Unit 5 IP
SteelTiger4
CompXMInquirerforPracticeBoardQueryQuestions.pdf
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Selected Financial Statistics
Andrews Baldwin Chester Digby
ROS 0.7% 0.1% 3.3% 0.2%
Turnover 0.78 1.16 1.23 1.45
ROA 0.5% 0.1% 4.1% 0.3%
Leverage 2.3 2.8 2.0 2.3
ROE 1.2% 0.4% 8.2% 0.7%
Emergency Loan $0 $0 $0 $0
Sales $122,412,682 $167,340,889 $147,053,946 $220,974,547
EBIT $11,385,747 $10,701,648 $14,283,460 $9,570,040
Profits $859,980 $188,073 $4,921,067 $490,070
Cumulative Profit $7,805,678 $223,085 $16,293,314 $14,705,758
SG&A / Sales 16.2% 12.7% 17.7% 15.9%
Contrib. Margin % 38.4% 29.3% 37.4% 27.7%
Comp-XM® Inquirer Page 1
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Stocks & Bonds
Stock Market Summary
Company Close Change Shares MarketCap
($M)
Book
Value EPS Dividend Yield P/E
Andrews $27.72 $0.66 2,601,478 $72 $26.74 $0.33 $0.00 0.0% 83.6
Baldwin $10.77 $0.93 2,525,298 $27 $20.64 $0.07 $0.00 0.0% 142.7
Chester $39.73 $5.35 2,000,000 $79 $30.02 $2.46 $0.00 0.0% 16.1
Digby $30.67 ($3.86) 2,224,381 $68 $29.88 $0.22 $0.00 0.0% 138.6
Bond Market Summary
Company Series# Face Yield Close S&P
Andrews
14.0S2016 $20,850,000 13.9% $101.00 CCC
10.8S2021 $8,000,000 12.2% $88.64 CCC
12.2S2023 $15,000,000 13.0% $93.93 CCC
12.7S2024 $10,000,000 13.2% $96.26 CCC
Baldwin
14.0S2016 $20,850,000 14.0% $100.00 C
11.5S2022 $5,000,000 13.0% $88.40 C
12.0S2023 $8,000,000 13.3% $90.11 C
13.0S2024 $20,000,000 13.7% $94.78 C
Chester
14.0S2016 $20,850,000 13.7% $102.01 B
10.8S2021 $4,000,000 11.9% $91.10 B
11.8S2022 $7,000,000 12.4% $95.17 B
Digby
14.0S2016 $20,850,000 13.9% $101.00 CCC
11.4S2022 $10,000,000 12.6% $90.53 CCC
12.2S2023 $4,000,000 13.0% $93.93 CCC
12.7S2024 $6,000,000 13.2% $96.26 CCC
Comp-XM® Inquirer Page 2
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Financial Analysis
Cash Flow Statement Survey Andrews Baldwin Chester Digby
Cash flows from operating activities
Net Income (Loss) $860 $188 $4,921 $490
Adjustment for non-cash items:
Depreciation $10,015 $10,407 $9,220 $9,640
Extraordinary gains/losses/writeoffs ($338) $0 ($13) $0
Changes in current assets and liabilities:
Accounts payable ($957) $4,628 ($462) $4,469
Inventory ($4,203) ($1,511) $306 ($19,140)
Accounts receivable $1,658 ($4,870) ($299) ($4,371)
Net cash from operations $7,034 $8,843 $13,673 ($8,912)
Cash flows from investing activities
Plant improvements (net) ($24,950) ($28,460) ($10,380) ($11,800)
Cash flows from financing activities
Dividends paid $0 $0 $0 $0
Sales of common stock $3,000 $4,142 $0 $6,000
Purchase of common stock $0 $0 $0 $0
Cash from long term debt issued $10,000 $20,000 $0 $6,000
Early retirement of long term debt $0 $0 ($5,000) $0
Retirement of current debt ($13,200) ($10,000) ($14,000) ($12,000)
Cash from current debt borrowing $14,000 $15,000 $12,000 $17,000
Cash from emergency loan $0
$0
$0
$0
Net cash from financing activities $13,800 $29,142 ($7,000) $17,000
Net change in cash position ($4,116) $9,525 ($3,707) ($3,712)
Balance Sheet Survey Andrews Baldwin Chester Digby
Cash $21,933 $17,650 $3,089 $10,277
Accounts Receivable $10,061 $13,754 $12,087 $18,162
Inventory $14,063 $13,785 $27,999 $40,336
Total Current Assets $46,058 $45,189 $43,175 $68,776
Plant and equipment $169,218 $169,100 $138,300 $144,600
Accumulated Depreciation ($57,288) ($69,703) ($61,428) ($60,867)
Total Fixed Assets $111,930 $99,397 $76,872 $83,733
Total Assets $157,987
$144,586
$120,047
$152,509
Accounts Payable $6,678 $9,718 $7,264 $14,300
Current Debt $27,900 $28,900 $20,887 $30,900
Long Term Debt $53,850 $53,850 $31,850 $40,850
Total Liabilities $88,428 $92,468 $60,001 $86,050
Common Stock $36,360 $26,502 $18,360 $26,360
Retained Earnings $33,199 $25,617 $41,687 $40,099
Total Equity $69,559 $52,119 $60,047 $66,459
Total Liabilities & Owners' Equity $157,987
$144,586
$120,047
$152,509
Income Statement Survey Andrews Baldwin Chester Digby
Sales $122,413 $167,341 $147,054 $220,975
Variable Costs (Labor, Material, Carry) $75,461 $118,374 $92,045 $159,684
Depreciation $10,015 $10,407 $9,220 $9,640
SGA (R&D, Promo, Sales, Admin) $19,840 $21,251 $26,044 $35,181
Other (Fees, Writeoffs, TQM, Bonuses) $5,712 $6,607 $5,462 $6,900
EBIT $11,386 $10,702 $14,283 $9,570
Interest (Short term, Long term) $10,036 $10,406 $6,558 $8,801
Taxes $473 $103 $2,704 $269
Profit Sharing $18 $4 $100 $10
Net Profit $860 $188 $4,921 $490
Comp-XM® Inquirer Page 3
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Production Analysis
Production Information
Name
Primar
y
Units
Sold
Unit
Inven
tory
Revisi
on
Date
Age
Dec.31 MTBF
Pfmn
Coord
Size
Coord Price
Materi
al Cost
Labor
Cost
Contr.
Marg.
2nd
Shift &
Auto
mation
Capaci
ty Next
Round
Plant
Utiliz.
Segme
nt
Over-
time
Next
Round
Able Low 947 142 2/13/2
014 4.0 12000 5.0 15.0 $19.00 $5.96 $6.30 33% 0% 6.0 1,200 91%
Acre Low 1,908 114 1/29/2
014 8.6 12000 3.0 17.0 $19.00 $4.40 $5.49 46% 32% 7.0 1,400 134%
Adam Trad 1,287 0 11/4/2
014 1.4 16000 8.0 11.7 $27.00 $9.54 $7.24 35% 40% 7.0 900 143%
Aft 0 0 6/14/2
013 2.7 25000 10.3 14.8 $32.00 $0.00 $0.00 0% 0% 3.0 1 0%
Ate High 475 397 4/26/2
014 1.4 23000 10.5 8.8 $38.00 $13.62 $7.60 35% 36% 7.0 500 139%
Axis High 404 96 6/28/2
014 0.5 23000 12.0 7.0 $38.00 $14.90 $7.37 39% 91% 8.0 500 100%
Ache 0 0 5/8/20
15 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 8.0 500 0%
Baker Low 806 580 1/21/2
014 4.0 14000 5.5 15.1 $21.00 $7.05 $6.58 28% 0% 6.5 1,400 99%
Bead Low 1,522 401 4/13/2
014 4.7 14000 4.5 15.7 $20.00 $6.39 $6.27 34% 7% 7.0 1,400 106%
Bid Trad 1,260 0 1/11/2
014 2.4 17000 7.9 12.2 $28.00 $10.11 $9.14 27% 25% 5.0 800 124%
Bold Trad 891 0 1/11/2
014 2.4 17000 8.6 12.6 $28.00 $10.25 $9.66 28% 50% 5.0 600 149%
Buddy Trad 1,089 0 1/11/2
014 2.4 17000 7.4 11.6 $28.00 $10.17 $10.14 27% 83% 5.0 600 182%
Brass High 769 23 6/24/2
014 0.9 23000 12.6 8.0 $38.00 $15.55 $10.32 32% 100% 5.0 450 198%
Brat 0 0 7/11/2
015 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 5.0 500 0%
Cake Trad 891 0 12/15/
2014 1.3 15000 7.3 12.7 $25.50 $8.59 $5.36 47% 0% 6.8 1,100 89%
Cedar Low 2,438 283 11/28/
2015 8.6 12000 3.0 17.0 $18.50 $4.40 $5.20 45% 73% 8.5 1,400 177%
Cid High 599 591 12/26/
2014 1.1 23000 12.2 7.8 $36.50 $14.66 $8.65 29% 31% 4.8 600 132%
Coat Pfmn 805 443 12/24/
2014 1.2 26000 13.7 12.8 $31.50 $14.60 $7.81 24% 84% 5.8 550 188%
Cure Size 1,016 78 12/24/
2014 1.2 18000 7.3 6.7 $31.50 $12.17 $7.34 36% 37% 5.8 500 139%
Daze Trad 1,424 358 8/8/20
14 1.5 19000 8.3 11.7 $28.00 $10.96 $8.97 27% 80% 5.5 1,000 178%
Dell Low 1,918 498 5/21/2
015 8.6 15500 3.0 17.0 $20.50 $5.63 $7.24 34% 57% 6.5 1,400 156%
Dixie High 802 373 9/8/20
14 1.2 24000 12.2 7.9 $38.00 $15.55 $9.59 30% 70% 4.5 500 168%
Dot Pfmn 950 220 7/21/2
014 1.4 26000 13.8 13.0 $33.00 $15.24 $9.75 22% 83% 5.0 600 182%
Dune Size 1,201 48 8/13/2
014 1.3 19500 7.8 6.8 $33.00 $13.22 $9.75 30% 83% 5.0 600 182%
Doom Pfmn 872 255 5/18/2
014 1.0 26000 13.7 13.0 $33.00 $15.19 $9.93 20% 100% 5.0 550 198%
Dust Size 349 186 6/3/20
14 0.6 19000 7.8 7.0 $33.00 $12.97 $9.81 26% 89% 5.0 550 107%
Comp-XM® Inquirer Page 4
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Traditional Market Segment Analysis
Traditional Statistics
Total Industry Unit Demand 7,003
Actual Industry Unit Sales 7,003
Segment % of Total Industry 28.4%
Growth Rate 9.2%
Traditional Customer Buying Criteria
Expectations Importance
1. Age Ideal Age = 2.0 47%
2. Price $18.00 - 28.00 23%
3. Ideal
Position
Pfmn 7.8 Size12.2 21%
4. Reliability MTBF 14000-19000 9%
Perceptual Map for Traditional Segment
Top Products in Traditional Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey
Daze 20% 1,415 8/8/2014 8.3 11.7 $28.00 19000 1.5 $2,300 $1,718 100% 44
Adam 18% 1,282 11/4/2014 YES 8.0 11.7 $27.00 16000 1.4 $1,550 $1,040 90% 34
Bid 18% 1,254 1/11/2014 YES 7.9 12.2 $28.00 17000 2.4 $1,700 $1,012 99% 50
Buddy 15% 1,036 1/11/2014 YES 7.4 11.6 $28.00 17000 2.4 $1,700 $1,012 84% 42
Bold 13% 884 1/11/2014 YES 8.6 12.6 $28.00 17000 2.4 $1,700 $1,012 86% 42
Cake 12% 849 12/15/2014 YES 7.3 12.7 $25.50 15000 1.3 $1,575 $2,250 95% 33
Baker 3% 191 1/21/2014 5.5 15.1 $21.00 14000 4.0 $1,700 $1,012 100% 2
Able 1% 91 2/13/2014 5.0 15.0 $19.00 12000 4.0 $1,550 $1,430 87% 0
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Low End Market Segment Analysis
Low End Statistics
Total Industry Unit Demand 9,299
Actual Industry Unit Sales 9,299
Segment % of Total Industry 37.8%
Growth Rate 11.7%
Low End Customer Buying Criteria
Expectations Importance
1. Price $13.00 - 23.00 53%
2. Age Ideal Age = 7.0 24%
3. Ideal
Position
Pfmn 3.7 Size16.3 16%
4. Reliability MTBF 12000-17000 7%
Perceptual Map for Low End Segment
Top Products in Low End Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey
Cedar 26% 2,438 11/28/2015 3.0 17.0 $18.50 12000 8.6 $1,575 $2,362 94% 30
Dell 21% 1,918 5/21/2015 3.0 17.0 $20.50 15500 8.6 $2,300 $1,718 100% 24
Acre 21% 1,908 1/29/2014 3.0 17.0 $19.00 12000 8.6 $1,550 $1,170 82% 24
Bead 16% 1,522 4/13/2014 4.5 15.7 $20.00 14000 4.7 $1,700 $1,012 100% 22
Able 9% 857 2/13/2014 5.0 15.0 $19.00 12000 4.0 $1,550 $1,430 87% 14
Baker 7% 615 1/21/2014 5.5 15.1 $21.00 14000 4.0 $1,700 $1,012 100% 10
Cake 0% 42 12/15/2014 YES 7.3 12.7 $25.50 15000 1.3 $1,575 $2,250 95% 0
Comp-XM® Inquirer Page 6
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High End Market Segment Analysis
High End Statistics
Total Industry Unit Demand 3,104
Actual Industry Unit Sales 3,104
Segment % of Total Industry 12.6%
Growth Rate 16.2%
High End Customer Buying Criteria
Expectations Importance
1. Ideal
Position
Pfmn12.5 Size 7.5 43%
2. Age Ideal Age = 0.0 29%
3. Reliability MTBF 20000-25000 19%
4. Price $28.00 - 38.00 9%
Perceptual Map for High End Segment
Top Products in High End Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey
Dixie 26% 802 9/8/2014 12.2 7.9 $38.00 24000 1.2 $2,100 $1,718 100% 53
Brass 25% 769 6/24/2014 12.6 8.0 $38.00 23000 0.9 $1,550 $1,265 79% 45
Cid 19% 599 12/26/2014 12.2 7.8 $36.50 23000 1.1 $1,550 $2,362 91% 50
Ate 15% 475 4/26/2014 10.5 8.8 $38.00 23000 1.4 $1,700 $1,235 86% 18
Axis 13% 404 6/28/2014 12.0 7.0 $38.00 23000 0.5 $1,700 $1,625 65% 44
Dust 1% 16 6/3/2014 7.8 7.0 $33.00 19000 0.6 $2,100 $1,964 71% 1
Daze 0% 10 8/8/2014 8.3 11.7 $28.00 19000 1.5 $2,300 $1,718 100% 0
Bold 0% 7 1/11/2014 YES 8.6 12.6 $28.00 17000 2.4 $1,700 $1,012 86% 0
Dune 0% 7 8/13/2014 7.8 6.8 $33.00 19500 1.3 $2,100 $1,718 100% 0
Bid 0% 6 1/11/2014 YES 7.9 12.2 $28.00 17000 2.4 $1,700 $1,012 99% 0
Buddy 0% 6 1/11/2014 YES 7.4 11.6 $28.00 17000 2.4 $1,700 $1,012 84% 0
Adam 0% 3 11/4/2014 YES 8.0 11.7 $27.00 16000 1.4 $1,550 $1,040 90% 0
Comp-XM® Inquirer Page 7
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Performance Market Segment Analysis
Performance Statistics
Total Industry Unit Demand 2,630
Actual Industry Unit Sales 2,630
Segment % of Total Industry 10.7%
Growth Rate 19.8%
Performance Customer Buying Criteria
Expectations Importance
1. Reliability MTBF 22000-27000 43%
2. Ideal
Position
Pfmn13.4 Size13.2 29%
3. Price $23.00 - 33.00 19%
4. Age Ideal Age = 1.0 9%
Perceptual Map for Performance Segment
Top Products in Performance Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey
Dot 36% 950 7/21/2014 13.8 13.0 $33.00 26000 1.4 $2,100 $1,718 100% 52
Doom 33% 872 5/18/2014 13.7 13.0 $33.00 26000 1.0 $2,100 $1,718 90% 50
Coat 31% 805 12/24/2014 13.7 12.8 $31.50 26000 1.2 $1,600 $2,137 89% 45
Adam 0% 2 11/4/2014 YES 8.0 11.7 $27.00 16000 1.4 $1,550 $1,040 90% 0
Comp-XM® Inquirer Page 8
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Size Market Segment Analysis
Size Statistics
Total Industry Unit Demand 2,590
Actual Industry Unit Sales 2,590
Segment % of Total Industry 10.5%
Growth Rate 18.3%
Size Customer Buying Criteria
Expectations Importance
1. Ideal
Position
Pfmn 6.8 Size 6.6 43%
2. Age Ideal Age = 1.5 29%
3. Reliability MTBF 16000-21000 19%
4. Price $23.00 - 33.00 9%
Perceptual Map for Size Segment
Top Products in Size Segment
Name
Market
Share
Units
Sold
to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Sales
Budget
Customer
Aware-
ness
December
Customer
Survey
Dune 46% 1,194 8/13/2014 7.8 6.8 $33.00 19500 1.3 $2,100 $1,718 100% 46
Cure 39% 1,016 12/24/2014 7.3 6.7 $31.50 18000 1.2 $1,550 $2,137 89% 46
Dust 13% 332 6/3/2014 7.8 7.0 $33.00 19000 0.6 $2,100 $1,964 71% 29
Buddy 2% 47 1/11/2014 YES 7.4 11.6 $28.00 17000 2.4 $1,700 $1,012 84% 0
Comp-XM® Inquirer Page 9
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Market Share Report
Actual Market Share in Units
Trad Low High Pfmn Size Total
Industry
Unit
Sales
7,003 9,299 3,104 2,630 2,590 24,626
% of
Market 28.4% 37.8% 12.6% 10.7% 10.5% 100.0%
Able 1.3% 9.2% 3.9%
Acre 20.5% 7.8%
Adam 18.3% 0.1% 0.1% 5.2%
Potential Market Share in Units
Trad Low High Pfmn Size Total
Units
Demanded 7,003 9,299 3,104 2,630 2,590 24,626
% of
Market 28.4% 37.8% 12.6% 10.7% 10.5% 100.0%
Able 1.2% 9.2% 3.8%
Acre 20.5% 7.7%
Adam 15.7% 0.1% 0.1% 4.5%
Ate 14.7% 1.9%
Ate 15.3% 1.9%
Axis 13.0% 1.6%
Total 19.6% 29.7% 28.4% 0.1% 20.4%
Baker 2.7% 6.6% 3.3%
Bead 16.4% 6.2%
Bid 17.9% 0.2% 5.1%
Bold 12.6% 0.2% 3.6%
Buddy 14.8% 0.2% 1.8% 4.4%
Brass 24.8% 3.1%
Total 48.1% 23.0% 25.4% 1.8% 25.7%
Cake 12.1% 0.5% 3.6%
Cedar 26.2% 9.9%
Axis 12.9% 1.6%
Total 17.2% 29.7% 27.7% 5.2% 20.2%
Baker 2.5% 6.6% 3.2%
Bead 16.4% 6.2%
Bid 18.2% 0.2% 5.2%
Bold 15.2% 0.2% 4.3%
Buddy 15.7% 0.2% 1.9% 4.7%
Brass 27.2% 3.4%
Total 51.5% 23.0% 27.7% 1.9% 27.0%
Cake 14.1% 0.5% 4.2%
Cedar 26.2% 9.9%
Cid 18.5% 2.3%
Cid 19.3% 2.4%
Coat 30.6% 3.3%
Cure 39.2% 4.1%
Total 12.1% 26.7% 19.3% 30.6% 39.2% 23.4%
Daze 20.2% 0.3% 5.8%
Dell 20.6% 7.8%
Dixie 25.8% 3.3%
Dot 36.1% 3.9%
Dune 0.2% 46.1% 4.9%
Doom 33.2% 3.5%
Dust 0.5% 12.8% 1.4%
Total 20.2% 20.6% 26.9% 69.3% 59.0% 30.5%
Coat 29.0% 3.1%
Cure 39.2% 4.1%
Total 14.1% 26.7% 18.6% 29.0% 39.2% 23.7%
Daze 17.2% 0.3% 4.9%
Dell 20.6% 7.8%
Dixie 25.0% 3.1%
Dot 34.3% 3.7%
Dune 0.2% 46.1% 4.9%
Doom 31.5% 3.4%
Dust 0.5% 12.8% 1.4%
Total 17.2% 20.6% 26.0% 65.8% 58.9% 29.2%
Comp-XM® Inquirer Page 10
Perceptual Map for All Segments
Andrews
Name Pfmn Size Revised
Able 5.0 15.0 2/13/2014
Acre 3.0 17.0 1/29/2014
Adam 8.0 11.7 11/4/2014
Aft 10.3 14.8 6/14/2013
Ate 10.5 8.8 4/26/2014
Axis 12.0 7.0 6/28/2014
Baldwin
Name Pfmn Size Revised
Baker 5.5 15.1 1/21/2014
Bead 4.5 15.7 4/13/2014
Bid 7.9 12.2 1/11/2014
Bold 8.6 12.6 1/11/2014
Buddy 7.4 11.6 1/11/2014
Brass 12.6 8.0 6/24/2014
Chester
Name Pfmn Size Revised
Cake 7.3 12.7 12/15/2014
Cedar 3.0 17.0 11/28/2015
Cid 12.2 7.8 12/26/2014
Coat 13.7 12.8 12/24/2014
Cure 7.3 6.7 12/24/2014
Digby
Name Pfmn Size Revised
Daze 8.3 11.7 8/8/2014
Dell 3.0 17.0 5/21/2015
Dixie 12.2 7.9 9/8/2014
Dot 13.8 13.0 7/21/2014
Dune 7.8 6.8 8/13/2014
Doom 13.7 13.0 5/18/2014
Dust 7.8 7.0 6/3/2014
Comp-XM® Inquirer Page 11
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HR/TQM Report
HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby
Needed Complement 573 950 585 1,212
Complement 617 920 615 1,188
1st Shift Complement 476 716 425 684
2nd Shift Complement 141 204 190 504
Overtime% 0.0% 4.1% 0.0% 3.5%
Turnover Rate 7.9% 9.0% 8.8% 8.6%
New Employees 49 454 54 402
Separated Employees 160 0 98 0
Recruiting Spend $3,000 $2,200 $2,000 $2,500
Training Hours 50 35 30 40
Productivity Index 108.8% 103.1% 103.2% 105.4%
Recruiting Cost $195 $1,451 $162 $1,407
Separation Cost $800 $0 $490 $0
Training Cost $617 $644 $369 $950
Total HR Admin Cost $1,612 $2,095 $1,021 $2,357
Labor Contract Next
Year
Wages $25.53 $25.53 $25.53 $25.53
Benefits 2,500 2,500 2,500 2,500
Profit Sharing 2.0% 2.0% 2.0% 2.0%
Annual Raise 5.0% 5.0% 5.0% 5.0%
Starting Negotiation
Position
Wages
Benefits
Profit Sharing
Annual Raise
Ceiling Negotiation
Position
Wages
Benefits
Profit Sharing
Annual Raise
Adjusted Labor Demands
Wages
Benefits
Profit Sharing
Annual Raise
Strike Days
TQM SUMMARY
Andrews Baldwin Chester Digby
Process Mgt Budgets Last
Year
CPI Systems $900 $0 $900 $0
Vendor/JIT $900 $0 $900 $0
Quality Initiative Training $900 $0 $900 $0
Channel Support Systems $0 $900 $0 $900
Concurrent Engineering $0 $900 $0 $900
UNEP Green Programs $900 $900 $900 $900
TQM Budgets Last Year
Benchmarking $0 $900 $0 $900
Quality Function
Deployment Effort $0 $900 $0 $900
CCE/6 Sigma Training $900 $0 $900 $900
GEMI TQEM
Sustainability Initiatives $900 $900 $900 $900
Total Expenditures $5,400 $5,400 $5,400 $6,300
Cumulative Impacts
Material Cost Reduction 5.79% 0.64% 5.79% 1.69%
Labor Cost Reduction 7.13% 0.06% 7.13% 1.19%
Reduction R&D Cycle
Time 0.00% 30.04% 0.00% 30.04%
Reduction Admin Costs 5.60% 25.58% 5.60% 25.58%
Demand Increase 0.75% 7.03% 0.75% 7.59%
Comp-XM® Inquirer Page 12
Top
Annual Report Annual Report Andrews
Balance Sheet
DEFINITIONS: Common Size:
The common size column simply
represents each item as a
percentage of total assets for that
year. Cash: Your end-of-year
cash position. Accounts
Receivable: Reflects the lag
between delivery and payment of
your products. Inventories: The
current value of your inventory
across all products. A zero
indicates your company stocked
out. Unmet demand would, of
course, fall to your competitors.
Plant & Equipment: The current
value of your plant. Accum
Deprec: The total accumulated
depreciation from your plant.
Accts Payable: What the
company currently owes
suppliers for materials and
services. Current Debt: The debt
the company is obligated to pay
during the next year of
operations. It includes emergency
loans used to keep your company
solvent should you run out of
cash during the year. Long Term
Debt: The company's long term
debt is in the form of bonds, and
ASSETS 2014 2013
Common
Size
Cash $21,933 13.9% $26,049 Accounts Receivable $10,061 6.4% $11,720 Inventory $14,063 8.9% $9,860
Total Current
Assets $46,057 29.2% $47,629
Plant & Equipment $169,218 107.1% $149,680 Accumulated Depreciation ($57,288) -36.3% ($53,024)
Total Fixed
Assets $111,930 70.8% $96,656
Total Assets $157,987 100.0% $144,284
LIABILITIES & OWNERS' EQUITY
Accounts Payable $6,678 4.2% $7,635 Current Debt $27,900 17.7% $13,200 Long Term Debt $53,850 34.1% $57,750
Total
Liabilities $88,428 56.0% $78,585
Common Stock $36,360 23.0% $33,360
this represents the total value of
your bonds. Common Stock:
The amount of capital invested
by shareholders in the company.
Retained Earnings: The profits
that the company chose to keep
instead of paying to shareholders
as dividends.
Retained Earnings $33,199 21.0% $32,339
Total Equity $69,559 44.0% $65,699
Total Liab. &
O. Equity $157,987 100.0% $144,284
Cash Flow Statement
The Cash Flow Statement examines what happened in
the Cash Account during the year. Cash injections
appear as positive numbers and cash withdrawals
as negative numbers. The Cash Flow Statement is
an excellent tool for diagnosing emergency loans.
When negative cash flows exceed positives, you
are forced to seek emergency funding. For
example, if sales are bad and you find yourself
carrying an abundance of excess inventory, the
report would show the increase in inventory as a
huge negative cash flow. Too much unexpected
inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money
to keep your company afloat.
Cash Flows from
Operating Activities: 2014 2013
Net Income (Loss) $860 ($17)
Depreciation $10,015 $8,979
Extraordinary
gains/losses/writeoffs ($338) ($733)
Accounts Payable ($957) $1,266
Inventory ($4,203) $7,188
Accounts Receivable $1,658
($2,166)
Net cash from
operations $7,034 $14,516
Cash Flows from
Investing Activities:
Plant Improvements ($24,950) ($29,440)
Cash Flows from
Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $3,000 $10,000
Purchase of Common
Stock $0 $0
Cash from long term
debt $10,000 $15,000
Retirement of long term
debt ($13,900) $0
Change in current debt
(net)
$14,700
($3,750)
Net cash from financing
activities $13,800 $21,250
Net change in cash
position ($4,116) $6,326
Closing cash position $21,933 $26,049
Andrews Annual Report Page 1
Annual Report Andrews
2014 Income Statement
(Product
Name:) Able Acre Adam Aft Na Ate Axis Ache
2014
Total
Common
Size
Sales $17,998 $36,250 $34,755 $0 $0 $18,046 $15,364 $0 $122,413 100.0%
Variable
Costs:
Direct
Labor $5,969 $10,610 $9,315 $0 $0 $3,967 $2,979 $0 $32,840 26.8%
Direct
Material $5,923 $9,007 $13,155 $0 $0 $6,751 $6,096 $0 $40,933 33.4%
Inventory
Carry $214 $141 $0 $0 $0 $1,075 $258 $0 $1,688 1.4%
Total
Variable $12,105 $19,758 $22,470 $0 $0 $11,794 $9,334 $0 $75,461 61.6%
Contributi
on Margin $5,893 $16,492 $12,285 $0 $0 $6,253 $6,030 $0 $46,952 38.4%
Period
Costs:
Depreciati
on $2,400 $3,173 $2,040 $1 $0 $1,133 $1,267 $0 $10,015 8.2%
SG&A:
R&D $120 $80 $853 $0 $0 $321 $495 $1,000 $2,869 2.3%
Promoti
ons $1,550 $1,550 $1,550 $0 $0 $1,700 $1,700 $0 $8,050 6.6%
Sales $1,430 $1,170 $1,040 $0 $0 $1,235 $1,625 $0 $6,500 5.3%
Admin $356 $717 $687 $0 $0 $357 $304 $0 $2,421 2.0%
Total
Period $5,856 $6,690 $6,171 $1 $0 $4,746 $5,390 $1,000 $29,854 24.4%
Net
Margin $37 $9,802 $6,114 ($1) $0 $1,507 $639 ($1,000) $17,098 14.0%
Definitions: Sales: Unit sales times list price. Direct Labor: Labor
costs incurred to produce the product that was sold. Inventory
Carry Cost: the cost to carry unsold goods in inventory.
Depreciation: Calculated on straight-line 15-year depreciation of
plant value. R&D Costs: R&D department expenditures for each
product. Admin: Administration overhead is estimated at 1.5% of
Other $5,712 4.7%
EBIT $11,386 9.3%
Short Term
Interest $3,153 2.6%
sales. Promotions: The promotion budget for each product. Sales:
The sales force budget for each product. Other: Charges not
included in other categories such as Fees, Write Offs, and TQM.
The fees include money paid to investment bankers and brokerage
firms to issue new stocks or bonds plus consulting fees your
instructor might assess. Write-offs include the loss you might
experience when you sell capacity or liquidate inventory as the
result of eliminating a production line. If the amount appears as a
negative amount, then you actually made money on the liquidation
of capacity or inventory. EBIT: Earnings Before Interest and
Taxes. Short Term Interest: Interest expense based on last year's
current debt, including short term debt, long term notes that have
become due, and emergency loans. Long Term Interest: Interest
paid on outstanding bonds. Taxes: Income tax based upon a 35%
tax rate. Profit Sharing: Profits shared with employees under the
labor contract. Net Profit: EBIT minus interest, taxes, and profit
sharing.
LongTerm
Interest $6,883 5.6%
Taxes $473 0.4%
Profit Sharing $18 0.0%
Net Profit $860 0.7%
Andrews Annual Report Page 2
Top
Annual Report Annual Report Baldwin
Balance Sheet
DEFINITIONS: Common Size:
The common size column simply
represents each item as a
percentage of total assets for that
year. Cash: Your end-of-year
cash position. Accounts
Receivable: Reflects the lag
between delivery and payment of
your products. Inventories: The
current value of your inventory
across all products. A zero
indicates your company stocked
out. Unmet demand would, of
course, fall to your competitors.
Plant & Equipment: The current
value of your plant. Accum
Deprec: The total accumulated
depreciation from your plant.
Accts Payable: What the
company currently owes
suppliers for materials and
services. Current Debt: The debt
the company is obligated to pay
during the next year of
operations. It includes emergency
loans used to keep your company
solvent should you run out of
cash during the year. Long Term
Debt: The company's long term
debt is in the form of bonds, and
this represents the total value of
your bonds. Common Stock:
The amount of capital invested
ASSETS 2014 2013
Common
Size
Cash $17,650 12.2% $8,126 Accounts Receivable $13,754 9.5% $8,884 Inventory $13,785 9.5% $12,274
Total Current
Assets $45,189 31.3% $29,284
Plant & Equipment $169,100 117.0% $140,640 Accumulated Depreciation ($69,703) -48.2% ($59,296)
Total Fixed
Assets $99,397 68.7% $81,344
Total Assets $144,586 100.0% $110,628
LIABILITIES & OWNERS' EQUITY
Accounts Payable $9,718 6.7% $5,089 Current Debt $28,900 20.0% $10,000 Long Term Debt $53,850 37.2% $47,750
Total
Liabilities $92,468 64.0% $62,839
Common Stock $26,502 18.3% $22,360 Retained Earnings $25,617 17.7% $25,429
Total Equity $52,119 36.0% $47,789
by shareholders in the company.
Retained Earnings: The profits
that the company chose to keep
instead of paying to shareholders
as dividends.
Total Liab. &
O. Equity $144,586 100.0% $110,628
Cash Flow Statement
The Cash Flow Statement examines what happened in
the Cash Account during the year. Cash injections
appear as positive numbers and cash withdrawals
as negative numbers. The Cash Flow Statement is
an excellent tool for diagnosing emergency loans.
When negative cash flows exceed positives, you
are forced to seek emergency funding. For
example, if sales are bad and you find yourself
carrying an abundance of excess inventory, the
report would show the increase in inventory as a
huge negative cash flow. Too much unexpected
inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money
to keep your company afloat.
Cash Flows from
Operating Activities: 2014 2013
Net Income (Loss) $188 ($10,621)
Depreciation $10,407 $9,376
Extraordinary
gains/losses/writeoffs $0 $0
Accounts Payable $4,628 ($2,631)
Inventory ($1,511) $15,594
Accounts Receivable ($4,870)
$1,024
Net cash from
operations $8,843 $12,741
Cash Flows from
Investing Activities:
Plant Improvements ($28,460) ($12,640)
Cash Flows from
Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $4,142 $0
Purchase of Common
Stock $0 $0
Cash from long term
debt $20,000 $8,000
Retirement of long term
debt ($13,900) $0
Change in current debt
(net)
$18,900
($6,950)
Net cash from financing
activities $29,142 $1,050
Net change in cash
position $9,525 $1,151
Closing cash position $17,650 $8,126
Baldwin Annual Report Page 1
Annual Report Baldwin
2014 Income Statement
(Product
Name:) Baker Bead Bid Bold Buddy Brass Brat Na
2014
Total
Common
Size
Sales $16,931 $30,439 $35,293 $24,952 $30,497 $29,230 $0 $0 $167,341 100.0%
Variable
Costs:
Direct
Labor $5,306 $9,959 $11,459 $8,611 $11,042 $7,936 $0 $0 $54,313 32.5%
Direct
Material $5,879 $9,536 $14,203 $9,386 $11,374 $12,029 $0 $0 $62,407 37.3%
Inventory
Carry $966 $617 $0 $0 $0 $71 $0 $0 $1,654 1.0%
Total
Variable $12,151 $20,112 $25,662 $17,997 $22,416 $20,036 $0 $0 $118,374 70.7%
Contributi
on Margin $4,780 $10,327 $9,630 $6,955 $8,081 $9,193 $0 $0 $48,966 29.3%
Period
Costs:
Depreciati
on $2,987 $3,173 $1,387 $1,040 $1,040 $780 $0 $0 $10,407 6.2%
SG&A:
R&D $56 $285 $28 $28 $28 $484 $1,000 $0 $1,909 1.1%
Promoti
ons $1,700 $1,700 $1,700 $1,700 $1,700 $1,550 $0 $0 $10,050 6.0%
Sales $1,012 $1,012 $1,012 $1,012 $1,012 $1,265 $0 $0 $6,325 3.8%
Admin $300 $540 $626 $442 $541 $518 $0 $0 $2,967 1.8%
Total
Period $6,055 $6,710 $4,752 $4,222 $4,321 $4,597 $1,000 $0 $31,658 18.9%
Net
Margin ($1,275) $3,617 $4,878 $2,733 $3,760 $4,596 ($1,000) $0 $17,309 10.3%
Definitions: Sales: Unit sales times list price. Direct Labor: Labor
costs incurred to produce the product that was sold. Inventory
Carry Cost: the cost to carry unsold goods in inventory.
Depreciation: Calculated on straight-line 15-year depreciation of
plant value. R&D Costs: R&D department expenditures for each
product. Admin: Administration overhead is estimated at 1.5% of
Other $6,607 3.9%
EBIT $10,702 6.4%
Short Term
Interest $3,352 2.0%
sales. Promotions: The promotion budget for each product. Sales:
The sales force budget for each product. Other: Charges not
included in other categories such as Fees, Write Offs, and TQM.
The fees include money paid to investment bankers and brokerage
firms to issue new stocks or bonds plus consulting fees your
instructor might assess. Write-offs include the loss you might
experience when you sell capacity or liquidate inventory as the
result of eliminating a production line. If the amount appears as a
negative amount, then you actually made money on the liquidation
of capacity or inventory. EBIT: Earnings Before Interest and
Taxes. Short Term Interest: Interest expense based on last year's
current debt, including short term debt, long term notes that have
become due, and emergency loans. Long Term Interest: Interest
paid on outstanding bonds. Taxes: Income tax based upon a 35%
tax rate. Profit Sharing: Profits shared with employees under the
labor contract. Net Profit: EBIT minus interest, taxes, and profit
sharing.
LongTerm
Interest $7,054 4.2%
Taxes $103 0.1%
Profit Sharing $4 0.0%
Net Profit $188 0.1%
Baldwin Annual Report Page 2
Top
Annual Report Annual Report Chester
Balance Sheet
DEFINITIONS: Common Size:
The common size column simply
represents each item as a
percentage of total assets for that
year. Cash: Your end-of-year
cash position. Accounts
Receivable: Reflects the lag
between delivery and payment of
your products. Inventories: The
current value of your inventory
across all products. A zero
indicates your company stocked
out. Unmet demand would, of
course, fall to your competitors.
Plant & Equipment: The current
value of your plant. Accum
Deprec: The total accumulated
depreciation from your plant.
Accts Payable: What the
company currently owes
suppliers for materials and
services. Current Debt: The debt
the company is obligated to pay
during the next year of
operations. It includes emergency
loans used to keep your company
solvent should you run out of
cash during the year. Long Term
Debt: The company's long term
debt is in the form of bonds, and
this represents the total value of
your bonds. Common Stock:
The amount of capital invested
ASSETS 2014 2013
Common
Size
Cash $3,089 2.6% $6,797 Accounts Receivable $12,087 10.1% $11,788 Inventory $27,999 23.3% $28,306
Total Current
Assets $43,175 36.0% $46,891
Plant & Equipment $138,300 115.2% $127,920 Accumulated Depreciation ($61,428) -51.2% ($52,208)
Total Fixed
Assets $76,872 64.0% $75,712
Total Assets $120,047 100.0% $122,602
LIABILITIES & OWNERS' EQUITY
Accounts Payable $7,264 6.1% $7,726 Current Debt $20,887 17.4% $14,000 Long Term Debt $31,850 26.5% $45,750
Total
Liabilities $60,001 50.0% $67,476
Common Stock $18,360 15.3% $18,360 Retained Earnings $41,687 34.7% $36,766
Total Equity $60,047 50.0% $55,126
by shareholders in the company.
Retained Earnings: The profits
that the company chose to keep
instead of paying to shareholders
as dividends.
Total Liab. &
O. Equity $120,047 100.0% $122,602
Cash Flow Statement
The Cash Flow Statement examines what happened in
the Cash Account during the year. Cash injections
appear as positive numbers and cash withdrawals
as negative numbers. The Cash Flow Statement is
an excellent tool for diagnosing emergency loans.
When negative cash flows exceed positives, you
are forced to seek emergency funding. For
example, if sales are bad and you find yourself
carrying an abundance of excess inventory, the
report would show the increase in inventory as a
huge negative cash flow. Too much unexpected
inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money
to keep your company afloat.
Cash Flows from
Operating Activities: 2014 2013
Net Income (Loss) $4,921 $2,324
Depreciation $9,220 $8,528
Extraordinary
gains/losses/writeoffs ($13) ($397)
Accounts Payable ($462) ($1,009)
Inventory $306 ($1,501)
Accounts Receivable ($299)
($826)
Net cash from operations $13,673 $7,120
Cash Flows from
Investing Activities:
Plant Improvements ($10,380) ($2,430)
Cash Flows from
Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $0 $0
Purchase of Common
Stock $0 $0
Cash from long term
debt $0 $0
Retirement of long term
debt ($13,887) $0
Change in current debt
(net)
$6,887
($2,950)
Net cash from financing
activities ($7,000) ($2,950)
Net change in cash
position ($3,707) $1,740
Closing cash position $3,089 $6,797
Chester Annual Report Page 1
Annual Report Chester
2014 Income Statement
(Product
Name:) Cake Cedar Cid Coat Cure Na Na Na
2014
Total
Common
Size
Sales $22,724 $45,103 $21,879 $25,353 $31,995 $0 $0 $0 $147,054 100.0%
Variable
Costs:
Direct
Labor $4,775 $12,880 $5,136 $6,549 $8,129 $0 $0 $0 $37,470 25.5%
Direct
Material $7,335 $11,415 $8,668 $11,593 $12,204 $0 $0 $0 $51,215 34.8%
Inventory
Carry $0 $339 $1,634 $1,199 $187 $0 $0 $0 $3,360 2.3%
Total
Variable $12,110 $24,633 $15,438 $19,342 $20,521 $0 $0 $0 $92,045 62.6%
Contributi
on Margin $10,614 $20,469 $6,441 $6,011 $11,474 $0 $0 $0 $55,009 37.4%
Period
Costs:
Depreciati
on $2,435 $3,733 $1,008 $1,071 $973 $0 $0 $0 $9,220 6.3%
SG&A:
R&D $967 $1,000 $1,000 $994 $994 $0 $0 $0 $4,954 3.4%
Promoti
ons $1,575 $1,575 $1,550 $1,600 $1,550 $0 $0 $0 $7,850 5.3%
Sales $2,250 $2,362 $2,362 $2,137 $2,137 $0 $0 $0 $11,248 7.6%
Admin $308 $611 $296 $344 $433 $0 $0 $0 $1,992 1.4%
Total
Period $7,534 $9,281 $6,216 $6,145 $6,087 $0 $0 $0 $35,264 24.0%
Net
Margin $3,079 $11,188 $225 ($134) $5,387 $0 $0 $0 $19,745 13.4%
Definitions: Sales: Unit sales times list price. Direct Labor: Labor
costs incurred to produce the product that was sold. Inventory
Carry Cost: the cost to carry unsold goods in inventory.
Depreciation: Calculated on straight-line 15-year depreciation of
plant value. R&D Costs: R&D department expenditures for each
product. Admin: Administration overhead is estimated at 1.5% of
Other $5,462 3.7%
EBIT $14,283 9.7%
Short Term
Interest $2,381 1.6%
sales. Promotions: The promotion budget for each product. Sales:
The sales force budget for each product. Other: Charges not
included in other categories such as Fees, Write Offs, and TQM.
The fees include money paid to investment bankers and brokerage
firms to issue new stocks or bonds plus consulting fees your
instructor might assess. Write-offs include the loss you might
experience when you sell capacity or liquidate inventory as the
result of eliminating a production line. If the amount appears as a
negative amount, then you actually made money on the liquidation
of capacity or inventory. EBIT: Earnings Before Interest and
Taxes. Short Term Interest: Interest expense based on last year's
current debt, including short term debt, long term notes that have
become due, and emergency loans. Long Term Interest: Interest
paid on outstanding bonds. Taxes: Income tax based upon a 35%
tax rate. Profit Sharing: Profits shared with employees under the
labor contract. Net Profit: EBIT minus interest, taxes, and profit
sharing.
LongTerm
Interest $4,177 2.8%
Taxes $2,704 1.8%
Profit Sharing $100 0.1%
Net Profit $4,921 3.3%
Chester Annual Report Page 2
Top
Annual Report Annual Report Digby
Balance Sheet
DEFINITIONS: Common Size:
The common size column simply
represents each item as a
percentage of total assets for that
year. Cash: Your end-of-year
cash position. Accounts
Receivable: Reflects the lag
between delivery and payment of
your products. Inventories: The
current value of your inventory
across all products. A zero
indicates your company stocked
out. Unmet demand would, of
course, fall to your competitors.
Plant & Equipment: The current
value of your plant. Accum
Deprec: The total accumulated
depreciation from your plant.
Accts Payable: What the
company currently owes
suppliers for materials and
services. Current Debt: The debt
the company is obligated to pay
during the next year of
operations. It includes emergency
loans used to keep your company
solvent should you run out of
cash during the year. Long Term
Debt: The company's long term
debt is in the form of bonds, and
this represents the total value of
your bonds. Common Stock:
The amount of capital invested
ASSETS 2014 2013
Common
Size
Cash $10,277 6.7% $13,989 Accounts Receivable $18,162 11.9% $13,791 Inventory $40,336 26.4% $21,197
Total Current
Assets $68,775 45.1% $48,977
Plant & Equipment $144,600 94.8% $132,800 Accumulated Depreciation ($60,867) -39.9% ($51,227)
Total Fixed
Assets $83,733 54.9% $81,573
Total Assets $152,509 100.0% $130,550
LIABILITIES & OWNERS' EQUITY
Accounts Payable $14,300 9.4% $9,831 Current Debt $30,900 20.3% $12,000 Long Term Debt $40,850 26.8% $48,750
Total
Liabilities $86,050 56.4% $70,581
Common Stock $26,360 17.3% $20,360 Retained Earnings $40,099 26.3% $39,609
Total Equity $66,459 43.6% $59,969
by shareholders in the company.
Retained Earnings: The profits
that the company chose to keep
instead of paying to shareholders
as dividends.
Total Liab. &
O. Equity $152,509 100.0% $130,550
Cash Flow Statement
The Cash Flow Statement examines what happened in
the Cash Account during the year. Cash injections
appear as positive numbers and cash withdrawals
as negative numbers. The Cash Flow Statement is
an excellent tool for diagnosing emergency loans.
When negative cash flows exceed positives, you
are forced to seek emergency funding. For
example, if sales are bad and you find yourself
carrying an abundance of excess inventory, the
report would show the increase in inventory as a
huge negative cash flow. Too much unexpected
inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money
to keep your company afloat.
Cash Flows from
Operating Activities: 2014 2013
Net Income (Loss) $490 $135
Depreciation $9,640 $8,053
Extraordinary
gains/losses/writeoffs $0 ($783)
Accounts Payable $4,469 $841
Inventory ($19,140) ($5,261)
Accounts Receivable ($4,371)
($1,410)
Net cash from operations ($8,912) $1,575
Cash Flows from
Investing Activities:
Plant Improvements ($11,800) ($7,950)
Cash Flows from
Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $6,000 $0
Purchase of Common
Stock $0 $0
Cash from long term
debt $6,000 $4,000
Retirement of long term
debt ($13,900) $0
Change in current debt
(net)
$18,900
($5,950)
Net cash from financing
activities $17,000 ($1,950)
Net change in cash
position ($3,712) ($8,325)
Closing cash position $10,277 $13,989
Digby Annual Report Page 1
Annual Report Digby
2014 Income Statement
(Product
Name:) Daze Dell Dixie Dot Dune Doom Dust Na
2014
Total
Common
Size
Sales $39,885 $39,319 $30,469 $31,365 $39,636 $28,785 $11,516 $0 $220,975 100.0%
Variable
Costs:
Direct
Labor $12,776 $13,842 $7,864 $9,282 $11,728 $8,733 $3,425 $0 $67,649 30.6%
Direct
Material $15,385 $11,314 $12,317 $14,446 $15,714 $13,435 $4,583 $0 $87,194 39.5%
Inventory
Carry $849 $784 $1,126 $659 $132 $778 $511 $0 $4,840 2.2%
Total
Variable $29,009 $25,940 $21,307 $24,387 $27,574 $22,947 $8,519 $0 $159,684 72.3%
Contributi
on Margin $10,876 $13,379 $9,162 $6,978 $12,061 $5,838 $2,997 $0 $61,291 27.7%
Period
Costs:
Depreciati
on $1,867 $2,987 $800 $1,040 $1,040 $953 $953 $0 $9,640 4.4%
SG&A:
R&D $610 $1,000 $696 $560 $623 $383 $428 $0 $4,300 1.9%
Promoti
ons $2,300 $2,300 $2,100 $2,100 $2,100 $2,100 $2,100 $0 $15,100 6.8%
Sales $1,718 $1,718 $1,718 $1,718 $1,718 $1,718 $1,964 $0 $12,272 5.6%
Admin $633 $624 $484 $498 $629 $457 $183 $0 $3,509 1.6%
Total
Period $7,128 $8,629 $5,797 $5,916 $6,111 $5,612 $5,628 $0 $44,821 20.3%
Net
Margin $3,748 $4,750 $3,365 $1,062 $5,951 $226 ($2,631) $0 $16,470 7.5%
Definitions: Sales: Unit sales times list price. Direct Labor: Labor
costs incurred to produce the product that was sold. Inventory
Carry Cost: the cost to carry unsold goods in inventory.
Depreciation: Calculated on straight-line 15-year depreciation of
plant value. R&D Costs: R&D department expenditures for each
product. Admin: Administration overhead is estimated at 1.5% of
Other $6,900 3.1%
EBIT $9,570 4.3%
Short Term
Interest $3,492 1.6%
sales. Promotions: The promotion budget for each product. Sales:
The sales force budget for each product. Other: Charges not
included in other categories such as Fees, Write Offs, and TQM.
The fees include money paid to investment bankers and brokerage
firms to issue new stocks or bonds plus consulting fees your
instructor might assess. Write-offs include the loss you might
experience when you sell capacity or liquidate inventory as the
result of eliminating a production line. If the amount appears as a
negative amount, then you actually made money on the liquidation
of capacity or inventory. EBIT: Earnings Before Interest and
Taxes. Short Term Interest: Interest expense based on last year's
current debt, including short term debt, long term notes that have
become due, and emergency loans. Long Term Interest: Interest
paid on outstanding bonds. Taxes: Income tax based upon a 35%
tax rate. Profit Sharing: Profits shared with employees under the
labor contract. Net Profit: EBIT minus interest, taxes, and profit
sharing.
LongTerm
Interest $5,309 2.4%
Taxes $269 0.1%
Profit Sharing $10 0.0%
Net Profit $490 0.2%
Digby Annual Report Page 2
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