Which company has the least efficient SG&A/Sales ratio? Baldwin Chester Andrews Digby Your Competitive Intelligence team reports that a wave of product liability lawsuits is

Which company has the least efficient SG&A/Sales ratio? Baldwin Chester Andrews Digby Your Competitive Intelligence team reports that a wave of product liability lawsuits is likely to cause Baldwin to pull the product Boat entirely off the market this year. Assume Baldwin scraps all capacity and inventory this round, completely writing off those assets and escrowing the proceeds to a settlement fund, and assume these lawsuits will have no effect on any other products of Baldwin or other companies. Without Baldwin's product Boat how much can the industry currently produce in the Core segment? Consider only products primarily in the Core segment last year. Ignore current inventories. Figures in thousands (000). 8,535 8,264 9,514 7,285 7,564 10,460 5,230 In the month of March the Baldwin Corporation received and delivered orders of 166,000 units at a price of $15.00 for revenue of $2.490mil for their product Bell. Baldwin uses the accrual method of accounting and offers 30 day credit terms. By the end of May Baldwin had collected payments of $2.490mil for the March deliveries. How much of the collected $2.490mil should Baldwin show on the March 31st income statement and how much on the May 31st income statement? $0 in March; $2.490mil in May $1.245mil in March; $1.245mil in May $2.490mil in March; $0 in May $0.822mil in March; $1.668mil in May Assume Andrews is paying a dividend of $1.38 (per share). If this dividend stayed the same, but the stock price fell by 10% what would be the dividend yield? 112.5% 137.5% 0.8% 125.0% Last year Ace charged $2,741,333 Depreciation on the Income Statement of Andrews. If Ace sold a fully depreciated piece of equipment at a gain, the effect on Andrews's financial statements would be (all other items remaining equal): Decrease Net Cash from operations on the Cash Flow Statement No impact on Net Cash from operations Just impact the Balance Sheet Increase Net Cash from operations Assume Digby Corp. is downsizing the size of their workforce by 10% (to the nearest person) next year from various strategic initiatives. Digby is planning to conduct exit interviews to learn more about how they can improve in processes and increase productivity. The exit interviews are estimated to cost $100 per employee in additional to normal separation costs of $5000. How much will the company pay in separation costs if these exit interviews are implemented next year? $1,313,550 $3,190,050 $354,450 $145,950 Assume Baldwin is producing 1,473 units of Bit next year. What would Bit's plant utilization be? 96.90% 114.99% 93.10% 95.00% Baldwin's balance sheet has $84,450,000 in equity. Next year they expect Assets to increase by $4,000,000 and Liabilities to decrease by $2,000,000. If that happens, what will be Baldwin's book value? $78,450,000 $40,956,000 $90,450,000 $86,450,000 image text in transcribed

Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis Annual Report Andrews Page 5 Thrift Segment Analysis Page 6 Core Segment Analysis Page 7 Nano Segment Analysis Page 8 Elite Segment Analysis Annual Report Baldwin Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report Annual Report Chester PRINT Annual Report Digby Top " Round: 3 Dec. 31, 2016 Qingyang Liu Student: Qingyang Liu Andrews Qingyang Liu Baldwin Chester Digby Selected Financial Statistics ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % COMP-XM INQUIRER Andrews 0.9% 0.79 0.7% 2.0 1.5% $19,456,761 $115,271,018 $9,712,095 $1,093,838 $9,336,420 10.6% 34.9% Baldwin 1.5% 0.73 1.1% 2.5 2.7% $0 $156,220,063 $18,906,339 $2,303,114 $9,242,898 8.7% 35.1% Chester 1.4% 0.78 1.1% 2.4 2.7% $0 $191,335,574 $21,201,308 $2,771,850 $8,068,567 11.3% 36.1% Digby 13.8% 1.33 18.5% 1.7 31.5% $0 $233,133,136 $57,681,690 $32,272,134 $62,596,651 5.8% 38.1% Page 1 Top Stocks & Bonds Round: 3 Qingyang Liu December 31 , 2016 Stock Market Summary Company Andrews Baldwin Chester Digby Close $32.30 $29.94 $35.55 $125.68 Change ($17.24) ($1.30) $0.18 $42.45 Shares 2,113,045 3,151,194 3,173,673 1,867,889 MarketCap ($M) $68 $94 $113 $235 Book Value $33.93 $26.92 $32.10 $54.79 EPS $0.52 $0.73 $0.87 $17.28 Dividend $3.59 $0.00 $0.00 $0.00 Yield 11.1% 0.0% 0.0% 0.0% P/E 62.3 40.9 40.6 7.3 Bond Market Summary Company Andrews Baldwin Chester Digby Series# Face Yield Close$ S&P 11.2S2020 11.9S2021 10.8S2026 $8,837,000 $7,072,000 $10,000,000 11.8% 12.3% 12.2% 94.93 96.47 88.56 B B B 11.3S2020 12.5S2021 12.5S2022 12.5S2023 12.9S2024 13.4S2025 14.1S2026 $10,417,600 $14,665,611 $7,969,218 $9,570,210 $14,272,791 $26,366,526 $6,059,079 12.2% 13.1% 13.2% 13.2% 13.5% 13.7% 13.9% 92.69 95.52 94.92 94.39 95.80 98.01 101.58 CC CC CC CC CC CC CC 11.2S2020 12.4S2021 11.9S2023 12.6S2024 13.1S2025 13.8S2026 $8,635,154 $5,826,767 $15,600,517 $17,807,701 $33,710,203 $23,532,942 12.0% 12.9% 12.8% 13.2% 13.4% 13.7% 92.95 95.84 92.62 95.30 97.49 101.06 CC CC CC CC CC CC 11.1S2022 11.2S2023 11.5S2024 11.6S2025 12.6S2026 $2,507,689 $5,667,039 $1,377,083 $16,894,941 $11,948,181 11.4% 11.5% 11.7% 11.7% 12.1% 97.11 97.24 98.50 98.93 104.56 BBB BBB BBB BBB BBB Next Year's Prime Rate 9.00% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 3 December 31, 2016 Qingyang Liu Andrews Baldwin Chester Digby $1,094 $2,303 $2,772 $32,272 $12,344 $0 $16,013 $0 $18,076 $0 $10,617 $0 $212 ($12,261) $1,011 $2,399 $1,688 ($21,105) $56 ($1,045) $2,929 ($9,795) ($3,959) $10,022 $1,910 ($1,700) ($4,341) $38,759 ($53,488) ($27,000) ($53,880) ($40,600) ($7,586) $100 $0 $10,000 $0 ($12,097) $22,500 $19,457 $0 $10,026 $0 $6,059 $0 ($41,929) $30,388 $0 $0 $18,710 $0 $23,533 $0 ($33,261) $27,391 $0 $0 $0 ($2,111) $11,948 $0 ($30,399) $22,163 $0 $32,374 $4,544 $36,372 $1,602 Net change in cash position ($18,715) ($23,501) ($7,486) ($239) Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets Andrews $0 $11,053 $22,810 $33,863 Baldwin $32,231 $12,840 $22,447 $67,518 Chester $29,155 $15,726 $17,434 $62,316 Digby $39,430 $19,162 $16,716 $75,307 Plant and equipment Accumulated Depreciation Total Fixed Assets $185,156 ($72,499) $112,657 $240,200 ($93,331) $146,869 $271,140 ($88,376) $182,764 $159,260 ($59,815) $99,445 Total Assets $146,520 $214,387 $245,080 $174,753 Accounts Payable Current Debt Long Term Debt Total Liabilities $6,949 $41,957 $25,909 $74,815 $9,845 $30,388 $89,321 $129,554 $10,687 $27,391 $105,113 $143,191 $11,845 $22,163 $38,395 $72,404 Common Stock Retained Earnings Total Equity $25,629 $46,076 $71,705 $45,494 $39,339 $84,833 $55,052 $46,837 $101,889 $9,348 $93,001 $102,349 Total Liabilities & Owners' Equity $146,520 $214,387 $245,080 $174,753 Income Statement Survey Sales Variable Costs (Labor, Material, Carry) Depreciation SGA (R&D, Promo, Sales, Admin) Other (Fees, Writeoffs, TQM, Bonuses) EBIT Interest (Short term, Long term) Taxes Profit Sharing Net Profit Andrews $115,271 $75,024 $12,344 $12,186 $6,005 $9,712 $7,995 $601 $22 $1,094 Baldwin $156,220 $101,365 $16,013 $13,631 $6,304 $18,906 $15,291 $1,265 $47 $2,303 Chester $191,336 $122,321 $18,076 $21,625 $8,112 $21,201 $16,850 $1,523 $57 $2,772 Digby $233,133 $144,425 $10,617 $13,530 $6,879 $57,682 $7,019 $17,732 $659 $32,272 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) 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 COMP-XM INQUIRER Page 3 Top Production Analysis Round: 3 December 31, 2016 Qingyang Liu Production Information Name Primary Segment Units Sold Unit Inven tory Revision Date Age Dec.31 MTBF Pfmn Coord Size Coord Price Material Cost Labor Cost 2nd Shift & Contr. OverMarg. time Auto mation Capacity Next Next Round Round Plant Utiliz. Ace Awe Art Ant Nano Elite Thrift Core 965 656 1,238 1,232 0 1,111 0 0 10/4/2016 1/6/2016 6/7/2016 5/9/2016 1.4 2.7 2.7 1.6 23000 26500 19000 18000 12.5 13.3 7.6 10.4 5.1 9.5 13.3 9.6 $33.59 $42.59 $20.49 $23.99 $12.64 $12.30 $6.75 $8.83 $7.93 $6.66 $8.11 $7.89 39% 42% 28% 30% 5% 7% 11% 4% 8.0 8.0 7.0 7.0 928 1,264 1,330 1,400 104% 106% 110% 103% Bell Bit Boat Buzz Thrift Thrift Core Core 2,078 2,167 1,743 1,936 397 457 402 509 6/10/2017 6/10/2017 12/16/2015 12/18/2015 3.7 3.6 2.1 2.1 17000 17000 18000 20000 7.5 7.7 10.6 11.3 12.5 12.3 8.8 9.3 $16.00 $16.00 $24.00 $24.00 $6.80 $6.96 $9.72 $10.36 $3.09 $3.06 $4.74 $4.69 35% 34% 37% 34% 79% 71% 100% 88% 10.0 10.0 8.0 8.0 1,400 1,550 1,250 1,500 177% 169% 198% 187% Cell City Cozy Cute Crimp Cake Thrift Core Nano Elite Core Core 1,011 1,977 1,479 939 1,677 1,053 434 368 196 232 56 0 12/19/2016 12/7/2014 12/16/2016 12/16/2016 12/24/2016 2/10/2016 2.2 3.1 1.0 1.0 0.9 0.9 14000 16000 18000 20000 16000 16000 8.2 9.1 12.6 15.7 10.5 10.2 11.8 10.9 4.7 7.2 9.4 9.8 $17.00 $19.00 $30.00 $36.00 $21.00 $22.00 $6.82 $8.14 $12.74 $13.59 $9.31 $9.03 $1.84 $4.19 $7.37 $6.71 $5.75 $4.48 51% 32% 33% 43% 30% 37% 4% 50% 88% 31% 68% 100% 10.0 10.0 7.0 7.0 8.0 8.0 1,250 1,500 1,050 950 1,040 1,040 103% 149% 186% 130% 167% 176% Deal Dim Dome Dug Nano Elite Nano Elite 1,782 1,506 1,571 1,707 0 82 298 377 11/4/2016 8/23/2016 7/2/2016 7/24/2016 1.2 1.9 1.3 1.3 23000 25000 23000 25000 13.2 16.0 13.7 15.8 4.8 6.8 4.3 6.5 $34.00 $34.00 $37.00 $37.00 $13.66 $14.56 $14.04 $14.57 $7.91 $6.92 $7.64 $7.70 39% 36% 40% 38% 100% 75% 70% 76% 7.0 7.0 7.0 7.0 1,150 800 1,300 1,300 198% 173% 168% 174% COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Qingyang Liu Round: 3 December 31, 2016 Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,983 6,983 26.1% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria 1. 2. 3. 4. Expectations $14.00 - 26.00 MTBF 14000-20000 Pfmn 7.7 Size 12.3 Ideal Age = 3.0 Price Reliability Ideal Position Age Importance 55% 20% 15% 10% Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Bell Bit Art Cell City Crimp Ant Cake Market Share 27% 27% 18% 14% 11% 3% 0% 0% Units Sold to Seg 1,882 1,870 1,233 986 752 200 32 28 COMP-XM INQUIRER Revision Date Stock Out 6/10/2017 6/10/2017 6/7/2016 YES 12/19/2016 12/7/2014 12/24/2016 5/9/2016 YES 2/10/2016 YES Pfmn Coord 7.5 7.7 7.6 8.2 9.1 10.5 10.4 10.2 Size Coord 12.5 12.3 13.3 11.8 10.9 9.4 9.6 9.8 List Price $16.00 $16.00 $20.49 $17.00 $19.00 $21.00 $23.99 $22.00 MTBF 17000 17000 19000 14000 16000 16000 18000 16000 Age Dec.31 3.74 3.64 2.74 2.25 3.11 0.88 1.56 0.89 Promo Cust. AwareBudget ness $1,250 78% $1,250 79% $1,250 96% $1,140 66% $1,140 67% $1,140 58% $1,150 78% $1,140 51% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,400 75% 54 $1,400 75% 55 $1,000 72% 43 $1,000 72% 31 $1,000 72% 24 $900 72% 0 $1,000 72% 1 $900 72% 3 Page 5 Top Core Market Segment Analysis Qingyang Liu Round: 3 December 31, 2016 Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 8,895 8,895 33.3% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria 1. 2. 3. 4. Expectations $20.00 - 32.00 Ideal Age = 2.0 MTBF 16000-22000 Pfmn 10.7 Size 9.3 Price Age Reliability Ideal Position Importance 46% 20% 18% 16% Perceptual Map for Core Segment Top Products in Core Segment Name Buzz Boat Crimp City Ant Cake Bit Bell Cell Ace Art Deal Market Share 21% 18% 17% 14% 13% 12% 3% 2% 0% 0% 0% 0% Units Sold to Seg 1,832 1,618 1,477 1,226 1,185 1,025 297 196 25 6 5 3 COMP-XM INQUIRER Revision Date Stock Out 12/18/2015 12/16/2015 12/24/2016 12/7/2014 5/9/2016 YES 2/10/2016 YES 6/10/2017 6/10/2017 12/19/2016 10/4/2016 YES 6/7/2016 YES 11/4/2016 YES Pfmn Coord 11.3 10.6 10.5 9.1 10.4 10.2 7.7 7.5 8.2 12.5 7.6 13.2 Size Coord 9.3 8.8 9.4 10.9 9.6 9.8 12.3 12.5 11.8 5.1 13.3 4.8 List Price $24.00 $24.00 $21.00 $19.00 $23.99 $22.00 $16.00 $16.00 $17.00 $33.59 $20.49 $34.00 MTBF 20000 18000 16000 16000 18000 16000 17000 17000 14000 23000 19000 23000 Age Dec.31 2.10 2.09 0.88 3.11 1.56 0.89 3.64 3.74 2.25 1.39 2.74 1.24 Promo Cust. AwareBudget ness $1,250 78% $1,250 78% $1,140 58% $1,140 67% $1,150 78% $1,140 51% $1,250 79% $1,250 78% $1,140 66% $1,300 98% $1,250 96% $1,350 87% Sales Cust. Access- Dec. Cust. Budget ibility Survey $1,100 76% 50 $1,100 76% 44 $900 72% 38 $1,000 72% 26 $1,000 45% 40 $900 72% 31 $1,400 76% 2 $1,400 76% 0 $1,000 72% 8 $800 45% 0 $1,000 45% 0 $1,000 11% 0 Page 6 Top Nano Market Segment Analysis Qingyang Liu Round: 3 December 31, 2016 Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,410 5,410 20.3% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria 1. 2. 3. 4. Expectations Pfmn 12.6 Size 4.5 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Ideal Position Price Age Reliability Importance 35% 27% 20% 18% Perceptual Map for Nano Segment Top Products in Nano Segment Name Dome Deal Cozy Ace Boat Dug Buzz Cute Awe Dim Ant Market Share 28% 25% 25% 13% 2% 2% 2% 1% 0% 0% 0% Units Sold to Seg 1,512 1,376 1,340 710 125 104 103 78 25 21 16 COMP-XM INQUIRER Revision Date Stock Out 7/2/2016 11/4/2016 YES 12/16/2016 10/4/2016 YES 12/16/2015 7/24/2016 12/18/2015 12/16/2016 1/6/2016 8/23/2016 5/9/2016 YES Pfmn Coord 13.7 13.2 12.6 12.5 10.6 15.8 11.3 15.7 13.3 16.0 10.4 Size Coord 4.3 4.8 4.7 5.1 8.8 6.5 9.3 7.2 9.5 6.8 9.6 List Price $37.00 $34.00 $30.00 $33.59 $24.00 $37.00 $24.00 $36.00 $42.59 $34.00 $23.99 MTBF 23000 23000 18000 23000 18000 25000 20000 20000 26500 25000 18000 Age Dec.31 1.34 1.24 1.03 1.39 2.09 1.34 2.10 1.04 2.65 1.90 1.56 Promo Cust. AwareBudget ness $1,350 87% $1,350 87% $1,140 67% $1,300 98% $1,250 78% $1,350 87% $1,250 78% $1,140 67% $1,300 98% $1,350 87% $1,150 78% Sales Cust. Access- Dec. Cust. Budget ibility Survey $900 83% 48 $1,000 83% 62 $1,900 70% 46 $800 58% 61 $1,100 18% 2 $900 83% 0 $1,100 18% 1 $2,200 70% 0 $800 58% 0 $1,000 83% 0 $1,000 58% 0 Page 7 Top Elite Market Segment Analysis Qingyang Liu Round: 3 December 31, 2016 Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 5,432 5,432 20.3% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria 1. 2. 3. 4. Expectations Ideal Age = 0.0 $30.00 - 42.00 Pfmn 15.5 Size 7.4 MTBF 20000-26000 Age Price Ideal Position Reliability Importance 34% 24% 22% 20% Perceptual Map for Elite Segment Top Products in Elite Segment Name Dug Dim Cute Awe Deal Ace Cozy Dome Market Share 30% 27% 16% 12% 7% 5% 3% 1% Units Sold to Seg 1,603 1,485 861 631 403 249 140 60 COMP-XM INQUIRER Revision Date Stock Out 7/24/2016 8/23/2016 12/16/2016 1/6/2016 11/4/2016 YES 10/4/2016 YES 12/16/2016 7/2/2016 Pfmn Coord 15.8 16.0 15.7 13.3 13.2 12.5 12.6 13.7 Size Coord 6.5 6.8 7.2 9.5 4.8 5.1 4.7 4.3 List Price $37.00 $34.00 $36.00 $42.59 $34.00 $33.59 $30.00 $37.00 MTBF 25000 25000 20000 26500 23000 23000 18000 23000 Age Dec.31 1.34 1.90 1.04 2.65 1.24 1.39 1.03 1.34 Promo Cust. AwareBudget ness $1,350 87% $1,350 87% $1,140 67% $1,300 98% $1,350 87% $1,300 98% $1,140 67% $1,350 87% Sales Cust. Access- Dec. Cust. Budget ibility Survey $900 87% 48 $1,000 87% 47 $2,200 69% 30 $800 71% 13 $1,000 87% 8 $800 71% 7 $1,900 69% 1 $900 87% 1 Page 8 Top Market Share Report Actual Market Share in Units Industry Unit Sales % of Market Ace Awe Art Ant Total Thrift 6,983 26.1% Potential Market Share in Units Core 8,895 33.3% Nano 5,410 20.3% Elite 5,432 20.3% Total 26,720 100.0% 0.1% 13.1% 0.5% 4.6% 11.6% 0.3% 13.9% 16.2% 3.6% 2.5% 4.6% 4.6% 15.3% Ace Awe Art Ant Total 7.8% 8.1% 6.5% 7.2% 29.7% 17.6% 0.5% 18.1% 0.1% 13.3% 13.4% Bell Bit Boat Buzz Total 27.0% 26.8% 53.7% 2.2% 3.3% 18.2% 20.6% 44.3% Cell City Cozy Cute Crimp Cake Total 14.1% 10.8% 0.3% 13.8% 2.9% 0.4% 28.1% 16.6% 11.5% 42.2% Deal Dim Dome Dug Total COMP-XM INQUIRER Round: 3 December 31, 2016 Qingyang Liu 0.0% 0.0% 2.3% 1.9% 4.2% 24.8% 1.4% 2.6% 15.8% 26.2% 18.4% 3.8% 7.4% 5.5% 3.5% 6.3% 3.9% 30.4% 25.4% 0.4% 27.9% 1.9% 55.7% 7.4% 27.3% 1.1% 29.5% 65.4% 6.7% 5.6% 5.9% 6.4% 24.6% Units Demanded % of Market Thrift 6,983 26.1% Core 8,895 33.3% Nano 5,410 20.3% Elite 5,432 20.3% Total 26,720 100.0% 0.1% 25.7% 0.4% 9.0% 11.0% 0.4% 26.4% 20.0% 7.1% 2.3% 5.0% 6.0% 20.4% 19.2% 0.6% 19.8% 0.1% 17.2% 17.4% Bell Bit Boat Buzz Total 26.4% 26.2% 52.6% 2.1% 3.1% 17.1% 19.4% 41.7% Cell City Cozy Cute Crimp Cake Total 13.8% 10.5% 0.3% 13.0% 2.8% 0.4% 27.6% 15.8% 11.8% 40.8% Deal Dim Dome Dug Total 0.0% 7.6% 7.9% 6.1% 6.8% 28.3% 1.8% 1.5% 3.4% 19.6% 1.2% 2.4% 15.0% 20.8% 17.4% 3.7% 7.1% 4.5% 3.3% 6.0% 4.1% 28.6% 25.4% 0.3% 22.2% 1.6% 49.4% 7.5% 26.0% 1.0% 28.0% 62.6% 6.7% 5.3% 4.7% 6.0% 22.7% Page 9 Top Perceptual Map Round: 3 December 31, 2016 Qingyang Liu Perceptual Map for All Segments Andrews Name Ace Awe Art Ant Pfmn 12.5 13.3 7.6 10.4 Name Deal Dim Dome Dug Size 5.1 9.5 13.3 9.6 Pfmn 13.2 16.0 13.7 15.8 Baldwin Revised 10/4/2016 1/6/2016 6/7/2016 5/9/2016 Name Bell Bit Boat Buzz Pfmn 7.5 7.7 10.6 11.3 Size 12.5 12.3 8.8 9.3 Chester Revised 6/10/2017 6/10/2017 12/16/2015 12/18/2015 Name Cell City Cozy Cute Crimp Cake Pfmn 8.2 9.1 12.6 15.7 10.5 10.2 Size 11.8 10.9 4.7 7.2 9.4 9.8 Revised 12/19/2016 12/7/2014 12/16/2016 12/16/2016 12/24/2016 2/10/2016 Digby COMP-XM INQUIRER Size 4.8 6.8 4.3 6.5 Revised 11/4/2016 8/23/2016 7/2/2016 7/24/2016 Page 10 Top HR/TQM Report Qingyang Liu Round: 3 December 31, 2016 HUMAN RESOURCES SUMMARY Needed Complement Complement 1st Shift Complement 2nd Shift Complement Andrews 600 600 563 37 Baldwin 505 505 273 232 Chester 652 652 413 239 Digby 684 684 380 304 Overtime% Turnover Rate New Employees Separated Employees Recruiting Spend Training Hours Productivity Index 0.0% 6.8% 41 89 $5,000 80 112.4% 0.0% 8.0% 89 0 $2,500 40 115.3% 0.0% 6.1% 174 0 $5,000 80 124.3% 0.0% 10.0% 103 0 $0 0 100.0% Recruiting Cost Separation Cost Training Cost Total HR Admin Cost $244 $445 $960 $1,649 $311 $0 $404 $715 $1,041 $0 $1,043 $2,084 $103 $0 $0 $103 Labor Contract Next Year Wages Benefits Profit Sharing Annual Raise $29.56 2,500 2.0% 5.0% $29.56 2,500 2.0% 5.0% $29.56 2,500 2.0% 5.0% $29.56 2,500 2.0% 5.0% Starting Negotiation Position Wages Benefits Profit Sharing Annual Raise Ceiling Negotiation Position Wages Benefits Profit Sharing Annual Raise Adjusted Labor Demands Wages Benefits Profit Sharing Annual Raise Strike Days TQM SUMMARY Process Mgt Budgets Last Year CPI Systems Vendor/JIT Quality Initiative Training Channel Support Systems Concurrent Engineering UNEP Green Programs TQM Budgets Last Year Benchmarking Quality Function Deployment Effort CCE/6 Sigma Training GEMI TQEM Sustainability Initiatives Total Expenditures Cumulative Impacts Material Cost Reduction Labor Cost Reduction Reduction R&D Cycle Time Reduction Admin Costs Demand Increase COMP-XM INQUIRER Andrews Baldwin Chester Digby $1,250 $1,250 $0 $1,500 $0 $0 $1,250 $1,250 $0 $1,500 $0 $0 $1,500 $1,500 $0 $0 $0 $1,500 $0 $0 $1,250 $1,250 $1,250 $0 $0 $0 $750 $750 $5,500 $0 $0 $750 $750 $5,500 $1,500 $0 $0 $0 $6,000 $0 $0 $1,250 $1,250 $6,250 10.99% 6.53% 27.32% 56.55% 14.00% 6.03% 1.78% 0.00% 16.23% 5.47% 1.41% 0.05% 0.00% 43.11% 0.45% 6.43% 13.93% 39.79% 0.00% 9.37% Page 11 PRINT Annual Report Top Annual Report Andrews Round: 3 Dec. 31, 2016 C59559 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory 2016 Common Size 0.0% 7.5% 15.6% Total Current Assets $33,863 Plant & Equipment Accumulated Depreciation $185,156 ($72,499) $18,715 $12,064 $10,549 23.1% $41,328 126.4% -49.5% $0 $11,053 $22,810 2015 $131,668 ($60,155) Total Fixed Assets $112,657 76.9% $71,513 Total Assets $146,520 100.0% $112,841 4.7% 28.6% 17.7% $6,737 $12,097 $15,909 51.1% $34,743 17.5% 31.4% $25,529 $52,568 $71,705 48.9% $78,097 $146,520 100.0% $112,841 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $6,949 $41,957 $25,909 Total Liabilities Common Stock Retained Earnings $74,815 $25,629 $46,076 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: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position Annual Report 2016 $1,094 $12,344 $0 $212 ($12,261) $1,011 2015 $3,873 $8,778 $255 ($3,227) $4,884 $12,538 $2,399 $27,101 ($53,488) ($27,144) ($7,586) $100 $0 $10,000 $0 $29,859 ($6,629) $1,000 ($8,083) $0 ($10,597) $12,097 $32,374 ($18,715) $0 ($12,211) ($12,254) $18,715 Page 1 Top Annual Report Andrews Round: 3 Dec. 31, 2016 C59559 2016 Income Statement Sales Ace $32,428 Awe $27,933 Art $25,360 Ant $29,550 Na $0 Na $0 Na $0 Na $0 2016 Total $115,271 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $7,660 $12,088 $0 $19,748 $4,945 $8,522 $2,737 $16,204 $10,040 $8,286 $0 $18,326 $9,715 $11,031 $0 $20,746 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $32,361 $39,926 $2,737 $75,024 28.1% 34.6% 2.4% 65.1% Contribution Margin $12,680 $11,729 $7,034 $8,804 $0 $0 $0 $0 $40,247 34.9% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,351 $771 $1,300 $800 $563 $5,784 $3,202 $15 $1,300 $800 $485 $5,801 $3,617 $440 $1,250 $1,000 $440 $6,748 $3,173 $361 $1,150 $1,000 $513 $6,197 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $12,344 $1,586 $5,000 $3,600 $2,000 $24,529 10.7% 1.4% 4.3% 3.1% 1.7% 21.3% Net Margin $6,896 $5,927 $287 $2,607 $0 $0 $0 $0 $15,717 13.6% $6,005 $9,712 $5,084 $2,911 $601 $22 $1,094 5.2% 8.4% 4.4% 2.5% 0.5% 0.0% 0.9% (Product Name:) 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 EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Annual Report Page 2 PRINT Annual Report Top Annual Report Baldwin Round: 3 Dec. 31, 2016 C59559 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory 2016 Common Size 15.0% 6.0% 10.5% Total Current Assets $67,518 Plant & Equipment Accumulated Depreciation $240,200 ($93,331) $55,732 $12,896 $1,342 31.5% $69,970 112.0% -43.5% $32,231 $12,840 $22,447 2015 $213,200 ($77,318) Total Fixed Assets $146,869 68.5% $135,882 Total Assets $214,387 100.0% $205,852 4.6% 14.2% 41.7% $8,157 $41,929 $83,262 60.4% $133,348 21.2% 18.3% $35,468 $37,036 $84,833 39.6% $72,504 $214,387 100.0% $205,852 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $9,845 $30,388 $89,321 Total Liabilities Common Stock Retained Earnings $129,554 $45,494 $39,339 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: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position Annual Report 2016 $2,303 $16,013 $0 $1,688 ($21,105) $56 2015 $1,169 $14,213 $0 ($309) $5,097 ($205) ($1,045) $19,966 ($27,000) ($35,640) $0 $10,026 $0 $6,059 $0 ($11,541) $0 $7,920 $0 $26,367 ($11,300) $16,674 $4,544 ($23,501) $32,231 $39,660 $23,986 $55,732 Page 1 Top Annual Report Baldwin Round: 3 Dec. 31, 2016 C59559 2016 Income Statement Sales Bell $33,255 Bit $34,677 Boat $41,834 Buzz $46,454 Na $0 Na $0 Na $0 Na $0 2016 Total $156,220 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $6,420 $14,608 $482 $21,510 $6,629 $15,575 $561 $22,765 $8,273 $17,479 $713 $26,465 $9,073 $20,615 $937 $30,626 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30,395 $68,277 $2,694 $101,365 19.5% 43.7% 1.7% 64.9% Contribution Margin $11,745 $11,912 $15,369 $15,828 $0 $0 $0 $0 $54,855 35.1% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $4,293 $1,000 $1,250 $1,400 $347 $8,290 $4,753 $1,000 $1,250 $1,400 $362 $8,765 $3,167 $0 $1,250 $1,100 $437 $5,953 $3,800 $0 $1,250 $1,100 $485 $6,635 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $16,013 $2,000 $5,000 $5,000 $1,631 $29,644 10.3% 1.3% 3.2% 3.2% 1.0% 19.0% Net Margin $3,455 $3,147 $9,416 $9,193 $0 $0 $0 $0 $25,211 16.1% $6,304 $18,906 $3,859 $11,431 $1,265 $47 $2,303 4.0% 12.1% 2.5% 7.3% 0.8% 0.0% 1.5% (Product Name:) 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 EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Annual Report Page 2 PRINT Annual Report Top Annual Report Chester Round: 3 Dec. 31, 2016 C59559 Balance Sheet DEFINITIONS: Common Size: The common size column simply represents each item as a percentage of total assets for that year. Cash: Your end-of-year cash position. Accounts Receivable: Reflects the lag between delivery and payment of your products. Inventories: The current value of your inventory across all products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current value of your plant. Accum Deprec: The total accumulated depreciation from your plant. Accts Payable: What the company currently owes suppliers for materials and services. Current Debt: The debt the company is obligated to pay during the next year of operations. It includes emergency loans used to keep your company solvent should you run out of cash during the year. Long Term Debt: The company's long term debt is in the form of bonds, and this represents the total value of your bonds. Common Stock: The amount of capital invested by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends. ASSETS Cash Accounts Receivable Inventory 2016 Common Size 11.9% 6.4% 7.1% Total Current Assets $62,315 Plant & Equipment Accumulated Depreciation $271,140 ($88,376) $36,641 $11,767 $7,639 25.4% $56,047 110.6% -36.1% $29,155 $15,726 $17,434 2015 $217,260 ($70,300) Total Fixed Assets $182,764 74.6% $146,960 Total Assets $245,080 100.0% $203,007 4.4% 11.2% 42.9% $7,758 $33,261 $81,580 58.4% $122,599 22.5% 19.1% $36,342 $44,066 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $10,687 $27,391 $105,113 Total Liabilities Common Stock Retained Earnings $143,191 $55,052 $46,837 Total Equity $101,889 41.6% $80,408 Total Liab. & O. Equity $245,080 100.0% $203,007 Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position Annual Report 2016 $2,772 $18,076 $0 $2,929 ($9,795) ($3,959) 2015 $1,088 $13,124 $0 $1,666 ($1,057) ($2,146) $10,022 $12,675 ($53,880) ($51,960) $0 $18,710 $0 $23,533 $0 ($5,871) $0 $17,675 $0 $33,710 ($11,300) $11,546 $36,372 ($7,486) $29,155 $51,631 $12,346 $36,641 Page 1 Top Annual Report Chester Round: 3 Dec. 31, 2016 C59559 2016 Income Statement Cell $17,195 City $37,570 Cozy $44,384 Cute $33,803 Crimp $35,217 Cake $23,167 Na $0 Na $0 2016 Total $191,336 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $1,922 $6,064 $411 $8,396 $8,404 $16,708 $561 $25,673 $10,847 $18,324 $464 $29,635 $6,346 $12,445 $558 $19,348 $9,649 $15,024 $99 $24,771 $4,716 $9,782 $0 $14,498 $0 $0 $0 $0 $0 $0 $0 $0 $41,883 $78,346 $2,092 $122,321 21.9% 40.9% 1.1% 63.9% Contribution Margin $8,798 $11,897 $14,749 $14,455 $10,446 $8,670 $0 $0 $69,014 36.1% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $3,833 $983 $1,140 $1,000 $256 $7,212 $4,600 $0 $1,140 $1,000 $559 $7,299 $2,380 $973 $1,140 $1,900 $660 $7,054 $2,153 $973 $1,140 $2,200 $503 $6,969 $2,635 $995 $1,140 $900 $524 $6,194 $2,475 $114 $1,140 $900 $345 $4,973 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $18,076 $4,039 $6,840 $7,900 $2,846 $39,701 9.4% 2.1% 3.6% 4.1% 1.5% 20.7% Net Margin $1,586 $4,598 $7,695 $7,485 $4,252 $3,697 $0 $0 $29,313 15.3% $8,112 $21,201 $3,396 $13,453 $1,523 $57 $2,772 4.2% 11.1% 1.8% 7.0% 0.8% 0.0% 1.4% (Product Name:) Sales 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 EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Annual Report Page 2 PRINT Annual Report Top Annual Report Digby Round: 3 Dec. 31, 2016 C59559 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 $39,669 $14,821 $15,017 43.1% $69,507 91.1% -34.2% $118,660 ($49,197) $99,445 56.9% $69,463 $174,753 Cash Accounts Receivable Inventory 2016 Common Size 22.6% 11.0% 9.6% 100.0% $138,969 6.8% 12.7% 22.0% $9,935 $30,399 $26,447 41.4% $66,781 5.3% 53.2% $9,629 $62,558 $39,430 $19,162 $16,716 Total Current Assets $75,308 Plant & Equipment Accumulated Depreciation $159,260 ($59,815) Total Fixed Assets Total Assets 2015 LIABILITIES & OWNERS' EQUITY Accounts Payable Current Debt Long Term Debt $11,845 $22,163 $38,395 Total Liabilities Common Stock Retained Earnings $72,403 $9,348 $93,001 Total Equity $102,349 58.6% $72,187 Total Liab. & O. Equity $174,753 100.0% $138,969 Cash Flow Statement The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and cash withdrawals as negative numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. When negative cash flows exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and force you to beg for money to keep your company afloat. Cash Flows from Operating Activities: Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations Cash Flows from Investing Activities: Plant Improvements Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt Change in current debt (net) Net cash from financing activities Net change in cash position Closing cash position Annual Report 2016 $32,272 $10,617 $0 $1,910 ($1,700) ($4,341) 2015 $18,040 $7,911 $0 $2,336 ($4,187) ($2,583) $38,759 $21,517 ($40,600) ($24,700) $0 $0 ($2,111) $11,948 $0 ($8,236) $0 $828 $0 $16,895 ($11,300) $16,437 $1,602 ($239) $39,430 $22,860 $19,677 $39,669 Page 1 Top Annual Report Digby Round: 3 Dec. 31, 2016 C59559 2016 Income Statement Sales Deal $60,598 Dim $51,219 Dome $58,145 Dug $63,171 Na $0 Na $0 Na $0 Na $0 2016 Total $233,133 Common Size 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $14,095 $23,193 $0 $37,288 $10,725 $21,957 $213 $32,895 $12,106 $22,185 $781 $35,072 $13,171 $24,987 $1,012 $39,170 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $50,098 $92,322 $2,006 $144,425 21.5% 39.6% 0.9% 61.9% Contribution Margin $23,310 $18,324 $23,073 $24,001 $0 $0 $0 $0 $88,708 38.1% $2,911 $858 $1,350 $1,000 $451 $6,570 $1,813 $655 $1,350 $1,000 $381 $5,200 $2,947 $510 $1,350 $900 $433 $6,139 $2,947 $571 $1,350 $900 $470 $6,238 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,617 $2,595 $5,400 $3,800 $1,735 $24,147 4.6% 1.1% 2.3% 1.6% 0.7% 10.4% $16,740 $13,124 $16,934 $17,764 $0 $0 $0 $0 $64,561 27.7% $6,879 $57,682 $2,482 $4,537 $17,732 $659 $32,272 3.0% 24.7% 1.1% 1.9% 7.6% 0.3% 13.8% (Product Name:) Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period Net Margin 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 EBIT Short Term Interest LongTerm Interest Taxes Profit Sharing Net Profit Annual Report Page 2