Using the information provided below please help me answer the following questions: My company is Andrews and my product is able

Your Product

Pay particular attention to the sections on the low-tech segment, high-tech segment, and perceptual map.

i. Where is your product positioned? (Low-tech? High-tech?)

ii. Does your product fit the consumers? desires for the product segment?

iii. How did the release data of your product impact its performance?

II. Production Analysis

Pay particular attention to the sections on R&D, capacity, and funding your plant improvements.

i. What is your production schedule?

ii. How did capacity for your product(s) change over the years?

iii. How did automation change over the years? What impact did it have on your organization?

iv. Did you discontinue a product?

III. Market Segmentation

Pay particular attention to the sections on market segmentation, pricing, the low-tech segment, the high-tech segment, and the contribution margin.

i. What is the price of your product?

ii. What was your promotional budget?

iii. What was your sales budget?

iv. What was the sales forecast for each product?

v. What were the accounts receivable (A/R) and accounts payable (A/P) implications of the decisions?

IV. Financial Performance

i. How did you pay for your R&D expenses?

ii. How did you pay for marketing expenses?

iii. How did you fund your production activities?

iv. Did you buy back stock?

v. Did you retire bonds?

vi. Did you take an emergency loan?

vii. Did you pay dividends?

viii. What is your cash percentage?

bonds?

Round: 1 Dec. 31, 2017 F84793_001 Andrews Melissa Bradley Baldwin Chester Digby Erie Ferris Selected Financial Statistics ROS Asset Turnover ROA Leverage ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews 5.6% 1.35 7.5% 2.0 15.2% $0 $47,984,709 $5,708,929 $2,667,933 $5,161,638 11.0% 26.5% FOUNDATION FAST TRACK Baldwin 4.7% 1.63 7.7% 1.9 14.6% $0 $50,031,994 $4,893,546 $2,348,463 $4,842,169 9.2% 21.5% Chester 5.4% 1.45 7.8% 1.9 14.6% $0 $42,399,542 $4,785,968 $2,288,147 $4,781,853 7.3% 22.3% Digby 6.6% 1.66 10.9% 1.9 20.3% $0 $51,277,759 $6,478,456 $3,371,019 $5,864,725 9.6% 24.5% Erie 3.8% 1.44 5.5% 1.9 10.4% $0 $40,796,282 $3,648,590 $1,563,638 $4,057,344 7.2% 20.0% Ferris 7.6% 1.78 13.5% 1.9 25.9% $0 $44,484,407 $6,293,009 $3,371,796 $5,865,501 9.7% 26.5% Page 1 Stock & Bonds F84793_001 Round: 1 Dec. 31, 2017 Stock Market Summary Company Close Change Shares Andrews Baldwin Chester Digby Erie Ferris $14.71 $14.12 $14.00 $16.13 $12.59 $16.16 $3.54 $2.95 $2.83 $4.96 $1.42 $5.00 2,179,093 2,076,077 2,051,004 2,036,677 2,051,004 2,000,000 MarketCap ($M) $32 $29 $29 $33 $26 $32 Book Value EPS Dividend Yield P/E $8.04 $7.73 $7.66 $8.17 $7.31 $6.52 $1.22 $1.13 $1.12 $1.66 $0.76 $1.69 $0.00 $0.00 $0.00 $0.00 $0.00 $1.60 0.0% 0.0% 0.0% 0.0% 0.0% 9.9% 12.0 12.5 12.5 9.7 16.5 9.6 Bond Market Summary Company Andrews Series# Face Yield Close$ S&P 12.0S2020 13.0S2022 10.0S2027 $1,622,094 $2,600,000 $3,000,000 11.8% 12.2% 10.8% 101.70 106.24 92.44 B B B 11.0S2018 12.0S2020 13.0S2022 10.0S2027 $866,667 $1,733,333 $2,600,000 $2,480,000 11.0% 11.7% 12.1% 10.6% 100.00 102.44 107.39 94.11 B B B B 11.0S2018 12.0S2020 13.0S2022 10.0S2027 $866,667 $1,733,333 $2,600,000 $2,361,878 11.0% 11.7% 12.1% 10.6% 100.09 102.69 107.78 94.68 BB BB BB BB Company Digby Baldwin Series# Face Yield Close$ S&P 11.0S2018 12.0S2020 13.0S2022 10.0S2027 $866,667 $1,733,333 $2,600,000 $2,287,212 11.0% 11.7% 12.1% 10.6% 100.09 102.69 107.78 94.68 BB BB BB BB 11.0S2018 12.0S2020 13.0S2022 10.0S2027 $866,667 $1,733,333 $2,600,000 $2,361,878 11.0% 11.7% 12.1% 10.6% 100.09 102.69 107.78 94.68 BB BB BB BB 11.0S2018 12.0S2020 13.0S2022 10.0S2027 $866,667 $1,733,333 $2,600,000 $420,545 11.0% 11.7% 12.1% 10.6% 100.00 102.44 107.39 94.11 B B B B Erie Chester Ferris Next Year's Prime Rate7.00% FOUNDATION FAST TRACK Page 2 Financial Summary Cash Flow Statement Survey CashFlows from operating activities Net Income(Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liablilities Acounts payable Inventory Accounts Receivable Net cash from operations F84793_001 Round: 1 Dec. 31, 2017 Andrews Baldwin Chester Digby Erie Ferris $2,668 $2,348 $2,288 $3,371 $1,564 $3,372 $1,403 $22 $1,064 $0 $1,426 $0 $1,020 $0 $1,426 $0 $1,133 $0 ($122) $2,012 ($591) $5,393 $415 ($867) ($759) $2,201 ($563) ($876) ($131) $2,144 $337 ($459) ($861) $3,408 ($749) ($1,201) $0 $1,041 ($161) ($373) ($303) $3,669 ($6,650) ($6,925) ($6,995) ($6,500) ($6,995) ($2,600) $0 $2,000 $0 $3,000 ($1,000) $0 $8,000 $0 $0 $850 $0 $2,480 $0 $0 $3,691 $0 $0 $570 $0 $2,362 $0 $0 $3,679 $0 $0 $410 $0 $2,287 $0 $0 $3,679 $0 $0 $570 $0 $2,362 $0 $0 $3,679 $0 ($3,195) $0 $0 $421 $0 $0 $3,679 $0 $12,000 $7,021 $6,610 $6,376 $6,610 $905 $10,743 Andrews $16,345 $3,944 $341 $20,629 $2,297 Baldwin $7,898 $4,112 $3,220 $15,230 $1,760 Chester $7,361 $3,485 $3,228 $14,074 $3,283 Digby $8,885 $4,215 $2,811 $15,911 $656 Erie $6,258 $3,353 $3,553 $13,163 $1,974 Ferris $7,575 $3,656 $2,725 $13,956 Plant and equipment Accumulated Depreciation Total Fixed Assets $21,050 ($6,203) $14,846 $21,325 ($5,864) $15,461 $21,395 ($6,226) $15,168 $20,900 ($5,820) $15,080 $21,395 ($6,226) $15,168 $17,000 ($5,933) $11,067 Total Assets $35,476 $30,691 $29,243 $30,991 $28,332 $25,023 Account Payable CurrentDebt Long Term Debt Total Liabilities $2,732 $8,000 $7,222 $17,954 $3,268 $3,691 $7,680 $14,639 $2,290 $3,679 $7,562 $13,531 $3,191 $3,679 $7,487 $14,357 $2,104 $3,679 $7,562 $13,345 $2,693 $3,679 $5,621 $11,992 Common Stock Retained Earnings Total Equity $4,323 $13,198 $17,522 $3,173 $12,879 $16,052 $2,893 $12,819 $15,711 $2,733 $13,902 $16,634 $2,893 $12,094 $14,987 $2,323 $10,708 $13,031 Total Liabilities & Owners Equity $35,476 $30,691 $29,243 $30,991 $28,332 $25,023 Andrews $47,985 $35,291 $1,403 $5,295 $287 $5,709 $1,521 $1,466 $54 $2,668 Baldwin $50,032 $39,281 $1,064 $4,627 $166 $4,894 $1,207 $1,290 $48 $2,348 Chester $42,400 $32,952 $1,426 $3,088 $147 $4,786 $1,194 $1,257 $47 $2,288 Digby $51,278 $38,698 $1,020 $4,946 $135 $6,478 $1,186 $1,852 $69 $3,371 Erie $40,796 $32,621 $1,426 $2,954 $147 $3,649 $1,194 $859 $32 $1,564 Ferris $44,484 $32,716 $1,133 $4,321 $21 $6,293 $1,000 $1,853 $69 $3,372 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 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets 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 FOUNDATION FAST TRACK Page 3 F84793_001 Production Analysis MTBF 17000 Pfmn Coord 7.2 Size Coord Price 13.6 $35.25 Material Labor Cost Cost $14.43 $10.60 Contr. Marg. 27% 2nd Shift & Overtime 63% 2.5 0.0 19800 0 6.4 0.0 13.8 $33.40 0.0 $0.00 $14.16 $11.02 $0.00 $0.00 21% 0% 94% 0% 3.2 3.0 849 298 192% 0% 7/23/2017 2.3 18250 5.7 14.2 $32.60 $12.50 $10.67 22% 69% 4.8 849 168% 107 0 3/16/2017 5/9/2018 2.4 0.0 20600 0 6.1 0.0 13.4 $35.00 0.0 $0.00 $14.52 $10.95 $0.00 $0.00 24% 0% 88% 0% 3.0 2.5 850 350 186% 0% 1,289 142 7/28/2017 2.3 17500 6.0 14.4 $31.65 $12.40 $10.65 20% 69% 4.8 849 168% 1,222 103 10/21/2017 2.1 21500 7.6 12.7 $36.40 $17.15 $10.50 27% 56% 3.5 850 155% Primary Segment Low Units Sold 1,361 Unit Inven tory 13 Baker Bold Low 1,498 0 Cake Low Daze Dabble Revision Age Date Dec.31 7/17/2017 2.3 124 0 3/12/2017 5/13/2018 1,301 129 Low 1,465 0 Eat Low Fast Low Name Able Round: 1 Dec. 31, 2017 FOUNDATION FAST TRACK Auto mation Next Round 3.7 Capacity Next Round 1,012 Plant Utiliz. 161% Page 4 Low Tech Segment Analysis F84793_001 Round: 1 Dec. 31, 2017 Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,544 |5,544 |68.1% Next Year's Segment Growth Rate |10.0% Low Tech Customer Buying Criteria 1. Price 2. Age 3. Reliability 4. Ideal Position Expectations $15.00 - 35.00 Ideal Age = 3.0 MTBF 14000-20000 Pfmn 5.3 Size 14.7 Importance 41% 29% 21% 9% Top Products in Low Tech Segment Name Baker Daze Cake Eat Able Fast Market Share 19% 18% 17% 17% 16% 14% Units Sold to Seg 1,029 975 964 951 876 749 FOUNDATION FAST TRACK Revision Date 3/12/2017 3/16/2017 7/23/2017 7/28/2017 7/17/2017 10/21/2017 Stock Out Pfmn Coord 6.4 6.1 5.7 6.0 7.2 7.6 Size Coord 13.8 13.4 14.2 14.4 13.6 12.7 List Price $33.40 $35.00 $32.60 $31.65 $35.25 $36.40 MTBF 19800 20600 18250 17500 17000 21500 Cust. Age Promo A wareDec.31 Budget n ess 2.45 $1,300 67% 2.45 $1,450 72% 2.27 $925 56% 2.26 $875 54% 2.28 $2,000 82% 2.14 $1,500 73% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $1,300 39% 20 $1,450 41% 19 $925 34% 17 $850 33% 16 $2,000 48% 13 $1,275 36% 8 Page 5 High Tech Segment Analysis F84793_001 Round: 1 Dec. 31, 2017 High Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 2,592 |2,592 |31.9% Next Year's Segment Growth Rate |20.0% High Tech Customer Buying Criteria 1. Ideal Position 2. Age 3. Price 4. Reliability Expectations Pfmn 8.1 Size 11.9 Ideal Age = 0.0 $25.00 - 45.00 MTBF 17000-23000 Importance 33% 29% 25% 13% Top Products in High Tech Segment Name Daze Able Fast Baker Eat Cake Market Share 19% 19% 18% 18% 13% 13% Units Sold to Seg 490 486 473 469 338 337 FOUNDATION FAST TRACK Revision Date 3/16/2017 7/17/2017 10/21/2017 3/12/2017 7/28/2017 7/23/2017 Stock Out Pfmn Coord 6.1 7.2 7.6 6.4 6.0 5.7 Size Coord 13.4 13.6 12.7 13.8 14.4 14.2 List Price $35.00 $35.25 $36.40 $33.40 $31.65 $32.60 MTBF 20600 17000 21500 19800 17500 18250 Cust. Age Promo A wareDec.31 Budget n ess 2.45 $1,450 72% 2.28 $2,000 82% 2.14 $1,500 73% 2.45 $1,300 67% 2.26 $875 54% 2.27 $925 56% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $1,450 42% 12 $2,000 50% 14 $1,275 39% 24 $1,300 40% 12 $850 33% 8 $925 34% 8 Page 6 Market Share F84793_001 Actual Market Share in Units Industry Unit Sales % of Market Low 5,544 68.1% High 2,592 31.9% Able Total 15.8% 15.8% 18.7% 18.7% Baker Total 18.6% 18.6% Cake Total Round: 1 Dec. 31, 2017 Potential Market Share in Units Low 5,544 68.1% High 2,592 31.9% Total 8,136 100.0% 16.7% Able 16.7% Total 16.3% 16.3% 19.2% 19.2% 17.2% 17.2% 18.1% 18.1% 18.4% Baker 18.4% Total 18.5% 18.5% 18.0% 18.0% 18.3% 18.3% 17.4% 17.4% 13.0% 13.0% 16.0% Cake 16.0% Total 17.3% 17.3% 12.9% 12.9% 15.9% 15.9% Daze Total 17.6% 17.6% 18.9% 18.9% 18.0% Daze 18.0% Total 17.5% 17.5% 18.8% 18.8% 17.9% 17.9% Eat Total 17.2% 17.2% 13.0% 13.0% 15.8% Eat 15.8% Total 17.1% 17.1% 12.9% 13.0% 15.7% 15.8% Fast Total 13.5% 13.5% 18.2% 18.2% 15.0% Fast 15.0% Total 13.4% 13.4% 18.2% 18.2% 14.9% 14.9% FOUNDATION FAST TRACK Total 8,136 Units Demanded 100.0% % of Market Page 7 Perceptual Map F84793_001 Andrews Name Able Pfmn 7.2 Name Daze Pfmn 6.1 Size 13.6 Digby Size 13.4 FOUNDATION FAST TRACK Baldwin Revised Name 7/17/2017 Baker Pfmn 6.4 Revised Name 3/16/2017 Eat Pfmn 6.0 Size 13.8 Erie Size 14.4 Round: 1 Dec. 31, 2017 Chester Revised 3/12/2017 Name Cake Pfmn 5.7 Revised 7/28/2017 Name Fast Pfmn 7.6 Size 14.2 Ferris Size 12.7 Revised 7/23/2017 Revised 10/21/2017 Page 8 HR/TQM Report F84793_001 Round: 1 Dec. 31, 2017 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 250 250 154 96 Baldwin 298 298 154 144 Chester 260 260 154 106 Digby 288 288 154 134 Erie 260 260 154 106 Ferris 240 240 154 86 Overtime Percent Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.0% 10.0% 27 0 $0 0 100.0% 0.0% 10.0% 80 0 $0 0 100.0% 0.0% 10.0% 38 0 $0 0 100.0% 0.3% 10.0% 69 0 $0 0 100.0% 0.0% 10.0% 38 0 $0 0 100.0% 0.2% 10.0% 24 8 $0 0 100.0% $27 $0 $0 $27 $80 $0 $0 $80 $38 $0 $0 $38 $69 $0 $0 $69 $38 $0 $0 $38 $24 $40 $0 $64 Baldwin Chester Digby Erie Ferris Recruiting Cost Separation Cost Training Cost Total HR Admin Cost Strike Days TQM SUMMARY Andrews Process Mgt Budgets Last Year CPI Systems VendorJIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase FOUNDATION FAST TRACK Page 9 Ethics Report F84793_001 Round: 1 Dec. 31, 2017 ETHICS SUMMARY Other (Fees, Writeoffs, etc.) Demand Factor Material Cost Impact Admin Cost Impact Productivity Impact Awareness Impact Accessibility Impact Total Other (Fees, Writeoffs, etc.) Demand Factor Material Cost Impact Admin Cost Impact Productivity Impact Awareness Impact Accessibility Impact FOUNDATION FAST TRACK The actual dollar impact. Example, $120 means Other increased by $120. The % of normal. 98% means demand fell 2%. The % of normal. 104% means matieral costs rose 4%. The % of normal. 103% means admin costs rose 3%. The % of normal. 104% means productivity increased by 4%. The % of normal. 105% means normal awareness was multiplied by 1.05. The % of normal. 98% means normal accessiblity was multiplied by 0.98. Normal means the value that would have been produced if the problem had not been presented. No Impact Andrews Baldwin Chester Digby Erie Ferris $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% Page 10 Annual Report Annual Report Andrews F84793_001 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 companys 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 Account Receivable Inventory Total Current Assets $16,345 $3,944 $341 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY $21,050 ($6,203) Accounts Payable CurrentDebt Long Term Debt Total Liabilities $20,630 2017 Common Size 46.1% 11.1% 1.0% 58.2% $5,602 $3,353 $2,352 $11,307 $14,847 $35,476 59.3% -17.5% 41.9% 100.0% $14,400 ($4,800) $9,600 $20,907 $17,954 7.7% 22.6% 20.4% 50.6% $2,853 $0 $5,200 $8,053 $17,521 $35,476 12.2% 37.2% 49.4% 100.0% $2,323 $10,531 $12,854 $20,907 $2,732 $8,000 $7,222 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $4,323 $13,198 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. Annual Report Round: 1 Dec. 31, 2017 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2016 2017 $2,668 $1,403 $22 ($122) $2,012 ($591) $5,393 2016 $2,494 $960 $0 $853 ($2,352) $3,647 $5,602 ($6,650) $0 $0 $2,000 $0 $3,000 ($1,000) $8,000 $12,000 $10,743 $16,345 ($1,000) $0 $0 $0 $0 $0 ($1,000) $4,602 $5,602 Page 11 Annual Report Andrews Round: 1 Dec. 31, 2017 F84793_001 2017 Income Statement Sales $47,985 $0 $0 $0 $0 $0 $0 $0 2017 Total $47,985 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $14,388 $20,862 $41 $35,291 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $14,388 $20,862 $41 $35,291 30.0% 43.5% 0.1% 73.5% Contribution Margin (Product Name) Able Common Size 100.0% $12,694 $0 $0 $0 $0 $0 $0 $0 $12,694 26.5% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $1,403 $548 $2,000 $2,000 $747 $6,698 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,403 $548 $2,000 $2,000 $747 $6,698 2.9% 1.1% 4.2% 4.2% 1.6% 14.0% Net Margin $5,996 $0 $0 $0 $0 $0 $0 $0 $5,996 12.5% $287 $5,709 $688 $833 $1,466 $54 $2,668 0.6% 11.9% 1.4% 1.7% 3.1% 0.1% 5.6% Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years 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 Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 12 Round: 2 Dec. 31, 2018 F84793_001 Andrews Melissa Bradley Baldwin Chester Digby Erie Ferris Selected Financial Statistics ROS Asset Turnover ROA Leverage ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews 6.1% 1.02 6.2% 1.7 10.8% $4,944,787 $36,989,974 $5,182,750 $2,241,638 $7,403,276 11.6% 31.3% FOUNDATION FAST TRACK Baldwin 8.5% 1.61 13.7% 1.9 26.2% $0 $73,586,482 $11,677,695 $6,238,282 $11,080,451 8.4% 27.5% Chester 6.2% 1.09 6.8% 2.0 13.6% $0 $43,658,221 $6,157,241 $2,699,387 $7,481,240 9.0% 28.0% Digby 9.0% 1.59 14.3% 1.9 27.9% $0 $76,575,242 $12,810,960 $6,886,329 $12,751,054 9.2% 29.1% Erie 6.2% 1.01 6.2% 2.0 12.4% $0 $39,244,142 $5,666,440 $2,415,529 $6,472,872 9.8% 29.5% Ferris 5.4% 1.32 7.2% 2.1 15.3% $0 $44,892,133 $5,454,135 $2,445,104 $8,310,606 12.7% 27.9% Page 1 Stock & Bonds F84793_001 Round: 2 Dec. 31, 2018 Stock Market Summary Company Close Change Shares Andrews Baldwin Chester Digby Erie Ferris $12.48 $21.74 $15.21 $24.81 $13.59 $16.45 ($2.23) $7.62 $1.20 $8.68 $1.00 $0.29 2,247,085 2,183,432 2,149,091 2,110,821 2,220,538 2,032,117 MarketCap ($M) $28 $47 $33 $52 $30 $33 Book Value EPS Dividend Yield P/E $9.24 $10.90 $9.21 $11.71 $8.80 $7.87 $1.00 $2.86 $1.26 $3.26 $1.09 $1.20 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12.5 7.6 12.1 7.6 12.5 13.7 Bond Market Summary Company Andrews Series# Face Yield Close$ S&P 12.0S2020 13.0S2022 10.0S2027 11.3S2028 $1,622,094 $2,600,000 $3,000,000 $500,000 11.7% 12.1% 10.3% 10.8% 102.59 107.84 97.18 104.81 BB BB BB BB 12.0S2020 13.0S2022 10.0S2027 11.0S2028 $1,733,333 $2,600,000 $2,480,000 $4,511,367 11.8% 12.2% 10.6% 11.0% 101.71 106.20 94.46 100.00 B B B B 12.0S2020 13.0S2022 10.0S2027 10.9S2028 $1,733,333 $2,600,000 $2,361,878 $4,877,026 11.9% 12.4% 10.8% 11.2% 101.19 105.24 92.89 97.67 B B B B Baldwin Company Digby Series# Face Yield Close$ S&P 12.0S2020 13.0S2022 10.0S2027 10.9S2028 $1,733,333 $2,600,000 $2,287,212 $4,379,399 11.8% 12.3% 10.6% 11.0% 101.54 105.88 93.93 98.83 B B B B 12.0S2020 13.0S2022 10.0S2027 10.9S2028 $1,733,333 $2,600,000 $2,361,878 $5,056,881 11.8% 12.3% 10.7% 11.1% 101.37 105.56 93.41 98.25 B B B B 12.0S2020 13.0S2022 10.0S2027 11.0S2028 $1,733,333 $2,600,000 $420,545 $2,485,050 11.9% 12.5% 10.9% 11.4% 100.68 104.29 91.34 96.55 CCC CCC CCC CCC Erie Chester Ferris Next Year's Prime Rate7.00% FOUNDATION FAST TRACK Page 2 Financial Summary Cash Flow Statement Survey CashFlows from operating activities Net Income(Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liablilities Acounts payable Inventory Accounts Receivable Net cash from operations F84793_001 Round: 2 Dec. 31, 2018 Andrews Baldwin Chester Digby Erie Ferris $2,242 $6,238 $2,699 $6,886 $2,416 $2,445 $2,029 $0 $2,098 $0 $1,800 $0 $2,143 $0 $1,702 $0 $1,200 $0 $129 ($10,704) $904 ($5,401) $986 $1,367 ($1,936) $8,753 ($156) ($109) ($103) $4,131 $1,361 ($1,612) ($2,079) $6,699 ($419) $559 $128 $4,385 $184 ($3,354) ($34) $442 ($9,389) ($10,139) ($11,105) ($11,240) ($10,627) ($7,300) $0 $1,000 $0 $500 $0 ($8,000) $0 $4,945 $0 $1,516 $0 $4,511 $0 ($3,691) $5,323 $0 $0 $1,373 $0 $4,877 $0 ($3,679) $5,510 $0 $0 $1,196 $0 $4,379 $0 ($3,679) $7,010 $0 $0 $2,134 $0 $5,057 $0 ($3,679) $4,828 $0 $0 $519 $0 $2,485 $0 ($3,679) $6,990 $0 ($1,555) $7,659 $8,082 $8,907 $8,340 $6,316 ($16,345) Andrews $0 $3,040 $11,045 $14,085 $6,273 Baldwin $14,172 $6,048 $1,852 $22,072 $1,108 Chester $8,469 $3,588 $3,337 $15,394 $4,366 Digby $13,251 $6,294 $4,423 $23,968 $2,099 Erie $8,356 $3,226 $2,994 $14,575 ($543) Ferris $7,032 $3,690 $6,078 $16,801 Plant and equipment Accumulated Depreciation Total Fixed Assets $30,438 ($8,233) $22,206 $31,464 ($7,962) $23,502 $32,500 ($8,026) $24,474 $32,140 ($7,963) $24,177 $32,022 ($7,928) $24,093 $24,300 ($7,133) $17,167 Total Assets $36,291 $45,575 $39,868 $48,145 $38,669 $33,967 Account Payable CurrentDebt Long Term Debt Total Liabilities $2,861 $4,945 $7,722 $15,527 $4,254 $6,190 $11,325 $21,769 $2,134 $6,377 $11,572 $20,083 $4,552 $7,877 $11,000 $23,429 $1,685 $5,695 $11,752 $19,132 $2,876 $7,857 $7,239 $17,972 Common Stock Retained Earnings Total Equity $5,323 $15,440 $20,763 $4,689 $19,117 $23,806 $4,266 $15,518 $19,784 $3,928 $20,788 $24,716 $5,027 $14,510 $19,537 $2,842 $13,153 $15,995 Total Liabilities & Owners Equity $36,291 $45,575 $39,868 $48,145 $38,669 $33,967 Andrews $36,990 $25,425 $2,029 $4,278 $75 $5,183 $1,664 $1,232 $46 $2,242 Baldwin $73,586 $53,351 $2,098 $6,159 $301 $11,678 $1,884 $3,428 $127 $6,238 Chester $43,658 $31,453 $1,800 $3,936 $313 $6,157 $1,920 $1,483 $55 $2,699 Digby $76,575 $54,296 $2,143 $7,047 $279 $12,811 $2,000 $3,784 $141 $6,886 Erie $39,244 $27,660 $1,702 $3,856 $360 $5,666 $1,874 $1,327 $49 $2,416 Ferris $44,892 $32,372 $1,200 $5,716 $150 $5,454 $1,616 $1,343 $50 $2,445 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 Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets 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 FOUNDATION FAST TRACK Page 3 F84793_001 Production Analysis Name Able Primary Segment Low Units Sold 1,027 Unit Inven tory 471 Baker Bold Low High 1,730 373 75 0 3/8/2018 5/13/2018 Cake Cent Low 1,508 0 162 0 Daze Dabble Low High 1,633 432 Eat East Low Fast Feast High Labor Cost $9.89 Contr. Marg. 31% 2nd Shift & Overtime 48% 14.1 $33.40 11.7 $42.35 $12.64 $11.34 $16.60 $10.90 26% 34% 100% 100% 4.0 3.5 1,050 448 198% 125% 5.7 0.0 14.2 $28.95 0.0 $0.00 $10.83 $0.00 $8.81 $0.00 28% 0% 83% 0% 6.0 4.0 900 250 182% 0% 19500 22000 6.6 8.0 13.6 $35.00 12.4 $45.00 $13.15 $11.63 $16.61 $11.34 27% 37% 100% 100% 3.7 3.2 1,050 600 198% 127% 3.3 0.0 16500 0 6.0 0.0 14.4 $29.30 0.0 $0.00 $10.80 $0.00 $8.52 $0.00 29% 0% 59% 0% 5.6 4.0 899 295 158% 0% 1.7 0.0 22000 0 8.5 0.0 11.6 $38.50 0.0 $0.00 $17.96 $10.27 $0.00 $0.00 28% 0% 53% 0% 3.5 3.0 900 350 151% 0% MTBF 15000 Pfmn Coord 6.5 Size Coord Price 12.7 $36.00 2.1 0.6 19800 22400 6.5 7.1 1/19/2018 5/5/2019 3.3 0.0 17000 0 158 15 4/20/2018 5/9/2018 2.1 0.6 1,339 0 147 0 1/15/2018 3/15/2019 1,166 0 224 10/10/2018 0 5/21/2019 FOUNDATION FAST TRACK Round: 2 Dec. 31, 2018 Revision Age Date Dec.31 9/4/2018 1.8 Material Cost $12.67 Auto mation Next Round 4.3 Capacity Next Round 1,312 Plant Utiliz. 147% Page 4 Low Tech Segment Analysis F84793_001 Round: 2 Dec. 31, 2018 Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,098 |6,098 |66.2% Next Year's Segment Growth Rate |10.0% Low Tech Customer Buying Criteria 1. Price 2. Age 3. Reliability 4. Ideal Position Expectations $15.00 - 35.00 Ideal Age = 3.0 MTBF 14000-20000 Pfmn 5.8 Size 14.2 Importance 41% 29% 21% 9% Top Products in Low Tech Segment Name Cake Baker Eat Daze Able Fast Bold Market Share 21% 21% 19% 19% 12% 8% 1% Units Sold to Seg 1,301 1,278 1,160 1,158 707 459 36 FOUNDATION FAST TRACK Revision Date 1/19/2018 3/8/2018 1/15/2018 4/20/2018 9/4/2018 10/10/2018 5/13/2018 Stock Out YES Pfmn Coord 5.7 6.5 6.0 6.6 6.5 8.5 7.1 Size Coord 14.2 14.1 14.4 13.6 12.7 11.6 11.7 List Price $28.95 $33.40 $29.30 $35.00 $36.00 $38.50 $42.35 MTBF 17000 19800 16500 19500 15000 22000 22400 Cust. Age Promo A wareDec.31 Budget n ess 3.27 $925 56% 2.13 $1,350 77% 3.26 $875 54% 2.07 $1,450 83% 1.80 $1,500 91% 1.68 $1,500 85% 0.63 $550 33% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $925 29% 20 $1,350 43% 23 $875 28% 18 $1,450 48% 20 $1,500 45% 7 $1,275 28% 1 $550 43% 1 Page 5 High Tech Segment Analysis F84793_001 Round: 2 Dec. 31, 2018 High Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 3,110 |3,110 |33.8% Next Year's Segment Growth Rate |20.0% High Tech Customer Buying Criteria 1. Ideal Position 2. Age 3. Price 4. Reliability Expectations Pfmn 8.8 Size 11.2 Ideal Age = 0.0 $25.00 - 45.00 MTBF 17000-23000 Importance 33% 29% 25% 13% Top Products in High Tech Segment Name Fast Daze Baker Dabble Bold Able Cake Eat Market Share 23% 15% 15% 14% 11% 10% 7% 6% Units Sold to Seg 707 475 452 432 337 320 207 180 FOUNDATION FAST TRACK Revision Date 10/10/2018 4/20/2018 3/8/2018 5/9/2018 5/13/2018 9/4/2018 1/19/2018 1/15/2018 Stock Out YES Pfmn Coord 8.5 6.6 6.5 8.0 7.1 6.5 5.7 6.0 Size Coord 11.6 13.6 14.1 12.4 11.7 12.7 14.2 14.4 List Price $38.50 $35.00 $33.40 $45.00 $42.35 $36.00 $28.95 $29.30 MTBF 22000 19500 19800 22000 22400 15000 17000 16500 Cust. Age Promo A wareDec.31 Budget n ess 1.68 $1,500 85% 2.07 $1,450 83% 2.13 $1,350 77% 0.64 $750 39% 0.63 $550 33% 1.80 $1,500 91% 3.27 $925 56% 3.26 $875 54% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $1,275 38% 30 $1,450 53% 12 $1,350 47% 11 $750 53% 21 $550 47% 20 $1,500 48% 7 $925 30% 5 $875 28% 4 Page 6 Market Share F84793_001 Actual Market Share in Units Industry Unit Sales % of Market Low 6,098 66.2% High 3,110 33.8% Able Total 11.6% 11.6% 10.3% 10.3% Baker Bold Total 21.0% 0.6% 21.5% Cake Total Round: 2 Dec. 31, 2018 Potential Market Share in Units Low 6,098 66.2% High 3,110 33.8% Total 9,209 100.0% 11.2% Able 11.2% Total 11.6% 11.6% 10.0% 10.0% 11.1% 11.1% 14.5% 10.8% 25.4% 18.8% Baker 4.1% Bold 22.8% Total 20.9% 0.7% 21.6% 14.1% 12.8% 27.0% 18.6% 4.8% 23.4% 21.3% 21.3% 6.7% 6.7% 16.4% Cake 16.4% Total 21.3% 21.3% 6.5% 6.5% 16.3% 16.3% Daze Dabble Total 19.0% 17.7% Daze 4.7% Dabble 22.4% Total 19.0% 19.0% 15.3% 13.9% 29.1% 19.0% 14.8% 13.9% 28.7% 17.6% 4.7% 22.3% Eat Total 19.0% 19.0% 5.8% 5.8% 14.5% Eat 14.5% Total 19.0% 19.0% 5.6% 5.6% 14.5% 14.5% Fast Total 7.5% 7.5% 22.7% 22.7% 12.7% Fast 12.7% Total 7.5% 7.5% 22.2% 22.2% 12.5% 12.5% FOUNDATION FAST TRACK Total 9,209 Units Demanded 100.0% % of Market Page 7 Perceptual Map F84793_001 Andrews Name Able Pfmn 6.5 Name Daze Dabble Pfmn 6.6 8.0 Size 12.7 Digby Size 13.6 12.4 FOUNDATION FAST TRACK Baldwin Revised Name 9/4/2018 Baker Bold Pfmn 6.5 7.1 Revised Name 4/20/2018 Eat 5/9/2018 Pfmn 6.0 Size 14.1 11.7 Erie Size 14.4 Round: 2 Dec. 31, 2018 Chester Revised 3/8/2018 5/13/2018 Name Cake Pfmn 5.7 Revised 1/15/2018 Name Fast Pfmn 8.5 Size 14.2 Ferris Size 11.6 Revised 1/19/2018 Revised 10/10/2018 Page 8 HR/TQM Report F84793_001 Round: 2 Dec. 31, 2018 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 263 263 178 85 Baldwin 394 394 197 197 Chester 236 236 129 107 Digby 419 419 210 210 Erie 205 205 129 76 Ferris 244 244 159 84 Overtime Percent Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.1% 10.0% 39 0 $0 0 100.0% 0.0% 8.5% 129 0 $2,000 40 100.0% 0.0% 8.5% 20 24 $2,500 40 100.0% 0.0% 8.5% 167 0 $2,000 40 100.2% 0.0% 8.7% 18 55 $2,200 35 100.0% 0.0% 7.0% 21 0 $3,500 80 101.8% $39 $0 $0 $39 $388 $0 $315 $703 $70 $122 $188 $381 $501 $0 $336 $837 $57 $277 $143 $477 $94 $0 $390 $484 Baldwin Chester Digby Erie Ferris Recruiting Cost Separation Cost Training Cost Total HR Admin Cost Strike Days TQM SUMMARY Andrews Process Mgt Budgets Last Year CPI Systems VendorJIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase FOUNDATION FAST TRACK Page 9 Ethics Report F84793_001 Round: 2 Dec. 31, 2018 ETHICS SUMMARY Other (Fees, Writeoffs, etc.) Demand Factor Material Cost Impact Admin Cost Impact Productivity Impact Awareness Impact Accessibility Impact Total Other (Fees, Writeoffs, etc.) Demand Factor Material Cost Impact Admin Cost Impact Productivity Impact Awareness Impact Accessibility Impact FOUNDATION FAST TRACK The actual dollar impact. Example, $120 means Other increased by $120. The % of normal. 98% means demand fell 2%. The % of normal. 104% means matieral costs rose 4%. The % of normal. 103% means admin costs rose 3%. The % of normal. 104% means productivity increased by 4%. The % of normal. 105% means normal awareness was multiplied by 1.05. The % of normal. 98% means normal accessiblity was multiplied by 0.98. Normal means the value that would have been produced if the problem had not been presented. No Impact Andrews Baldwin Chester Digby Erie Ferris $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% Page 10 Annual Report Annual Report Andrews F84793_001 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 companys 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 Account Receivable Inventory Total Current Assets $0 $3,040 $11,045 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY $30,438 ($8,233) Accounts Payable CurrentDebt Long Term Debt Total Liabilities $14,085 2018 Common Size 0.0% 8.4% 30.4% 38.8% $16,345 $3,944 $341 $20,630 $22,205 $36,291 83.9% -22.7% 61.2% 100.0% $21,050 ($6,203) $14,847 $35,476 $15,528 7.9% 13.6% 21.3% 42.8% $2,732 $8,000 $7,222 $17,954 $20,763 $36,291 14.7% 42.5% 57.2% 100.0% $4,323 $13,198 $17,521 $35,476 $2,861 $4,945 $7,722 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $5,323 $15,440 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. Annual Report Round: 2 Dec. 31, 2018 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2017 2018 $2,242 $2,029 $0 $129 ($10,704) $904 ($5,401) 2017 $2,668 $1,403 $22 ($122) $2,012 ($591) $5,393 ($9,389) ($6,650) $0 $1,000 $0 $500 $0 ($3,055) ($1,555) ($16,345) $0 $0 $2,000 $0 $3,000 ($1,000) $8,000 $12,000 $10,743 $16,345 Page 11 Annual Report Andrews Round: 2 Dec. 31, 2018 F84793_001 2018 Income Statement Sales $36,990 $0 $0 $0 $0 $0 $0 $0 2018 Total $36,990 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $10,171 $13,928 $1,325 $25,425 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,171 $13,928 $1,325 $25,425 27.5% 37.7% 3.6% 68.7% Contribution Margin (Product Name) Able Common Size 100.0% $11,565 $0 $0 $0 $0 $0 $0 $0 $11,565 31.3% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,029 $684 $1,500 $1,500 $594 $6,307 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,029 $684 $1,500 $1,500 $594 $6,307 5.5% 1.9% 4.1% 4.1% 1.6% 17.1% Net Margin $5,258 $0 $0 $0 $0 $0 $0 $0 $5,258 14.2% $75 $5,183 $775 $889 $1,232 $46 $2,242 0.2% 14.0% 2.1% 2.4% 3.3% 0.1% 6.1% Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years 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 Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Page 12 Round: 3 Dec. 31, 2019 F84793_001 Andrews Melissa Bradley Baldwin Chester Digby Erie Ferris Selected Financial Statistics ROS Asset Turnover ROA Leverage ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Andrews -7.4% 0.70 -5.2% 2.6 -13.6% $19,718,344 $36,875,861 ($159,967) ($2,720,625) $4,682,651 17.9% 24.9% FOUNDATION FAST TRACK Baldwin 10.7% 1.43 15.2% 1.9 29.5% $0 $87,380,719 $17,191,634 $9,320,803 $20,401,253 9.2% 32.1% Chester 5.8% 1.06 6.1% 2.0 12.3% $0 $53,296,023 $7,323,583 $3,087,849 $10,569,089 11.5% 31.5% Digby 10.7% 1.41 15.2% 1.9 29.2% $0 $81,859,513 $16,277,427 $8,783,785 $21,534,839 10.2% 33.2% Erie 8.4% 1.11 9.3% 1.9 18.1% $0 $49,489,376 $8,618,548 $4,150,331 $10,623,203 10.9% 33.5% Ferris 9.1% 1.32 12.0% 1.9 22.6% $0 $48,876,182 $8,649,499 $4,464,673 $12,775,279 15.2% 35.3% Page 1 Stock & Bonds F84793_001 Round: 3 Dec. 31, 2019 Stock Market Summary Company Close Change Shares Andrews Baldwin Chester Digby Erie Ferris $1.00 $33.69 $17.48 $34.88 $18.45 $19.07 ($11.48) $11.96 $2.28 $10.07 $4.86 $2.62 2,407,329 2,183,432 2,301,403 2,110,821 2,220,538 2,032,117 MarketCap ($M) $2 $74 $40 $74 $41 $39 Book Value EPS Dividend Yield P/E $8.33 $14.49 $10.94 $14.27 $10.30 $9.73 ($1.13) $4.27 $1.34 $4.16 $1.87 $2.20 $0.00 $0.68 $0.00 $1.60 $0.37 $0.34 0.0% 2.0% 0.0% 4.6% 2.0% 1.8% -0.9 7.9 13.0 8.4 9.9 8.7 Bond Market Summary Company Andrews Series# Face Yield Close$ S&P Company Digby 12.0S2020 13.0S2022 10.0S2027 11.3S2028 $1,622,094 $2,600,000 $3,000,000 $500,000 12.0% 12.8% 11.3% 12.0% 99.64 101.43 88.24 94.23 CC CC CC CC 12.0S2020 13.0S2022 10.0S2027 11.0S2028 11.0S2029 $1,733,333 $2,600,000 $2,480,000 $4,511,367 $1,662,207 11.9% 12.4% 10.6% 11.1% 11.1% 100.81 104.64 94.36 99.45 99.41 B B B B B Erie 12.0S2020 13.0S2022 10.0S2027 10.9S2028 11.3S2029 $1,733,333 $2,600,000 $2,361,878 $4,877,026 $4,579,688 11.9% 12.5% 10.7% 11.1% 11.3% 100.63 104.13 93.38 97.81 100.00 B B B B B Ferris Baldwin Chester Series# Face Yield Close$ S&P 12.0S2020 13.0S2022 10.0S2027 10.9S2028 11.1S2029 $1,733,333 $2,600,000 $2,287,212 $4,379,399 $438,243 11.9% 12.4% 10.5% 11.0% 11.0% 100.90 104.89 94.85 99.45 100.59 B B B B B 12.0S2020 13.0S2022 10.0S2027 10.9S2028 11.2S2029 $1,733,333 $2,600,000 $2,361,878 $5,056,881 $1,066,250 11.9% 12.4% 10.6% 11.0% 11.1% 100.81 104.64 94.36 98.90 100.59 B B B B B 12.0S2020 13.0S2022 10.0S2027 11.0S2028 $1,727,826 $2,600,000 $420,545 $2,485,050 11.9% 12.4% 10.5% 10.9% 100.99 105.14 95.35 100.56 BB BB BB BB Next Year's Prime Rate7.00% FOUNDATION FAST TRACK Page 2 Financial Summary Cash Flow Statement Survey CashFlows from operating activities Net Income(Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liablilities Acounts payable Inventory Accounts Receivable Net cash from operations F84793_001 Round: 3 Dec. 31, 2019 Andrews Baldwin Chester Digby Erie Ferris ($2,721) $9,321 $3,088 $8,784 $4,150 $4,465 $2,648 $0 $2,694 $0 $3,019 $0 $2,511 $0 $2,525 $0 $1,520 ($370) ($11) ($9,419) $9 ($9,494) $1,107 ($6,927) ($1,134) $5,061 $363 ($409) ($792) $5,268 ($448) ($6,506) ($434) $3,906 $472 ($1,934) ($842) $4,371 ($418) $1,132 ($327) $6,001 ($9,280) ($8,940) ($12,780) ($5,520) ($5,848) ($1,300) $0 $2,000 $0 $0 $0 ($4,945) $2,000 $19,718 ($1,488) $0 $0 $1,662 $0 ($6,190) $11,315 $0 $0 $2,316 $0 $4,580 $0 ($6,377) $6,513 $0 ($3,372) $0 $0 $438 $0 ($7,877) $12,241 $0 ($813) $0 $0 $1,066 $0 ($5,695) $6,636 $0 ($685) $0 $0 $0 ($6) ($7,857) $7,646 $0 $18,774 $5,299 $7,032 $1,431 $1,194 ($902) Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets $0 Andrews $0 $3,031 $20,464 $23,494 $1,420 Baldwin $15,591 $7,182 $8,779 $31,552 ($480) Chester $7,989 $4,380 $3,745 $16,115 ($183) Digby $13,068 $6,728 $10,929 $30,725 ($283) Erie $8,073 $4,068 $4,928 $17,068 $3,799 Ferris $10,832 $4,017 $4,947 $19,795 Plant and equipment Accumulated Depreciation Total Fixed Assets $39,718 ($10,880) $28,838 $40,404 ($10,655) $29,749 $45,280 ($11,045) $34,235 $37,660 ($10,473) $27,187 $37,870 ($10,453) $27,417 $22,800 ($5,483) $17,317 Total Assets $52,332 $61,301 $50,350 $57,911 $44,485 $37,112 Account Payable CurrentDebt Long Term Debt Total Liabilities $2,849 $21,718 $7,722 $32,290 $5,361 $11,315 $12,987 $29,663 $2,497 $6,513 $16,152 $25,162 $4,104 $12,241 $11,438 $27,783 $2,157 $6,636 $12,818 $21,611 $2,459 $7,646 $7,233 $17,338 Common Stock Retained Earnings Total Equity $7,323 $12,719 $20,043 $4,689 $26,950 $31,638 $6,582 $18,606 $25,188 $3,928 $26,200 $30,128 $5,027 $17,847 $22,874 $2,842 $16,933 $19,775 Total Liabilities & Owners Equity $52,332 $61,301 $50,350 $57,911 $44,485 $37,112 Andrews $36,876 $27,703 $2,648 $6,585 $100 ($160) $4,026 ($1,465) $0 ($2,721) Baldwin $87,381 $59,354 $2,694 $8,059 $83 $17,192 $2,559 $5,121 $190 $9,321 Chester $53,296 $36,501 $3,019 $6,108 $345 $7,324 $2,476 $1,697 $63 $3,088 Digby $81,860 $54,717 $2,511 $8,333 $22 $16,277 $2,488 $4,826 $179 $8,784 Erie $49,489 $32,888 $2,525 $5,405 $53 $8,619 $2,103 $2,280 $85 $4,150 Ferris $48,876 $31,639 $1,520 $7,438 ($370) $8,649 $1,641 $2,453 $91 $4,465 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 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 FOUNDATION FAST TRACK Page 3 F84793_001 Production Analysis Name Able Primary Segment Low Units Sold 1,171 Unit Inven tory 949 Baker Bold Low High 1,745 687 Cake Cent Low High Daze Dabble Labor Cost $9.07 Contr. Marg. 25% 2nd Shift & Overtime 27% 14.1 $33.40 10.9 $42.35 $11.41 $10.50 $17.03 $11.16 31% 34% 86% 79% 4.5 4.0 1,250 500 184% 177% 5.8 6.8 13.4 $26.20 12.3 $39.20 $10.59 $13.60 $7.40 $9.86 29% 39% 78% 100% 7.0 4.5 1,050 420 177% 130% 19000 22000 6.6 9.0 13.6 $34.00 11.3 $45.00 $11.74 $10.63 $17.37 $10.45 30% 39% 67% 25% 4.2 3.2 1,200 600 166% 124% 2.4 0.8 16500 17000 6.4 6.2 13.7 $28.60 12.8 $34.00 $10.69 $7.58 $11.62 $10.60 34% 33% 45% 100% 5.6 4.0 950 495 144% 158% 1.5 0.6 22000 22000 9.3 8.9 10.4 $44.00 10.9 $44.00 $18.58 $10.06 $17.67 $10.47 35% 35% 30% 100% 4.0 4.0 500 600 129% 121% Revision Age Date Dec.31 1/2/2020 2.8 MTBF 15000 Pfmn Coord 6.5 Size Coord Price 12.7 $31.50 260 105 3/8/2018 9/2/2019 3.1 1.0 19800 22400 6.5 8.1 1,548 325 205 0 7/28/2019 5/5/2019 2.3 0.7 17000 20000 Low High 1,597 612 301 1/8/2019 148 10/13/2019 3.1 0.9 Eat East Low High 1,190 455 251 13 7/14/2019 3/15/2019 Fast Feast High High 692 419 176 3 10/7/2019 5/21/2019 FOUNDATION FAST TRACK Round: 3 Dec. 31, 2019 Material Cost $11.39 Auto mation Next Round 4.3 Capacity Next Round 1,712 Plant Utiliz. 126% Page 4 Low Tech Segment Analysis F84793_001 Round: 3 Dec. 31, 2019 Low Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,708 |6,708 |64.2% Next Year's Segment Growth Rate |10.0% Low Tech Customer Buying Criteria 1. Price 2. Age 3. Reliability 4. Ideal Position Expectations $15.00 - 35.00 Ideal Age = 3.0 MTBF 14000-20000 Pfmn 6.3 Size 13.7 Importance 41% 29% 21% 9% Top Products in Low Tech Segment Name Baker Cake Daze Eat Able East Cent Bold Fast Market Share 22% 20% 20% 16% 15% 3% 2% 1% 0% Units Sold to Seg 1,502 1,361 1,340 1,051 990 215 127 99 23 FOUNDATION FAST TRACK Revision Date 3/8/2018 7/28/2019 1/8/2019 7/14/2019 1/2/2020 3/15/2019 5/5/2019 9/2/2019 10/7/2019 Stock Out YES Pfmn Coord 6.5 5.8 6.6 6.4 6.5 6.2 6.8 8.1 9.3 Size Coord 14.1 13.4 13.6 13.7 12.7 12.8 12.3 10.9 10.4 List Price $33.40 $26.20 $34.00 $28.60 $31.50 $34.00 $39.20 $42.35 $44.00 MTBF 19800 17000 19000 16500 15000 17000 20000 22400 22000 Cust. Age Promo A wareDec.31 Budget n ess 3.13 $1,350 84% 2.34 $1,025 60% 3.07 $1,450 90% 2.36 $875 53% 2.80 $2,500 100% 0.80 $875 42% 0.65 $1,025 47% 0.98 $1,350 54% 1.45 $1,500 93% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $1,350 47% 28 $1,025 42% 25 $1,450 46% 26 $875 37% 19 $2,500 58% 21 $875 37% 6 $1,025 42% 5 $1,350 47% 1 $1,275 19% 0 Page 5 High Tech Segment Analysis F84793_001 Round: 3 Dec. 31, 2019 High Tech Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 3,732 |3,732 |35.7% Next Year's Segment Growth Rate |20.0% High Tech Customer Buying Criteria 1. Ideal Position 2. Age 3. Price 4. Reliability Expectations Pfmn 9.5 Size 10.5 Ideal Age = 0.0 $25.00 - 45.00 MTBF 17000-23000 Importance 33% 29% 25% 13% Top Products in High Tech Segment Name Fast Dabble Bold Feast Daze Baker East Cent Cake Able Eat Market Share 18% 16% 16% 11% 7% 7% 6% 5% 5% 5% 4% Units Sold to Seg 669 612 587 419 257 244 240 197 187 181 139 FOUNDATION FAST TRACK Revision Date 10/7/2019 10/13/2019 9/2/2019 5/21/2019 1/8/2019 3/8/2018 3/15/2019 5/5/2019 7/28/2019 1/2/2020 7/14/2019 Stock Out YES Pfmn Coord 9.3 9.0 8.1 8.9 6.6 6.5 6.2 6.8 5.8 6.5 6.4 Size Coord 10.4 11.3 10.9 10.9 13.6 14.1 12.8 12.3 13.4 12.7 13.7 List Price $44.00 $45.00 $42.35 $44.00 $34.00 $33.40 $34.00 $39.20 $26.20 $31.50 $28.60 MTBF 22000 22000 22400 22000 19000 19800 17000 20000 17000 15000 16500 Cust. Age Promo A wareDec.31 Budget n ess 1.45 $1,500 93% 0.93 $1,450 60% 0.98 $1,350 54% 0.61 $1,000 46% 3.07 $1,450 90% 3.13 $1,350 84% 0.80 $875 42% 0.65 $1,025 47% 2.34 $1,025 60% 2.80 $2,500 100% 2.36 $875 53% Cust. Dec. Sales A ccess- Cust Budget ibility Survey $1,275 54% 33 $1,450 66% 30 $1,350 61% 26 $1,275 54% 29 $1,450 66% 8 $1,350 61% 7 $875 34% 10 $1,025 40% 13 $1,025 40% 7 $2,500 47% 5 $875 34% 6 Page 6 Market Share F84793_001 Actual Market Share in Units Industry Unit Sales % of Market Low 6,708 64.2% High 3,732 35.7% Able Total 14.7% 14.7% 4.9% 4.9% Baker Bold Total 22.4% 1.5% 23.9% Cake Cent Total Round: 3 Dec. 31, 2019 Potential Market Share in Units Low 6,708 64.2% High 3,732 35.7% Total 10,441 100.0% 11.2% Able 11.2% Total 14.7% 14.7% 4.7% 4.7% 11.1% 11.1% 6.5% 15.7% 22.3% 16.7% Baker 6.6% Bold 23.3% Total 22.3% 1.5% 23.8% 6.3% 15.6% 22.0% 16.6% 6.5% 23.2% 20.3% 1.9% 22.2% 5.0% 5.3% 10.3% 14.8% Cake 3.1% Cent 17.9% Total 20.2% 2.1% 22.4% 4.8% 6.0% 10.8% 14.7% 3.5% 18.2% Daze Dabble Total 20.0% 15.3% Daze 5.9% Dabble 21.2% Total 19.9% 20.0% 6.9% 16.4% 23.3% 19.9% 6.7% 15.9% 22.6% 15.2% 5.7% 20.9% Eat East Total 15.7% 3.2% 18.9% 3.7% 6.4% 10.2% 11.4% Eat 4.3% East 15.8% Total 15.6% 3.3% 18.9% 3.6% 6.4% 10.0% 11.3% 4.4% 15.7% Fast Feast Total 0.3% 17.9% 11.2% 29.1% 6.6% Fast 4.0% Feast 10.6% Total 0.3% 17.4% 12.5% 29.9% 6.4% 4.5% 10.9% FOUNDATION FAST TRACK 0.4% Total 10,441 Units Demanded 100.0% % of Market 0.3% Page 7 Perceptual Map F84793_001 Andrews Name Able Pfmn 6.5 Name Daze Dabble Pfmn 6.6 9.0 Size 12.7 Digby Size 13.6 11.3 FOUNDATION FAST TRACK Baldwin Revised Name 1/2/2020 Baker Bold Pfmn 6.5 8.1 Revised Name 1/8/2019 Eat 10/13/2019 East Pfmn 6.4 6.2 Size 14.1 10.9 Erie Size 13.7 12.8 Round: 3 Dec. 31, 2019 Chester Revised 3/8/2018 9/2/2019 Name Cake Cent Pfmn 5.8 6.8 Revised 7/14/2019 3/15/2019 Name Fast Feast Pfmn 9.3 8.9 Size 13.4 12.3 Ferris Size 10.4 10.9 Revised 7/28/2019 5/5/2019 Revised 10/7/2019 5/21/2019 Page 8 HR/TQM Report F84793_001 Round: 3 Dec. 31, 2019 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 268 268 211 57 Baldwin 479 479 261 218 Chester 248 248 136 112 Digby 454 454 301 153 Erie 252 252 159 93 Ferris 189 189 126 63 Overtime Percent Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.1% 10.0% 32 0 $0 0 100.0% 0.0% 8.7% 127 0 $2,000 30 102.2% 0.0% 8.4% 34 0 $1,500 40 102.7% 0.0% 8.6% 73 0 $2,000 30 102.4% 0.0% 8.6% 69 0 $2,500 35 102.3% 0.0% 8.4% 16 55 $3,000 40 104.6% $32 $0 $0 $32 $381 $0 $288 $669 $84 $0 $199 $282 $220 $0 $272 $492 $242 $0 $176 $418 $64 $273 $151 $488 Baldwin Chester Digby Erie Ferris Recruiting Cost Separation Cost Training Cost Total HR Admin Cost Strike Days TQM SUMMARY Andrews Process Mgt Budgets Last Year CPI Systems VendorJIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase FOUNDATION FAST TRACK Page 9 Ethics Report F84793_001 Round: 3 Dec. 31, 2019 ETHICS SUMMARY Other (Fees, Writeoffs, etc.) Demand Factor Material Cost Impact Admin Cost Impact Productivity Impact Awareness Impact Accessibility Impact Total Other (Fees, Writeoffs, etc.) Demand Factor Material Cost Impact Admin Cost Impact Productivity Impact Awareness Impact Accessibility Impact FOUNDATION FAST TRACK The actual dollar impact. Example, $120 means Other increased by $120. The % of normal. 98% means demand fell 2%. The % of normal. 104% means matieral costs rose 4%. The % of normal. 103% means admin costs rose 3%. The % of normal. 104% means productivity increased by 4%. The % of normal. 105% means normal awareness was multiplied by 1.05. The % of normal. 98% means normal accessiblity was multiplied by 0.98. Normal means the value that would have been produced if the problem had not been presented. No Impact Andrews Baldwin Chester Digby Erie Ferris $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% $0 100% 100% 100% 100% 100% 100% Page 10 Annual Report Annual Report Andrews F84793_001 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 companys 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 Account Receivable Inventory Total Current Assets $23,495 2019 Common Size 0.0% 5.8% 39.1% 44.9% $0 $3,040 $11,045 $14,085 $28,838 $52,332 75.9% -20.8% 55.1% 100.0% $30,438 ($8,233) $22,205 $36,291 $32,289 5.4% 41.5% 14.8% 61.7% $2,861 $4,945 $7,722 $15,528 $20,042 $52,332 14.0% 24.3% 38.3% 100.0% $5,323 $15,440 $20,763 $36,291 $0 $3,031 $20,464 Plant & Equipment Accumulated Depreciation Total Fixed Assets Total Assets LIABILITIES & OWNERS EQUITY $39,718 ($10,880) Accounts Payable CurrentDebt Long Term Debt Total Liabilities $2,849 $21,718 $7,722 Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $7,323 $12,719 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. Annual Report Round: 3 Dec. 31, 2019 Cash Flows from Operating Activities Net Income(Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operation 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 2018 2019 ($2,721) $2,648 $0 ($11) ($9,419) $9 ($9,494) 2018 $2,242 $2,029 $0 $129 ($10,704) $904 ($5,401) ($9,280) ($9,389) $0 $2,000 $0 $0 $0 $16,774 $18,774 $0 $0 $0 $1,000 $0 $500 $0 ($3,055) ($1,555) ($16,345) $0 Page 11 Annual Report Andrews Round: 3 Dec. 31, 2019 F84793_001 2019 Income Statement Sales $36,876 $0 $0 $0 $0 $0 $0 $0 2019 Total $36,876 Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $10,833 $14,415 $2,456 $27,703 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,833 $14,415 $2,456 $27,703 29.4% 39.1% 6.7% 75.1% Contribution Margin $9,173 $0 $0 $0 $0 $0 $0 $0 $9,173 24.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,648 $1,000 $2,500 $2,500 $585 $9,233 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,648 $1,000 $2,500 $2,500 $585 $9,233 7.2% 2.7% 6.8% 6.8% 1.6% 25.0% ($60) $0 $0 $0 $0 $0 $0 $0 ($60) -0.2% $100 ($160) $3,136 $889 ($1,465) $0 ($2,721) 0.3% -0.4% 8.5% 2.4% -4.0% 0.0% -7.4% (Product Name) Net Margin Able Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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: Chargs 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 years 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 Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit Common Size 100.0% Page 12