 9.9% $976 $0 $0 $0 $0 $2,505 1.7% Promotions $1,200 $1,200 $1,200 $1,200 $0 $0 $0 $0 $4,800 3.2% Sales Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $0 $0 $0 Period Costs: Depreciation SG&A: R&D $4,200 $4,620 $2,660 $3,167 $279 $279 $900 $900 $0 $0 $0 $0 $4,000 2.7% $613 $686 $0 $0 $0 $0 $2,545 1.7% Total Period $7,392 $7,832 $6,344 $6,930 $0 $0 $0 $0 $28,497 19.2% Net Margin $3,645 $3,506 $7,034 $7,155 $0 $0 $0 $0 $21,339 14.4% Admin $1,100 $1,100 $970 $613 $633 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. 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. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. 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 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. Other $7,379 5.0% EBIT $13,959 9.4% Short Term Interest $5,214 3.5% LongTerm Interest $11,650 7.9% Taxes ($1,016) -0.7% Profit Sharing Net Profit $0 0.0% ($1,888) -1.3% Annual Report Page 2 PRINT Annual Report Top Annual Report Chester C53395 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. Round: 2 Dec. 31, 2014 Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS 2014 2013 Common Size Cash $42,195 20.8% $24,401 Accounts Receivable $12,177 6.0% $9,851 $2,643 1.3% $7,509 28.1% $41,761 Inventory Total Current Assets $57,015 Plant & Equipment $213,160 105.0% $161,500 Accumulated Depreciation ($67,140) -33.1% ($54,289) Total Fixed Assets $146,020 71.9% $107,211 Total Assets $203,035 100.0% $148,970 $7,489 3.7% $6,288 Current Debt $32,770 16.1% $21,437 Long Term Debt $81,161 40.0% $58,771 59.8% $86,496 16.0% $16,496 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities Common Stock $121,420 $32,506 Retained Earnings $49,108 40.2% $62,474 $203,035 Total Liab. & O. Equity $45,978 $81,614 Total Equity 24.2% 100.0% $148,970 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: 2014 2013 Net Income (Loss) $3,130 $4,989 $12,851 $9,633 Depreciation Extraordinary gains/losses/writeoffs $0 $0 Accounts Payable $1,202 $567 Inventory $4,866 ($919) Accounts Receivable ($2,326) ($250) Net cash from operations $19,722 $14,020 Cash Flows from Investing Activities: Plant Improvements ($51,660 ($37,100 ) ) 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 $0 $0 $16,010 $3,021 $0 $0 $32,691 $15,860 ($10,300 ) $0 Change in current debt (net) $11,332 ($4,187) Net cash from financing activities $49,732 $14,694 Net change in cash position $17,794 ($8,386) Closing cash position $42,195 $24,401 Annual Report Page 1 Top Annual Report Chester C53395 Round: 2 Dec. 31, 2014 2014 Income Statement (Product Name:) Cedar Cid Coat 2014 Common Total Size Cure Camp Na Na $25,548 $38,914 $37,169 $30,926 $15,596 $0 $0 $0 $148,152 100.0% Direct Labor $3,458 $10,022 $8,336 $6,951 $4,296 $0 $0 $0 $33,064 22.3% Direct Material $9,345 $18,152 $15,810 $12,334 $7,281 $0 $0 $0 $62,922 42.5% $0 $0 $0 $0 $317 0.2% $12,804 $28,175 $24,146 $19,602 $11,577 $0 $0 $0 $96,304 65.0% Contribution $12,744 $10,739 $13,023 $11,324 $4,019 Margin $0 $0 $0 $51,849 35.0% $0 $0 $0 $12,851 8.7% $250 $1,000 $0 $0 $4,200 2.8% Sales Cake Variable Costs: Inventory Carry Total Variable $0 $0 $0 $317 Period Costs: Depreciation $3,520 $3,673 $1,700 $1,600 $2,357 SG&A: R&D $1,000 $0 $973 $977 Promotions $1,050 $1,050 $1,050 $1,050 $1,050 $0 $0 $0 $5,250 3.5% Sales $900 $1,500 $900 $0 $0 $0 $5,300 3.6% $630 $265 $0 $0 $0 $2,513 1.7% Total Period $7,003 $6,383 $5,254 $5,651 $4,822 $1,000 $0 $0 $30,113 20.3% Net Margin $5,741 $4,356 $7,769 $5,672 ($803) ($1,000) $0 $0 $21,735 14.7% Admin $1,000 $1,000 $433 $660 $525 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. 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. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. 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 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. Other $2,435 1.6% EBIT $19,300 13.0% Short Term Interest $3,998 2.7% LongTerm Interest $10,389 7.0% Taxes Profit Sharing Net Profit $1,720 1.2% $64 0.0% $3,130 2.1% Annual Report Page 2 PRINT Annual Report Top Annual Report Digby C53395 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 Round: 2 Dec. 31, 2014 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 2014 2013 Common Size Cash $46,015 32.2% $28,849 Accounts Receivable $15,439 10.8% $12,400 $9,674 6.8% $2,710 49.8% $43,959 Inventory Total Current Assets $71,128 Plant & Equipment $118,100 82.8% $93,400 Accumulated Depreciation ($46,527) -32.6% ($38,653) $71,573 50.2% $54,747 $142,701 100.0% $98,706 Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable $10,582 7.4% $7,212 Current Debt $30,480 21.4% $14,018 Long Term Debt $27,187 19.1% $21,789 Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $68,249 47.8% $43,019 $7,934 5.6% $8,087 $66,519 46.6% $47,600 $74,453 52.2% $55,687 $142,701 100.0% $98,706 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 2014 2013 $19,820 $13,592 $7,873 $6,227 $0 $0 $3,370 $716 Inventory ($6,964) $11,615 Accounts Receivable ($3,039) ($2,576) Net cash from operations $21,061 $29,574 Cash Flows from Investing Activities: Plant Improvements ($24,700 ($10,100 ) ) Cash Flows from Financing Activities: Dividends Paid $0 ($6,353) Sales of Common Stock $0 $0 Purchase of Common Stock ($1,055) ($1,507) Cash from long term debt $15,698 $1,599 ($10,300 ) $0 Retirement of long term debt Change in current debt (net) $16,462 ($4,846) Net cash from financing activities $20,805 ($11,107 ) Net change in cash position $17,166 $8,367 Closing cash position $46,015 $28,849 Annual Report Page 1 Top Annual Report Digby Round: 2 Dec. 31, 2014 C53395 2014 Income Statement (Product Name:) Dell Dixie 2014 Common Total Size Dot Na Na Na Na $47,528 $32,329 $54,719 $53,268 $0 $0 $0 $0 $187,843 100.0% Direct Labor $13,686 $8,169 $12,327 $11,075 $0 $0 $0 $0 $45,257 24.1% Direct Material $0 $0 $0 $0 $76,529 40.7% $468 $0 $0 $0 $0 $1,161 0.6% $33,101 $23,162 $34,254 $32,430 $0 $0 $0 $0 $122,947 65.5% Contribution $14,427 $9,167 $20,465 $20,838 Margin $0 $0 $0 $0 $64,896 34.5% Sales Daze Variable Costs: Inventory Carry Total Variable $19,415 $14,506 $21,721 $20,887 $0 $487 $205 Period Costs: Depreciation $0 $0 $0 $0 $7,873 4.2% $634 $0 $0 $0 $0 $2,304 1.2% Promotions $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 2.8% Sales $900 $900 $800 $800 $0 $0 $0 $0 $3,400 1.8% Admin $389 $265 $448 $436 $0 $0 $0 $0 $1,539 0.8% Total Period $5,490 $4,180 $5,276 $5,370 $0 $0 $0 $0 $20,316 10.8% Net Margin $8,936 $4,987 $15,189 $15,468 $0 $0 $0 $0 $44,580 23.7% SG&A: R&D $1,967 $1,707 $2,000 $2,200 $934 $9 $727 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. 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. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. 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 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. Other $7,051 3.8% EBIT $37,530 20.0% Short Term Interest $3,231 1.7% LongTerm Interest Taxes Profit Sharing Net Profit Annual Report $3,183 1.7% $10,890 5.8% $404 0.2% $19,820 10.6% Page 2