practice round 7

7/27/2019 Practice Round 7

1/14

Round: 7Dec. 31, 2020

C58357

Andrews

Nguyen Truong ThachPham Van Tuan

Baldwin

Huynh Duong Vu AnhHuynh Thi Ngoc Ngan

Chester

Pham Quoc HaiDoan Thi Thanh Hien

Digby

Do Cong ToanTa Thi Thao Quyen

Erie

Nguyen Ngoc ThuanPham Thi Huyen ThanhDang Truong Thanh Nhan

Ferris

Huynh Dang Bao ThiPham Hoai Thanh Thao

Selected Financial Statistics

Andrews Baldwin Chester Digby Erie Ferris

ROS 15.1% -7.3% 10.5% 4.1% 8.9% 12.7%

Asset Turnover 0.96 1.19 1.01 1.83 1.96 0.80

ROA 14.5% -8.6% 10.6% 7.5% 17.3% 10.2%

Leverage

(Assets/Equity)1.5 4.8 1.8 13.4 1.8 1.6

ROE 21.7% -41.1% 18.7% 100.0% 30.5% 15.8%

Emergency Loan $0 $25,242,414 $0 $9,757,651 $0 $0

Sales $241,281,895 $132,760,189 $213,936,268 $116,345,500 $245,248,191 $229,109,325

EBIT $67,498,331 ($1,805,168) $46,603,686 $16,150,912 $39,256,286 $58,922,752Profits $36,501,853 ($9,633,114) $22,441,310 $4,738,752 $21,719,143 $29,042,458

Cumulative Profit $117,738,786 ($22,190,760) $65,517,077 ($72,871,447) $22,610,060 $80,483,753

SG&A / Sales 12.9% 30.2% 14.8% 19.8% 14.6% 13.7%

Contrib. Margin % 48.9% 36.9% 44.7% 38.4% 35.4% 50.7%

CAPSTONE COURIER Page 1


2/14

Stock & Bonds C58357Round: 7

Dec. 31, 2020

Stock Market Summary

Company Close Change SharesMarketCap

($M)Book Value EPS Dividend Yield P/E

Andrews $159.34 $29.79 2,279,987 $363 $73.89 $16.01 $2.00 1.3% 9.9Baldwin $1.00 ($24.78) 2,979,427 $3 $7.87 ($3.23) $0.00 0.0% -0.3

Chester $108.26 $26.89 2,199,988 $238 $54.53 $10.20 $0.00 0.0% 10.6

Digby $1.00 $0.00 39,174,612 $39 $0.12 $0.12 $0.00 0.0% 8.2

Erie $77.19 $18.77 2,474,247 $191 $28.78 $8.78 $0.00 0.0% 8.8Ferris $98.97 $17.28 3,570,843 $353 $51.31 $8.13 $0.00 0.0% 12.2

Bond Market Summary

Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P

Andrews Digby13.1S2026 $18,064,795 13.3% 98.81 A 14.3S2026 $5,605,000 16.0% 89.64 DDD

14.4S2027 $16,000,000 13.8% 104.37 A 15.2S2027 $13,959,000 16.5% 92.20 DDD

14.3S2028 $38,637,000 13.7% 104.26 A 15.7S2028 $2,529,000 16.8% 93.73 DDDBaldwin 16.2S2029 $5,456,000 16.9% 95.58 DDD

11.7S2024 $3,640,211 13.7% 85.22 DDD 16.7S2030 $10,778,000 17.1% 97.69 DDD

12.3S2025 $15,000,000 14.5% 84.68 DDD Erie14.6S2026 $5,000,000 16.0% 91.05 DDD 13.2S2025 $7,445,462 13.8% 95.92 BB

15.1S2027 $17,412,000 16.4% 92.18 DDD 14.2S2026 $11,632,000 14.3% 99.23 BB

16.2S2029 $15,000,000 16.9% 96.01 DDD 15.2S2027 $4,000,000 14.7% 103.39 BB

Chester 15.7S2028 $12,215,000 14.8% 105.95 BB13.2S2025 $27,000,000 13.8% 95.92 BB Ferris

14.2S2028 $15,000,000 14.3% 99.08 BB 11.7S2024 $1,634,166 12.4% 94.42 A

14.2S2029 $40,000,000 14.3% 99.03 BB 12.8S2025 $2,000,000 13.2% 97.23 A13.0S2026 $9,000,000 13.3% 97.64 A

14.0S2027 $40,000,000 13.8% 101.74 A

14.8S2028 $26,000,000 14.0% 105.64 A15.1S2029 $15,000,000 14.0% 107.53 A

Next Year's Prime Rate 10.90%



3/14

Financial Summary C58357Round: 7

Dec. 31, 2020Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris

CashFlows from operating activities

Net Income(Loss) $36,502 ($9,633) $22,441 $4,739 $21,719 $29,042

Adjustment for non-cash items:

Depreciation $19,713 $11,075 $17,533 $5,527 $13,727 $23,690

Extraordinary gains/losses/writeoffs ($331) ($360) $0 $0 ($2,239) ($1,166)

Changes in current assets and liablilities

Acounts payable $623 ($759) $1,653 $4,305 $1,137 $176

Inventory ($1,356) ($3,162) $3,975 $2,726 $5,307 $4,798Accounts Receivable ($1,422) ($50) ($2,820) ($1,118) ($1,901) ($5,442)

Net cash from operations $53,730 ($2,889) $42,783 $16,178 $37,750 $51,099

Cash flows from investing activities

Plant improvements(net) ($12,180) ($13,600) ($25,400) $0 $0 ($64,400)

Cash flows from financing activities

Dividends paid ($4,560) $0 $0 $0 $0 $0

Sales of common stock $0 $0 $0 $392 $0 $25,000

Purchase of common stock $0 $0 $0 $36,824 ($7,605) $0

Cash from long term debt issued $0 $0 $0 $10,778 $0 $0

Early retirement of long term debt $0 ($2,000) $0 $0 ($17,000) ($10,000)

Retirement of current debt $0 ($20,850) ($20,850) ($78,929) ($20,850) ($20,850)

Cash from current debt borrowing $0 $0 $0 $5,000 $0 $0

Cash from emergency loan $0 $25,242 $0 $9,758 $0 $0

Net cash from financing activities ($4,560) $2,392 ($20,850) ($16,178) ($45,455) ($5,850)

Net change in cash position $36,990 ($14,097) ($3,467) $0 ($7,705) ($19,151)

Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris

Cash $53,259 $0 $31,653 $0 $12,160 $20,067

Accounts Receivable $19,831 $10,912 $17,584 $19,125 $20,157 $28,246

Inventory $8,183 $25,847 $14,686 $1,962 $1,634 $4,598

Total Current Assets $81,273 $36,759 $63,923 $21,087 $33,952 $52,911

Plant and equipment $295,700 $166,122 $263,000 $82,898 $205,900 $355,350

Accumulated Depreciation ($125,636) ($91,246) ($115,707) ($40,515) ($114,500) ($122,543)

Total Fixed Assets $170,064 $74,876 $147,293 $42,383 $91,400 $232,807

Total Assets $251,337 $111,635 $211,216 $63,470 $125,352 $285,718

Account Payable $10,168 $6,888 $9,246 $5,646 $18,853 $8,847

CurrentDebt $0 $25,242 $0 $14,758 $0 $0

Long Term Debt $72,702 $56,052 $82,000 $38,327 $35,292 $93,634

Total Liabilities $82,870 $88,183 $91,246 $58,731 $54,146 $102,481

Common Stock $30,716 $21,280 $29,060 $0 $26,670 $77,360

Retained Earnings $137,750 $2,173 $90,911 $4,739 $44,536 $105,877

Total Equity $168,466 $23,452 $119,970 $4,739 $71,206 $183,237

Total Liabilities & Owners'' Equity $251,337 $111,635 $211,216 $63,470 $125,352 $285,718

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris

Sales $241,282 $132,760 $213,936 $116,345 $245,248 $229,109

Variable Costs(Labor,Material,Carry) $123,341 $83,748 $118,226 $71,660 $158,424 $112,984

Depreciation $19,713 $11,075 $17,533 $5,527 $13,727 $23,690

SGA(R&D,Promo,Sales,Admin) $31,061 $40,073 $31,569 $23,002 $35,705 $31,278

Other(Fees,Writeoffs,TQM,Bonuses) ($331) ($330) $4 $6 ($1,864) $2,234

EBIT $67,498 ($1,805) $46,604 $16,151 $39,256 $58,923

Interest(Short term,Long term) $10,196 $13,015 $11,374 $8,712 $5,160 $13,330

Taxes $20,056 ($5,187) $12,330 $2,604 $11,934 $15,957

Profit Sharing $745 $0 $458 $97 $443 $593

Net Profit $36,502 ($9,633) $22,441 $4,739 $21,719 $29,042



4/14


5/14

Traditional Segment Analysis C58357 Round: 7Dec. 31, 2020

Traditional StatisticsTotal Industry Unit Demand 13,179

Actual Industry Unit Sales 13,179

Segment % of Total Industry 25.8%

Next Year's Segment Growth Rate 9.0%

Traditional Customer Buying CriteriaExpectations Importance

1. Age Ideal Age = 2.0 47%

2. Price $16.50 - 26.50 23%

3. Ideal Position Pfmn 10.5 Size 9.8 21%

4. Reliability MTBF 14000-19000 9%

Top Products in Traditional Segment

Name

Market

Share

Units

Sold to

Seg

Revision

Date

Stock

Out

Pfmn

Coord

Size

Coord

List

Price MTBF

Age

Dec.31

Promo

Budget

Cust.

Aware-

ness

Sales

Budget

Cust.

Access-

ibility

Dec.

Cust.

Survey

Eat 18% 2,330 10/2/2020 YES 10.5 9.8 $22.00 19000 1.38 $1,400 100% $3,000 92% 75

Fast 17% 2,252 1/27/2020 YES 9.6 10.8 $20.00 18000 2.32 $1,450 100% $1,500 93% 75

Cake 17% 2,241 11/25/2020 YES 10.4 9.9 $20.00 16000 1.35 $1,500 100% $3,000 88% 70

Able 15% 2,016 3/12/2021 9.3 10.8 $21.00 19000 2.36 $1,500 100% $1,500 75% 61

Fish 12% 1,584 10/14/2020 YES 10.2 10.0 $20.50 14000 1.15 $1,450 100% $1,500 93% 53

Baker 11% 1,468 6/23/2020 9.8 10.5 $25.00 16000 1.54 $1,300 98% $3,500 89% 52

Dixie 10% 1,287 8/9/2020 YES 10.5 9.8 $22.99 19000 1.65 $1,500 100% $2,000 67% 72



6/14

Low End Segment Analysis C58357 Round: 7Dec. 31, 2020

Low End StatisticsTotal Industry Unit Demand 18,648




Low End Customer Buying CriteriaExpectations Importance

1. Price $11.50 - 21.50 53%




Top Products in Low End Segment

Name

Market

Share

Units

Sold to

Seg

Revision

Date

Stock

Out

Pfmn

Coord

Size

Coord

List

Price MTBF

Age

Dec.31

Promo

Budget

Cust.

Aware-

ness

Sales

Budget

Cust.

Access-

ibility

Dec.

Cust.

Survey

Cedar 19% 3,565 2/14/2019 YES 5.3 15.0 $13.00 12000 6.74 $1,500 100% $3,000 78% 75

Acre 17% 3,201 2/4/2020 5.1 15.0 $13.50 17000 2.89 $1,500 100% $1,500 90% 53

Bead 17% 3,127 12/5/2019 5.3 16.0 $15.00 17500 5.12 $1,300 98% $4,200 94% 48

Feat 17% 3,078 9/27/2020 5.4 15.0 $13.20 12000 1.67 $1,450 100% $3,000 93% 50

Ebb 15% 2,804 7/7/2020 YES 5.8 14.5 $14.00 14000 1.56 $1,400 100% $3,000 91% 49

Anna 8% 1,485 3/12/2021 YES 4.6 15.5 $13.50 17000 1.90 $1,500 86% $1,500 90% 33

Daze 7% 1,386 1/1/2020 YES 6.3 14.0 $15.99 13999 8.45 $1,500 96% $2,000 63% 46



7/14

High End Segment Analysis C58357 Round: 7Dec. 31, 2020

High End StatisticsTotal Industry Unit Demand 7,139




High End Customer Buying CriteriaExpectations Importance




4. Price $26.50 - 36.50 9%

Top Products in High End Segment

Name

Market

Share

Units

Sold to

Seg

Revision

Date

Stock

Out

Pfmn

Coord

Size

Coord

List

Price MTBF

Age

Dec.31

Promo

Budget

Cust.

Aware-

ness

Sales

Budget

Cust.

Access-

ibility

Dec.

Cust.

Survey

Fist 15% 1,070 10/10/2020 YES 16.0 4.0 $36.50 25000 1.24 $1,450 100% $3,000 92% 79

Cid 14% 1,012 7/23/2020 YES 15.8 4.5 $36.00 25000 1.46 $1,500 100% $3,000 87% 73

Echo 13% 957 6/24/2020 YES 15.8 4.5 $36.50 25000 1.51 $1,400 100% $2,250 99% 74

Edg 13% 957 7/7/2020 YES 15.8 4.5 $36.50 25000 1.35 $3,000 100% $2,250 99% 77

Able1 13% 900 8/29/2020 YES 15.8 4.5 $36.50 25000 1.35 $1,500 100% $1,500 96% 74

Dalat 13% 895 6/5/2020 15.8 4.5 $36.19 25000 1.55 $1,600 100% $2,000 57% 61

Adam 12% 881 8/29/2020 YES 15.8 4.5 $36.50 25000 1.39 $1,500 100% $1,500 96% 73

Candy 4% 295 3/11/2020 16.4 3.9 $36.00 25000 1.03 $2,000 62% $0 87% 41

Bid 2% 171 7/3/2020 YES 14.9 6.3 $36.00 25000 1.56 $1,300 98% $4,000 93% 41



8/14

Performance Segment Analysis C58357 Round: 7Dec. 31, 2020

Performance StatisticsTotal Industry Unit Demand 6,167




Performance Customer Buying CriteriaExpectations Importance



3. Price $21.50 - 31.50 19%


Top Products in Performance Segment

Name

Market

Share

Units

Sold to

Seg

Revision

Date

Stock

Out

Pfmn

Coord

Size

Coord

List

Price MTBF

Age

Dec.31

Promo

Budget

Cust.

Aware-

ness

Sales

Budget

Cust.

Access-

ibility

Dec.

Cust.

Survey

Coat 16% 1,015 7/15/2020 17.0 10.8 $31.00 27000 1.50 $1,500 100% $3,000 84% 77

Foam 16% 990 8/29/2020 YES 17.0 10.8 $31.00 27000 1.34 $1,500 100% $3,000 87% 83

Ems 16% 958 6/16/2020 YES 17.0 10.8 $31.50 27000 1.48 $1,400 100% $2,250 99% 80

Edge 16% 957 6/16/2020 YES 17.0 10.8 $31.50 27000 1.54 $1,400 100% $2,250 99% 79

Bold 15% 897 7/4/2020 16.0 11.5 $31.00 27000 1.53 $1,300 98% $4,000 92% 68

Aft 14% 835 8/20/2020 YES 17.0 10.8 $31.00 27000 1.42 $1,500 100% $1,500 66% 65

Dot 8% 515 6/19/2020 YES 17.0 10.8 $31.00 27000 1.90 $2,000 100% $2,000 54% 63



9/14

Size Segment Analysis C58357 Round: 7Dec. 31, 2020

Size StatisticsTotal Industry Unit Demand 5,959




Size Customer Buying CriteriaExpectations Importance




4. Price $21.50 - 31.50 9%

Top Products in Size Segment

Name

Market

Share

Units

Sold to

Seg

Revision

Date

Stock

Out

Pfmn

Coord

Size

Coord

List

Price MTBF

Age

Dec.31

Promo

Budget

Cust.

Aware-

ness

Sales

Budget

Cust.

Access-

ibility

Dec.

Cust.

Survey

Egg 13% 779 6/16/2020 9.5 3.3 $31.50 21000 1.54 $1,400 100% $3,000 90% 98

Cure 13% 763 7/15/2020 9.5 3.3 $31.00 21000 1.50 $1,500 100% $3,000 90% 99

Agape 12% 730 8/20/2020 9.5 3.3 $31.50 21000 1.42 $1,500 100% $1,500 93% 93

Fume 12% 718 8/25/2020 9.5 3.0 $31.50 21000 1.35 $1,450 100% $1,500 90% 92

Aft1 12% 692 8/20/2020 9.5 3.3 $31.50 21000 1.22 $1,500 100% $1,500 93% 91

Cookie 11% 664 7/15/2020 9.5 3.3 $31.00 21000 1.31 $2,000 100% $0 90% 85

Fuzzy 10% 599 8/17/2020 YES 9.5 2.8 $31.00 21000 1.15 $1,600 100% $1,500 90% 85

Dune 9% 524 6/19/2020 9.5 3.3 $31.00 19000 1.82 $1,900 100% $2,000 55% 68

Buddy 8% 489 7/4/2020 8.8 4.3 $31.00 21000 1.54 $1,300 98% $4,000 93% 60



10/14

Market Share C58357Round: 7

Dec. 31, 2020

Actual Market Share in Units Potential Market Share in UnitsTrad Low High Pfmn Size Total Trad Low High Pfmn Size Total

Industry Unit Sales 13,179 18,648 7,139 6,167 5,959 51,091 Units Demanded 13,179 18,648 7,139 6,167 5,959 51,091% of Market 25.8% 36.5% 14.0% 12.1% 11.7% 100.0% % of Market 25.8% 36.5% 14.0% 12.1% 11.7% 100.0%

Able 15.3% 4.0% Able 13.8% 3.6%Acre 17.2% 6.3% Acre 13.5% 4.9%Adam 12.3% 1.7% Adam 12.1% 1.7%Aft 13.5% 1.6% Aft 12.6% 1.5%

Agape 12.2% 1.4% Agape 11.9% 1.4%Able1 12.6% 1.8% Able1 12.3% 1.7%Aft1 11.6% 1.3% Aft1 11.9% 1.4%Anna 8.0% 2.9% Anna 9.9% 3.6%Total 15.3% 25.1% 25.0% 13.5% 23.9% 21.0% Total 13.8% 23.4% 24.5% 12.6% 23.9% 19.8%

Baker 11.1% 2.9% Baker 10.0% 2.6%Bead 16.8% 6.1% Bead 13.2% 4.8%Bid 2.4% 0.3% Bid 7.3% 1.0%Bold 14.5% 1.8% Bold 13.2% 1.6%Buddy 8.2% 1.0% Buddy 8.0% 0.9%Total 11.1% 16.8% 2.4% 14.5% 8.2% 12.0% Total 10.0% 13.2% 7.3% 13.2% 8.0% 11.0%

Cake 17.0% 4.4% Cake 16.0% 4.1%Cedar 19.1% 7.0% Cedar 19.5% 7.1%Cid 14.2% 2.0% Cid 12.9% 1.8%Coat 16.5% 2.0% Coat 14.9% 1.8%Cure 12.8% 1.5% Cure 12.5% 1.5%Cookie 11.1% 1.3% Cookie 10.9% 1.3%

Candy 4.1% 0.6% Candy 3.5% 0.5%Total 17.0% 19.1% 18.3% 16.5% 24.0% 18.7% Total 16.0% 19.5% 16.4% 14.9% 23.3% 18.1%

Daze 7.4% 2.7% Daze 11.3% 4.1%Dixie 9.8% 2.5% Dixie 14.1% 3.6%Dot 8.4% 1.0% Dot 12.2% 1.5%Dune 8.8% 1.0% Dune 8.6% 1.0%Dalat 12.5% 1.8% Dalat 11.1% 1.5%Total 9.8% 7.4% 12.5% 8.4% 8.8% 9.0% Total 14.1% 18.4% 11.1% 12.2% 8.6% 14.4%

Eat 17.7% 4.6% Eat 16.8% 4.3%Ebb 15.0% 5.5% Ebb 12.3% 4.5%Echo 13.4% 1.9% Echo 13.4% 1.9%Edge 15.5% 1.9% Edge 15.5% 1.9%Egg 13.1% 1.5% Egg 12.7% 1.5%Ems 15.5% 1.9% Ems 15.6% 1.9%Edg 13.4% 1.9% Edg 14.1% 2.0%Total 17.7% 15.0% 26.8% 31.1% 13.1% 19.1% Total 16.8% 12.3% 27.5% 31.1% 12.7% 17.9%

Fast 17.1% 4.4% Fast 16.7% 4.3%Feat 16.5% 6.0% Feat 13.0% 4.7%Fist 15.0% 2.1% Fist 13.3% 1.9%Foam 16.1% 1.9% Foam 16.0% 1.9%Fume 12.1% 1.4% Fume 11.7% 1.4%Fish 12.0% 3.1% Fish 12.6% 3.2%Fuzzy 10.1% 1.2% Fuzzy 11.7% 1.4%Total 29.1% 16.5% 15.0% 16.1% 22.1% 20.2% Total 29.3% 13.0% 13.3% 16.0% 23.5% 18.8%



11/14

Perceptual Map C58357Round: 7

Dec. 31, 2020

Andrews Baldwin ChesterName Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised

Able 9.3 10.8 3/12/2021 Baker 9.8 10.5 6/23/2020 Cake 10.4 9.9 11/25/2020

Acre 5.1 15.0 2/4/2020 Bead 5.3 16.0 12/5/2019 Cedar 5.3 15.0 2/14/2019

Adam 15.8 4.5 8/29/2020 Bid 14.9 6.3 7/3/2020 Cid 15.8 4.5 7/23/2020

Aft 17.0 10.8 8/20/2020 Bold 16.0 11.5 7/4/2020 Coat 17.0 10.8 7/15/2020

Agape 9.5 3.3 8/20/2020 Buddy 8.8 4.3 7/4/2020 Cure 9.5 3.3 7/15/2020

Able1 15.8 4.5 8/29/2020 Bi 8.1 5.3 1/22/2020 Cookie 9.5 3.3 7/15/2020Aft1 9.5 3.3 8/20/2020 Bo 14.0 6.3 1/25/2020 Candy 16.4 3.9 3/11/2020

Anna 4.6 15.5 3/12/2021

Digby Erie FerrisName Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised

Daze 6.3 14.0 1/1/2020 Eat 10.5 9.8 10/2/2020 Fast 9.6 10.8 1/27/2020

Dell 5.3 15.0 3/22/2018 Ebb 5.8 14.5 7/7/2020 Feat 5.4 15.0 9/27/2020

Dixie 10.5 9.8 8/9/2020 Echo 15.8 4.5 6/24/2020 Fist 16.0 4.0 10/10/2020

Dot 17.0 10.8 6/19/2020 Edge 17.0 10.8 6/16/2020 Foam 17.0 10.8 8/29/2020

Dune 9.5 3.3 6/19/2020 Egg 9.5 3.3 6/16/2020 Fume 9.5 3.0 8/25/2020

Dalat 15.8 4.5 6/5/2020 Ems 17.0 10.8 6/16/2020 Fish 10.2 10.0 10/14/2020

Edg 15.8 4.5 7/7/2020 Fuzzy 9.5 2.8 8/17/2020



12/14


13/14

Annual ReportAnnual Report Digby C58357

Round: 7Dec. 31, 2020

Balance SheetDEFINITIONS

:Common Size: The common sizecolumn simply represents each item as apercentage of total assets for that year.Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lagbetween delivery and payment of yourproducts. Inventories: The currentvalue of your inventory across all products. Azero indicates your company stocked out.Unmet demand would, of course, fall to yourcompetitors. Plant & Equipment: Thecurrent value of your plant. AccumDeprec: The total accumulateddepreciation from your plant. AcctsPayable: What the company currentlyowes suppliers for materials and services.

Current Debt: The debt the companyis obligated to pay during the next year ofoperations. It includes emergency loans usedto keep your company solvent should you runout of cash during the year. LongTermDebt: The company'slong term debt is in the form of bonds, and thisrepresents the total value of your bonds.Common Stock: The amount ofcapital invested by shareholders in thecompany. RetainedEarnings:The profits that the company chose to keepinstead of paying to shareholders as dividends.

ASSETS 2020Common

Size

2019

Cash $0 0.0% $0Account Receivable $19,125 30.1% $18,007

Inventory $1,962 3.1% $4,687

Total Current Assets $21,087 33.2% $22,694

Plant & Equipment $82,898 131.0% $82,898

Accumulated Depreciation ($40,515) -63.8% ($34,989)

Total Fixed Assets $42,383 66.8% $47,909

Total Assets $63,470 100.0% $70,604

LIABILITIES & OWNER'S

EQUITY

Accounts Payable $5,646 8.9% $1,341Current Debt $14,758 23.3% $78,929Long Term Debt $38,327 60.4% $27,549

Total Liabilities $58,731 92.5% $107,819

Common Stock $0 0.0% $17,822Retained Earnings $4,739 7.5% ($55,038)

Total Equity $4,739 7.5% ($37,216)

Total Liab. & O. Equity $63,470 100.0% $70,604

Cash Flow StatementTheCash Flow Statement examines what happened in the Cash

Account during the year. Cash injections appear as positive numbers andcash 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 2020 2019

NetIncome(Loss) $4,739 ($10,349)

Depreciation $5,527 $5,527

Extraordinary gains/losses/writeoffs $0 $0

Accounts Payable $4,305 ($3,085)

Inventory $2,726 $67,998

Accounts Receivable ($1,118) ($11,169)

Net cash from operation $16,178 $48,921

Cash Flows from Investing Activities

Plant Improvements $0 ($19,000)

Cash Flows from Financing Activities

Dividends Paid $0 $0

Sales of Common Stock $392 $0

Purchase of Common Stock $36,824 $0

Cash from long term debt $10,778 $5,456

Retirement of long term debt $0 ($20,850)

Change in current debt(net) ($64,172) ($14,527)

Net Cash from financing activities ($16,178) ($29,921)

Net Change in cash position $0 $0

Closing cash position $0 $0

Annual Report Page 13


14/14

Annual Report Digby C58357Round: 7

Dec. 31, 2020

2020 Income Statement

(Product Name) Daze Dell Dixie Dot Dune Dalat NA NA 2020Total

CommonSize

Sales $22,166 $0 $29,593 $15,961 $16,251 $32,375 $0 $0 $116,345 100.0%

Variable Costs:Direct Labor $2,130 $0 $5,933 $4,747 $4,572 $9,864 $0 $0 $27,246 23.4%Direct Material $7,448 $0 $11,569 $6,812 $6,005 $12,344 $0 $0 $44,179 38.0%

Inventory Carry $0 $0 $0 $0 $207 $28 $0 $0 $235 0.2%Total Variable $9,578 $0 $17,503 $11,559 $10,784 $22,236 $0 $0 $71,660 61.6%

Contribution Margin $12,588 $0 $12,090 $4,402 $5,466 $10,139 $0 $0 $44,685 38.4%

Period Costs:Depreciation $2,147 $2 $1,647 $451 $440 $840 $0 $0 $5,527 4.8%SG&A: R&D $0 $0 $614 $473 $473 $435 $0 $0 $1,995 1.7%Promotions $1,500 $0 $1,500 $2,000 $1,900 $1,600 $0 $0 $8,500 7.3%Sales $2,000 $0 $2,000 $2,000 $2,000 $2,000 $0 $0 $10,000 8.6%Admin $478 $0 $638 $344 $350 $698 $0 $0 $2,507 2.2%

Total Period $6,124 $2 $6,398 $5,268 $5,163 $5,573 $0 $0 $28,528 24.5%

Net Margin $6,464 ($2) $5,692 ($865) $303 $4,566 $0 $0 $16,157 13.9%

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 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 0.0%

EBIT $16,151 13.9%

Short Term Interest $2,708 2.3%

Long Term Interest $6,004 5.2%Taxes $2,604 2.2%

Profit Sharing $97 0.1%

Net Profit $4,739 4.1%

Annual Report Page 14

practice round 7

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