You can see the effect of the matching principle on your Capsim Core Income Statement. When you sell products, the amount you paid for the materials and labor will show up in the Variable Cost section, even though your company paid those bills earlier. Th

Contents

ZP95294_1    Round  2 - 2022 Report

Section 1 Research and Development

Section 2 Marketing Low Tech

Section 3 Marketing High Tech

Section 4 Production

Section 5 Finance

Section 6 Product Financials

Section 7 Custom Modules

0 . 1 H i g h L eve l O ve r v i e w

Andrews Baldwin Chester Digby Erie Ferris Average

Sales $32,477 $79,895 $60,598 $45,745 $31,933 $68,645 $53,216

Pro�t $2,664 $12,419 $8,016 $5,484 $3,783 $6,102 $6,411

Contribution Margin 38.02% 34.73% 32.49% 32.12% 32.63% 34.36% 34.06%

Stock Price $19.14 $44.58 $26.55 $21.09 $13.91 $23.70 $24.83

Emergency Loan $0 $0 $0 $0 $0 $0 $0

Market Share 10.2% 25.0% 19.0% 14.3% 10.0% 21.5% 16.7%

Section 1 | Research and Development

1 . 2 L o w Te c h

Customer Buying Criteria Expectations Importance

Price $15.00 - $35.00 41%

Age 3 Years 29%

Reliability 14,000 - 20,000 Hours 21%

Positioning Performance 5.8 Size 14.2 9%

1 . 3 H i g h Te c h

Customer Buying Criteria Expectations Importance

Positioning Performance 8.8 Size 11.2 33%

Age 0 Years 29%

Price $25.00 - $45.00 25%

Reliability 17,000 - 23,000 Hours 13%

1.4 Perceptual Map

Performance

Si ze

AbleAbleAble

BakerBakerBaker

CakeCakeCake

DazeDazeDazeEatEatEatFastFastFast

FrostFrostFrost

0 2 4 6 8 10 12 14 16 18 20 0

2

4

6

8

10

12

14

16

18

20

1 . 5 P ro d u c t L i s t

Name Performance Size Reliability Age Revision Date

Able 7.5 13.0 18,550 1.9 April 6, 2022

Ace -- -- -- -- April 1, 2023

Baker 8.8 11.0 23,000 1.5 December 24, 2022

Cake 7.6 12.4 21,300 2.6 December 14, 2022

Daze 5.8 14.2 20,000 1.9 May 20, 2022

Dino -- -- -- -- October 15, 2023

Eat 5.8 14.2 19,000 1.9 May 18, 2022

Fast 6.0 14.0 17,000 2.9 May 3, 2022

Frost 8.1 11.9 17,000 0.7 April 28, 2022

Section 2 | Marketing

Low Tech 2 . 1 C u s to m e r B u y i n g C r i t e r i a

Expectations Importance

Price $15.00 - $35.00 41%

Age 3 Years 29%

Reliability 14,000 - 20,000 Hours 21%

Positioning Performance 5.8 Size 14.2 9%

2 . 2 D e m a n d I n f o r m a t i o n

2022 Total Market Size 6,098

2022 Total Units Sold 5,437

2023 Demand Growth Rate 10%

2.3 Market Share

AndrewsAndrews

7.2 %7.2 %

Andrews

7.2 %

BaldwinBaldwin

0.0 %0.0 %

Baldwin

0.0 %

ChesterChester

27.0 %27.0 %

Chester

27.0 %

DigbyDigby

23.1 %23.1 %

Digby

23.1 %

ErieErie

16.2 %16.2 %

Erie

16.2 %

FerrisFerris

26.6 %26.6 %

Ferris

26.6 %

Andrews Baldwin Chester Digby Erie Ferris

2 . 4 To p P ro d u c t s

Name Price Units Sold Potential

Sold Stock Out

Age Performance Size Reliability Sales

Budget Customer

Accessibility Promo Budget

Customer Awareness

Customer Satisfaction

Cake $36.00 1,465 1,072 Yes 2.6 7.6 12.4 21,300 $1,200 32% $1,200 67% 14

Fast $34.00 1,435 1,966 Yes 2.9 6 14 17,000 $2,500 62% $2,000 100% 26

Daze $33.00 1,256 1,358 Yes 1.9 5.8 14.2 20,000 $1,000 30% $1,000 59% 19

Eat $32.25 880 1,323 Yes 1.9 5.8 14.2 19,000 $800 23% $800 41% 14

Able $41.00 390 370 Yes 1.9 7.5 13 18,550 $2,000 22% $2,000 95% 5

Frost $44.00 10 10 Yes 0.7 8.1 11.9 17,000 $2,000 62% $2,000 70% 0



Section 3 | Marketing

High Tech 3 . 1 C u s to m e r B u y i n g C r i t e r i a

Expectations Importance

Positioning Performance 8.8 Size 11.2 33%

Age 0 Years 29%

Price $25.00 - $45.00 25%

Reliability 17,000 - 23,000 Hours 13%

3 . 2 D e m a n d I n f o r m a t i o n

2022 Total Market Size 3,110

2022 Total Units Sold 3,110

2023 Demand Growth Rate 20%

3.3 Market Share

AndrewsAndrews

12.9 %12.9 %

Andrews

12.9 %

BaldwinBaldwin

57.1 %57.1 %

Baldwin

57.1 %

ChesterChester

7.0 %7.0 %

Chester

7.0 %

DigbyDigby

4.2 %4.2 %

Digby

4.2 %

ErieErie

3.5 %3.5 %

Erie

3.5 %

FerrisFerris

15.3 %15.3 %

Ferris

15.3 %

Andrews Baldwin Chester Digby Erie Ferris

3 . 4 To p P ro d u c t s

Name Price Units Sold Potential

Sold Stock Out

Age Performance Size Reliability Sales

Budget Customer

Accessibility Promo Budget

Customer Awareness

Customer Satisfaction

Baker $45.00 1,775 658 No 1.5 8.8 11 23,000 $2,400 61% $1,350 75% 33

Able $41.00 402 665 Yes 1.9 7.5 13 18,550 $2,000 54% $2,000 95% 13

Frost $44.00 326 691 Yes 0.7 8.1 11.9 17,000 $2,000 66% $2,000 70% 26

Cake $36.00 218 265 Yes 2.6 7.6 12.4 21,300 $1,200 34% $1,200 67% 15

Fast $34.00 149 308 Yes 2.9 6 14 17,000 $2,500 66% $2,000 100% 7

Daze $33.00 130 256 Yes 1.9 5.8 14.2 20,000 $1,000 25% $1,000 59% 9

Eat $32.25 110 268 Yes 1.9 5.8 14.2 19,000 $800 24% $800 41% 7



Section 4 | Production

Production vs Capacity

792792792

1,7821,7821,782

1,6831,6831,683

1,3861,3861,386

990990990

1,9201,9201,920

400400400

900900900

1,0001,0001,000

1,0001,0001,000

550550550

1,0501,0501,050

Production Capacity

Andrews

Baldwin

Chester

Digby

Erie

Ferris

0 200 400 600 800 1000 1200 1400 1600 1800 2000100 300 500 700 900 1100 1300 1500 1700 1900 2…

4 . 1 P l a n t I n f o r m a t i o n

Name Primary Segment Units Produced Units Sold Inventory Price Material Cost Labor Cost Contribution Margin Auto. Next Round Capacity Next Round Plant Utilization

Able High Tech 792 792 0 $41.00 $14.44 $10.19 38% 5 750 200%

Ace -- 0 0 0 $0.00 $0.00 $0.00 0% 1.7 600 0%

Baker High Tech 1,782 1,775 7 $45.00 $19.20 $12.35 34.7% 2.8 1,300 200%

Cake High Tech 1,683 1,683 0 $36.00 $15.98 $10.10 32.5% 4.4 1,050 170%

Daze Low Tech 1,386 1,386 0 $33.00 $11.84 $10.67 32.1% 3 1,000 140%

Dino -- 0 0 0 $0.00 $0.00 $0.00 0% 2 750 0%

Eat Low Tech 990 990 0 $32.25 $11.54 $9.97 32.6% 4 850 182%

Fast Low Tech 1,584 1,584 0 $34.00 $11.35 $9.74 35.3% 5 1,150 200%

Frost High Tech 336 336 0 $44.00 $15.73 $14.25 30.8% 1.5 400 200%

Section 5 | Finance

5 . 1 I n c o m e S t a t e m e n t

Andrews Baldwin Chester Digby Erie Ferris

Sales $32,477 $79,895 $60,598 $45,745 $31,933 $68,645

Variable Costs

Direct Material $12,055 $30,196 $23,899 $16,269 $11,640 $24,843

Direct Labor $8,073 $21,931 $17,008 $14,785 $9,874 $20,218

Inventory Carry $0 $24 $0 $0 $0 $0

Total Variable Costs (Labor, Material, Carry) $20,128 $52,150 $40,907 $31,053 $21,514 $45,061

Contribution Margin $12,349 $27,745 $19,691 $14,692 $10,418 $23,584

Period Costs

Depreciation $1,300 $1,704 $1,652 $1,200 $1,247 $2,313

SG&A

R&D $1,260 $979 $952 $1,382 $377 $657

Promotions $2,000 $1,350 $1,200 $1,000 $800 $4,000

Sales $2,000 $2,400 $1,200 $1,000 $800 $4,500

Administration $596 $1,315 $982 $737 $716 $1,122

Total Period Costs $7,156 $7,748 $5,986 $5,319 $3,939 $12,592

Net Margin $5,193 $19,997 $13,704 $9,373 $6,479 $10,992

Other (Fees/Write-offs/Bonuses/Relocation Fee) $400 $247 $369 $150 $64 $300

EBIT $4,793 $19,750 $13,335 $9,223 $6,415 $10,692

Interest (Short term/Long Term) $611 $253 $751 $614 $475 $1,113

Taxes $1,464 $6,824 $4,404 $3,013 $2,079 $3,353

Pro�t Sharing $54 $253 $164 $112 $77 $125

Net Pro�t $2,664 $12,419 $8,016 $5,484 $3,783 $6,102

5 . 2 C a s h F l o w S t a t e m e n t

Andrews Baldwin Chester Digby Erie Ferris

Starting Cash Position $18,044 $10,800 $7,934 $8,995 $9,521 $10,678

Cash From Operations

Net Income(Loss) $2,664 $12,419 $8,016 $5,484 $3,783 $6,102

Adjustment For Non-Cash Items

Depreciation $1,300 $1,704 $1,652 $1,200 $1,247 $2,313

Extraordinary Gains/Losses/Write-offs $0 $195 $145 $0 $42 $0

Changes In Current Assets And Liabilities

Accounts Payable ($78) $1,060 $615 ($42) ($557) $729

Inventory $0 ($201) $0 $0 $0 $0

Accounts Receivable $456 ($1,429) ($1,140) ($155) $179 ($1,261)

Net Cash From Operations $4,342 $13,748 $9,288 $6,487 $4,694 $7,883

Cash From Investing

Net Plant Improvements ($18,380) ($7,960) ($3,580) ($10,500) ($6,600) ($13,440)

Cash From Financing

Dividends Paid $0 ($1,439) $0 $0 ($700) $0

Sales Of Common Stock $8,000 $0 $1,900 $3,000 $0 $3,000

Purchase Of Common Stock $0 ($1,500) ($500) $0 $0 $0

Cash From Long-Term Debt Issued $0 $0 $1,600 $0 $0 $3,000

Early Retirement Of Long-Term Debt $0 ($2,000) ($2,800) $0 ($1,500) $0

Retirement Of Current Debt $0 $0 $0 $0 $0 ($1,000)

Cash From Current Debt Borrowing $0 $0 $3,500 $0 $0 $0

Cash From Emergency Loan $0 $0 $0 $0 $0 $0

Net Cash From Financing $8,000 ($4,939) $3,700 $3,000 ($2,200) $5,000

Effect Of Exchange Rates $0 $0 $0 $0 $0 $0

Net Change In Cash ($6,038) $849 $9,408 ($1,013) ($4,106) ($557)

Ending Cash Position $12,006 $11,649 $17,342 $7,981 $5,415 $10,121

5 . 3 B a l a n c e S h e e t

Andrews Baldwin Chester Digby Erie Ferris

Cash $12,006 $11,649 $17,342 $7,981 $5,415 $10,121

Accounts Receivable $2,669 $6,567 $4,981 $3,760 $2,625 $5,642

Inventory $0 $201 $0 $0 $0 $0

Current Assets $14,676 $18,417 $22,323 $11,741 $8,040 $15,763

Plant and Equipment $27,180 $25,560 $24,780 $28,500 $18,700 $34,700

Accumulated Depreciation ($4,287) ($7,677) ($7,865) ($7,200) ($5,353) ($8,351)

Fixed Assets $22,893 $17,883 $16,915 $21,300 $13,347 $26,349

Total Assets $37,569 $36,299 $39,237 $33,041 $21,386 $42,113

Accounts Payable $1,654 $4,301 $3,362 $2,552 $1,768 $3,704

Current Debt $867 $0 $3,500 $867 $0 $867

Current Liabilities $2,521 $4,301 $6,862 $3,419 $1,768 $4,570

Long-Term Liabilities $4,333 $1,947 $4,145 $4,333 $3,742 $9,333

Total Liabilities $6,854 $6,248 $11,007 $7,752 $5,510 $13,904

Common Stock $12,623 $2,154 $6,171 $6,323 $2,323 $7,323

Retained Earnings $18,091 $27,898 $22,060 $18,966 $13,553 $20,886

Total Equity $30,714 $30,052 $28,230 $25,289 $15,876 $28,209

Total Liabilities & Equity $37,569 $36,299 $39,237 $33,041 $21,386 $42,113

5 . 4 S to c k M a r ke t S u m m a r y

Company Closing Price Change Shares Outstanding Market Cap Book Value EPS Dividend Yield P/E

Andrews $19.14 $0.40 2,632,948 $50m $11.67 $1.01 $0.00 0% 18.92

Baldwin $44.58 $17.73 1,944,149 $87m $15.46 $6.39 $0.74 1.7% 6.98

Chester $26.55 $9.66 2,271,096 $60m $12.43 $3.53 $0.00 0% 7.52

Digby $21.09 $5.81 2,286,012 $48m $11.06 $2.40 $0.00 0% 8.79

Erie $13.91 $4.61 2,000,000 $28m $7.94 $1.89 $0.35 2.5% 7.35

Ferris $23.70 $6.09 2,349,505 $56m $12.01 $2.60 $0.00 0% 9.13

5.5 Stock Price

11.1611.1611.16

18.7418.7418.74 19.1419.1419.14

26.8626.8626.86

44.5844.5844.58

26.5526.5526.55

15.2815.2815.28

9.39.39.3

13.9113.9113.91

23.723.723.7

Andrews Baldwin Chester Digby Erie Ferris

2020 2021 2022 2023 2024 2025 2026 2027 $0

$10

$20

$30

$40

$50

5 . 6 B o n d M a r ke t S u m m a r y

Company Series Face Value Yield Closing Price S&P Rating

Andrews 12.0S2024 13.0S2026

$1,733,333 $2,600,000

11.32% 11.37%

$106.01 $114.38

AAA AAA

Baldwin 13.0S2026 $1,946,881 11.33% $114.74 AAA

Chester 13.0S2026 9.2S2032

$2,544,816 $1,600,000

11.54% 9.14%

$112.61 $100.64

AA AA

Digby 12.0S2024 13.0S2026

$1,733,333 $2,600,000

11.36% 11.44%

$105.64 $113.67

AAA AAA

Erie 12.0S2024 13.0S2026

$1,141,942 $2,600,000

11.38% 11.47%

$105.46 $113.31

AAA AAA

Ferris

12.0S2024 13.0S2026 10.0S2031 9.8S2032

$1,733,333 $2,600,000 $2,000,000 $3,000,000

11.5% 11.69% 9.71% 9.62%

$104.37 $111.22 $102.94 $101.88

A A A A

Next Year's Prime Rate: 7%

5.7 Net Pro�t

Andrews Baldwin Chester Digby Erie Ferris $0

$2500

$5000

$7500

$10000

$12500

$15000

Section 6 | Product Financials

6 . 1 A n d re w s I n c o m e S t a t e m e n t

Able Ace Total

Sales $32,477 $0 $32,477

Variable Cost $20,128 $0 $20,128

Fixed Cost $6,156 $1,000 $7,156

Net Margin $6,193 ($1,000) $5,193

Other (Fees, Writeoffs) $400

Long Term Interest $546

Taxes & Tariffs $1,464

Pro�t Sharing $54

Net Pro�t $2,664

6 . 2 B a l d w i n I n c o m e S t a t e m e n t

Baker Total

Sales $79,895 $79,895

Variable Cost $52,150 $52,150

Fixed Cost $7,748 $7,748

Net Margin $19,997 $19,997

Other (Fees, Writeoffs) $247

Long Term Interest $253

Taxes & Tariffs $6,824

Pro�t Sharing $253

Net Pro�t $12,419

6 . 3 C h e s t e r I n c o m e S t a t e m e n t

Cake Total

Sales $60,598 $60,598

Variable Cost $40,907 $40,907

Fixed Cost $5,986 $5,986

Net Margin $13,704 $13,704

Other (Fees, Writeoffs) $369

Long Term Interest $478

Taxes & Tariffs $4,404

Pro�t Sharing $164

Net Pro�t $8,016

6 . 4 D i g by I n c o m e S t a t e m e n t

Daze Dino Total

Sales $45,745 $0 $45,745

Variable Cost $31,053 $0 $31,053

Fixed Cost $4,319 $1,000 $5,319

Net Margin $10,373 ($1,000) $9,373

Other (Fees, Writeoffs) $150

Long Term Interest $546

Taxes & Tariffs $3,013

Pro�t Sharing $112

Net Pro�t $5,484

6 . 5 E r i e I n c o m e S t a t e m e n t

Eat Total

Sales $31,933 $31,933

Variable Cost $21,514 $21,514

Fixed Cost $3,939 $3,939

Net Margin $6,479 $6,479

Other (Fees, Writeoffs) $64

Long Term Interest $475

Taxes & Tariffs $2,079

Pro�t Sharing $77

Net Pro�t $3,783

6 . 6 Fe r r i s I n c o m e S t a t e m e n t

Fast Frost Total

Sales $53,865 $14,781 $68,645

Variable Cost $34,833 $10,228 $45,061

Fixed Cost $7,709 $4,883 $12,592

Net Margin $11,323 ($331) $10,992

Other (Fees, Writeoffs) $300

Long Term Interest $1,040

Taxes & Tariffs $3,353

Pro�t Sharing $125

Net Pro�t $6,102

Section 7 | Custom Modules

7 . 1 Wo r k f o rc e S u m m a r y

Andrews Baldwin Chester Digby Erie Ferris

Number of Employees 135 368 294 269 168 338

First Shift 68 184 173 192 93 169

Second Shift 67 184 121 77 75 169

Overtime % 0% 0% 0% 0% 0% 0%

Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%

New Employees 14 117 73 51 17 93

Separated Employees 19 0 0 0 44 0

Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%