Which mission statement best represents the Baldwin company?

Select: 1

Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide variety of market segments.

Consistency and affordability are our goals. Our central mission is to offer dependable, low-price products that our customers can count on.

Innovation meets revolution. We create value for our customers through breakthrough designs that lead to unique high-performance products.

Lasting innovation is our motivation. We build premium products that are elegantly designed to meet the needs of a variety of market segments.

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 Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report Annual Report Baldwin Annual Report Chester Annual Report Digby PRINT Top " Round: 1 Student: Philip Carnavas Dec. 31, 2016 Andrews Philip Carnavas Baldwin Chester Digby Philip Carnavas Selected Financial Statistics Andrews Baldwin Chester Digby 4.6% 7.5% 3.0% 2.5% 1.68 1.50 0.91 0.76 7.7% 11.3% 2.7% 1.9% 1.5 1.8 2.6 2.4 11.5% 20.5% 7.2% 4.7% $0 $0 $0 $0 Sales $174,501,991 $140,865,567 $149,921,833 $111,792,205 EBIT $15,894,106 $20,575,421 $18,499,191 $14,175,731 Profits $7,986,256 $10,554,481 $4,474,299 $2,820,603 Cumulative Profit $7,986,256 $10,554,481 $4,474,299 $2,820,603 SG&A / Sales 13.3% 9.2% 9.1% 13.4% Contrib. Margin % 35.1% 32.8% 29.9% 35.9% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan COMP-XM INQUIRER Page 1 Top Round: 1 Stocks & Bonds Philip Carnavas December 31 , 2016 Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value Andrews $74.10 ($21.51) 1,948,564 $144 $35.63 $4.10 Baldwin $61.29 $6.37 1,880,565 $115 $27.43 Chester $37.51 ($7.19) 2,631,260 $99 Digby $42.74 ($10.39) 2,253,729 $96 Yield P/E $0.00 0.0% 18.1 $5.61 $3.45 5.6% 10.9 $23.60 $1.70 $0.00 0.0% 22.1 $26.74 $1.25 $0.00 0.0% 34.1 Bond Market Summary EPS Dividend Company Series# Face Yield Close$ S&P 13.5S2017 $11,300,000 13.1% 102.72 A 11.2S2022 $8,837,000 10.9% 103.00 A 11.9S2023 $7,072,000 11.2% 106.70 A 13.5S2017 $11,300,000 13.3% 101.61 BB 11.1S2024 $2,505,867 11.4% 96.99 BB 11.2S2025 $5,671,177 11.5% 97.31 BB 11.5S2026 $1,376,019 11.6% 98.86 BB 13.5S2017 $11,300,000 13.5% 100.09 CC 11.3S2022 $10,417,600 12.3% 91.70 CC 12.5S2023 $14,665,611 13.0% 96.07 CC 12.5S2024 $7,975,862 13.1% 95.74 CC 12.5S2025 $9,473,322 13.1% 95.45 CC 12.9S2026 $14,397,660 13.3% 97.33 CC 13.5S2017 $11,300,000 13.5% 100.27 CC 11.2S2022 $8,637,463 12.2% 92.05 CC 12.4S2023 $5,827,834 12.9% 96.48 CC 11.9S2025 $15,600,633 12.7% 93.38 CC 12.6S2026 $17,795,619 13.0% 96.77 CC Andrews Baldwin Chester Digby Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 1 December 31, 2016 Philip Carnavas Andrews Baldwin Chester Digby $7,986 $10,554 $4,474 $2,821 $6,975 $6,264 $11,837 $9,887 $0 $0 $0 $0 Accounts payable ($2,080) $686 $1,295 $357 Inventory $22,308 $4,499 ($649) ($4,568) Accounts receivable ($904) ($1,745) ($1,494) $571 Net cash from operations $34,286 $20,259 $15,464 $9,068 ($7,800) ($9,580) ($34,660) ($40,900) Dividends paid $0 ($6,484) $0 $0 Sales of common stock $0 $0 $2,911 $4,272 ($9,805) ($1,606) $0 $0 $0 $1,376 $14,398 $17,796 Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Cash flows from investing activities Plant improvements (net) Cash flows from financing activities Purchase of common stock Cash from long term debt issued Early retirement of long term debt $0 $0 $0 $0 ($15,717) ($18,436) ($29,246) ($25,494) Cash from current debt borrowing $0 $13,954 $25,225 $21,728 Cash from emergency loan $0 $0 $0 $0 ($25,522) ($11,197) $13,287 $18,301 $963 ($518) ($5,909) ($13,531) Andrews Baldwin Chester Digby Cash $32,977 $16,815 $26,407 $19,019 Accounts Receivable $14,343 $11,578 $12,322 $9,188 $3,518 $12,618 $10,942 $10,975 Total Current Assets $50,838 $41,011 $49,671 $39,182 Plant and equipment $104,624 $93,960 $177,560 $165,300 Accumulated Depreciation ($51,384) ($41,287) ($63,102) ($57,176) $53,240 $52,673 $114,458 $108,124 $104,077 $93,685 $164,128 $147,307 $7,437 $7,287 $8,578 $6,154 $0 $13,954 $25,225 $21,728 Long Term Debt $27,209 $20,853 $68,230 $59,162 Total Liabilities $34,646 $42,094 $102,033 $87,043 Retirement of current debt Net cash from financing activities Net change in cash position Balance Sheet Survey Inventory Total Fixed Assets Total Assets Accounts Payable Current Debt Common Stock $10,418 $8,803 $27,590 $18,657 Retained Earnings $59,013 $42,788 $34,506 $41,607 Total Equity $69,432 $51,591 $62,096 $60,263 Total Liabilities & Owners' Equity $104,077 $93,685 $164,128 $147,307 Income Statement Survey Andrews Baldwin Chester Digby Sales $174,502 $140,866 $149,922 $111,792 Variable Costs (Labor, Material, Carry) $113,212 $94,671 $105,032 $71,621 $6,975 $6,264 $11,837 $9,887 SGA (R&D, Promo, Sales, Admin) $23,274 $13,012 $13,688 $15,005 Other (Fees, Writeoffs, TQM, Bonuses) $15,147 $6,343 $865 $1,103 EBIT $15,894 $20,575 $18,499 $14,176 Interest (Short term, Long term) $3,357 $4,006 $11,475 $9,748 Taxes $4,388 $5,799 $2,458 $1,550 $163 $215 $91 $58 $7,986 $10,554 $4,474 $2,821 Depreciation Profit Sharing Net Profit COMP-XM INQUIRER Page 3 Top Production Analysis Philip Carnavas Round: 1 December 31, 2016 Production Information Unit Primary Inve Age Segmen Units n Revisio Dec. MTB Pfmn Size Name t Sold tory n Date 31 F Coord Coord Auto 2nd matio Shift n Contr & Next Capacit Plan Materia Labor . Over- Roun y Next Uti Price l Cost Cost Marg. time d Round z 8/21/20 1.8 22000 16 8.9 11.2 $30.50 $11.08 $9.24 33% 81% 5.0 1,500 17 % 0 4/2/201 1.4 24000 6 10.8 7.0 $39.00 $14.55 $9.47 37% 16% 4.0 728 11 % 1,000 0 3/17/20 1.4 26000 16 13.1 9.3 $41.25 $15.12 $9.30 39% 11% 4.0 714 11 % Awe Thrift 1,300 0 12/6/20 3.1 20000 16 6.6 Bit Nano 1,194 22 11/30/2 1.6 23000 016 Bolt Elite 890 97 Buzz Nano Brat Elite Ark Core 2,025 175 Ant Nano 1,099 Ace Elite 13.6 $22.00 $8.34 $6.35 31% 0% 6.0 10.0 8.2 $31.00 $13.95 $9.68 26% 100% 5.0 800 19 % 1/4/201 2.9 25000 7 12.1 10.2 $35.00 $14.61 $8.48 33% 21% 5.0 700 12 % 983 219 10/16/2 1.1 23000 016 11.5 6.6 $37.00 $15.44 $8.21 35% 12% 5.5 850 11 % 931 200 10/16/2 1.1 25000 016 13.5 8.6 $39.00 $16.04 $7.82 38% 5.5 950 94% 0% 1,130 48% City Thrift 2,203 112 4/11/20 3.8 17000 17 6.3 13.8 $18.00 $7.63 $4.59 31% 100% 8.5 1,050 19 % Cozy Thrift 2,300 162 4/11/20 3.6 17000 17 6.5 13.6 $18.00 $7.83 $4.47 30% 76% 8.5 1,250 17 % Creak Core 1,187 198 11/18/2 1.2 18000 016 9.7 9.8 $27.00 $11.55 $7.00 31% 39% 7.8 1,050 13 % Crim p Core 1,363 205 11/16/2 1.2 20000 016 10.5 10.4 $27.00 $12.25 $7.25 28% 58% 7.8 1,250 15 % Dim Thrift 1,361 295 6/27/20 2.5 14000 16 6.5 13.6 $19.00 $6.93 $2.73 49% 65% 9.0 1,250 16 % 1,973 170 12/6/20 1.1 16000 16 8.9 11.2 $21.00 $9.87 $5.62 27% 87% 7.0 1,500 18 % Dome Core Dug Nano 779 125 12/16/2 1.1 18000 016 10.8 7.2 $30.00 $13.41 $5.75 36% 0% 6.0 800 99% Drat Elite 621 157 12/17/2 1.1 20000 016 13.2 9.2 $34.00 $14.22 $6.90 37% 0% 5.0 800 80% 0.0 $0.00 0% 7.0 500 0% Daze 0 0 4/1/201 0.0 7 0 0.0 $0.00 $0.00 COMP-XM INQUIRER 0% Page 4 Top Thrift Market Segment Analysis Philip Carnavas Thrift Statistics Total Industry Unit Demand 5,666 Actual Industry Unit Sales 5,666 Segment % of Total Industry 26.7% Next Year's Segment Growth Rate 11.0% Round: 1 December 31, 2016 Perceptual Map for Thrift Segment Thrift Customer Buying Criteria Expectations Importance 1. Price 2. Reliability 3. Ideal Position 4. Age $14.00 - 26.00 55% MTBF 14000-20000 20% Pfmn 6.5 Size 13.6 15% Ideal Age = 3.0 10% Top Products in Thrift Segment Units Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y City 26% 1,499 4/11/20 17 6.3 13.8 $18.00 17000 3.76 $1,150 68% $1,000 64% 36 Cozy 26% 1,494 4/11/20 17 6.5 13.6 $18.00 17000 3.56 $1,150 69% $1,000 64% 37 Awe 21% 1,162 12/6/20 YES 16 6.6 13.6 $22.00 20000 3.08 $2,200 100% $2,500 81% 45 Dim 16% 930 6/27/20 16 6.5 13.6 $19.00 14000 2.48 $1,000 56% $1,000 72% 24 8% 470 12/6/20 16 8.9 11.2 $21.00 16000 1.11 $1,000 56% $1,800 72% 5 Dome Ark 2% 105 8/21/20 16 8.9 11.2 $30.50 22000 1.79 $2,200 100% $2,500 81% 1 Creak 0% 5 11/18/2 016 9.7 9.8 $27.00 18000 1.16 $1,150 68% 0 COMP-XM INQUIRER $700 64% Page 5 Top Core Market Segment Analysis Philip Carnavas Core Statistics Total Industry Unit Demand 7,349 Actual Industry Unit Sales 7,349 Segment % of Total Industry 34.6% Next Year's Segment Growth Rate 10.0% Round: 1 December 31, 2016 Core Customer Buying Criteria Expectations Importance 1. Price $20.00 - 32.00 46% 2. Age Ideal Age = 2.0 20% MTBF 16000-22000 18% Pfmn 8.9 Size 11.2 16% 3. Reliability 4. Ideal Position Perceptual Map for Core Segment Top Products in Core Segment Units Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y Dome 20% 1,503 12/6/20 16 8.9 11.2 $21.00 16000 1.11 $1,000 56% $1,800 63% 39 Ark 20% 1,497 8/21/20 16 8.9 11.2 $30.50 22000 1.79 $2,200 100% $2,500 85% 42 Crim p 14% 1,012 11/16/2 016 10.5 10.4 $27.00 20000 1.18 $1,150 68% $700 69% 22 Creak 12% 895 11/18/2 016 9.7 9.8 $27.00 18000 1.16 $1,150 68% $700 69% 18 Cozy 11% 806 4/11/20 17 6.5 13.6 $18.00 17000 3.56 $1,150 69% $1,000 69% 15 City 10% 704 4/11/20 17 6.3 13.8 $18.00 17000 3.76 $1,150 68% $1,000 69% 11 Dim 6% 431 6/27/20 16 6.5 13.6 $19.00 14000 2.48 $1,000 56% $1,000 63% 13 Bit 5% 346 11/30/2 016 10.0 8.2 $31.00 23000 1.63 $1,250 77% $900 20% 2 Awe 2% 138 12/6/20 YES 16 6.6 13.6 $22.00 20000 3.08 $2,200 100% $2,500 85% 41 Dug 0% 10.8 7.2 $30.00 18000 1.05 $1,000 57% 0 14 12/16/2 $900 63% 016 Bolt 0% 2 1/4/201 7 12.1 10.2 $35.00 25000 2.91 $1,250 77% $900 20% 0 Drat 0% 2 12/17/2 016 13.2 9.2 $34.00 20000 1.07 $1,000 57% $1,200 63% 0 COMP-XM INQUIRER Page 6 Top Nano Market Segment Analysis Philip Carnavas Nano Statistics Total Industry Unit Demand 4,162 Actual Industry Unit Sales 4,162 Segment % of Total Industry 19.6% Next Year's Segment Growth Rate 14.0% Round: 1 December 31, 2016 Nano Customer Buying Criteria Expectations Importance 1. Ideal Position Pfmn 10.8 Size 7.0 35% 2. Price $28.00 - 40.00 27% 3. Age Ideal Age = 1.0 20% MTBF 18000-24000 18% 4. Reliability Perceptual Map for Nano Segment Top Products in Nano Segment Unit s Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y Ant 21% 892 4/2/201 YES 10.8 6 7.0 $39.00 24000 1.43 $2,000 97% $2,500 89% 62 Buzz 19% 770 10/16/2 016 11.5 6.6 $37.00 23000 1.12 $1,250 76% $800 85% 46 Dug 14% 572 12/16/2 016 10.8 7.2 $30.00 18000 1.05 $1,000 57% $900 64% 40 Bit 13% 554 11/30/2 016 10.0 8.2 $31.00 23000 1.63 $1,250 77% $900 85% 52 Bolt 6% 257 1/4/201 7 12.1 10.2 $35.00 25000 2.91 $1,250 77% $900 85% 13 Crim p 5% 226 11/16/2 016 10.5 10.4 $27.00 20000 1.18 $1,150 68% $700 28% 17 Creak 5% 213 11/18/2 016 9.7 9.8 $27.00 18000 1.16 $1,150 68% $700 28% 15 Ark 5% 204 8/21/20 16 8.9 11.2 $30.50 22000 1.79 $2,200 100% $2,500 89% 16 Drat 5% 198 12/17/2 016 13.2 9.2 $34.00 20000 1.07 $1,000 57% $1,200 64% 7 Brat 4% 181 10/16/2 016 Ace 2% 3/17/20 YES 13.1 16 94 13.5 8.6 $39.00 25000 1.12 $1,250 76% $800 85% 7 9.3 $41.25 26000 1.44 $2,000 97% $2,500 89% 9 COMP-XM INQUIRER Page 7 Top Elite Market Segment Analysis Philip Carnavas Elite Statistics Total Industry Unit Demand 4,035 Actual Industry Unit Sales 4,035 Segment % of Total Industry 19.0% Next Year's Segment Growth Rate 16.0% Round: 1 December 31, 2016 Elite Customer Buying Criteria Expectations Importance 1. Age Ideal Age = 0.0 34% 2. Price $30.00 - 42.00 24% Pfmn 13.1 Size 9.3 22% MTBF 20000-26000 20% 3. Ideal Position 4. Reliability Perceptual Map for Elite Segment Top Products in Elite Segment Unit s Sold Revisio Market to n Stock Pfmn Size Name Share Seg Date Out Coord Coord Cust. Dec. Age Promo Aware Sales Cust. Cust. List MTB Dec. Budge Budge Access- Surve Price F 31 t ness t ibility y Ace 22% 906 3/17/20 YES 13.1 16 9.3 $41.25 26000 1.44 $2,000 97% $2,500 93% 50 Brat 19% 750 10/16/2 016 13.5 8.6 $39.00 25000 1.12 $1,250 76% $800 85% 40 Bolt 16% 632 1/4/201 7 12.1 10.2 $35.00 25000 2.91 $1,250 77% $900 85% 26 Drat 10% 421 12/17/2 016 13.2 9.2 $34.00 20000 1.07 $1,000 57% $1,200 55% 28 Bit 7% 293 11/30/2 016 10.0 8.2 $31.00 23000 1.63 $1,250 77% $900 85% 23 Ark 5% 218 8/21/20 16 8.9 11.2 $30.50 22000 1.79 $2,200 100% $2,500 93% 14 Buzz 5% 213 10/16/2 016 11.5 6.6 $37.00 23000 1.12 $1,250 76% $800 85% 7 Ant 5% 208 4/2/201 YES 10.8 6 7.0 $39.00 24000 1.43 $2,000 97% $2,500 93% 12 Dug 5% 194 12/16/2 016 7.2 $30.00 18000 1.05 $1,000 57% 8 10.8 $900 55% Crim p 3% 126 11/16/2 016 10.5 10.4 $27.00 20000 1.18 $1,150 68% $700 15% 8 Creak 2% 11/18/2 016 9.7 9.8 $27.00 18000 1.16 $1,150 68% $700 15% 5 75 COMP-XM INQUIRER Page 8 Top Market Share Report Philip Carnavas Actual Market Share in Units Thrif Core Nano Elite t Total Industry Unit Sales 5,666 7,349 4,162 4,035 21,211 % of Market 26.7 34.6 19.6 19.0 % % % % 100.0 % 20.4 4.9% 5.4% % 9.6% 21.4 5.2% % 5.2% 22.4 % 4.7% Ark 1.9% Ant Ace 2.3% Awe 20.5 1.9% % Total 22.4 22.3 28.6 33.0 6.1% 25.6% Round: 1 December 31, 2016 % % % 13.3 7.3% % 5.6% 15.7 % 4.2% 18.5 5.3% % 4.6% 18.6 % 4.4% 42.4 46.8 % % 18.9% Bit 4.7% Bolt 0.0% 6.2% Buzz Brat 4.4% Total 4.7% % City 26.5 9.6% % 10.4% Cozy 26.4 11.0 % % 10.8% Creak 0.1% 12.2 5.1% 1.9% % 5.6% Crimp 0.0% 13.8 5.4% 3.1% % 6.4% Total 52.9 46.5 10.5 5.0% % % % 33.3% Dim 16.4 5.9% % 6.4% 20.4 % 9.3% Dome 8.3% 13.7 4.8% % 3.7% 10.4 % 2.9% 24.7 26.5 18.5 15.2 % % % % 22.3% Dug 0.2% Drat 0.0% 4.8% Total Potential Market Share in Units Thrift Core Nano Elite Total 5,666 7,349 4,162 4,035 21,211 26.7% 34.6% 19.6% 19.0% 100.0% Ark 1.8% 20.2% 4.7% 5.0% 9.4% Ant 23.1% 5.5% 5.6% Ace 2.6% 25.0% 5.3% Units Demande d % of Market Awe 21.6% 2.6% Total 23.4% 22.8% 30.4% 35.5% 26.9% 4.7% 13.0% 7.0% 5.5% Bolt 6.0% 15.1% 4.1% Buzz 18.0% 5.1% 4.5% Brat 4.3% 17.8% 4.2% 4.7% 41.3% 45.0% 18.3% Bit Total 6.7% City 26.1% 9.5% 10.3% Cozy 26.0% 10.9% 10.7% Creak 0.1% 12.1% 5.0% 1.8% 5.5% Crimp 13.7% 5.3% 3.0% 6.3% Total 52.2% 46.2% 10.3% 4.8% 32.9% Dim 16.2% 5.8% 6.3% 8.3% 20.3% 9.2% Dome Dug 0.2% 13.4% 4.6% 3.6% Drat 4.7% 10.1% 2.8% Total 24.4% 26.3% 18.1% 14.7% 22.0% COMP-XM INQUIRER Page 9 Top Perceptual Map Round: 1 December 31, 2016 Philip Carnavas Perceptual Map for All Segments Andrews Name Pfmn Size Chester Revised Name Pfmn Size Ark 8.9 11.2 Ant 10.8 7.0 4/2/2016 Cozy Ace 13.1 9.3 3/17/2016 Creak Awe 6.6 13.6 Baldwin 8/21/2016 City Digby Revised Name Pfmn Size Revised 6.3 13.8 4/11/2017 Dim 6.5 13.6 6/27/2016 6.5 13.6 4/11/2017 Dome 8.9 11.2 12/6/2016 11/18/2016 Dug 10.8 7.2 12/16/2016 12/6/2016 Crimp 10.5 10.4 11/16/2016 Drat 13.2 9.2 12/17/2016 9.7 9.8 Name Pfmn Size Revised Bit 10.0 8.2 11/30/2016 Bolt 12.1 10.2 1/4/2017 Buzz 11.5 6.6 10/16/2016 Brat 13.5 8.6 10/16/2016 COMP-XM INQUIRER Page 10 Top HR/TQM Report Round: 1 December 31, 2016 Philip Carnavas HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 638 535 597 416 Complement 639 535 597 416 1st Shift Complement 470 420 362 303 2nd Shift Complement 169 114 235 113 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 7.0% 10.0% 8.1% 6.5% 45 90 107 44 New Employees Separated Employees 165 0 0 0 $5,000 $0 $2,500 $5,000 80 0 40 80 102.0% 100.0% 111.3% 121.7% Recruiting Cost $268 $90 $373 $265 Separation Cost $825 $0 $0 $0 Training Cost $1,022 $0 $478 $665 Total HR Admin Cost $2,116 $90 $850 $930 $26.81 $26.81 $26.81 $26.81 Benefits 2,500 2,500 2,500 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 5.0% 5.0% Recruiting Spend Training Hours Productivity Index Labor Contract Next Year Wages Starting Negotiation Position Wages Benefits Profit Sharing Annual Raise Ceiling Negotiation Position Wages Benefits Profit Sharing Annual Raise Adjusted Labor Demands Wages Benefits Profit Sharing Annual Raise Strike Days TQM SUMMARY Andrews Baldwin Chester Digby CPI Systems $1,500 $0 $0 $0 Vendor/JIT $1,500 $0 $0 $0 Quality Initiative Training $1,500 $1,250 $0 $0 Channel Support Systems $1,500 $1,250 $0 $0 Concurrent Engineering $1,500 $1,250 $0 $0 UNEP Green Programs $1,500 $0 $0 $0 Benchmarking $1,500 $0 $0 $0 Quality Function Deployment Effort $1,500 $0 $0 $0 CCE/6 Sigma Training $1,500 $1,250 $0 $0 Process Mgt Budgets Last Year TQM Budgets Last Year GEMI TQEM Sustainability Initiatives $1,500 $1,250 $0 $0 $15,000 $6,250 $0 $0 Material Cost Reduction 5.03% 0.58% 0.00% 0.00% Labor Cost Reduction 6.21% 3.47% 0.00% 0.00% Reduction R&D Cycle Time 27.25% 9.91% 0.00% 0.00% Reduction Admin Costs 43.11% 0.00% 0.00% 0.00% 6.63% 0.94% 0.00% 0.00% Total Expenditures Cumulative Impacts Demand Increase COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews 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 Round: 1 Dec. 31, 2016 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 2016 2015 Common Size Cash $32,977 31.7% $32,014 Accounts Receivable $14,343 13.8% $13,439 $3,518 3.4% $25,825 48.8% $71,278 Inventory Total Current Assets $50,838 Plant & Equipment $104,624 100.5% $96,824 Accumulated Depreciation ($51,384) -49.4% ($44,409) $53,240 51.2% $52,415 $104,077 100.0% $123,693 7.1% $9,516 Total Fixed Assets Total Assets LIABILITIES & OWNERS' EQUITY Accounts Payable $7,437 Current Debt Long Term Debt $0 0.0% $15,717 $27,209 26.1% $27,209 33.3% $52,442 Total Liabilities $34,646 Common Stock $10,418 10.0% $12,081 Retained Earnings $59,013 56.7% $59,170 $69,431 66.7% $71,251 $104,077 100.0% $123,693 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: 2016 2015 Net Income (Loss) $7,986 $20,172 Depreciation $6,975 $6,455 $0 $0 Accounts Payable ($2,080) $735 Inventory $22,308 ($11,210 ) ($904) $15 Extraordinary gains/losses/writeoffs Accounts Receivable Net cash from operations $34,286 $16,168 Cash Flows from Investing Activities: Plant Improvements ($7,800) ($3,520) Cash Flows from Financing Activities: Dividends Paid $0 ($13,332 ) Sales of Common Stock $0 $0 Purchase of Common Stock ($9,805) ($1,935) Cash from long term debt $0 $0 Retirement of long term debt $0 ($7,533) Change in current debt (net) ($15,717 ) Net cash from financing ($25,522 ($12,808 $9,992 activities Net change in cash position Closing cash position ) ) $963 ($160) $32,977 $32,014 Annual Report Page 1 Top Annual Report Andrews Round: 1 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Ant Ace 2016 Total Commo n Size Awe Na Na Na Na $61,762 $42,879 $41,265 $28,596 $0 $0 $0 $0 $174,502 100.0% Direct Labor $18,696 $10,612 $9,429 $9,426 $0 $0 $0 $0 $48,162 27.6% Direct Material $0 $0 $0 $0 $64,627 37.0% $0 $0 $0 $0 $0 $422 0.2% $41,155 $27,132 $25,074 $19,851 $0 $0 $0 $0 $113,212 64.9% Contribution $20,607 $15,747 $16,192 $8,745 Margin $0 $0 $0 $0 $61,290 35.1% $0 $0 $0 $0 Sales Ark Variable Costs: Inventory Carry Total Variable $22,037 $16,520 $15,645 $10,425 $422 $0 $0 Period Costs: Depreciation $2,600 $1,068 $1,047 $2,260 $6,975 4.0% SG&A: R&D Promotion s Sales Admin Total Period Net Margin $649 $945 $0 $0 $0 $0 $2,064 1.2% $2,200 $2,000 $2,000 $2,200 $0 $0 $0 $0 $8,400 4.8% $2,500 $2,500 $2,500 $2,500 $0 $0 $0 $0 $10,000 5.7% $461 $0 $0 $0 $0 $2,811 1.6% $8,944 $6,516 $6,424 $8,365 $0 $0 $0 $0 $30,249 17.3% $0 $0 $0 $0 $31,041 17.8% $995 $258 $691 $212 $665 $11,663 $9,230 $9,768 $379 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Other $15,147 8.7% EBIT $15,894 9.1% Short Term Interest $0 0.0% LongTerm Interest $3,357 1.9% Taxes $4,388 2.5% Profit Sharing Net Profit $163 0.1% $7,986 4.6% Annual Report Page 2 PRINT Annual Report Top Annual Report Baldwin 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 Round: 1 Dec. 31, 2016 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 2016 2015 Common Size Cash $16,815 17.9% $17,334 Accounts Receivable $11,578 12.4% $9,833 Inventory $12,618 13.5% $17,117 43.8% $44,284 $93,960 100.3% $84,380 ($41,287) -44.1% ($35,023) Total Current Assets Plant & Equipment Accumulated Depreciation $41,011 Total Fixed Assets $52,673 56.2% $49,357 Total Assets $93,685 100.0% $93,641 LIABILITIES & OWNERS' EQUITY $7,287 7.8% $6,601 Current Debt $13,954 14.9% $18,436 Long Term Debt $20,853 22.3% $19,477 44.9% $44,514 $8,803 9.4% $9,100 $42,788 45.7% $40,027 Accounts Payable Total Liabilities Common Stock Retained Earnings $42,094 Total Equity $51,591 55.1% $49,127 Total Liab. & O. Equity $93,685 100.0% $93,641 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 2016 2015 $10,554 $10,723 $6,264 $5,625 $0 $0 $686 $1,216 $4,499($2,062) Accounts Receivable ($1,745)($1,778) Net cash from operations $20,259 $13,725 Cash Flows from Investing Activities: Plant Improvements ($9,580)($6,500) 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 ($6,484)($4,479) $0 $0 ($1,606)($1,833) $1,376 $5,671 $0($6,326) Change in current debt (net) ($4,483) $7,943 Net cash from financing activities ($11,197 ) Net change in cash position $977 ($518) $8,201 Closing cash position $16,815 $17,334 Annual Report Page 1 Top Annual Report Baldwin Round: 1 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Bolt Buzz 2016 Total Commo n Size Brat Na Na Na Na $37,002 $31,158 $36,379 $36,326 $0 $0 $0 $0 $140,866 100.0% Direct Labor $11,524 $7,448 $8,185 $7,367 $0 $0 $0 $0 $34,524 24.5% Direct Material $0 $0 $0 $0 $58,633 41.6% $568 $0 $0 $0 $0 $1,514 1.1% $27,426 $20,950 $23,689 $22,607 $0 $0 $0 $0 $94,671 67.2% $9,576 $10,209 $12,690 $13,719 $0 $0 $0 $0 $46,194 32.8% $1,691 $1,213 $1,587 $1,773 $0 $0 $0 $0 $6,264 4.4% $804 $0 $0 $0 $0 $3,535 2.5% $1,250 $1,250 $1,250 $1,250 $0 $0 $0 $0 $5,000 3.5% Sales Bit Variable Costs: Inventory Carry Total Variable Contribution Margin $15,843 $13,232 $14,887 $14,672 $59 $270 $617 Period Costs: Depreciation SG&A: R&D Promotion $928 $1,000 $804 s Sales $900 $900 $800 $800 $0 $0 $0 $0 $3,400 2.4% Admin $283 $238 $278 $278 $0 $0 $0 $0 $1,077 0.8% Total Period $5,051 $4,601 $4,718 $4,905 $0 $0 $0 $0 $19,276 13.7% Net Margin $4,525 $5,607 $7,971 $8,815 $0 $0 $0 $0 $26,918 19.1% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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 $6,343 4.5% EBIT $20,575 14.6% Short Term Interest $1,409 1.0% LongTerm Interest $2,597 1.8% Taxes $5,799 4.1% Profit Sharing Net Profit $215 0.2% $10,554 7.5% Annual Report Page 2 PRINT Annual Report Top Annual Report Chester 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 Round: 1 Dec. 31, 2016 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 2016 2015 Common Size Cash $26,407 16.1% $32,316 Accounts Receivable $12,322 7.5% $10,828 Inventory $10,942 6.7% $10,293 30.3% $53,437 Total Current Assets $49,671 Plant & Equipment $177,560 108.2% $142,900 Accumulated Depreciation ($63,102) -38.4% ($51,265) Total Fixed Assets $114,458 69.7% $91,635 Total Assets $164,128 100.0% $145,072 5.2% $7,283 LIABILITIES & OWNERS' EQUITY Accounts Payable $8,578 Current Debt $25,225 15.4% $29,246 Long Term Debt $68,230 41.6% $53,832 62.2% $90,361 Total Liabilities $102,033 Common Stock $27,590 16.8% $24,679 Retained Earnings $34,506 21.0% $30,031 $62,096 37.8% $54,710 $164,128 100.0% $145,072 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: 2016 2015 $4,474 $7,540 $11,837 $9,527 $0 $0 Accounts Payable $1,295 $1,457 Inventory ($649) ($2,615) Net Income (Loss) Depreciation Extraordinary gains/losses/writeoffs Accounts Receivable ($1,494) ($1,043) Net cash from operations $15,464 $14,864 Cash Flows from Investing Activities: Plant Improvements ($34,660 ($15,800 ) ) Cash Flows from Financing Activities: Dividends Paid Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt $0 ($12,733 ) $2,911 $0 $0 $0 $14,398 $9,473 $0 ($7,533) Change in current debt (net) ($4,021) $7,066 Net cash from financing activities $13,287 ($3,727) Net change in cash position ($5,909) ($4,662) Closing cash position $26,407 $32,316 Annual Report Page 1 Top Annual Report Chester C59559 Round: 1 Dec. 31, 2016 2016 Income Statement (Product Name:) Cozy 2016 Total Commo n Size Creak Crimp Na Na Na Na $39,659 $41,401 $32,051 $36,811 $0 $0 $0 $0 $149,922 100.0% $9,987 $10,217 $8,355 $9,906 $0 $0 $0 $0 $38,465 25.7% $17,258 $18,520 $13,268 $16,208 $0 $0 $0 $0 $65,254 43.5% $471 $0 $0 $0 $0 $1,313 0.9% $27,411 $28,980 $22,057 $26,585 $0 $0 $0 $0 $105,032 70.1% Contribution $12,248 $12,421 $9,994 $10,227 Margin $0 $0 $0 $0 $44,890 29.9% Sales City Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $166 $243 $434 Period Costs: Depreciation $2,800 $3,333 $2,604 $3,100 $0 $0 $0 $0 $11,837 7.9% SG&A: R&D $1,000 $1,000 $891 $0 $0 $0 $0 $3,788 2.5% $1,150 $1,150 $1,150 $1,150 $0 $0 $0 $0 $4,600 3.1% $1,000 $1,000 Promotion s Sales $896 $700 $700 $0 $0 $0 $0 $3,400 2.3% $406 $466 $0 $0 $0 $0 $1,900 1.3% Total Period $6,453 $7,008 $5,757 $6,308 $0 $0 $0 $0 $25,525 17.0% Net Margin $5,796 $5,413 $4,237 $3,919 $0 $0 $0 $0 $19,365 12.9% Admin $503 $525 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing. Other $865 0.6% EBIT $18,499 12.3% Short Term Interest $2,901 1.9% LongTerm Interest $8,574 5.7% Taxes $2,458 1.6% Profit Sharing Net Profit $91 0.1% $4,474 3.0% Annual Report Page 2 PRINT Annual Report Top Annual Report Digby 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 Round: 1 Dec. 31, 2016 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 2016 2015 Common Size Cash Accounts Receivable Inventory $19,019 12.9% $32,550 $9,188 6.2% $9,760 $10,975 7.5% $6,407 26.6% $48,717 Total Current Assets $39,182 Plant & Equipment $165,300 112.2% $124,400 Accumulated Depreciation ($57,176) -38.8% ($47,289) Total Fixed Assets $108,124 73.4% $77,111 Total Assets $147,307 100.0% $125,828 $6,154 4.2% $5,796 Current Debt $21,728 14.8% $25,494 Long Term Debt $59,162 40.2% $41,366 59.1% $72,656 LIABILITIES & OWNERS' EQUITY Accounts Payable Total Liabilities $87,044 Common Stock $18,657 12.7% $14,385 Retained Earnings $41,607 28.2% $38,786 $60,264 40.9% $53,171 $147,307 100.0% $125,828 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) 2016 2015 $2,821 $10,177 Depreciation Extraordinary gains/losses/writeoffs Accounts Payable Inventory Accounts Receivable Net cash from operations $9,887 $8,293 $0 $0 $357 $608 ($4,568) $1,388 $571 ($946) $9,068 $19,521 Cash Flows from Investing Activities: ($40,900 ($26,642 ) ) Plant Improvements Cash Flows from Financing Activities: Dividends Paid $0 ($6,270) Sales of Common Stock Purchase of Common Stock Cash from long term debt Retirement of long term debt $4,272 $0 $0 $0 $17,796 $15,601 $0 ($5,882) Change in current debt (net) ($3,766) Net cash from financing activities $18,301 $13,073 Net change in cash position Closing cash position ($13,531 ) $9,625 $5,952 $19,019 $32,550 Annual Report Page 1 Top Annual Report Digby Round: 1 Dec. 31, 2016 C59559 2016 Income Statement (Product Dim Dome Dug Drat Daze Na Na Na 2016 Commo Name:) Sales Total n Size $25,860 $41,429 $23,383 $21,119 $0 $0 $0 $0 $111,792 100.0% Direct Labor $3,720 $11,089 $4,559 $4,314 $0 $0 $0 $0 $23,681 21.2% Direct Material $9,264 $18,720 $10,118 $8,521 $0 $0 $0 $0 $46,623 41.7% $389 $0 $0 $0 $0 $1,317 1.2% $13,322 $30,117 $14,958 $13,224 $0 $0 $0 $0 $71,621 64.1% Contribution $12,538 $11,312 $8,425 $7,895 Margin $0 $0 $0 $0 $40,171 35.9% $0 $0 $0 $0 $9,887 8.8% $977 $1,000 $0 $0 $0 $4,393 3.9% Variable Costs: Inventory Carry Total Variable $338 $308 $282 Period Costs: Depreciation SG&A: R&D Promotion $3,500 $3,400 $1,600 $1,387 $496 $947 $973 $1,000 $1,000 $1,000 $1,000 $0 $0 $0 $0 $4,000 3.6% $1,000 $1,800 $900 $1,200 $0 $0 $0 $0 $4,900 4.4% $358 $0 $0 $0 $0 $1,712 1.5% Total Period $6,392 $7,782 $4,831 $4,887 $1,000 $0 $0 $0 $24,892 22.3% Net Margin $6,146 $3,531 $3,594 $3,008 ($1,000) $0 $0 $0 $15,279 13.7% s Sales Admin $396 $635 $324 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. Annual Report Page 2