as attached
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attachment_1.zipAC CAMERAS SEGMENT YR5 (5).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 5 (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 5 (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 840.0 Overtime 0.0 Total 840.0
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 45,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 4) 300 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for ACC Workstations (in Year 5) 300 spaces
Installed Workstations (at end of Year 4) 280 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 120,000 $ 0 $ 120,000 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 150,000 – Accumulated Depreciation (at the end of Year 4) 30,000 – Current-Year Depreciation (5% of gross investment) 7,500 Net Investment in AC Camera Facilities $ 112,500
AC Camera Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $2.40 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 3,000 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 8,400 10.00 LCD Display Screen 8,400 10.00 Image Quality 6,720 8.00 Photo Modes 7,560 9.00 Camera Housing 6,720 8.00 Editing / Sharing 6,720 8.00 Included Accessories 8,400 10.00 Extra Performance Features 7,560 9.00
Total Cost of Components and Features 60,480 72.00 Assembly Labor Costs
Regular-Time Labor 28,000 33.33 Overtime Labor 0 0.00 PAT Training 280 0.33
Total Cost of Labor and Training 28,280 33.67 Product R&D Expenditures 20,000 23.81 Allowance for Warranty Repairs (7.0% claims) 2,945 3.51 Plant Operations and Maintenance 12,650 15.06 Depreciation of Plant and Equipment 7,500 8.93 Total Camera Production/Assembly Cost 131,855 156.97
UAV Drones UAV Drone Production
Regular-Time 140.0 Overtime 0.0 Total 140.0
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 15,000 Cumulative Product R&D Expenditures ($000s) $ 30,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 4) 110 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for Drone Workstations (in Year 5) 110 spaces
Installed Workstations (at end of Year 4) 100 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 100 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 90,000 $ 0 $ 90,000 Workstations 10,000 0 10,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 100,000 – Accumulated Depreciation (at the end of Year 4) 5,000 – Current-Year Depreciation (5% of gross investment) 5,000 Net Investment in UAV Drone Facilities $ 90,000
UAV Drone Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $4.80 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 94 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 376
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 24,683 176.31 GPS / WiFi / Bluetooth 7,000 50.00 Battery Pack 9,800 70.00 Rotors / Performance / Controller 5,600 40.00 Body Frame Construction 2,380 17.00 Obstacle Sensors 6,300 45.00 Camera Stabilization Device 2,520 18.00 Extra Performance Features 12,600 90.00
Total Cost of Components and Features 70,883 506.31 Assembly Labor Costs
Regular-Time Labor 9,059 64.71 Overtime Labor 0 0.00 PAT Training 94 0.67
Total Cost of Labor and Training 9,153 65.38 Product R&D Expenditures 15,000 107.14 Allowance for Warranty Repairs (7.5% claims) 3,150 22.50 Plant Operations and Maintenance 9,685 69.18 Depreciation of Plant and Equipment 5,000 35.71 Total Drone Production/Assembly Cost 112,871 806.22
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
64,125 225.00 -123 -0.43
0 0.00 64,002 224.57 44,738 156.98
1,425 5.00 0 0.00
1,710 6.00 2,500 8.77 1,500 5.26 2,252 7.90 9,877 34.66
15.4%
Europe-Africa
$000s $ / Unit
54,000 225.00 -104 -0.43
0 0.00 53,896 224.57 37,671 156.96
1,200 5.00 2,160 9.00 1,440 6.00 1,400 5.83 1,200 5.00 1,896 7.90 6,929 28.87
12.9%
Asia-Pacific
$000s $ / Unit
41,625 225.00 -80 -0.43
0 0.00 41,545 224.57 29,042 156.98
925 5.00 2,498 13.50 1,110 6.00 1,000 5.41
900 4.86 1,462 7.90 4,608 24.91
11.1%
Latin America
$000s $ / Unit
29,250 225.00 -56 -0.43
0 0.00 29,194 224.57 20,405 156.96
650 5.00 1,755 13.50
780 6.00 750 5.77 600 4.62
1,027 7.90 3,227 24.82
11.1%
Overall
$000s
189,000 -363
0 188,637 131,856
4,200 6,413 5,040 5,650 4,200 6,637
24,641 13%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
285.0 8.3% 285.0 8.3%
0.0 285.0 8.3%
Units (000s)
Market Share
240.0 8.3% 240.0 8.3%
0.0 240.0 8.3%
Units (000s)
Market Share
185.0 8.3% 185.0 8.3%
0.0 185.0 8.3%
Units (000s)
Market Share
130.0 8.3% 130.0 8.3%
0.0 130.0 8.3%
Market Share 8.3% 8.3%
8.3%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 5 Year 6
36 36 72 72
3,000 3,000
Year 5 Year 6
30 30 60 60
2,500 2,500
Year 5 Year 6
24 24 48 48
2,000 2,000
Year 5 Year 6
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
64,002 44,738
1,425 5,710 2,252 9,877
15.4%
Europe-Africa
$000s
53,896 37,671
3,360 4,040 1,896 6,929
12.9%
Asia-Pacific
$000s
41,545 29,042
3,423 3,010 1,462 4,608
11.1%
Latin America
$000s
29,194 20,405
2,405 2,130 1,027 3,227
11.1%
Overall
$000s
188,637 131,856
10,613 14,890
6,637 24,641
13.1%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.0% 1,000 3.51
60 days 7.0% 840 3.50
60 days 7.0% 650 3.51
60 days 7.0% 455 3.50
7.0% 2,945 3.51
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
41,470 1,100.00 0 0.00
41,470 1,100.00 30,393 806.18
2,262 60.00 0 0.00
1,500 39.79 1,500 39.79
411 10.90 5,404 143.34
13.0%
Europe-Africa
$000s $ / Unit
34,320 1,100.00 0 0.00
34,320 1,100.00 25,141 805.80
1,872 60.00 1,373 44.01 1,200 38.46 1,200 38.46
340 10.90 3,194 102.37
9.3%
Asia-Pacific
$000s $ / Unit
21,315 1,050.00 0 0.00
21,315 1,050.00 16,367 806.26
1,218 60.00 1,279 63.00
900 44.33 600 29.56 222 10.94 729 35.91
3.4%
Latin America
$000s $ / Unit
12,915 1,050.00 0 0.00
12,915 1,050.00 9,931 807.40
738 60.00 775 63.01 600 48.78 300 24.39 135 10.98 436 35.45
3.4%
Overall
$000s
110,020 0
110,020 81,832
6,090 3,427 4,200 3,600 1,108 9,763
8.9%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
38 units 72.5%
31 units 72.5%
20 units 72.5%
12 units 72.5%
101.5 units 72.5%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
13,371 935.03 0 0.00
13,371 935.03 11,529 806.22
143 10.00 0 0.00
1,144 80.00 156 10.91 399 27.90
3.0%
Europe-Africa
$000s $ / Unit
11,033 935.00 0 0.00
11,033 935.00 9,518 806.61
118 10.00 441 37.37 944 80.00 129 10.93 -117 -9.92
-1.1%
Asia-Pacific
$000s $ / Unit
6,872 892.47 0 0.00
6,872 892.47 6,208 806.23
77 10.00 412 53.51 616 80.00
84 10.91 -525 -68.18
-7.6%
Latin America
$000s $ / Unit
4,195 892.55 0 0.00
4,195 892.55 3,784 805.11
47 10.00 252 53.62 376 80.00
51 10.85 -315 -67.02
-7.5%
Overall
$000s
35,471 0
35,471 31,039
385 1,105 3,080
420 -558
-1.6%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
14.3 units 27.5%
11.8 units 27.5%
7.7 units 27.5%
4.7 units 27.5%
38.5 units 27.5%
Retail Outlets Number of 3rd-Party Online Retailers
Year 5 Year 6
36 36
Year 5 Year 6
30 30
Year 5 Year 6
24 24
Year 5 Year 6
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
54,841 41,922
2,405 4,144
567 5,803
10.6%
Europe-Africa
$000s
45,353 34,659
3,804 3,344
469 3,077
6.8%
Asia-Pacific
$000s
28,187 22,575
2,986 2,116
306 204
0.7%
Latin America
$000s
17,110 13,715
1,812 1,276
186 121
0.7%
Overall
$000s
145,491 112,871
11,007 10,880
1,528 9,205
6.3%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
52.0 8.3% 52.0 8.3%
0.0 52.0 8.3%
Units (000s)
Market Share
43.0 8.3% 43.0 8.3%
0.0 43.0 8.3%
Units (000s)
Market Share
28.0 8.3% 28.0 8.3%
0.0 28.0 8.3%
Units (000s)
Market Share
17.0 8.3% 17.0 8.3%
0.0 17.0 8.3%
Market Share 8.3% 8.3%
8.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.5% 1,170 22.50
60 days 7.5% 960
22.33
60 days 7.5% 630
22.50
60 days 7.5% 390
22.94
7.5% 3,150 22.50
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 5 (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
64,002 54,841
118,843 86,660
3,830 9,854 2,819
15,680
Europe Africa
53,896 45,353 99,249 72,330
7,164 7,384 2,365
10,006
Asia Pacific
41,545 28,187 69,732 51,617
6,409 5,126 1,768 4,812
Latin America
29,194 17,110 46,304 34,120
4,217 3,406 1,213 3,348
Company Total 188,637 145,491 334,128 244,727
21,620 25,770
8,165 33,846
Profitability and Payout Year 4 Year 5 Earnings Per Share $0.65 $0.75 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-12,417 0
21,429 6,429
15,000
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 4, the loss is carried forward and may offset some or all taxable Year 5 profit and reduce the company's tax liability in Year 5.
Balance Sheet Assets $000s Cash on Hand 5,000 Accounts Receivable (see Note 1) 56,027 Component Inventories (see Note 2) 13,136 Total Current Assets 74,163 Gross Investment in Plant and Equipment 250,000 Less Accumulated Depreciation 47,500 Total Fixed Asset Investment (see Note 3) 202,500 Total Assets 276,663 Liabilities $000s Accounts Payable (see Note 4) 36,125 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 52,125 Long-Term Bank Loans (see Note 8) 110,000 Total Liabilities 162,125 Shareholder Equity Beginning
Balance Change in Year 5 $000s
Common Stock (see Note 9) 10,000 0 10,000 Additional Capital (see Note 10) 80,000 0 80,000 Retained Earnings 9,538 +15,000 24,538 Total Shareholder Equity 99,538 +15,000 114,538 Return on Average Equity (see Note 11) 14.0% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 5 (to be collected in Year 6).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 5 (to be paid in Year 6). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 5 was 6.0%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 6. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 6 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 36,000 6,000 2,700 2 Y4 20,000 8.5 % 10-Yr 18,000 2,000 1,530 3 Y4 80,000 8.5 % 10-Yr 72,000 8,000 6,120 4 5 6 7 8 9
10 11 12
Note 9: There are 20,000 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 5 $000s Beginning Cash Balance (carried over from Year 4) 4,712 Cash Inflows
Receipts from Sales (see Note 1) 332,101 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.00) 0 Loan to Cover Overdraft 0 Interest on Year 4 Cash Balance 47 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 336,860 Cash Outlays in Year 5 $000s Payments to Component Suppliers (see Note 2) 130,374 Production and Assembly Expenses (see Note 3) 100,863 Delivery, Marketing, and Administrative Expenses 55,555 Capital Outlays New Workstations 0
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 0
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 10,175 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 5 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 12,464
Stock Repurchases (0 shares repurchased @ $12.00) 0 Income Tax Payments 6,429 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 331,860 Net Cash Balance ($000s at the end of Year 5) 5,000 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 5. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 5 and 25% of the cost of components used in Year 4. Note 3: Production and assembly expenses include all Year 5 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 4 were repaid in full in Year 5.
Interest on overdraft and 1-year loans received in Y4 was also paid in Y5.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 59:41 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 2.73 Current Ratio (current assets ÷ current liabilities) 1.42 Credit Rating (at the end of Year 5) B
Operating Profit Margin (operating profit ÷ net sales revenues) 10.1 % Net Profit Margin (net profit ÷ net sales revenues) 4.5 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 20,000 shares ) $240,000
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
AC CARMERAS SEGMENT YR6 PROJECTED (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 6 (projected) (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 6 (projected) (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 864.8 Overtime 0.0 Total 864.8
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.9
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 65,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 5) 300 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for ACC Workstations (in Year 6) 300 spaces
Installed Workstations (at end of Year 5) 280 workstations New workstations Added (at beginning of Y6) 0 Total Installed Workstations (available for use in Y6) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 120,000 $ 1,500 $ 121,500 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 151,500 – Accumulated Depreciation (at the end of Year 5) 37,500 – Current-Year Depreciation (5% of gross investment) 7,575 Net Investment in AC Camera Facilities $ 106,425
AC Camera Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $2.90 / unit 2,175 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,883 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 3,089 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 12,972 15.00 LCD Display Screen 12,972 15.00 Image Quality 11,242 13.00 Photo Modes 7,783 9.00 Camera Housing 8,648 10.00 Editing / Sharing 8,648 10.00 Included Accessories 10,378 12.00 Extra Performance Features 7,783 9.00
Total Cost of Components and Features 80,426 93.00 Assembly Labor Costs
Regular-Time Labor 29,061 33.60 Overtime Labor 0 0.00 PAT Training 560 0.65
Total Cost of Labor and Training 29,621 34.25 Product R&D Expenditures 20,000 23.13 Allowance for Warranty Repairs (13.9% claims) 6,025 6.97 Plant Operations and Maintenance 14,380 16.63 Depreciation of Plant and Equipment 7,575 8.76 Total Camera Production/Assembly Cost 158,027 182.73
UAV Drones UAV Drone Production
Regular-Time 153.0 Overtime 12.1 Total 165.1
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 5.0
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 24,000 Cumulative Product R&D Expenditures ($000s) $ 54,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 5) 110 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for Drone Workstations (in Year 6) 110 spaces
Installed Workstations (at end of Year 5) 100 workstations New workstations Added (at beginning of Y6) 2 Total Installed Workstations (available for use in Y6) 102 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 90,000 $ 1,500 $ 91,500 Workstations 10,000 350 10,350 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 101,850 – Accumulated Depreciation (at the end of Year 5) 10,000 – Current-Year Depreciation (5% of gross investment) 5,093 Net Investment in UAV Drone Facilities $ 86,757
UAV Drone Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $5.40 / unit 2,025 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,733 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 102 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 408
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 37,433 226.73 GPS / WiFi / Bluetooth 12,383 75.00 Battery Pack 16,510 100.00 Rotors / Performance / Controller 11,557 70.00 Body Frame Construction 2,807 17.00 Obstacle Sensors 11,062 67.00 Camera Stabilization Device 6,274 38.00 Extra Performance Features 14,859 90.00
Total Cost of Components and Features 112,885 683.74 Assembly Labor Costs
Regular-Time Labor 10,117 61.28 Overtime Labor 1,042 6.31 PAT Training 204 1.24
Total Cost of Labor and Training 11,363 68.82 Product R&D Expenditures 24,000 145.37 Allowance for Warranty Repairs (15.1% claims) 7,470 45.25 Plant Operations and Maintenance 10,526 63.76 Depreciation of Plant and Equipment 5,093 30.85 Total Drone Production/Assembly Cost 171,337 1,037.78
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
89,520 300.00 -258 -0.86
0 0.00 89,262 299.14 54,529 182.74
1,790 6.00 0 0.00
1,810 6.07 2,800 9.38 1,500 5.03 2,636 8.83
24,197 81.09 27.1%
Europe-Africa
$000s $ / Unit
75,420 300.00 -218 -0.87
0 0.00 75,202 299.13 45,937 182.72
1,508 6.00 3,017 12.00 1,540 6.13 1,600 6.36 1,200 4.77 2,221 8.83
18,179 72.31 24.2%
Asia-Pacific
$000s $ / Unit
55,320 300.00 -160 -0.87
0 0.00 55,160 299.13 33,696 182.73
1,106 6.00 3,319 18.00 1,210 6.56 1,200 6.51
900 4.88 1,629 8.83
12,100 65.62 21.9%
Latin America
$000s $ / Unit
39,180 300.00 -113 -0.87
0 0.00 39,067 299.13 23,866 182.74
784 6.00 2,351 18.00
880 6.74 950 7.27 600 4.59
1,154 8.84 8,482 64.95
21.7%
Overall
$000s
259,440 -749
0 258,691 158,028
5,188 8,687 5,440 6,550 4,200 7,640
62,958 24%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
298.4 8.4% 298.4 8.4%
0.0 298.4 8.4%
Units (000s)
Market Share
251.4 8.4% 251.4 8.4%
0.0 251.4 8.4%
Units (000s)
Market Share
184.4 7.7% 184.4 7.7%
0.0 184.4 7.7%
Units (000s)
Market Share
130.6 7.8% 130.6 7.8%
0.0 130.6 7.8%
Market Share 8.2% 8.2%
8.2%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 6 Year 7
36 36 72 72
3,000 3,000
Year 6 Year 7
30 30 60 60
2,500 2,500
Year 6 Year 7
24 24 48 48
2,000 2,000
Year 6 Year 7
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
89,262 54,529
1,790 6,110 2,636
24,197 27.1%
Europe-Africa
$000s
75,202 45,937
4,525 4,340 2,221
18,179 24.2%
Asia-Pacific
$000s
55,160 33,696
4,425 3,310 1,629
12,100 21.9%
Latin America
$000s
39,067 23,866
3,135 2,430 1,154 8,482
21.7%
Overall
$000s
258,691 158,028
13,875 16,190
7,640 62,958
24.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 13.9% 2,080 6.97
120 days 13.9% 1,750 6.96
120 days 13.9% 1,285 6.97
120 days 13.9%
910 6.97
13.9% 6,025 6.97
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
55,580 1,400.00 0 0.00
55,580 1,400.00 41,195 1,037.66
2,481 62.49 0 0.00
2,000 50.38 2,000 50.38
449 11.31 7,455 187.78
13.4%
Europe-Africa
$000s $ / Unit
46,480 1,400.00 0 0.00
46,480 1,400.00 34,435 1,037.20
2,075 62.50 1,859 55.99 1,500 45.18 1,500 45.18
375 11.30 4,736 142.65
10.2%
Asia-Pacific
$000s $ / Unit
27,270 1,350.00 0 0.00
27,270 1,350.00 20,984 1,038.81
1,263 62.52 1,636 80.99 1,100 54.46
800 39.60 229 11.34
1,258 62.28 4.6%
Latin America
$000s $ / Unit
17,145 1,350.00 0 0.00
17,145 1,350.00 13,177 1,037.56
794 62.52 1,029 81.02
800 62.99 500 39.37 144 11.34 701 55.20
4.1%
Overall
$000s
146,475 0
146,475 109,791
6,613 4,524 4,200 4,800 1,197
14,150 9.7%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
40 units 63.0%
33 units 64.0%
20 units 65.5%
13 units 65.5%
105.8 units 64.1%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
26,096 1,120.00 0 0.00
26,096 1,120.00 24,183 1,037.90
291 12.49 0 0.00
2,000 85.84 264 11.33
-642 -27.55 -2.5%
Europe-Africa
$000s $ / Unit
20,832 1,120.00 0 0.00
20,832 1,120.00 19,319 1,038.66
232 12.47 833 44.78
1,500 80.65 211 11.34
-1,263 -67.90 -6.1%
Asia-Pacific
$000s $ / Unit
11,556 1,080.00 0 0.00
11,556 1,080.00 11,094 1,036.82
134 12.52 693 64.77 800 74.77 121 11.31
-1,286 -120.19 -11.1%
Latin America
$000s $ / Unit
7,236 1,080.00 0 0.00
7,236 1,080.00 6,947 1,036.87
84 12.54 434 64.78 500 74.63
76 11.34 -805 -120.15
-11.1%
Overall
$000s
65,720 0
65,720 61,543
741 1,960 4,800
672 -3,996
-6.1%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
23.3 units 37.0%
18.6 units 36.0%
10.7 units 34.5%
6.7 units 34.5%
59.3 units 35.9%
Retail Outlets Number of 3rd-Party Online Retailers
Year 6 Year 7
36 36
Year 6 Year 7
30 30
Year 6 Year 7
24 24
Year 6 Year 7
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
81,676 65,378
2,772 6,000
713 6,813
8.3%
Europe-Africa
$000s
67,312 53,754
4,999 4,500
586 3,473
5.2%
Asia-Pacific
$000s
38,826 32,078
3,726 2,700
350 -28
-0.1%
Latin America
$000s
24,381 20,124
2,341 1,800
220 -104
-0.4%
Overall
$000s
212,195 171,334
13,838 15,000
1,869 10,154 4.8%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
63.0 8.7% 63.0 8.7%
0.0 63.0 8.7%
Units (000s)
Market Share
51.8 8.6% 51.8 8.6%
0.0 51.8 8.6%
Units (000s)
Market Share
30.9 7.8% 30.9 7.8%
0.0 30.9 7.8%
Units (000s)
Market Share
19.4 8.1% 19.4 8.1%
0.0 19.4 8.1%
Market Share 8.5% 8.5%
8.5%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 15.1% 2,851 45.25
120 days 15.1% 2,340 45.17
120 days 15.1% 1,410 45.63
120 days 15.1%
870 44.85
15.1% 7,471 45.25
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 6 (projected) (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
89,262 81,676
170,938 119,907
4,562 12,110 3,349
31,010
Europe Africa
75,202 67,312
142,514 99,691
9,524 8,840 2,807
21,652
Asia Pacific
55,160 38,826 93,986 65,774
8,151 6,010 1,979
12,072
Latin America
39,067 24,381 63,448 43,990
5,476 4,230 1,374 8,378
Company Total 258,691 212,195 470,886 329,362
27,713 31,190
9,509 73,112
Profitability and Payout Year 5 Year 6 Earnings Per Share $0.75 $2.22 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-10,300 0
62,812 18,844 43,968
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 5, the loss is carried forward and may offset some or all taxable Year 6 profit and reduce the company's tax liability in Year 6.
Balance Sheet Assets $000s Cash on Hand 25,624 Accounts Receivable (see Note 1) 81,103 Component Inventories (see Note 2) 19,331 Total Current Assets 126,058 Gross Investment in Plant and Equipment 253,350 Less Accumulated Depreciation 60,168 Total Fixed Asset Investment (see Note 3) 193,182 Total Assets 319,240 Liabilities $000s Accounts Payable (see Note 4) 53,161 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 69,161 Long-Term Bank Loans (see Note 8) 94,000 Total Liabilities 163,161 Shareholder Equity Beginning
Balance Change in Year 6 $000s
Common Stock (see Note 9) 10,000 -100 9,900 Additional Capital (see Note 10) 80,000 -2,324 77,676 Retained Earnings 24,538 +43,968 68,506 Total Shareholder Equity 114,538 +41,544 156,082 Return on Average Equity (see Note 11) 32.5% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 6 (to be collected in Year 7).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 6 (to be paid in Year 7). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 6 was 5.5%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 7. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 7 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 30,000 6,000 2,250 2 Y4 20,000 8.5 % 10-Yr 16,000 2,000 1,360 3 Y4 80,000 8.5 % 10-Yr 64,000 8,000 5,440 4 5 6 7 8 9
10 11 12
Note 9: There are 19,800 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 6 $000s Beginning Cash Balance (carried over from Year 5) 5,000 Cash Inflows
Receipts from Sales (see Note 1) 445,810 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.12) 0 Loan to Cover Overdraft 0 Interest on Year 5 Cash Balance 50 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 450,860 Cash Outlays in Year 6 $000s Payments to Component Suppliers (see Note 2) 182,471 Production and Assembly Expenses (see Note 3) 123,385 Delivery, Marketing, and Administrative Expenses 68,412 Capital Outlays New Workstations 350
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 3,000
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 0 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 6 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 10,350
Stock Repurchases (200 shares repurchased @ $12.12) 2,424 Income Tax Payments 18,844 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 425,236 Net Cash Balance ($000s at the end of Year 6) 25,624 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 6. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 6 and 25% of the cost of components used in Year 5. Note 3: Production and assembly expenses include all Year 6 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 5 were repaid in full in Year 6.
Interest on overdraft and 1-year loans received in Y5 was also paid in Y6.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 51:49 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 7.10 Current Ratio (current assets ÷ current liabilities) 1.82 Credit Rating (at the end of Year 6) A–
Operating Profit Margin (operating profit ÷ net sales revenues) 15.5 % Net Profit Margin (net profit ÷ net sales revenues) 9.3 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 19,800 shares ) $237,600
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
ASSEMBLEY & FACILITY YR5 (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 5 (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 5 (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 840.0 Overtime 0.0 Total 840.0
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 45,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 4) 300 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for ACC Workstations (in Year 5) 300 spaces
Installed Workstations (at end of Year 4) 280 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 120,000 $ 0 $ 120,000 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 150,000 – Accumulated Depreciation (at the end of Year 4) 30,000 – Current-Year Depreciation (5% of gross investment) 7,500 Net Investment in AC Camera Facilities $ 112,500
AC Camera Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $2.40 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 3,000 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 8,400 10.00 LCD Display Screen 8,400 10.00 Image Quality 6,720 8.00 Photo Modes 7,560 9.00 Camera Housing 6,720 8.00 Editing / Sharing 6,720 8.00 Included Accessories 8,400 10.00 Extra Performance Features 7,560 9.00
Total Cost of Components and Features 60,480 72.00 Assembly Labor Costs
Regular-Time Labor 28,000 33.33 Overtime Labor 0 0.00 PAT Training 280 0.33
Total Cost of Labor and Training 28,280 33.67 Product R&D Expenditures 20,000 23.81 Allowance for Warranty Repairs (7.0% claims) 2,945 3.51 Plant Operations and Maintenance 12,650 15.06 Depreciation of Plant and Equipment 7,500 8.93 Total Camera Production/Assembly Cost 131,855 156.97
UAV Drones UAV Drone Production
Regular-Time 140.0 Overtime 0.0 Total 140.0
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 15,000 Cumulative Product R&D Expenditures ($000s) $ 30,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 4) 110 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for Drone Workstations (in Year 5) 110 spaces
Installed Workstations (at end of Year 4) 100 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 100 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 90,000 $ 0 $ 90,000 Workstations 10,000 0 10,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 100,000 – Accumulated Depreciation (at the end of Year 4) 5,000 – Current-Year Depreciation (5% of gross investment) 5,000 Net Investment in UAV Drone Facilities $ 90,000
UAV Drone Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $4.80 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 94 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 376
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 24,683 176.31 GPS / WiFi / Bluetooth 7,000 50.00 Battery Pack 9,800 70.00 Rotors / Performance / Controller 5,600 40.00 Body Frame Construction 2,380 17.00 Obstacle Sensors 6,300 45.00 Camera Stabilization Device 2,520 18.00 Extra Performance Features 12,600 90.00
Total Cost of Components and Features 70,883 506.31 Assembly Labor Costs
Regular-Time Labor 9,059 64.71 Overtime Labor 0 0.00 PAT Training 94 0.67
Total Cost of Labor and Training 9,153 65.38 Product R&D Expenditures 15,000 107.14 Allowance for Warranty Repairs (7.5% claims) 3,150 22.50 Plant Operations and Maintenance 9,685 69.18 Depreciation of Plant and Equipment 5,000 35.71 Total Drone Production/Assembly Cost 112,871 806.22
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
64,125 225.00 -123 -0.43
0 0.00 64,002 224.57 44,738 156.98
1,425 5.00 0 0.00
1,710 6.00 2,500 8.77 1,500 5.26 2,252 7.90 9,877 34.66
15.4%
Europe-Africa
$000s $ / Unit
54,000 225.00 -104 -0.43
0 0.00 53,896 224.57 37,671 156.96
1,200 5.00 2,160 9.00 1,440 6.00 1,400 5.83 1,200 5.00 1,896 7.90 6,929 28.87
12.9%
Asia-Pacific
$000s $ / Unit
41,625 225.00 -80 -0.43
0 0.00 41,545 224.57 29,042 156.98
925 5.00 2,498 13.50 1,110 6.00 1,000 5.41
900 4.86 1,462 7.90 4,608 24.91
11.1%
Latin America
$000s $ / Unit
29,250 225.00 -56 -0.43
0 0.00 29,194 224.57 20,405 156.96
650 5.00 1,755 13.50
780 6.00 750 5.77 600 4.62
1,027 7.90 3,227 24.82
11.1%
Overall
$000s
189,000 -363
0 188,637 131,856
4,200 6,413 5,040 5,650 4,200 6,637
24,641 13%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
285.0 8.3% 285.0 8.3%
0.0 285.0 8.3%
Units (000s)
Market Share
240.0 8.3% 240.0 8.3%
0.0 240.0 8.3%
Units (000s)
Market Share
185.0 8.3% 185.0 8.3%
0.0 185.0 8.3%
Units (000s)
Market Share
130.0 8.3% 130.0 8.3%
0.0 130.0 8.3%
Market Share 8.3% 8.3%
8.3%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 5 Year 6
36 36 72 72
3,000 3,000
Year 5 Year 6
30 30 60 60
2,500 2,500
Year 5 Year 6
24 24 48 48
2,000 2,000
Year 5 Year 6
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
64,002 44,738
1,425 5,710 2,252 9,877
15.4%
Europe-Africa
$000s
53,896 37,671
3,360 4,040 1,896 6,929
12.9%
Asia-Pacific
$000s
41,545 29,042
3,423 3,010 1,462 4,608
11.1%
Latin America
$000s
29,194 20,405
2,405 2,130 1,027 3,227
11.1%
Overall
$000s
188,637 131,856
10,613 14,890
6,637 24,641
13.1%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.0% 1,000 3.51
60 days 7.0% 840 3.50
60 days 7.0% 650 3.51
60 days 7.0% 455 3.50
7.0% 2,945 3.51
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
41,470 1,100.00 0 0.00
41,470 1,100.00 30,393 806.18
2,262 60.00 0 0.00
1,500 39.79 1,500 39.79
411 10.90 5,404 143.34
13.0%
Europe-Africa
$000s $ / Unit
34,320 1,100.00 0 0.00
34,320 1,100.00 25,141 805.80
1,872 60.00 1,373 44.01 1,200 38.46 1,200 38.46
340 10.90 3,194 102.37
9.3%
Asia-Pacific
$000s $ / Unit
21,315 1,050.00 0 0.00
21,315 1,050.00 16,367 806.26
1,218 60.00 1,279 63.00
900 44.33 600 29.56 222 10.94 729 35.91
3.4%
Latin America
$000s $ / Unit
12,915 1,050.00 0 0.00
12,915 1,050.00 9,931 807.40
738 60.00 775 63.01 600 48.78 300 24.39 135 10.98 436 35.45
3.4%
Overall
$000s
110,020 0
110,020 81,832
6,090 3,427 4,200 3,600 1,108 9,763
8.9%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
38 units 72.5%
31 units 72.5%
20 units 72.5%
12 units 72.5%
101.5 units 72.5%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
13,371 935.03 0 0.00
13,371 935.03 11,529 806.22
143 10.00 0 0.00
1,144 80.00 156 10.91 399 27.90
3.0%
Europe-Africa
$000s $ / Unit
11,033 935.00 0 0.00
11,033 935.00 9,518 806.61
118 10.00 441 37.37 944 80.00 129 10.93 -117 -9.92
-1.1%
Asia-Pacific
$000s $ / Unit
6,872 892.47 0 0.00
6,872 892.47 6,208 806.23
77 10.00 412 53.51 616 80.00
84 10.91 -525 -68.18
-7.6%
Latin America
$000s $ / Unit
4,195 892.55 0 0.00
4,195 892.55 3,784 805.11
47 10.00 252 53.62 376 80.00
51 10.85 -315 -67.02
-7.5%
Overall
$000s
35,471 0
35,471 31,039
385 1,105 3,080
420 -558
-1.6%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
14.3 units 27.5%
11.8 units 27.5%
7.7 units 27.5%
4.7 units 27.5%
38.5 units 27.5%
Retail Outlets Number of 3rd-Party Online Retailers
Year 5 Year 6
36 36
Year 5 Year 6
30 30
Year 5 Year 6
24 24
Year 5 Year 6
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
54,841 41,922
2,405 4,144
567 5,803
10.6%
Europe-Africa
$000s
45,353 34,659
3,804 3,344
469 3,077
6.8%
Asia-Pacific
$000s
28,187 22,575
2,986 2,116
306 204
0.7%
Latin America
$000s
17,110 13,715
1,812 1,276
186 121
0.7%
Overall
$000s
145,491 112,871
11,007 10,880
1,528 9,205
6.3%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
52.0 8.3% 52.0 8.3%
0.0 52.0 8.3%
Units (000s)
Market Share
43.0 8.3% 43.0 8.3%
0.0 43.0 8.3%
Units (000s)
Market Share
28.0 8.3% 28.0 8.3%
0.0 28.0 8.3%
Units (000s)
Market Share
17.0 8.3% 17.0 8.3%
0.0 17.0 8.3%
Market Share 8.3% 8.3%
8.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.5% 1,170 22.50
60 days 7.5% 960
22.33
60 days 7.5% 630
22.50
60 days 7.5% 390
22.94
7.5% 3,150 22.50
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 5 (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
64,002 54,841
118,843 86,660
3,830 9,854 2,819
15,680
Europe Africa
53,896 45,353 99,249 72,330
7,164 7,384 2,365
10,006
Asia Pacific
41,545 28,187 69,732 51,617
6,409 5,126 1,768 4,812
Latin America
29,194 17,110 46,304 34,120
4,217 3,406 1,213 3,348
Company Total 188,637 145,491 334,128 244,727
21,620 25,770
8,165 33,846
Profitability and Payout Year 4 Year 5 Earnings Per Share $0.65 $0.75 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-12,417 0
21,429 6,429
15,000
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 4, the loss is carried forward and may offset some or all taxable Year 5 profit and reduce the company's tax liability in Year 5.
Balance Sheet Assets $000s Cash on Hand 5,000 Accounts Receivable (see Note 1) 56,027 Component Inventories (see Note 2) 13,136 Total Current Assets 74,163 Gross Investment in Plant and Equipment 250,000 Less Accumulated Depreciation 47,500 Total Fixed Asset Investment (see Note 3) 202,500 Total Assets 276,663 Liabilities $000s Accounts Payable (see Note 4) 36,125 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 52,125 Long-Term Bank Loans (see Note 8) 110,000 Total Liabilities 162,125 Shareholder Equity Beginning
Balance Change in Year 5 $000s
Common Stock (see Note 9) 10,000 0 10,000 Additional Capital (see Note 10) 80,000 0 80,000 Retained Earnings 9,538 +15,000 24,538 Total Shareholder Equity 99,538 +15,000 114,538 Return on Average Equity (see Note 11) 14.0% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 5 (to be collected in Year 6).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 5 (to be paid in Year 6). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 5 was 6.0%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 6. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 6 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 36,000 6,000 2,700 2 Y4 20,000 8.5 % 10-Yr 18,000 2,000 1,530 3 Y4 80,000 8.5 % 10-Yr 72,000 8,000 6,120 4 5 6 7 8 9
10 11 12
Note 9: There are 20,000 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 5 $000s Beginning Cash Balance (carried over from Year 4) 4,712 Cash Inflows
Receipts from Sales (see Note 1) 332,101 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.00) 0 Loan to Cover Overdraft 0 Interest on Year 4 Cash Balance 47 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 336,860 Cash Outlays in Year 5 $000s Payments to Component Suppliers (see Note 2) 130,374 Production and Assembly Expenses (see Note 3) 100,863 Delivery, Marketing, and Administrative Expenses 55,555 Capital Outlays New Workstations 0
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 0
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 10,175 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 5 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 12,464
Stock Repurchases (0 shares repurchased @ $12.00) 0 Income Tax Payments 6,429 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 331,860 Net Cash Balance ($000s at the end of Year 5) 5,000 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 5. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 5 and 25% of the cost of components used in Year 4. Note 3: Production and assembly expenses include all Year 5 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 4 were repaid in full in Year 5.
Interest on overdraft and 1-year loans received in Y4 was also paid in Y5.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 59:41 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 2.73 Current Ratio (current assets ÷ current liabilities) 1.42 Credit Rating (at the end of Year 5) B
Operating Profit Margin (operating profit ÷ net sales revenues) 10.1 % Net Profit Margin (net profit ÷ net sales revenues) 4.5 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 20,000 shares ) $240,000
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
ASSEMBLEY & FACILITY YR6 PROJECTED (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 6 (projected) (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 6 (projected) (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 864.8 Overtime 0.0 Total 864.8
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.9
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 65,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 5) 300 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for ACC Workstations (in Year 6) 300 spaces
Installed Workstations (at end of Year 5) 280 workstations New workstations Added (at beginning of Y6) 0 Total Installed Workstations (available for use in Y6) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 120,000 $ 1,500 $ 121,500 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 151,500 – Accumulated Depreciation (at the end of Year 5) 37,500 – Current-Year Depreciation (5% of gross investment) 7,575 Net Investment in AC Camera Facilities $ 106,425
AC Camera Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $2.90 / unit 2,175 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,883 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 3,089 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 12,972 15.00 LCD Display Screen 12,972 15.00 Image Quality 11,242 13.00 Photo Modes 7,783 9.00 Camera Housing 8,648 10.00 Editing / Sharing 8,648 10.00 Included Accessories 10,378 12.00 Extra Performance Features 7,783 9.00
Total Cost of Components and Features 80,426 93.00 Assembly Labor Costs
Regular-Time Labor 29,061 33.60 Overtime Labor 0 0.00 PAT Training 560 0.65
Total Cost of Labor and Training 29,621 34.25 Product R&D Expenditures 20,000 23.13 Allowance for Warranty Repairs (13.9% claims) 6,025 6.97 Plant Operations and Maintenance 14,380 16.63 Depreciation of Plant and Equipment 7,575 8.76 Total Camera Production/Assembly Cost 158,027 182.73
UAV Drones UAV Drone Production
Regular-Time 153.0 Overtime 12.1 Total 165.1
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 5.0
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 24,000 Cumulative Product R&D Expenditures ($000s) $ 54,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 5) 110 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for Drone Workstations (in Year 6) 110 spaces
Installed Workstations (at end of Year 5) 100 workstations New workstations Added (at beginning of Y6) 2 Total Installed Workstations (available for use in Y6) 102 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 90,000 $ 1,500 $ 91,500 Workstations 10,000 350 10,350 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 101,850 – Accumulated Depreciation (at the end of Year 5) 10,000 – Current-Year Depreciation (5% of gross investment) 5,093 Net Investment in UAV Drone Facilities $ 86,757
UAV Drone Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $5.40 / unit 2,025 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,733 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 102 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 408
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 37,433 226.73 GPS / WiFi / Bluetooth 12,383 75.00 Battery Pack 16,510 100.00 Rotors / Performance / Controller 11,557 70.00 Body Frame Construction 2,807 17.00 Obstacle Sensors 11,062 67.00 Camera Stabilization Device 6,274 38.00 Extra Performance Features 14,859 90.00
Total Cost of Components and Features 112,885 683.74 Assembly Labor Costs
Regular-Time Labor 10,117 61.28 Overtime Labor 1,042 6.31 PAT Training 204 1.24
Total Cost of Labor and Training 11,363 68.82 Product R&D Expenditures 24,000 145.37 Allowance for Warranty Repairs (15.1% claims) 7,470 45.25 Plant Operations and Maintenance 10,526 63.76 Depreciation of Plant and Equipment 5,093 30.85 Total Drone Production/Assembly Cost 171,337 1,037.78
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
89,520 300.00 -258 -0.86
0 0.00 89,262 299.14 54,529 182.74
1,790 6.00 0 0.00
1,810 6.07 2,800 9.38 1,500 5.03 2,636 8.83
24,197 81.09 27.1%
Europe-Africa
$000s $ / Unit
75,420 300.00 -218 -0.87
0 0.00 75,202 299.13 45,937 182.72
1,508 6.00 3,017 12.00 1,540 6.13 1,600 6.36 1,200 4.77 2,221 8.83
18,179 72.31 24.2%
Asia-Pacific
$000s $ / Unit
55,320 300.00 -160 -0.87
0 0.00 55,160 299.13 33,696 182.73
1,106 6.00 3,319 18.00 1,210 6.56 1,200 6.51
900 4.88 1,629 8.83
12,100 65.62 21.9%
Latin America
$000s $ / Unit
39,180 300.00 -113 -0.87
0 0.00 39,067 299.13 23,866 182.74
784 6.00 2,351 18.00
880 6.74 950 7.27 600 4.59
1,154 8.84 8,482 64.95
21.7%
Overall
$000s
259,440 -749
0 258,691 158,028
5,188 8,687 5,440 6,550 4,200 7,640
62,958 24%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
298.4 8.4% 298.4 8.4%
0.0 298.4 8.4%
Units (000s)
Market Share
251.4 8.4% 251.4 8.4%
0.0 251.4 8.4%
Units (000s)
Market Share
184.4 7.7% 184.4 7.7%
0.0 184.4 7.7%
Units (000s)
Market Share
130.6 7.8% 130.6 7.8%
0.0 130.6 7.8%
Market Share 8.2% 8.2%
8.2%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 6 Year 7
36 36 72 72
3,000 3,000
Year 6 Year 7
30 30 60 60
2,500 2,500
Year 6 Year 7
24 24 48 48
2,000 2,000
Year 6 Year 7
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
89,262 54,529
1,790 6,110 2,636
24,197 27.1%
Europe-Africa
$000s
75,202 45,937
4,525 4,340 2,221
18,179 24.2%
Asia-Pacific
$000s
55,160 33,696
4,425 3,310 1,629
12,100 21.9%
Latin America
$000s
39,067 23,866
3,135 2,430 1,154 8,482
21.7%
Overall
$000s
258,691 158,028
13,875 16,190
7,640 62,958
24.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 13.9% 2,080 6.97
120 days 13.9% 1,750 6.96
120 days 13.9% 1,285 6.97
120 days 13.9%
910 6.97
13.9% 6,025 6.97
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
55,580 1,400.00 0 0.00
55,580 1,400.00 41,195 1,037.66
2,481 62.49 0 0.00
2,000 50.38 2,000 50.38
449 11.31 7,455 187.78
13.4%
Europe-Africa
$000s $ / Unit
46,480 1,400.00 0 0.00
46,480 1,400.00 34,435 1,037.20
2,075 62.50 1,859 55.99 1,500 45.18 1,500 45.18
375 11.30 4,736 142.65
10.2%
Asia-Pacific
$000s $ / Unit
27,270 1,350.00 0 0.00
27,270 1,350.00 20,984 1,038.81
1,263 62.52 1,636 80.99 1,100 54.46
800 39.60 229 11.34
1,258 62.28 4.6%
Latin America
$000s $ / Unit
17,145 1,350.00 0 0.00
17,145 1,350.00 13,177 1,037.56
794 62.52 1,029 81.02
800 62.99 500 39.37 144 11.34 701 55.20
4.1%
Overall
$000s
146,475 0
146,475 109,791
6,613 4,524 4,200 4,800 1,197
14,150 9.7%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
40 units 63.0%
33 units 64.0%
20 units 65.5%
13 units 65.5%
105.8 units 64.1%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
26,096 1,120.00 0 0.00
26,096 1,120.00 24,183 1,037.90
291 12.49 0 0.00
2,000 85.84 264 11.33
-642 -27.55 -2.5%
Europe-Africa
$000s $ / Unit
20,832 1,120.00 0 0.00
20,832 1,120.00 19,319 1,038.66
232 12.47 833 44.78
1,500 80.65 211 11.34
-1,263 -67.90 -6.1%
Asia-Pacific
$000s $ / Unit
11,556 1,080.00 0 0.00
11,556 1,080.00 11,094 1,036.82
134 12.52 693 64.77 800 74.77 121 11.31
-1,286 -120.19 -11.1%
Latin America
$000s $ / Unit
7,236 1,080.00 0 0.00
7,236 1,080.00 6,947 1,036.87
84 12.54 434 64.78 500 74.63
76 11.34 -805 -120.15
-11.1%
Overall
$000s
65,720 0
65,720 61,543
741 1,960 4,800
672 -3,996
-6.1%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
23.3 units 37.0%
18.6 units 36.0%
10.7 units 34.5%
6.7 units 34.5%
59.3 units 35.9%
Retail Outlets Number of 3rd-Party Online Retailers
Year 6 Year 7
36 36
Year 6 Year 7
30 30
Year 6 Year 7
24 24
Year 6 Year 7
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
81,676 65,378
2,772 6,000
713 6,813
8.3%
Europe-Africa
$000s
67,312 53,754
4,999 4,500
586 3,473
5.2%
Asia-Pacific
$000s
38,826 32,078
3,726 2,700
350 -28
-0.1%
Latin America
$000s
24,381 20,124
2,341 1,800
220 -104
-0.4%
Overall
$000s
212,195 171,334
13,838 15,000
1,869 10,154 4.8%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
63.0 8.7% 63.0 8.7%
0.0 63.0 8.7%
Units (000s)
Market Share
51.8 8.6% 51.8 8.6%
0.0 51.8 8.6%
Units (000s)
Market Share
30.9 7.8% 30.9 7.8%
0.0 30.9 7.8%
Units (000s)
Market Share
19.4 8.1% 19.4 8.1%
0.0 19.4 8.1%
Market Share 8.5% 8.5%
8.5%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 15.1% 2,851 45.25
120 days 15.1% 2,340 45.17
120 days 15.1% 1,410 45.63
120 days 15.1%
870 44.85
15.1% 7,471 45.25
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 6 (projected) (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
89,262 81,676
170,938 119,907
4,562 12,110 3,349
31,010
Europe Africa
75,202 67,312
142,514 99,691
9,524 8,840 2,807
21,652
Asia Pacific
55,160 38,826 93,986 65,774
8,151 6,010 1,979
12,072
Latin America
39,067 24,381 63,448 43,990
5,476 4,230 1,374 8,378
Company Total 258,691 212,195 470,886 329,362
27,713 31,190
9,509 73,112
Profitability and Payout Year 5 Year 6 Earnings Per Share $0.75 $2.22 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-10,300 0
62,812 18,844 43,968
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 5, the loss is carried forward and may offset some or all taxable Year 6 profit and reduce the company's tax liability in Year 6.
Balance Sheet Assets $000s Cash on Hand 25,624 Accounts Receivable (see Note 1) 81,103 Component Inventories (see Note 2) 19,331 Total Current Assets 126,058 Gross Investment in Plant and Equipment 253,350 Less Accumulated Depreciation 60,168 Total Fixed Asset Investment (see Note 3) 193,182 Total Assets 319,240 Liabilities $000s Accounts Payable (see Note 4) 53,161 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 69,161 Long-Term Bank Loans (see Note 8) 94,000 Total Liabilities 163,161 Shareholder Equity Beginning
Balance Change in Year 6 $000s
Common Stock (see Note 9) 10,000 -100 9,900 Additional Capital (see Note 10) 80,000 -2,324 77,676 Retained Earnings 24,538 +43,968 68,506 Total Shareholder Equity 114,538 +41,544 156,082 Return on Average Equity (see Note 11) 32.5% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 6 (to be collected in Year 7).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 6 (to be paid in Year 7). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 6 was 5.5%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 7. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 7 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 30,000 6,000 2,250 2 Y4 20,000 8.5 % 10-Yr 16,000 2,000 1,360 3 Y4 80,000 8.5 % 10-Yr 64,000 8,000 5,440 4 5 6 7 8 9
10 11 12
Note 9: There are 19,800 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 6 $000s Beginning Cash Balance (carried over from Year 5) 5,000 Cash Inflows
Receipts from Sales (see Note 1) 445,810 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.12) 0 Loan to Cover Overdraft 0 Interest on Year 5 Cash Balance 50 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 450,860 Cash Outlays in Year 6 $000s Payments to Component Suppliers (see Note 2) 182,471 Production and Assembly Expenses (see Note 3) 123,385 Delivery, Marketing, and Administrative Expenses 68,412 Capital Outlays New Workstations 350
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 3,000
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 0 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 6 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 10,350
Stock Repurchases (200 shares repurchased @ $12.12) 2,424 Income Tax Payments 18,844 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 425,236 Net Cash Balance ($000s at the end of Year 6) 25,624 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 6. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 6 and 25% of the cost of components used in Year 5. Note 3: Production and assembly expenses include all Year 6 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 5 were repaid in full in Year 6.
Interest on overdraft and 1-year loans received in Y5 was also paid in Y6.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 51:49 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 7.10 Current Ratio (current assets ÷ current liabilities) 1.82 Credit Rating (at the end of Year 6) A–
Operating Profit Margin (operating profit ÷ net sales revenues) 15.5 % Net Profit Margin (net profit ÷ net sales revenues) 9.3 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 19,800 shares ) $237,600
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
FINANCIAL STATMENT YR5 (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 5 (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 5 (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 840.0 Overtime 0.0 Total 840.0
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 45,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 4) 300 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for ACC Workstations (in Year 5) 300 spaces
Installed Workstations (at end of Year 4) 280 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 120,000 $ 0 $ 120,000 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 150,000 – Accumulated Depreciation (at the end of Year 4) 30,000 – Current-Year Depreciation (5% of gross investment) 7,500 Net Investment in AC Camera Facilities $ 112,500
AC Camera Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $2.40 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 3,000 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 8,400 10.00 LCD Display Screen 8,400 10.00 Image Quality 6,720 8.00 Photo Modes 7,560 9.00 Camera Housing 6,720 8.00 Editing / Sharing 6,720 8.00 Included Accessories 8,400 10.00 Extra Performance Features 7,560 9.00
Total Cost of Components and Features 60,480 72.00 Assembly Labor Costs
Regular-Time Labor 28,000 33.33 Overtime Labor 0 0.00 PAT Training 280 0.33
Total Cost of Labor and Training 28,280 33.67 Product R&D Expenditures 20,000 23.81 Allowance for Warranty Repairs (7.0% claims) 2,945 3.51 Plant Operations and Maintenance 12,650 15.06 Depreciation of Plant and Equipment 7,500 8.93 Total Camera Production/Assembly Cost 131,855 156.97
UAV Drones UAV Drone Production
Regular-Time 140.0 Overtime 0.0 Total 140.0
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 15,000 Cumulative Product R&D Expenditures ($000s) $ 30,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 4) 110 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for Drone Workstations (in Year 5) 110 spaces
Installed Workstations (at end of Year 4) 100 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 100 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 90,000 $ 0 $ 90,000 Workstations 10,000 0 10,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 100,000 – Accumulated Depreciation (at the end of Year 4) 5,000 – Current-Year Depreciation (5% of gross investment) 5,000 Net Investment in UAV Drone Facilities $ 90,000
UAV Drone Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $4.80 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 94 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 376
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 24,683 176.31 GPS / WiFi / Bluetooth 7,000 50.00 Battery Pack 9,800 70.00 Rotors / Performance / Controller 5,600 40.00 Body Frame Construction 2,380 17.00 Obstacle Sensors 6,300 45.00 Camera Stabilization Device 2,520 18.00 Extra Performance Features 12,600 90.00
Total Cost of Components and Features 70,883 506.31 Assembly Labor Costs
Regular-Time Labor 9,059 64.71 Overtime Labor 0 0.00 PAT Training 94 0.67
Total Cost of Labor and Training 9,153 65.38 Product R&D Expenditures 15,000 107.14 Allowance for Warranty Repairs (7.5% claims) 3,150 22.50 Plant Operations and Maintenance 9,685 69.18 Depreciation of Plant and Equipment 5,000 35.71 Total Drone Production/Assembly Cost 112,871 806.22
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
64,125 225.00 -123 -0.43
0 0.00 64,002 224.57 44,738 156.98
1,425 5.00 0 0.00
1,710 6.00 2,500 8.77 1,500 5.26 2,252 7.90 9,877 34.66
15.4%
Europe-Africa
$000s $ / Unit
54,000 225.00 -104 -0.43
0 0.00 53,896 224.57 37,671 156.96
1,200 5.00 2,160 9.00 1,440 6.00 1,400 5.83 1,200 5.00 1,896 7.90 6,929 28.87
12.9%
Asia-Pacific
$000s $ / Unit
41,625 225.00 -80 -0.43
0 0.00 41,545 224.57 29,042 156.98
925 5.00 2,498 13.50 1,110 6.00 1,000 5.41
900 4.86 1,462 7.90 4,608 24.91
11.1%
Latin America
$000s $ / Unit
29,250 225.00 -56 -0.43
0 0.00 29,194 224.57 20,405 156.96
650 5.00 1,755 13.50
780 6.00 750 5.77 600 4.62
1,027 7.90 3,227 24.82
11.1%
Overall
$000s
189,000 -363
0 188,637 131,856
4,200 6,413 5,040 5,650 4,200 6,637
24,641 13%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
285.0 8.3% 285.0 8.3%
0.0 285.0 8.3%
Units (000s)
Market Share
240.0 8.3% 240.0 8.3%
0.0 240.0 8.3%
Units (000s)
Market Share
185.0 8.3% 185.0 8.3%
0.0 185.0 8.3%
Units (000s)
Market Share
130.0 8.3% 130.0 8.3%
0.0 130.0 8.3%
Market Share 8.3% 8.3%
8.3%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 5 Year 6
36 36 72 72
3,000 3,000
Year 5 Year 6
30 30 60 60
2,500 2,500
Year 5 Year 6
24 24 48 48
2,000 2,000
Year 5 Year 6
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
64,002 44,738
1,425 5,710 2,252 9,877
15.4%
Europe-Africa
$000s
53,896 37,671
3,360 4,040 1,896 6,929
12.9%
Asia-Pacific
$000s
41,545 29,042
3,423 3,010 1,462 4,608
11.1%
Latin America
$000s
29,194 20,405
2,405 2,130 1,027 3,227
11.1%
Overall
$000s
188,637 131,856
10,613 14,890
6,637 24,641
13.1%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.0% 1,000 3.51
60 days 7.0% 840 3.50
60 days 7.0% 650 3.51
60 days 7.0% 455 3.50
7.0% 2,945 3.51
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
41,470 1,100.00 0 0.00
41,470 1,100.00 30,393 806.18
2,262 60.00 0 0.00
1,500 39.79 1,500 39.79
411 10.90 5,404 143.34
13.0%
Europe-Africa
$000s $ / Unit
34,320 1,100.00 0 0.00
34,320 1,100.00 25,141 805.80
1,872 60.00 1,373 44.01 1,200 38.46 1,200 38.46
340 10.90 3,194 102.37
9.3%
Asia-Pacific
$000s $ / Unit
21,315 1,050.00 0 0.00
21,315 1,050.00 16,367 806.26
1,218 60.00 1,279 63.00
900 44.33 600 29.56 222 10.94 729 35.91
3.4%
Latin America
$000s $ / Unit
12,915 1,050.00 0 0.00
12,915 1,050.00 9,931 807.40
738 60.00 775 63.01 600 48.78 300 24.39 135 10.98 436 35.45
3.4%
Overall
$000s
110,020 0
110,020 81,832
6,090 3,427 4,200 3,600 1,108 9,763
8.9%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
38 units 72.5%
31 units 72.5%
20 units 72.5%
12 units 72.5%
101.5 units 72.5%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
13,371 935.03 0 0.00
13,371 935.03 11,529 806.22
143 10.00 0 0.00
1,144 80.00 156 10.91 399 27.90
3.0%
Europe-Africa
$000s $ / Unit
11,033 935.00 0 0.00
11,033 935.00 9,518 806.61
118 10.00 441 37.37 944 80.00 129 10.93 -117 -9.92
-1.1%
Asia-Pacific
$000s $ / Unit
6,872 892.47 0 0.00
6,872 892.47 6,208 806.23
77 10.00 412 53.51 616 80.00
84 10.91 -525 -68.18
-7.6%
Latin America
$000s $ / Unit
4,195 892.55 0 0.00
4,195 892.55 3,784 805.11
47 10.00 252 53.62 376 80.00
51 10.85 -315 -67.02
-7.5%
Overall
$000s
35,471 0
35,471 31,039
385 1,105 3,080
420 -558
-1.6%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
14.3 units 27.5%
11.8 units 27.5%
7.7 units 27.5%
4.7 units 27.5%
38.5 units 27.5%
Retail Outlets Number of 3rd-Party Online Retailers
Year 5 Year 6
36 36
Year 5 Year 6
30 30
Year 5 Year 6
24 24
Year 5 Year 6
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
54,841 41,922
2,405 4,144
567 5,803
10.6%
Europe-Africa
$000s
45,353 34,659
3,804 3,344
469 3,077
6.8%
Asia-Pacific
$000s
28,187 22,575
2,986 2,116
306 204
0.7%
Latin America
$000s
17,110 13,715
1,812 1,276
186 121
0.7%
Overall
$000s
145,491 112,871
11,007 10,880
1,528 9,205
6.3%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
52.0 8.3% 52.0 8.3%
0.0 52.0 8.3%
Units (000s)
Market Share
43.0 8.3% 43.0 8.3%
0.0 43.0 8.3%
Units (000s)
Market Share
28.0 8.3% 28.0 8.3%
0.0 28.0 8.3%
Units (000s)
Market Share
17.0 8.3% 17.0 8.3%
0.0 17.0 8.3%
Market Share 8.3% 8.3%
8.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.5% 1,170 22.50
60 days 7.5% 960
22.33
60 days 7.5% 630
22.50
60 days 7.5% 390
22.94
7.5% 3,150 22.50
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 5 (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
64,002 54,841
118,843 86,660
3,830 9,854 2,819
15,680
Europe Africa
53,896 45,353 99,249 72,330
7,164 7,384 2,365
10,006
Asia Pacific
41,545 28,187 69,732 51,617
6,409 5,126 1,768 4,812
Latin America
29,194 17,110 46,304 34,120
4,217 3,406 1,213 3,348
Company Total 188,637 145,491 334,128 244,727
21,620 25,770
8,165 33,846
Profitability and Payout Year 4 Year 5 Earnings Per Share $0.65 $0.75 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-12,417 0
21,429 6,429
15,000
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 4, the loss is carried forward and may offset some or all taxable Year 5 profit and reduce the company's tax liability in Year 5.
Balance Sheet Assets $000s Cash on Hand 5,000 Accounts Receivable (see Note 1) 56,027 Component Inventories (see Note 2) 13,136 Total Current Assets 74,163 Gross Investment in Plant and Equipment 250,000 Less Accumulated Depreciation 47,500 Total Fixed Asset Investment (see Note 3) 202,500 Total Assets 276,663 Liabilities $000s Accounts Payable (see Note 4) 36,125 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 52,125 Long-Term Bank Loans (see Note 8) 110,000 Total Liabilities 162,125 Shareholder Equity Beginning
Balance Change in Year 5 $000s
Common Stock (see Note 9) 10,000 0 10,000 Additional Capital (see Note 10) 80,000 0 80,000 Retained Earnings 9,538 +15,000 24,538 Total Shareholder Equity 99,538 +15,000 114,538 Return on Average Equity (see Note 11) 14.0% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 5 (to be collected in Year 6).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 5 (to be paid in Year 6). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 5 was 6.0%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 6. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 6 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 36,000 6,000 2,700 2 Y4 20,000 8.5 % 10-Yr 18,000 2,000 1,530 3 Y4 80,000 8.5 % 10-Yr 72,000 8,000 6,120 4 5 6 7 8 9
10 11 12
Note 9: There are 20,000 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 5 $000s Beginning Cash Balance (carried over from Year 4) 4,712 Cash Inflows
Receipts from Sales (see Note 1) 332,101 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.00) 0 Loan to Cover Overdraft 0 Interest on Year 4 Cash Balance 47 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 336,860 Cash Outlays in Year 5 $000s Payments to Component Suppliers (see Note 2) 130,374 Production and Assembly Expenses (see Note 3) 100,863 Delivery, Marketing, and Administrative Expenses 55,555 Capital Outlays New Workstations 0
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 0
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 10,175 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 5 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 12,464
Stock Repurchases (0 shares repurchased @ $12.00) 0 Income Tax Payments 6,429 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 331,860 Net Cash Balance ($000s at the end of Year 5) 5,000 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 5. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 5 and 25% of the cost of components used in Year 4. Note 3: Production and assembly expenses include all Year 5 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 4 were repaid in full in Year 5.
Interest on overdraft and 1-year loans received in Y4 was also paid in Y5.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 59:41 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 2.73 Current Ratio (current assets ÷ current liabilities) 1.42 Credit Rating (at the end of Year 5) B
Operating Profit Margin (operating profit ÷ net sales revenues) 10.1 % Net Profit Margin (net profit ÷ net sales revenues) 4.5 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 20,000 shares ) $240,000
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
FINANCIAL STATMENT YR6 PROJECTED (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 6 (projected) (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 6 (projected) (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 864.8 Overtime 0.0 Total 864.8
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.9
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 65,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 5) 300 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for ACC Workstations (in Year 6) 300 spaces
Installed Workstations (at end of Year 5) 280 workstations New workstations Added (at beginning of Y6) 0 Total Installed Workstations (available for use in Y6) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 120,000 $ 1,500 $ 121,500 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 151,500 – Accumulated Depreciation (at the end of Year 5) 37,500 – Current-Year Depreciation (5% of gross investment) 7,575 Net Investment in AC Camera Facilities $ 106,425
AC Camera Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $2.90 / unit 2,175 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,883 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 3,089 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 12,972 15.00 LCD Display Screen 12,972 15.00 Image Quality 11,242 13.00 Photo Modes 7,783 9.00 Camera Housing 8,648 10.00 Editing / Sharing 8,648 10.00 Included Accessories 10,378 12.00 Extra Performance Features 7,783 9.00
Total Cost of Components and Features 80,426 93.00 Assembly Labor Costs
Regular-Time Labor 29,061 33.60 Overtime Labor 0 0.00 PAT Training 560 0.65
Total Cost of Labor and Training 29,621 34.25 Product R&D Expenditures 20,000 23.13 Allowance for Warranty Repairs (13.9% claims) 6,025 6.97 Plant Operations and Maintenance 14,380 16.63 Depreciation of Plant and Equipment 7,575 8.76 Total Camera Production/Assembly Cost 158,027 182.73
UAV Drones UAV Drone Production
Regular-Time 153.0 Overtime 12.1 Total 165.1
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 5.0
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 24,000 Cumulative Product R&D Expenditures ($000s) $ 54,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 5) 110 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for Drone Workstations (in Year 6) 110 spaces
Installed Workstations (at end of Year 5) 100 workstations New workstations Added (at beginning of Y6) 2 Total Installed Workstations (available for use in Y6) 102 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 90,000 $ 1,500 $ 91,500 Workstations 10,000 350 10,350 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 101,850 – Accumulated Depreciation (at the end of Year 5) 10,000 – Current-Year Depreciation (5% of gross investment) 5,093 Net Investment in UAV Drone Facilities $ 86,757
UAV Drone Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $5.40 / unit 2,025 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,733 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 102 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 408
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 37,433 226.73 GPS / WiFi / Bluetooth 12,383 75.00 Battery Pack 16,510 100.00 Rotors / Performance / Controller 11,557 70.00 Body Frame Construction 2,807 17.00 Obstacle Sensors 11,062 67.00 Camera Stabilization Device 6,274 38.00 Extra Performance Features 14,859 90.00
Total Cost of Components and Features 112,885 683.74 Assembly Labor Costs
Regular-Time Labor 10,117 61.28 Overtime Labor 1,042 6.31 PAT Training 204 1.24
Total Cost of Labor and Training 11,363 68.82 Product R&D Expenditures 24,000 145.37 Allowance for Warranty Repairs (15.1% claims) 7,470 45.25 Plant Operations and Maintenance 10,526 63.76 Depreciation of Plant and Equipment 5,093 30.85 Total Drone Production/Assembly Cost 171,337 1,037.78
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
89,520 300.00 -258 -0.86
0 0.00 89,262 299.14 54,529 182.74
1,790 6.00 0 0.00
1,810 6.07 2,800 9.38 1,500 5.03 2,636 8.83
24,197 81.09 27.1%
Europe-Africa
$000s $ / Unit
75,420 300.00 -218 -0.87
0 0.00 75,202 299.13 45,937 182.72
1,508 6.00 3,017 12.00 1,540 6.13 1,600 6.36 1,200 4.77 2,221 8.83
18,179 72.31 24.2%
Asia-Pacific
$000s $ / Unit
55,320 300.00 -160 -0.87
0 0.00 55,160 299.13 33,696 182.73
1,106 6.00 3,319 18.00 1,210 6.56 1,200 6.51
900 4.88 1,629 8.83
12,100 65.62 21.9%
Latin America
$000s $ / Unit
39,180 300.00 -113 -0.87
0 0.00 39,067 299.13 23,866 182.74
784 6.00 2,351 18.00
880 6.74 950 7.27 600 4.59
1,154 8.84 8,482 64.95
21.7%
Overall
$000s
259,440 -749
0 258,691 158,028
5,188 8,687 5,440 6,550 4,200 7,640
62,958 24%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
298.4 8.4% 298.4 8.4%
0.0 298.4 8.4%
Units (000s)
Market Share
251.4 8.4% 251.4 8.4%
0.0 251.4 8.4%
Units (000s)
Market Share
184.4 7.7% 184.4 7.7%
0.0 184.4 7.7%
Units (000s)
Market Share
130.6 7.8% 130.6 7.8%
0.0 130.6 7.8%
Market Share 8.2% 8.2%
8.2%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 6 Year 7
36 36 72 72
3,000 3,000
Year 6 Year 7
30 30 60 60
2,500 2,500
Year 6 Year 7
24 24 48 48
2,000 2,000
Year 6 Year 7
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
89,262 54,529
1,790 6,110 2,636
24,197 27.1%
Europe-Africa
$000s
75,202 45,937
4,525 4,340 2,221
18,179 24.2%
Asia-Pacific
$000s
55,160 33,696
4,425 3,310 1,629
12,100 21.9%
Latin America
$000s
39,067 23,866
3,135 2,430 1,154 8,482
21.7%
Overall
$000s
258,691 158,028
13,875 16,190
7,640 62,958
24.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 13.9% 2,080 6.97
120 days 13.9% 1,750 6.96
120 days 13.9% 1,285 6.97
120 days 13.9%
910 6.97
13.9% 6,025 6.97
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
55,580 1,400.00 0 0.00
55,580 1,400.00 41,195 1,037.66
2,481 62.49 0 0.00
2,000 50.38 2,000 50.38
449 11.31 7,455 187.78
13.4%
Europe-Africa
$000s $ / Unit
46,480 1,400.00 0 0.00
46,480 1,400.00 34,435 1,037.20
2,075 62.50 1,859 55.99 1,500 45.18 1,500 45.18
375 11.30 4,736 142.65
10.2%
Asia-Pacific
$000s $ / Unit
27,270 1,350.00 0 0.00
27,270 1,350.00 20,984 1,038.81
1,263 62.52 1,636 80.99 1,100 54.46
800 39.60 229 11.34
1,258 62.28 4.6%
Latin America
$000s $ / Unit
17,145 1,350.00 0 0.00
17,145 1,350.00 13,177 1,037.56
794 62.52 1,029 81.02
800 62.99 500 39.37 144 11.34 701 55.20
4.1%
Overall
$000s
146,475 0
146,475 109,791
6,613 4,524 4,200 4,800 1,197
14,150 9.7%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
40 units 63.0%
33 units 64.0%
20 units 65.5%
13 units 65.5%
105.8 units 64.1%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
26,096 1,120.00 0 0.00
26,096 1,120.00 24,183 1,037.90
291 12.49 0 0.00
2,000 85.84 264 11.33
-642 -27.55 -2.5%
Europe-Africa
$000s $ / Unit
20,832 1,120.00 0 0.00
20,832 1,120.00 19,319 1,038.66
232 12.47 833 44.78
1,500 80.65 211 11.34
-1,263 -67.90 -6.1%
Asia-Pacific
$000s $ / Unit
11,556 1,080.00 0 0.00
11,556 1,080.00 11,094 1,036.82
134 12.52 693 64.77 800 74.77 121 11.31
-1,286 -120.19 -11.1%
Latin America
$000s $ / Unit
7,236 1,080.00 0 0.00
7,236 1,080.00 6,947 1,036.87
84 12.54 434 64.78 500 74.63
76 11.34 -805 -120.15
-11.1%
Overall
$000s
65,720 0
65,720 61,543
741 1,960 4,800
672 -3,996
-6.1%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
23.3 units 37.0%
18.6 units 36.0%
10.7 units 34.5%
6.7 units 34.5%
59.3 units 35.9%
Retail Outlets Number of 3rd-Party Online Retailers
Year 6 Year 7
36 36
Year 6 Year 7
30 30
Year 6 Year 7
24 24
Year 6 Year 7
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
81,676 65,378
2,772 6,000
713 6,813
8.3%
Europe-Africa
$000s
67,312 53,754
4,999 4,500
586 3,473
5.2%
Asia-Pacific
$000s
38,826 32,078
3,726 2,700
350 -28
-0.1%
Latin America
$000s
24,381 20,124
2,341 1,800
220 -104
-0.4%
Overall
$000s
212,195 171,334
13,838 15,000
1,869 10,154 4.8%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
63.0 8.7% 63.0 8.7%
0.0 63.0 8.7%
Units (000s)
Market Share
51.8 8.6% 51.8 8.6%
0.0 51.8 8.6%
Units (000s)
Market Share
30.9 7.8% 30.9 7.8%
0.0 30.9 7.8%
Units (000s)
Market Share
19.4 8.1% 19.4 8.1%
0.0 19.4 8.1%
Market Share 8.5% 8.5%
8.5%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 15.1% 2,851 45.25
120 days 15.1% 2,340 45.17
120 days 15.1% 1,410 45.63
120 days 15.1%
870 44.85
15.1% 7,471 45.25
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 6 (projected) (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
89,262 81,676
170,938 119,907
4,562 12,110 3,349
31,010
Europe Africa
75,202 67,312
142,514 99,691
9,524 8,840 2,807
21,652
Asia Pacific
55,160 38,826 93,986 65,774
8,151 6,010 1,979
12,072
Latin America
39,067 24,381 63,448 43,990
5,476 4,230 1,374 8,378
Company Total 258,691 212,195 470,886 329,362
27,713 31,190
9,509 73,112
Profitability and Payout Year 5 Year 6 Earnings Per Share $0.75 $2.22 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-10,300 0
62,812 18,844 43,968
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 5, the loss is carried forward and may offset some or all taxable Year 6 profit and reduce the company's tax liability in Year 6.
Balance Sheet Assets $000s Cash on Hand 25,624 Accounts Receivable (see Note 1) 81,103 Component Inventories (see Note 2) 19,331 Total Current Assets 126,058 Gross Investment in Plant and Equipment 253,350 Less Accumulated Depreciation 60,168 Total Fixed Asset Investment (see Note 3) 193,182 Total Assets 319,240 Liabilities $000s Accounts Payable (see Note 4) 53,161 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 69,161 Long-Term Bank Loans (see Note 8) 94,000 Total Liabilities 163,161 Shareholder Equity Beginning
Balance Change in Year 6 $000s
Common Stock (see Note 9) 10,000 -100 9,900 Additional Capital (see Note 10) 80,000 -2,324 77,676 Retained Earnings 24,538 +43,968 68,506 Total Shareholder Equity 114,538 +41,544 156,082 Return on Average Equity (see Note 11) 32.5% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 6 (to be collected in Year 7).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 6 (to be paid in Year 7). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 6 was 5.5%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 7. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 7 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 30,000 6,000 2,250 2 Y4 20,000 8.5 % 10-Yr 16,000 2,000 1,360 3 Y4 80,000 8.5 % 10-Yr 64,000 8,000 5,440 4 5 6 7 8 9
10 11 12
Note 9: There are 19,800 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 6 $000s Beginning Cash Balance (carried over from Year 5) 5,000 Cash Inflows
Receipts from Sales (see Note 1) 445,810 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.12) 0 Loan to Cover Overdraft 0 Interest on Year 5 Cash Balance 50 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 450,860 Cash Outlays in Year 6 $000s Payments to Component Suppliers (see Note 2) 182,471 Production and Assembly Expenses (see Note 3) 123,385 Delivery, Marketing, and Administrative Expenses 68,412 Capital Outlays New Workstations 350
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 3,000
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 0 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 6 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 10,350
Stock Repurchases (200 shares repurchased @ $12.12) 2,424 Income Tax Payments 18,844 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 425,236 Net Cash Balance ($000s at the end of Year 6) 25,624 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 6. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 6 and 25% of the cost of components used in Year 5. Note 3: Production and assembly expenses include all Year 6 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 5 were repaid in full in Year 6.
Interest on overdraft and 1-year loans received in Y5 was also paid in Y6.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 51:49 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 7.10 Current Ratio (current assets ÷ current liabilities) 1.82 Credit Rating (at the end of Year 6) A–
Operating Profit Margin (operating profit ÷ net sales revenues) 15.5 % Net Profit Margin (net profit ÷ net sales revenues) 9.3 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 19,800 shares ) $237,600
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
GLO-BUS Decisions & Reports PERFORMANCE HIGHLIGHTS.pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 5 (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 5 (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 840.0 Overtime 0.0 Total 840.0
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 45,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 4) 300 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for ACC Workstations (in Year 5) 300 spaces
Installed Workstations (at end of Year 4) 280 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 120,000 $ 0 $ 120,000 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 150,000 – Accumulated Depreciation (at the end of Year 4) 30,000 – Current-Year Depreciation (5% of gross investment) 7,500 Net Investment in AC Camera Facilities $ 112,500
AC Camera Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $2.40 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 3,000 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 8,400 10.00 LCD Display Screen 8,400 10.00 Image Quality 6,720 8.00 Photo Modes 7,560 9.00 Camera Housing 6,720 8.00 Editing / Sharing 6,720 8.00 Included Accessories 8,400 10.00 Extra Performance Features 7,560 9.00
Total Cost of Components and Features 60,480 72.00 Assembly Labor Costs
Regular-Time Labor 28,000 33.33 Overtime Labor 0 0.00 PAT Training 280 0.33
Total Cost of Labor and Training 28,280 33.67 Product R&D Expenditures 20,000 23.81 Allowance for Warranty Repairs (7.0% claims) 2,945 3.51 Plant Operations and Maintenance 12,650 15.06 Depreciation of Plant and Equipment 7,500 8.93 Total Camera Production/Assembly Cost 131,855 156.97
UAV Drones UAV Drone Production
Regular-Time 140.0 Overtime 0.0 Total 140.0
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 15,000 Cumulative Product R&D Expenditures ($000s) $ 30,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 4) 110 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for Drone Workstations (in Year 5) 110 spaces
Installed Workstations (at end of Year 4) 100 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 100 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 90,000 $ 0 $ 90,000 Workstations 10,000 0 10,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 100,000 – Accumulated Depreciation (at the end of Year 4) 5,000 – Current-Year Depreciation (5% of gross investment) 5,000 Net Investment in UAV Drone Facilities $ 90,000
UAV Drone Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $4.80 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 94 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 376
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 24,683 176.31 GPS / WiFi / Bluetooth 7,000 50.00 Battery Pack 9,800 70.00 Rotors / Performance / Controller 5,600 40.00 Body Frame Construction 2,380 17.00 Obstacle Sensors 6,300 45.00 Camera Stabilization Device 2,520 18.00 Extra Performance Features 12,600 90.00
Total Cost of Components and Features 70,883 506.31 Assembly Labor Costs
Regular-Time Labor 9,059 64.71 Overtime Labor 0 0.00 PAT Training 94 0.67
Total Cost of Labor and Training 9,153 65.38 Product R&D Expenditures 15,000 107.14 Allowance for Warranty Repairs (7.5% claims) 3,150 22.50 Plant Operations and Maintenance 9,685 69.18 Depreciation of Plant and Equipment 5,000 35.71 Total Drone Production/Assembly Cost 112,871 806.22
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
64,125 225.00 -123 -0.43
0 0.00 64,002 224.57 44,738 156.98
1,425 5.00 0 0.00
1,710 6.00 2,500 8.77 1,500 5.26 2,252 7.90 9,877 34.66
15.4%
Europe-Africa
$000s $ / Unit
54,000 225.00 -104 -0.43
0 0.00 53,896 224.57 37,671 156.96
1,200 5.00 2,160 9.00 1,440 6.00 1,400 5.83 1,200 5.00 1,896 7.90 6,929 28.87
12.9%
Asia-Pacific
$000s $ / Unit
41,625 225.00 -80 -0.43
0 0.00 41,545 224.57 29,042 156.98
925 5.00 2,498 13.50 1,110 6.00 1,000 5.41
900 4.86 1,462 7.90 4,608 24.91
11.1%
Latin America
$000s $ / Unit
29,250 225.00 -56 -0.43
0 0.00 29,194 224.57 20,405 156.96
650 5.00 1,755 13.50
780 6.00 750 5.77 600 4.62
1,027 7.90 3,227 24.82
11.1%
Overall
$000s
189,000 -363
0 188,637 131,856
4,200 6,413 5,040 5,650 4,200 6,637
24,641 13%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
285.0 8.3% 285.0 8.3%
0.0 285.0 8.3%
Units (000s)
Market Share
240.0 8.3% 240.0 8.3%
0.0 240.0 8.3%
Units (000s)
Market Share
185.0 8.3% 185.0 8.3%
0.0 185.0 8.3%
Units (000s)
Market Share
130.0 8.3% 130.0 8.3%
0.0 130.0 8.3%
Market Share 8.3% 8.3%
8.3%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 5 Year 6
36 36 72 72
3,000 3,000
Year 5 Year 6
30 30 60 60
2,500 2,500
Year 5 Year 6
24 24 48 48
2,000 2,000
Year 5 Year 6
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
64,002 44,738
1,425 5,710 2,252 9,877
15.4%
Europe-Africa
$000s
53,896 37,671
3,360 4,040 1,896 6,929
12.9%
Asia-Pacific
$000s
41,545 29,042
3,423 3,010 1,462 4,608
11.1%
Latin America
$000s
29,194 20,405
2,405 2,130 1,027 3,227
11.1%
Overall
$000s
188,637 131,856
10,613 14,890
6,637 24,641
13.1%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.0% 1,000 3.51
60 days 7.0% 840 3.50
60 days 7.0% 650 3.51
60 days 7.0% 455 3.50
7.0% 2,945 3.51
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
41,470 1,100.00 0 0.00
41,470 1,100.00 30,393 806.18
2,262 60.00 0 0.00
1,500 39.79 1,500 39.79
411 10.90 5,404 143.34
13.0%
Europe-Africa
$000s $ / Unit
34,320 1,100.00 0 0.00
34,320 1,100.00 25,141 805.80
1,872 60.00 1,373 44.01 1,200 38.46 1,200 38.46
340 10.90 3,194 102.37
9.3%
Asia-Pacific
$000s $ / Unit
21,315 1,050.00 0 0.00
21,315 1,050.00 16,367 806.26
1,218 60.00 1,279 63.00
900 44.33 600 29.56 222 10.94 729 35.91
3.4%
Latin America
$000s $ / Unit
12,915 1,050.00 0 0.00
12,915 1,050.00 9,931 807.40
738 60.00 775 63.01 600 48.78 300 24.39 135 10.98 436 35.45
3.4%
Overall
$000s
110,020 0
110,020 81,832
6,090 3,427 4,200 3,600 1,108 9,763
8.9%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
38 units 72.5%
31 units 72.5%
20 units 72.5%
12 units 72.5%
101.5 units 72.5%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
13,371 935.03 0 0.00
13,371 935.03 11,529 806.22
143 10.00 0 0.00
1,144 80.00 156 10.91 399 27.90
3.0%
Europe-Africa
$000s $ / Unit
11,033 935.00 0 0.00
11,033 935.00 9,518 806.61
118 10.00 441 37.37 944 80.00 129 10.93 -117 -9.92
-1.1%
Asia-Pacific
$000s $ / Unit
6,872 892.47 0 0.00
6,872 892.47 6,208 806.23
77 10.00 412 53.51 616 80.00
84 10.91 -525 -68.18
-7.6%
Latin America
$000s $ / Unit
4,195 892.55 0 0.00
4,195 892.55 3,784 805.11
47 10.00 252 53.62 376 80.00
51 10.85 -315 -67.02
-7.5%
Overall
$000s
35,471 0
35,471 31,039
385 1,105 3,080
420 -558
-1.6%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
14.3 units 27.5%
11.8 units 27.5%
7.7 units 27.5%
4.7 units 27.5%
38.5 units 27.5%
Retail Outlets Number of 3rd-Party Online Retailers
Year 5 Year 6
36 36
Year 5 Year 6
30 30
Year 5 Year 6
24 24
Year 5 Year 6
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
54,841 41,922
2,405 4,144
567 5,803
10.6%
Europe-Africa
$000s
45,353 34,659
3,804 3,344
469 3,077
6.8%
Asia-Pacific
$000s
28,187 22,575
2,986 2,116
306 204
0.7%
Latin America
$000s
17,110 13,715
1,812 1,276
186 121
0.7%
Overall
$000s
145,491 112,871
11,007 10,880
1,528 9,205
6.3%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
52.0 8.3% 52.0 8.3%
0.0 52.0 8.3%
Units (000s)
Market Share
43.0 8.3% 43.0 8.3%
0.0 43.0 8.3%
Units (000s)
Market Share
28.0 8.3% 28.0 8.3%
0.0 28.0 8.3%
Units (000s)
Market Share
17.0 8.3% 17.0 8.3%
0.0 17.0 8.3%
Market Share 8.3% 8.3%
8.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.5% 1,170 22.50
60 days 7.5% 960
22.33
60 days 7.5% 630
22.50
60 days 7.5% 390
22.94
7.5% 3,150 22.50
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 5 (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
64,002 54,841
118,843 86,660
3,830 9,854 2,819
15,680
Europe Africa
53,896 45,353 99,249 72,330
7,164 7,384 2,365
10,006
Asia Pacific
41,545 28,187 69,732 51,617
6,409 5,126 1,768 4,812
Latin America
29,194 17,110 46,304 34,120
4,217 3,406 1,213 3,348
Company Total 188,637 145,491 334,128 244,727
21,620 25,770
8,165 33,846
Profitability and Payout Year 4 Year 5 Earnings Per Share $0.65 $0.75 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-12,417 0
21,429 6,429
15,000
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 4, the loss is carried forward and may offset some or all taxable Year 5 profit and reduce the company's tax liability in Year 5.
Balance Sheet Assets $000s Cash on Hand 5,000 Accounts Receivable (see Note 1) 56,027 Component Inventories (see Note 2) 13,136 Total Current Assets 74,163 Gross Investment in Plant and Equipment 250,000 Less Accumulated Depreciation 47,500 Total Fixed Asset Investment (see Note 3) 202,500 Total Assets 276,663 Liabilities $000s Accounts Payable (see Note 4) 36,125 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 52,125 Long-Term Bank Loans (see Note 8) 110,000 Total Liabilities 162,125 Shareholder Equity Beginning
Balance Change in Year 5 $000s
Common Stock (see Note 9) 10,000 0 10,000 Additional Capital (see Note 10) 80,000 0 80,000 Retained Earnings 9,538 +15,000 24,538 Total Shareholder Equity 99,538 +15,000 114,538 Return on Average Equity (see Note 11) 14.0% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 5 (to be collected in Year 6).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 5 (to be paid in Year 6). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 5 was 6.0%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 6. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 6 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 36,000 6,000 2,700 2 Y4 20,000 8.5 % 10-Yr 18,000 2,000 1,530 3 Y4 80,000 8.5 % 10-Yr 72,000 8,000 6,120 4 5 6 7 8 9
10 11 12
Note 9: There are 20,000 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 5 $000s Beginning Cash Balance (carried over from Year 4) 4,712 Cash Inflows
Receipts from Sales (see Note 1) 332,101 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.00) 0 Loan to Cover Overdraft 0 Interest on Year 4 Cash Balance 47 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 336,860 Cash Outlays in Year 5 $000s Payments to Component Suppliers (see Note 2) 130,374 Production and Assembly Expenses (see Note 3) 100,863 Delivery, Marketing, and Administrative Expenses 55,555 Capital Outlays New Workstations 0
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 0
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 10,175 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 5 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 12,464
Stock Repurchases (0 shares repurchased @ $12.00) 0 Income Tax Payments 6,429 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 331,860 Net Cash Balance ($000s at the end of Year 5) 5,000 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 5. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 5 and 25% of the cost of components used in Year 4. Note 3: Production and assembly expenses include all Year 5 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 4 were repaid in full in Year 5.
Interest on overdraft and 1-year loans received in Y4 was also paid in Y5.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 59:41 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 2.73 Current Ratio (current assets ÷ current liabilities) 1.42 Credit Rating (at the end of Year 5) B
Operating Profit Margin (operating profit ÷ net sales revenues) 10.1 % Net Profit Margin (net profit ÷ net sales revenues) 4.5 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 20,000 shares ) $240,000
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
PERFORMANCE HIGHTLIIGHTS YR6 PROGJECTED (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 6 (projected) (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 6 (projected) (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 864.8 Overtime 0.0 Total 864.8
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.9
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 65,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 5) 300 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for ACC Workstations (in Year 6) 300 spaces
Installed Workstations (at end of Year 5) 280 workstations New workstations Added (at beginning of Y6) 0 Total Installed Workstations (available for use in Y6) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 120,000 $ 1,500 $ 121,500 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 151,500 – Accumulated Depreciation (at the end of Year 5) 37,500 – Current-Year Depreciation (5% of gross investment) 7,575 Net Investment in AC Camera Facilities $ 106,425
AC Camera Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $2.90 / unit 2,175 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,883 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 3,089 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 12,972 15.00 LCD Display Screen 12,972 15.00 Image Quality 11,242 13.00 Photo Modes 7,783 9.00 Camera Housing 8,648 10.00 Editing / Sharing 8,648 10.00 Included Accessories 10,378 12.00 Extra Performance Features 7,783 9.00
Total Cost of Components and Features 80,426 93.00 Assembly Labor Costs
Regular-Time Labor 29,061 33.60 Overtime Labor 0 0.00 PAT Training 560 0.65
Total Cost of Labor and Training 29,621 34.25 Product R&D Expenditures 20,000 23.13 Allowance for Warranty Repairs (13.9% claims) 6,025 6.97 Plant Operations and Maintenance 14,380 16.63 Depreciation of Plant and Equipment 7,575 8.76 Total Camera Production/Assembly Cost 158,027 182.73
UAV Drones UAV Drone Production
Regular-Time 153.0 Overtime 12.1 Total 165.1
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 5.0
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 24,000 Cumulative Product R&D Expenditures ($000s) $ 54,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 5) 110 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for Drone Workstations (in Year 6) 110 spaces
Installed Workstations (at end of Year 5) 100 workstations New workstations Added (at beginning of Y6) 2 Total Installed Workstations (available for use in Y6) 102 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 90,000 $ 1,500 $ 91,500 Workstations 10,000 350 10,350 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 101,850 – Accumulated Depreciation (at the end of Year 5) 10,000 – Current-Year Depreciation (5% of gross investment) 5,093 Net Investment in UAV Drone Facilities $ 86,757
UAV Drone Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $5.40 / unit 2,025 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,733 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 102 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 408
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 37,433 226.73 GPS / WiFi / Bluetooth 12,383 75.00 Battery Pack 16,510 100.00 Rotors / Performance / Controller 11,557 70.00 Body Frame Construction 2,807 17.00 Obstacle Sensors 11,062 67.00 Camera Stabilization Device 6,274 38.00 Extra Performance Features 14,859 90.00
Total Cost of Components and Features 112,885 683.74 Assembly Labor Costs
Regular-Time Labor 10,117 61.28 Overtime Labor 1,042 6.31 PAT Training 204 1.24
Total Cost of Labor and Training 11,363 68.82 Product R&D Expenditures 24,000 145.37 Allowance for Warranty Repairs (15.1% claims) 7,470 45.25 Plant Operations and Maintenance 10,526 63.76 Depreciation of Plant and Equipment 5,093 30.85 Total Drone Production/Assembly Cost 171,337 1,037.78
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
89,520 300.00 -258 -0.86
0 0.00 89,262 299.14 54,529 182.74
1,790 6.00 0 0.00
1,810 6.07 2,800 9.38 1,500 5.03 2,636 8.83
24,197 81.09 27.1%
Europe-Africa
$000s $ / Unit
75,420 300.00 -218 -0.87
0 0.00 75,202 299.13 45,937 182.72
1,508 6.00 3,017 12.00 1,540 6.13 1,600 6.36 1,200 4.77 2,221 8.83
18,179 72.31 24.2%
Asia-Pacific
$000s $ / Unit
55,320 300.00 -160 -0.87
0 0.00 55,160 299.13 33,696 182.73
1,106 6.00 3,319 18.00 1,210 6.56 1,200 6.51
900 4.88 1,629 8.83
12,100 65.62 21.9%
Latin America
$000s $ / Unit
39,180 300.00 -113 -0.87
0 0.00 39,067 299.13 23,866 182.74
784 6.00 2,351 18.00
880 6.74 950 7.27 600 4.59
1,154 8.84 8,482 64.95
21.7%
Overall
$000s
259,440 -749
0 258,691 158,028
5,188 8,687 5,440 6,550 4,200 7,640
62,958 24%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
298.4 8.4% 298.4 8.4%
0.0 298.4 8.4%
Units (000s)
Market Share
251.4 8.4% 251.4 8.4%
0.0 251.4 8.4%
Units (000s)
Market Share
184.4 7.7% 184.4 7.7%
0.0 184.4 7.7%
Units (000s)
Market Share
130.6 7.8% 130.6 7.8%
0.0 130.6 7.8%
Market Share 8.2% 8.2%
8.2%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 6 Year 7
36 36 72 72
3,000 3,000
Year 6 Year 7
30 30 60 60
2,500 2,500
Year 6 Year 7
24 24 48 48
2,000 2,000
Year 6 Year 7
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
89,262 54,529
1,790 6,110 2,636
24,197 27.1%
Europe-Africa
$000s
75,202 45,937
4,525 4,340 2,221
18,179 24.2%
Asia-Pacific
$000s
55,160 33,696
4,425 3,310 1,629
12,100 21.9%
Latin America
$000s
39,067 23,866
3,135 2,430 1,154 8,482
21.7%
Overall
$000s
258,691 158,028
13,875 16,190
7,640 62,958
24.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 13.9% 2,080 6.97
120 days 13.9% 1,750 6.96
120 days 13.9% 1,285 6.97
120 days 13.9%
910 6.97
13.9% 6,025 6.97
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
55,580 1,400.00 0 0.00
55,580 1,400.00 41,195 1,037.66
2,481 62.49 0 0.00
2,000 50.38 2,000 50.38
449 11.31 7,455 187.78
13.4%
Europe-Africa
$000s $ / Unit
46,480 1,400.00 0 0.00
46,480 1,400.00 34,435 1,037.20
2,075 62.50 1,859 55.99 1,500 45.18 1,500 45.18
375 11.30 4,736 142.65
10.2%
Asia-Pacific
$000s $ / Unit
27,270 1,350.00 0 0.00
27,270 1,350.00 20,984 1,038.81
1,263 62.52 1,636 80.99 1,100 54.46
800 39.60 229 11.34
1,258 62.28 4.6%
Latin America
$000s $ / Unit
17,145 1,350.00 0 0.00
17,145 1,350.00 13,177 1,037.56
794 62.52 1,029 81.02
800 62.99 500 39.37 144 11.34 701 55.20
4.1%
Overall
$000s
146,475 0
146,475 109,791
6,613 4,524 4,200 4,800 1,197
14,150 9.7%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
40 units 63.0%
33 units 64.0%
20 units 65.5%
13 units 65.5%
105.8 units 64.1%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
26,096 1,120.00 0 0.00
26,096 1,120.00 24,183 1,037.90
291 12.49 0 0.00
2,000 85.84 264 11.33
-642 -27.55 -2.5%
Europe-Africa
$000s $ / Unit
20,832 1,120.00 0 0.00
20,832 1,120.00 19,319 1,038.66
232 12.47 833 44.78
1,500 80.65 211 11.34
-1,263 -67.90 -6.1%
Asia-Pacific
$000s $ / Unit
11,556 1,080.00 0 0.00
11,556 1,080.00 11,094 1,036.82
134 12.52 693 64.77 800 74.77 121 11.31
-1,286 -120.19 -11.1%
Latin America
$000s $ / Unit
7,236 1,080.00 0 0.00
7,236 1,080.00 6,947 1,036.87
84 12.54 434 64.78 500 74.63
76 11.34 -805 -120.15
-11.1%
Overall
$000s
65,720 0
65,720 61,543
741 1,960 4,800
672 -3,996
-6.1%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
23.3 units 37.0%
18.6 units 36.0%
10.7 units 34.5%
6.7 units 34.5%
59.3 units 35.9%
Retail Outlets Number of 3rd-Party Online Retailers
Year 6 Year 7
36 36
Year 6 Year 7
30 30
Year 6 Year 7
24 24
Year 6 Year 7
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
81,676 65,378
2,772 6,000
713 6,813
8.3%
Europe-Africa
$000s
67,312 53,754
4,999 4,500
586 3,473
5.2%
Asia-Pacific
$000s
38,826 32,078
3,726 2,700
350 -28
-0.1%
Latin America
$000s
24,381 20,124
2,341 1,800
220 -104
-0.4%
Overall
$000s
212,195 171,334
13,838 15,000
1,869 10,154 4.8%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
63.0 8.7% 63.0 8.7%
0.0 63.0 8.7%
Units (000s)
Market Share
51.8 8.6% 51.8 8.6%
0.0 51.8 8.6%
Units (000s)
Market Share
30.9 7.8% 30.9 7.8%
0.0 30.9 7.8%
Units (000s)
Market Share
19.4 8.1% 19.4 8.1%
0.0 19.4 8.1%
Market Share 8.5% 8.5%
8.5%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 15.1% 2,851 45.25
120 days 15.1% 2,340 45.17
120 days 15.1% 1,410 45.63
120 days 15.1%
870 44.85
15.1% 7,471 45.25
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 6 (projected) (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
89,262 81,676
170,938 119,907
4,562 12,110 3,349
31,010
Europe Africa
75,202 67,312
142,514 99,691
9,524 8,840 2,807
21,652
Asia Pacific
55,160 38,826 93,986 65,774
8,151 6,010 1,979
12,072
Latin America
39,067 24,381 63,448 43,990
5,476 4,230 1,374 8,378
Company Total 258,691 212,195 470,886 329,362
27,713 31,190
9,509 73,112
Profitability and Payout Year 5 Year 6 Earnings Per Share $0.75 $2.22 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-10,300 0
62,812 18,844 43,968
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 5, the loss is carried forward and may offset some or all taxable Year 6 profit and reduce the company's tax liability in Year 6.
Balance Sheet Assets $000s Cash on Hand 25,624 Accounts Receivable (see Note 1) 81,103 Component Inventories (see Note 2) 19,331 Total Current Assets 126,058 Gross Investment in Plant and Equipment 253,350 Less Accumulated Depreciation 60,168 Total Fixed Asset Investment (see Note 3) 193,182 Total Assets 319,240 Liabilities $000s Accounts Payable (see Note 4) 53,161 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 69,161 Long-Term Bank Loans (see Note 8) 94,000 Total Liabilities 163,161 Shareholder Equity Beginning
Balance Change in Year 6 $000s
Common Stock (see Note 9) 10,000 -100 9,900 Additional Capital (see Note 10) 80,000 -2,324 77,676 Retained Earnings 24,538 +43,968 68,506 Total Shareholder Equity 114,538 +41,544 156,082 Return on Average Equity (see Note 11) 32.5% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 6 (to be collected in Year 7).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 6 (to be paid in Year 7). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 6 was 5.5%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 7. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 7 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 30,000 6,000 2,250 2 Y4 20,000 8.5 % 10-Yr 16,000 2,000 1,360 3 Y4 80,000 8.5 % 10-Yr 64,000 8,000 5,440 4 5 6 7 8 9
10 11 12
Note 9: There are 19,800 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 6 $000s Beginning Cash Balance (carried over from Year 5) 5,000 Cash Inflows
Receipts from Sales (see Note 1) 445,810 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.12) 0 Loan to Cover Overdraft 0 Interest on Year 5 Cash Balance 50 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 450,860 Cash Outlays in Year 6 $000s Payments to Component Suppliers (see Note 2) 182,471 Production and Assembly Expenses (see Note 3) 123,385 Delivery, Marketing, and Administrative Expenses 68,412 Capital Outlays New Workstations 350
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 3,000
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 0 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 6 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 10,350
Stock Repurchases (200 shares repurchased @ $12.12) 2,424 Income Tax Payments 18,844 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 425,236 Net Cash Balance ($000s at the end of Year 6) 25,624 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 6. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 6 and 25% of the cost of components used in Year 5. Note 3: Production and assembly expenses include all Year 6 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 5 were repaid in full in Year 6.
Interest on overdraft and 1-year loans received in Y5 was also paid in Y6.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 51:49 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 7.10 Current Ratio (current assets ÷ current liabilities) 1.82 Credit Rating (at the end of Year 6) A–
Operating Profit Margin (operating profit ÷ net sales revenues) 15.5 % Net Profit Margin (net profit ÷ net sales revenues) 9.3 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 19,800 shares ) $237,600
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
UAV DRONE SEGMENT YR5 (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 5 (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 5 (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 840.0 Overtime 0.0 Total 840.0
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 45,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 4) 300 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for ACC Workstations (in Year 5) 300 spaces
Installed Workstations (at end of Year 4) 280 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 120,000 $ 0 $ 120,000 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 150,000 – Accumulated Depreciation (at the end of Year 4) 30,000 – Current-Year Depreciation (5% of gross investment) 7,500 Net Investment in AC Camera Facilities $ 112,500
AC Camera Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $2.40 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 3,000 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 8,400 10.00 LCD Display Screen 8,400 10.00 Image Quality 6,720 8.00 Photo Modes 7,560 9.00 Camera Housing 6,720 8.00 Editing / Sharing 6,720 8.00 Included Accessories 8,400 10.00 Extra Performance Features 7,560 9.00
Total Cost of Components and Features 60,480 72.00 Assembly Labor Costs
Regular-Time Labor 28,000 33.33 Overtime Labor 0 0.00 PAT Training 280 0.33
Total Cost of Labor and Training 28,280 33.67 Product R&D Expenditures 20,000 23.81 Allowance for Warranty Repairs (7.0% claims) 2,945 3.51 Plant Operations and Maintenance 12,650 15.06 Depreciation of Plant and Equipment 7,500 8.93 Total Camera Production/Assembly Cost 131,855 156.97
UAV Drones UAV Drone Production
Regular-Time 140.0 Overtime 0.0 Total 140.0
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 4.0
Product Attributes
Product R&D Expenditures in Year 5 ($000s) $ 15,000 Cumulative Product R&D Expenditures ($000s) $ 30,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 4) 110 spaces New Spaces Added (facility expansion at begin. of Y5) 0 Space Available for Drone Workstations (in Year 5) 110 spaces
Installed Workstations (at end of Year 4) 100 workstations New workstations Added (at beginning of Y5) 0 Total Installed Workstations (available for use in Y5) 100 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 5
Investment
Year 5 Facilities
Investment Plant Facility $ 90,000 $ 0 $ 90,000 Workstations 10,000 0 10,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 100,000 – Accumulated Depreciation (at the end of Year 4) 5,000 – Current-Year Depreciation (5% of gross investment) 5,000 Net Investment in UAV Drone Facilities $ 90,000
UAV Drone Work Force Statistics Year 5
Decisions $ Per
Worker Base Wage Per PAT Member +1% $ 20,400 Incentive Bonus (to reduce warranty claims) $4.80 / unit 1,800 Attendance Bonus (for perfect attendance) $800 / worker 800 Fringe Benefit Package $2,000 / worker 2,000 Total Compensation (annual pay per worker) $ 25,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 94 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 376
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 24,683 176.31 GPS / WiFi / Bluetooth 7,000 50.00 Battery Pack 9,800 70.00 Rotors / Performance / Controller 5,600 40.00 Body Frame Construction 2,380 17.00 Obstacle Sensors 6,300 45.00 Camera Stabilization Device 2,520 18.00 Extra Performance Features 12,600 90.00
Total Cost of Components and Features 70,883 506.31 Assembly Labor Costs
Regular-Time Labor 9,059 64.71 Overtime Labor 0 0.00 PAT Training 94 0.67
Total Cost of Labor and Training 9,153 65.38 Product R&D Expenditures 15,000 107.14 Allowance for Warranty Repairs (7.5% claims) 3,150 22.50 Plant Operations and Maintenance 9,685 69.18 Depreciation of Plant and Equipment 5,000 35.71 Total Drone Production/Assembly Cost 112,871 806.22
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
64,125 225.00 -123 -0.43
0 0.00 64,002 224.57 44,738 156.98
1,425 5.00 0 0.00
1,710 6.00 2,500 8.77 1,500 5.26 2,252 7.90 9,877 34.66
15.4%
Europe-Africa
$000s $ / Unit
54,000 225.00 -104 -0.43
0 0.00 53,896 224.57 37,671 156.96
1,200 5.00 2,160 9.00 1,440 6.00 1,400 5.83 1,200 5.00 1,896 7.90 6,929 28.87
12.9%
Asia-Pacific
$000s $ / Unit
41,625 225.00 -80 -0.43
0 0.00 41,545 224.57 29,042 156.98
925 5.00 2,498 13.50 1,110 6.00 1,000 5.41
900 4.86 1,462 7.90 4,608 24.91
11.1%
Latin America
$000s $ / Unit
29,250 225.00 -56 -0.43
0 0.00 29,194 224.57 20,405 156.96
650 5.00 1,755 13.50
780 6.00 750 5.77 600 4.62
1,027 7.90 3,227 24.82
11.1%
Overall
$000s
189,000 -363
0 188,637 131,856
4,200 6,413 5,040 5,650 4,200 6,637
24,641 13%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
285.0 8.3% 285.0 8.3%
0.0 285.0 8.3%
Units (000s)
Market Share
240.0 8.3% 240.0 8.3%
0.0 240.0 8.3%
Units (000s)
Market Share
185.0 8.3% 185.0 8.3%
0.0 185.0 8.3%
Units (000s)
Market Share
130.0 8.3% 130.0 8.3%
0.0 130.0 8.3%
Market Share 8.3% 8.3%
8.3%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 5 Year 6
36 36 72 72
3,000 3,000
Year 5 Year 6
30 30 60 60
2,500 2,500
Year 5 Year 6
24 24 48 48
2,000 2,000
Year 5 Year 6
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
64,002 44,738
1,425 5,710 2,252 9,877
15.4%
Europe-Africa
$000s
53,896 37,671
3,360 4,040 1,896 6,929
12.9%
Asia-Pacific
$000s
41,545 29,042
3,423 3,010 1,462 4,608
11.1%
Latin America
$000s
29,194 20,405
2,405 2,130 1,027 3,227
11.1%
Overall
$000s
188,637 131,856
10,613 14,890
6,637 24,641
13.1%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.0% 1,000 3.51
60 days 7.0% 840 3.50
60 days 7.0% 650 3.51
60 days 7.0% 455 3.50
7.0% 2,945 3.51
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 5 (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
41,470 1,100.00 0 0.00
41,470 1,100.00 30,393 806.18
2,262 60.00 0 0.00
1,500 39.79 1,500 39.79
411 10.90 5,404 143.34
13.0%
Europe-Africa
$000s $ / Unit
34,320 1,100.00 0 0.00
34,320 1,100.00 25,141 805.80
1,872 60.00 1,373 44.01 1,200 38.46 1,200 38.46
340 10.90 3,194 102.37
9.3%
Asia-Pacific
$000s $ / Unit
21,315 1,050.00 0 0.00
21,315 1,050.00 16,367 806.26
1,218 60.00 1,279 63.00
900 44.33 600 29.56 222 10.94 729 35.91
3.4%
Latin America
$000s $ / Unit
12,915 1,050.00 0 0.00
12,915 1,050.00 9,931 807.40
738 60.00 775 63.01 600 48.78 300 24.39 135 10.98 436 35.45
3.4%
Overall
$000s
110,020 0
110,020 81,832
6,090 3,427 4,200 3,600 1,108 9,763
8.9%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
38 units 72.5%
31 units 72.5%
20 units 72.5%
12 units 72.5%
101.5 units 72.5%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
13,371 935.03 0 0.00
13,371 935.03 11,529 806.22
143 10.00 0 0.00
1,144 80.00 156 10.91 399 27.90
3.0%
Europe-Africa
$000s $ / Unit
11,033 935.00 0 0.00
11,033 935.00 9,518 806.61
118 10.00 441 37.37 944 80.00 129 10.93 -117 -9.92
-1.1%
Asia-Pacific
$000s $ / Unit
6,872 892.47 0 0.00
6,872 892.47 6,208 806.23
77 10.00 412 53.51 616 80.00
84 10.91 -525 -68.18
-7.6%
Latin America
$000s $ / Unit
4,195 892.55 0 0.00
4,195 892.55 3,784 805.11
47 10.00 252 53.62 376 80.00
51 10.85 -315 -67.02
-7.5%
Overall
$000s
35,471 0
35,471 31,039
385 1,105 3,080
420 -558
-1.6%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
14.3 units 27.5%
11.8 units 27.5%
7.7 units 27.5%
4.7 units 27.5%
38.5 units 27.5%
Retail Outlets Number of 3rd-Party Online Retailers
Year 5 Year 6
36 36
Year 5 Year 6
30 30
Year 5 Year 6
24 24
Year 5 Year 6
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
54,841 41,922
2,405 4,144
567 5,803
10.6%
Europe-Africa
$000s
45,353 34,659
3,804 3,344
469 3,077
6.8%
Asia-Pacific
$000s
28,187 22,575
2,986 2,116
306 204
0.7%
Latin America
$000s
17,110 13,715
1,812 1,276
186 121
0.7%
Overall
$000s
145,491 112,871
11,007 10,880
1,528 9,205
6.3%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y5)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
52.0 8.3% 52.0 8.3%
0.0 52.0 8.3%
Units (000s)
Market Share
43.0 8.3% 43.0 8.3%
0.0 43.0 8.3%
Units (000s)
Market Share
28.0 8.3% 28.0 8.3%
0.0 28.0 8.3%
Units (000s)
Market Share
17.0 8.3% 17.0 8.3%
0.0 17.0 8.3%
Market Share 8.3% 8.3%
8.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 5 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
60 days 7.5% 1,170 22.50
60 days 7.5% 960
22.33
60 days 7.5% 630
22.50
60 days 7.5% 390
22.94
7.5% 3,150 22.50
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 5 (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
64,002 54,841
118,843 86,660
3,830 9,854 2,819
15,680
Europe Africa
53,896 45,353 99,249 72,330
7,164 7,384 2,365
10,006
Asia Pacific
41,545 28,187 69,732 51,617
6,409 5,126 1,768 4,812
Latin America
29,194 17,110 46,304 34,120
4,217 3,406 1,213 3,348
Company Total 188,637 145,491 334,128 244,727
21,620 25,770
8,165 33,846
Profitability and Payout Year 4 Year 5 Earnings Per Share $0.65 $0.75 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-12,417 0
21,429 6,429
15,000
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 4, the loss is carried forward and may offset some or all taxable Year 5 profit and reduce the company's tax liability in Year 5.
Balance Sheet Assets $000s Cash on Hand 5,000 Accounts Receivable (see Note 1) 56,027 Component Inventories (see Note 2) 13,136 Total Current Assets 74,163 Gross Investment in Plant and Equipment 250,000 Less Accumulated Depreciation 47,500 Total Fixed Asset Investment (see Note 3) 202,500 Total Assets 276,663 Liabilities $000s Accounts Payable (see Note 4) 36,125 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 52,125 Long-Term Bank Loans (see Note 8) 110,000 Total Liabilities 162,125 Shareholder Equity Beginning
Balance Change in Year 5 $000s
Common Stock (see Note 9) 10,000 0 10,000 Additional Capital (see Note 10) 80,000 0 80,000 Retained Earnings 9,538 +15,000 24,538 Total Shareholder Equity 99,538 +15,000 114,538 Return on Average Equity (see Note 11) 14.0% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 5 (to be collected in Year 6).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 5 (to be paid in Year 6). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 5 was 6.0%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 6. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 6 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 36,000 6,000 2,700 2 Y4 20,000 8.5 % 10-Yr 18,000 2,000 1,530 3 Y4 80,000 8.5 % 10-Yr 72,000 8,000 6,120 4 5 6 7 8 9
10 11 12
Note 9: There are 20,000 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 5 $000s Beginning Cash Balance (carried over from Year 4) 4,712 Cash Inflows
Receipts from Sales (see Note 1) 332,101 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.00) 0 Loan to Cover Overdraft 0 Interest on Year 4 Cash Balance 47 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 336,860 Cash Outlays in Year 5 $000s Payments to Component Suppliers (see Note 2) 130,374 Production and Assembly Expenses (see Note 3) 100,863 Delivery, Marketing, and Administrative Expenses 55,555 Capital Outlays New Workstations 0
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 0
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 10,175 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 5 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 12,464
Stock Repurchases (0 shares repurchased @ $12.00) 0 Income Tax Payments 6,429 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 331,860 Net Cash Balance ($000s at the end of Year 5) 5,000 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 5. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 5 and 25% of the cost of components used in Year 4. Note 3: Production and assembly expenses include all Year 5 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 4 were repaid in full in Year 5.
Interest on overdraft and 1-year loans received in Y4 was also paid in Y5.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 59:41 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 2.73 Current Ratio (current assets ÷ current liabilities) 1.42 Credit Rating (at the end of Year 5) B
Operating Profit Margin (operating profit ÷ net sales revenues) 10.1 % Net Profit Margin (net profit ÷ net sales revenues) 4.5 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 20,000 shares ) $240,000
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
Copyright © 2019 GLO-BUS Software, Inc. Page 5
UAV DRONE SEGMENT YR6 PROJECTED (1).pdf
D The Determinators (Industry 46)
PERFORMANCE HIGHLIGHTS Year 6 (projected) (practice)
Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) ROE (return on equity) Stock Price Credit Rating Image Rating Net Revenues ($000s)
AC Camera UAV Drone
Total AC Camera Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
UAV Drone Sales (000s of units)
North America Market Share Europe-Africa Market Share Asia-Pacific Market Share Latin America Market Share Total Market Share
$0.75 14.0 % $12.00
B 70
188,637 145,491 334,128
285.0 8.3 % 240.0 8.3 % 185.0 8.3 % 130.0 8.3 %
840.0 8.3 % 52.0
8.3 % 43.0
8.3 % 28.0
8.3 % 17.0
8.3 % 140.0 8.3 %
Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera UAV Drone
Compensation ($ per PAT member)
AC Camera UAV Drone
PAT Productivity (units per PAT)
AC Camera UAV Drone
Labor Cost ($/unit assembled)
AC Camera UAV Drone
Production Cost ($/unit assembled)
AC Camera UAV Drone
Marketing Cost ($ per unit sold)
AC Camera UAV Drone
Operating Profit ($ per unit sold)
AC Camera Margin UAV Drone Margin
4.0★ 4.0★
25,000 25,000 3,000 1,500 33.67 65.38
156.97 806.22 17.73 77.71 29.33
13.1 % 65.75 6.3 %
Earnings Per Share (EPS)
Copyright © 2019 GLO-BUS Software, Inc. Page 1
EPS
5 6 7 8 9 10 11 12 13 14 15 -$1
$0
$1
$2
Year
E P
S
D The Determinators (Industry 46)
ASSEMBLY AND FACILITY OPERATIONS Year 6 (projected) (practice)
Action-Capture Cameras AC Camera Production
Regular-Time 864.8 Overtime 0.0 Total 864.8
Units Assembled (000s)
Extra Performance Features 3 Number of Models 3
P/Q Rating 4.9
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 20,000 Cumulative Product R&D Expenditures ($000s) $ 65,000
AC Camera Assembly Facility Space Available for Workstations (at end of Year 5) 300 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for ACC Workstations (in Year 6) 300 spaces
Installed Workstations (at end of Year 5) 280 workstations New workstations Added (at beginning of Y6) 0 Total Installed Workstations (available for use in Y6) 280 workstations
Investment in AC Camera Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 120,000 $ 1,500 $ 121,500 Workstations 30,000 0 30,000 Robotics Upgrade 0 0 0 Total (Gross) Investment in AC Camera Facilities $ 151,500 – Accumulated Depreciation (at the end of Year 5) 37,500 – Current-Year Depreciation (5% of gross investment) 7,575 Net Investment in AC Camera Facilities $ 106,425
AC Camera Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $2.90 / unit 2,175 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,883 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 3,089 Number of PATs Employed (for AC camera assembly) 280 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 1,120
AC Camera Production and Assembly Costs $000s $ / Unit
AC Camera Components and Features
Image Sensor 12,972 15.00 LCD Display Screen 12,972 15.00 Image Quality 11,242 13.00 Photo Modes 7,783 9.00 Camera Housing 8,648 10.00 Editing / Sharing 8,648 10.00 Included Accessories 10,378 12.00 Extra Performance Features 7,783 9.00
Total Cost of Components and Features 80,426 93.00 Assembly Labor Costs
Regular-Time Labor 29,061 33.60 Overtime Labor 0 0.00 PAT Training 560 0.65
Total Cost of Labor and Training 29,621 34.25 Product R&D Expenditures 20,000 23.13 Allowance for Warranty Repairs (13.9% claims) 6,025 6.97 Plant Operations and Maintenance 14,380 16.63 Depreciation of Plant and Equipment 7,575 8.76 Total Camera Production/Assembly Cost 158,027 182.73
UAV Drones UAV Drone Production
Regular-Time 153.0 Overtime 12.1 Total 165.1
Units Assembled (000s)
Extra Performance Features 5 Number of Models 2
P/Q Rating 5.0
Product Attributes
Product R&D Expenditures in Year 6 ($000s) $ 24,000 Cumulative Product R&D Expenditures ($000s) $ 54,000
UAV Drone Assembly Facility Space Available for Workstations (at end of Year 5) 110 spaces New Spaces Added (facility expansion at begin. of Y6) 0 Space Available for Drone Workstations (in Year 6) 110 spaces
Installed Workstations (at end of Year 5) 100 workstations New workstations Added (at beginning of Y6) 2 Total Installed Workstations (available for use in Y6) 102 workstations
Investment in UAV Drone Facility ($000s)
Beginning Gross
Investment
New Year 6
Investment
Year 6 Facilities
Investment Plant Facility $ 90,000 $ 1,500 $ 91,500 Workstations 10,000 350 10,350 Robotics Upgrade 0 0 0 Total (Gross) Investment in UAV Drone Facilities $ 101,850 – Accumulated Depreciation (at the end of Year 5) 10,000 – Current-Year Depreciation (5% of gross investment) 5,093 Net Investment in UAV Drone Facilities $ 86,757
UAV Drone Work Force Statistics Year 6
Decisions $ Per
Worker Base Wage Per PAT Member +2% $ 20,808 Incentive Bonus (to reduce warranty claims) $5.40 / unit 2,025 Attendance Bonus (for perfect attendance) $100 / worker 100 Fringe Benefit Package $2,800 / worker 2,800 Total Compensation (annual pay per worker) $ 25,733 Best Practices / Productivity Improvement Training ($/PAT) $ 2,000 PAT Productivity (units assembled per PAT per year) 1,500 Number of PATs Employed (for AC camera assembly) 102 × Number of Workers Per PATs (no robotics upgrade) × 4 Total Number of Workers Employed 408
UAV Drone Production and Assembly Costs $000s $ / Unit
UAV Drone Components and Features
Built-In Camera 37,433 226.73 GPS / WiFi / Bluetooth 12,383 75.00 Battery Pack 16,510 100.00 Rotors / Performance / Controller 11,557 70.00 Body Frame Construction 2,807 17.00 Obstacle Sensors 11,062 67.00 Camera Stabilization Device 6,274 38.00 Extra Performance Features 14,859 90.00
Total Cost of Components and Features 112,885 683.74 Assembly Labor Costs
Regular-Time Labor 10,117 61.28 Overtime Labor 1,042 6.31 PAT Training 204 1.24
Total Cost of Labor and Training 11,363 68.82 Product R&D Expenditures 24,000 145.37 Allowance for Warranty Repairs (15.1% claims) 7,470 45.25 Plant Operations and Maintenance 10,526 63.76 Depreciation of Plant and Equipment 5,093 30.85 Total Drone Production/Assembly Cost 171,337 1,037.78
Copyright © 2019 GLO-BUS Software, Inc. Page 2
D The Determinators (Industry 46)
AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Regular AC Camera Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues – Promo Discounts ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Retailer Support Advertising Website Expenditures
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
89,520 300.00 -258 -0.86
0 0.00 89,262 299.14 54,529 182.74
1,790 6.00 0 0.00
1,810 6.07 2,800 9.38 1,500 5.03 2,636 8.83
24,197 81.09 27.1%
Europe-Africa
$000s $ / Unit
75,420 300.00 -218 -0.87
0 0.00 75,202 299.13 45,937 182.72
1,508 6.00 3,017 12.00 1,540 6.13 1,600 6.36 1,200 4.77 2,221 8.83
18,179 72.31 24.2%
Asia-Pacific
$000s $ / Unit
55,320 300.00 -160 -0.87
0 0.00 55,160 299.13 33,696 182.73
1,106 6.00 3,319 18.00 1,210 6.56 1,200 6.51
900 4.88 1,629 8.83
12,100 65.62 21.9%
Latin America
$000s $ / Unit
39,180 300.00 -113 -0.87
0 0.00 39,067 299.13 23,866 182.74
784 6.00 2,351 18.00
880 6.74 950 7.27 600 4.59
1,154 8.84 8,482 64.95
21.7%
Overall
$000s
259,440 -749
0 258,691 158,028
5,188 8,687 5,440 6,550 4,200 7,640
62,958 24%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
298.4 8.4% 298.4 8.4%
0.0 298.4 8.4%
Units (000s)
Market Share
251.4 8.4% 251.4 8.4%
0.0 251.4 8.4%
Units (000s)
Market Share
184.4 7.7% 184.4 7.7%
0.0 184.4 7.7%
Units (000s)
Market Share
130.6 7.8% 130.6 7.8%
0.0 130.6 7.8%
Market Share 8.2% 8.2%
8.2%
Retail Outlets Number of Outlets
Multi-Store Chains Online Retailers Local Retail Shops
Year 6 Year 7
36 36 72 72
3,000 3,000
Year 6 Year 7
30 30 60 60
2,500 2,500
Year 6 Year 7
24 24 48 48
2,000 2,000
Year 6 Year 7
18 18 36 36
1,000 1,000
Number of retail outlets willing to carry the compa- ny's brand of AC cameras.
Special AC Camera Contracts Discount Offer (% off of standard price)
Value Index of Units Offered Units Assembled / Sold (000s)
North America
0.0% No Offer
0 0.0 units
Europe-Africa
0.0% No Offer
0 0.0 units
Asia-Pacific
0.0% No Offer
0 0.0 units
Latin America
0.0% No Offer
0 0.0 units
Overall
0 Offers
Accepted
0.0 units
Incremental Revenues-Costs-Margins Revenues Gross Revenues
± Exchange Rate Adj. Net Revenues
Less: Cost of Components / Features Assembly Labor Costs Allowance for Warranty Repairs Delivery (shipping and import duties)
Contribution Margin
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s $ / Unit
0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00
$000s
0 0 0 0 0 0 0 0
All AC Camera Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
89,262 54,529
1,790 6,110 2,636
24,197 27.1%
Europe-Africa
$000s
75,202 45,937
4,525 4,340 2,221
18,179 24.2%
Asia-Pacific
$000s
55,160 33,696
4,425 3,310 1,629
12,100 21.9%
Latin America
$000s
39,067 23,866
3,135 2,430 1,154 8,482
21.7%
Overall
$000s
258,691 158,028
13,875 16,190
7,640 62,958
24.3%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 13.9% 2,080 6.97
120 days 13.9% 1,750 6.96
120 days 13.9% 1,285 6.97
120 days 13.9%
910 6.97
13.9% 6,025 6.97
Copyright © 2019 GLO-BUS Software, Inc. Page 3
D The Determinators (Industry 46)
UAV DRONES – MARKET SEGMENT PERFORMANCE Year 6 (projected) (practice)
Direct Online Sales Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Marketing Costs
Website Expenditures Search Engine Advertising
Production Costs (components / assembly)
Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
55,580 1,400.00 0 0.00
55,580 1,400.00 41,195 1,037.66
2,481 62.49 0 0.00
2,000 50.38 2,000 50.38
449 11.31 7,455 187.78
13.4%
Europe-Africa
$000s $ / Unit
46,480 1,400.00 0 0.00
46,480 1,400.00 34,435 1,037.20
2,075 62.50 1,859 55.99 1,500 45.18 1,500 45.18
375 11.30 4,736 142.65
10.2%
Asia-Pacific
$000s $ / Unit
27,270 1,350.00 0 0.00
27,270 1,350.00 20,984 1,038.81
1,263 62.52 1,636 80.99 1,100 54.46
800 39.60 229 11.34
1,258 62.28 4.6%
Latin America
$000s $ / Unit
17,145 1,350.00 0 0.00
17,145 1,350.00 13,177 1,037.56
794 62.52 1,029 81.02
800 62.99 500 39.37 144 11.34 701 55.20
4.1%
Overall
$000s
146,475 0
146,475 109,791
6,613 4,524 4,200 4,800 1,197
14,150 9.7%
Direct Online Sales (000s of units) % of Total UAV Drone Unit Sales
40 units 63.0%
33 units 64.0%
20 units 65.5%
13 units 65.5%
105.8 units 64.1%
3rd-Party Online Retailers Revenue-Cost-Profit Breakdown
Revenues Gross Revenues ± Exchange Rate Adj. Net Revenues
Delivery Costs
Shipping Import Duties
Production Costs (components / assembly)
Retailer Recruitment / Support Administrative Expenses Operating Profit Operating Profit Margin
North America
$000s $ / Unit
26,096 1,120.00 0 0.00
26,096 1,120.00 24,183 1,037.90
291 12.49 0 0.00
2,000 85.84 264 11.33
-642 -27.55 -2.5%
Europe-Africa
$000s $ / Unit
20,832 1,120.00 0 0.00
20,832 1,120.00 19,319 1,038.66
232 12.47 833 44.78
1,500 80.65 211 11.34
-1,263 -67.90 -6.1%
Asia-Pacific
$000s $ / Unit
11,556 1,080.00 0 0.00
11,556 1,080.00 11,094 1,036.82
134 12.52 693 64.77 800 74.77 121 11.31
-1,286 -120.19 -11.1%
Latin America
$000s $ / Unit
7,236 1,080.00 0 0.00
7,236 1,080.00 6,947 1,036.87
84 12.54 434 64.78 500 74.63
76 11.34 -805 -120.15
-11.1%
Overall
$000s
65,720 0
65,720 61,543
741 1,960 4,800
672 -3,996
-6.1%
3rd-Party Sales (000s of units) % of Total UAV Drone Unit Sales
23.3 units 37.0%
18.6 units 36.0%
10.7 units 34.5%
6.7 units 34.5%
59.3 units 35.9%
Retail Outlets Number of 3rd-Party Online Retailers
Year 6 Year 7
36 36
Year 6 Year 7
30 30
Year 6 Year 7
24 24
Year 6 Year 7
18 18
Number of online retailers willing to carry the compa- ny's brand of UAV drones.
All UAV Drone Operations Revenue-Cost-Profit Breakdown
Operating Costs
Production Costs Delivery (shipping / duties) Marketing Costs Administrative Costs
Net Revenues
Operating Profit Operating Profit Margin
North America
$000s
81,676 65,378
2,772 6,000
713 6,813
8.3%
Europe-Africa
$000s
67,312 53,754
4,999 4,500
586 3,473
5.2%
Asia-Pacific
$000s
38,826 32,078
3,726 2,700
350 -28
-0.1%
Latin America
$000s
24,381 20,124
2,341 1,800
220 -104
-0.4%
Overall
$000s
212,195 171,334
13,838 15,000
1,869 10,154 4.8%
Unit Demand and Sales
Actual Demand (as determined by competition among rival companies in Y6)
Projected Demand (from decision entries)
Units Gained/Lost (due to stock-outs)
Total Units Assembled and Shipped
Units (000s)
Market Share
63.0 8.7% 63.0 8.7%
0.0 63.0 8.7%
Units (000s)
Market Share
51.8 8.6% 51.8 8.6%
0.0 51.8 8.6%
Units (000s)
Market Share
30.9 7.8% 30.9 7.8%
0.0 30.9 7.8%
Units (000s)
Market Share
19.4 8.1% 19.4 8.1%
0.0 19.4 8.1%
Market Share 8.5% 8.5%
8.5%
Warranty Period / Claims / Costs Warranty Period Offered in Year 6 Anticipated Warranty Claim Rate Allowance for Warranty Repairs ($000s) Warranty Repair Cost ($ per unit sold)
120 days 15.1% 2,851 45.25
120 days 15.1% 2,340 45.17
120 days 15.1% 1,410 45.63
120 days 15.1%
870 44.85
15.1% 7,471 45.25
Copyright © 2019 GLO-BUS Software, Inc. Page 4
D The Determinators (Industry 46)
FINANCIAL STATEMENTS Year 6 (projected) (practice)
Income Statement ($000)
AC Camera Revenues UAV Drone Revenues Total Revenues¹ Cost of Goods Sold Delivery Costs Marketing Costs Administrative Expenses Operating Profit (Loss)
North America
89,262 81,676
170,938 119,907
4,562 12,110 3,349
31,010
Europe Africa
75,202 67,312
142,514 99,691
9,524 8,840 2,807
21,652
Asia Pacific
55,160 38,826 93,986 65,774
8,151 6,010 1,979
12,072
Latin America
39,067 24,381 63,448 43,990
5,476 4,230 1,374 8,378
Company Total 258,691 212,195 470,886 329,362
27,713 31,190
9,509 73,112
Profitability and Payout Year 5 Year 6 Earnings Per Share $0.75 $2.22 Dividends Per Share $0.00 $0.00
Interest Income (Expense) Other Income (Expense)² Pre-Tax Profit (Loss) Income Taxes³ Net Profit (Loss)
-10,300 0
62,812 18,844 43,968
Notes to Income Statement
¹ Revenues listed here have been ad- justed for promotional discounts and exchange rates. See the Market Seg- ment Performance reports for details on promotional discount and ex- change rate adjustments to revenues.
² Other Income (Expense) will include charitable contributions, instructor- imposed fines (appearing as nega- tive), and instructor-awarded refunds (appearing as positive).
³ The income tax rate is 30%. If a net loss was recorded in Year 5, the loss is carried forward and may offset some or all taxable Year 6 profit and reduce the company's tax liability in Year 6.
Balance Sheet Assets $000s Cash on Hand 25,624 Accounts Receivable (see Note 1) 81,103 Component Inventories (see Note 2) 19,331 Total Current Assets 126,058 Gross Investment in Plant and Equipment 253,350 Less Accumulated Depreciation 60,168 Total Fixed Asset Investment (see Note 3) 193,182 Total Assets 319,240 Liabilities $000s Accounts Payable (see Note 4) 53,161 Overdraft Loan Payable (see Note 5) 0 1-Year Bank Loan Payable (see Note 6) 0 Current Portion of Long-Term Loans (see Note 7) 16,000 Total Current Liabilities 69,161 Long-Term Bank Loans (see Note 8) 94,000 Total Liabilities 163,161 Shareholder Equity Beginning
Balance Change in Year 6 $000s
Common Stock (see Note 9) 10,000 -100 9,900 Additional Capital (see Note 10) 80,000 -2,324 77,676 Retained Earnings 24,538 +43,968 68,506 Total Shareholder Equity 114,538 +41,544 156,082 Return on Average Equity (see Note 11) 32.5% Notes to Balance Sheet (all dollar and share figures in thousands)
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone revenues generated in Year 6 (to be collected in Year 7).
Note 2: A 10% reserve of camera and drone components is kept at all times. Note 3: For more details, see the Assembly and Facility Operations report. Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 6 (to be paid in Year 7). Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Note 6: The company's 1-year bank loan interest rate in Year 6 was 5.5%. Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 7. Note 8: Long-term bank loans outstanding:
Loan No.
Initial Year
Original Principal
Interest
Rate
Term
Out- standing Principal
Annual Principal Payment
Year 7 Interest Payable
1 Y1 60,000 7.5 % 10-Yr 30,000 6,000 2,250 2 Y4 20,000 8.5 % 10-Yr 16,000 2,000 1,360 3 Y4 80,000 8.5 % 10-Yr 64,000 8,000 5,440 4 5 6 7 8 9
10 11 12
Note 9: There are 19,800 shares of stock outstanding at a par value of $0.50 per share. Note 10: Total $ amount above par value that shareholders paid to purchase stock. Note 11: The formula for Return
on Average Equity is: After-Tax Profit
(Beginning Equity + Ending Equity) ÷ 2
Cash Flow Statement Cash Available in Year 6 $000s Beginning Cash Balance (carried over from Year 5) 5,000 Cash Inflows
Receipts from Sales (see Note 1) 445,810 Bank Loan 1-Year 0
5-Year 0 10-Year 0
Stock Issue (0 shares isued @$12.12) 0 Loan to Cover Overdraft 0 Interest on Year 5 Cash Balance 50 Cash Refund (awarded by instructor) 0
Total Cash Available (from all sources) 450,860 Cash Outlays in Year 6 $000s Payments to Component Suppliers (see Note 2) 182,471 Production and Assembly Expenses (see Note 3) 123,385 Delivery, Marketing, and Administrative Expenses 68,412 Capital Outlays New Workstations 350
Robotics Upgrades 0 Facilities Expansion 0 Facilities Improvements (CSRC) 3,000
Repayment of Bank Loan Principal (see Note 4)
Overdraft Loan 0 1-Year Loan 0 5-Year Loan 0 10-Year Loan 16,000
Interest Payments Year 6 Overdraft Loan 0 Bank Loans (1-year, 5-year, 10-year) 10,350
Stock Repurchases (200 shares repurchased @ $12.12) 2,424 Income Tax Payments 18,844 Dividend Payments to Shareholders 0 Charitable Contributions 0 Cash Fines (assessed by instructor) 0 Total Cash Outlays 425,236 Net Cash Balance ($000s at the end of Year 6) 25,624 Notes to Cash Flow Statement Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
and 3rd-party drone revenues generated in Year 6. Note 2: Payments to component suppliers equals 75% of the cost of components used
in Year 6 and 25% of the cost of components used in Year 5. Note 3: Production and assembly expenses include all Year 6 production-related ex-
penses except for depreciation (which is a non-cash accounting charge). Note 4: Overdraft and 1-year loans received in Year 5 were repaid in full in Year 6.
Interest on overdraft and 1-year loans received in Y5 was also paid in Y6.
Selected Financial Statistics Credit Rating Measures
Debt / Equity Percentage (Debt : Equity) 51:49 Interest Coverage Ratio (oper. prof. ÷ int. exp.) 7.10 Current Ratio (current assets ÷ current liabilities) 1.82 Credit Rating (at the end of Year 6) A–
Operating Profit Margin (operating profit ÷ net sales revenues) 15.5 % Net Profit Margin (net profit ÷ net sales revenues) 9.3 % Dividend Payout (dividend per share ÷ earnings per share) 0.0 % Market Capitalization ($12.00 stock price × 19,800 shares ) $237,600
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.
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