fill out the excel

Round: 1 Dec. 31, 2014 C59351

Andrews Youseef Alyousef Tyler Bilbruck Leann Lohman Demi Maniaci Alison Werner

Baldwin Lacy Emrick Kristin Fomon Sarah Graham Kayli Heimericks

Chester Nicole Cramer-Guajardo Kenny Evischi Richard Kilian Victoria Wiseman

Digby Erie Ferris

Selected Financial Statistics Andrews Baldwin Chester Digby Erie Ferris

ROS 4.3% 0.1% -5.3% 5.1% 5.1% 6.3% Asset Turnover 1.16 1.07 0.91 1.05 0.99 1.27 ROA 4.9% 0.1% -4.8% 5.3% 5.0% 8.0% Leverage (Assets/Equity)

2.0 2.3 2.1 2.5 2.0 1.9

ROE 10.1% 0.2% -10.3% 13.2% 9.9% 15.5% Emergency Loan $0 $0 $0 $0 $0 $0 Sales $127,286,465 $120,457,619 $84,710,617 $121,768,347 $113,150,427 $117,119,828 EBIT $14,749,530 $7,106,326 ($1,076,134) $17,118,087 $15,123,013 $16,377,369 Profits $5,448,599 $89,388 ($4,468,837) $6,160,818 $5,718,209 $7,408,935 Cumulative Profit $9,637,106 $4,277,895 ($280,330) $10,349,326 $9,906,716 $11,597,443 SG&A / Sales 7.8% 11.1% 16.8% 13.3% 9.7% 13.8% Contrib. Margin % 26.4% 25.4% 25.7% 33.6% 30.5% 33.8%

CAPSTONE® COURIER Page 1

Stock & Bonds C59351 Round: 1Dec. 31, 2014

Stock Market Summary

Company Close Change Shares MarketCap

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

Andrews $41.05 $6.80 2,014,597 $83 $26.75 $2.70 $0.00 0.0% 15.2

Baldwin $30.50 ($3.76) 2,043,791 $62 $24.13 $0.04 $0.10 0.3%

681.7 Chester $21.22 ($13.03) 2,000,000 $42 $21.74 ($2.23) $0.00 0.0% -9.5 Digby $41.80 $7.55 2,000,000 $84 $23.29 $3.08 $3.76 9.0% 13.6 Erie $41.53 $7.27 2,128,085 $88 $27.28 $2.69 $0.00 0.0% 15.4 Ferris $44.83 $10.58 2,000,000 $90 $23.83 $3.70 $3.85 8.6% 12.1

Bond Market Summary Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P Andrews Digby

11.0S2015 $6,950,000 11.0% 99.64 B 11.0S2015 $6,950,000 11.1% 98.93 CC 12.5S2017 $13,900,000 12.2% 102.67 B 12.5S2017 $13,900,000 12.4% 100.72 CC 14.0S2019 $20,850,000 12.8% 109.51 B 14.0S2019 $20,850,000 13.2% 106.46 CC 10.8S2024 $5,000,000 11.2% 96.53 B 10.8S2024 $1,048,582 11.7% 92.15 CC

Baldwin Erie 11.0S2015 $6,950,000 11.1% 99.20 CCC 11.0S2015 $3,836,531 11.0% 99.82 B 12.5S2017 $13,900,000 12.3% 101.44 CCC 12.5S2017 $13,900,000 12.1% 103.17 B 14.0S2019 $20,850,000 13.0% 107.59 CCC 14.0S2019 $20,850,000 12.7% 110.30 B 10.8S2024 $13,000,000 11.5% 93.76 CCC Ferris

Chester 12.5S2017 $6,077,384 12.1% 103.42 B 11.0S2015 $6,950,000 11.1% 99.46 CCC 14.0S2019 $20,850,000 12.6% 110.69 B 12.5S2017 $13,900,000 12.2% 102.18 CCC 14.0S2019 $20,850,000 12.9% 108.74 CCC 10.8S2024 $3,500,000 11.3% 95.41 CCC

Next Year's Prime Rate 7.50%

CAPSTONE® COURIER Page 2

Financial Summary C59351 Round: 1Dec. 31, 2014 Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris CashFlows from operating activities Net Income(Loss) $5,449 $89 ($4,469) $6,161 $5,718 $7,409 Adjustment for non-cash items: Depreciation $8,573 $9,473 $8,440 $7,267 $7,987 $5,853 Extraordinary gains/losses/writeoffs $60 $0 $0 $267 $157 $952 Changes in current assets and liablilities Acounts payable $479 $589 ($1,770) ($201) ($484) ($472) Inventory $7,615 $1,712 $3,764 $2,482 $3,817 $2,429 Accounts Receivable ($2,154) ($1,593) $1,345 ($1,701) ($993) ($1,319) Net cash from operations $20,021 $10,271 $7,309 $14,274 $16,202 $14,853

Cash flows from investing activities Plant improvements(net) ($16,060) ($28,300) ($12,800) ($800) ($9,080) $15,220 Cash flows from financing activities Dividends paid $0 ($204) $0 ($7,513) $0 ($7,699) Sales of common stock $500 $1,500 $0 $0 $4,387 $0 Purchase of common stock $0 $0 $0 $0 $0 $0 Cash from long term debt issued $5,000 $13,000 $3,500 $1,049 $0 $0 Early retirement of long term debt $0 $0 $0 $0 ($3,124) ($15,211) Retirement of current debt $0 $0 $0 $0 $0 $0 Cash from current debt borrowing $2,500 $1,500 $0 $20,343 $11,359 $11,359 Cash from emergency loan $0 $0 $0 $0 $0 $0

Net cash from financing activities $8,000 $15,796 $3,500 $13,878 $12,622 ($11,551)

Net change in cash position $11,961 ($2,233) ($1,991) $27,352 $19,744 $18,521 Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris Cash $15,395 $1,200 $1,443 $30,786 $23,178 $21,955 Accounts Receivable $10,462 $9,901 $6,963 $10,008 $9,300 $9,626 Inventory $1,003 $6,905 $4,854 $6,136 $4,801 $6,188 Total Current Assets $26,859 $18,006 $13,259 $46,930 $37,278 $37,769

Plant and equipment $128,600 $142,100 $126,600 $109,000 $119,800 $87,800 Accumulated Depreciation ($45,307) ($47,407) ($46,373) ($39,867) ($42,987) ($33,520) Total Fixed Assets $83,293 $94,693 $80,227 $69,133 $76,813 $54,280

Total Assets $110,153 $112,699 $93,486 $116,063 $114,092 $92,049

Account Payable $7,062 $7,173 $4,813 $6,382 $6,099 $6,112 CurrentDebt $2,500 $1,500 $0 $20,343 $11,359 $11,359 Long Term Debt $46,700 $54,700 $45,200 $42,749 $38,587 $26,927 Total Liabilities $56,262 $63,373 $50,013 $69,474 $56,044 $44,398

Common Stock $18,860 $19,860 $18,360 $18,360 $22,747 $18,360 Retained Earnings $35,031 $29,467 $25,113 $28,230 $35,300 $29,292 Total Equity $53,890 $49,327 $43,473 $46,589 $58,047 $47,651

Total Liabilities & Owners'' Equity $110,153 $112,699 $93,486 $116,063 $114,092 $92,049

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris Sales $127,286 $120,458 $84,711 $121,768 $113,150 $117,120 Variable Costs(Labor,Material,Carry) $93,660 $89,807 $62,905 $80,871 $78,597 $77,530 Depreciation $8,573 $9,473 $8,440 $7,267 $7,987 $5,853 SGA(R&D,Promo,Sales,Admin) $9,968 $13,346 $14,267 $16,194 $11,020 $16,179 Other(Fees,Writeoffs,TQM,Bonuses) $335 $725 $175 $319 $424 $1,180 EBIT $14,750 $7,106 ($1,076) $17,118 $15,123 $16,377 Interest(Short term,Long term) $6,196 $6,966 $5,799 $7,446 $6,146 $4,746 Taxes $2,994 $49 ($2,406) $3,385 $3,142 $4,071 Profit Sharing $111 $2 $0 $126 $117 $151 Net Profit $5,449 $89 ($4,469) $6,161 $5,718 $7,409

CAPSTONE® COURIER Page 3

Production Analysis C59351 Round: 1Dec. 31, 2014

Name Primary

Segment Units Sold

Unit Inven

tory Revision Date Age

Dec.31 MTBF Pfmn

Coord Size

Coord Price Material

Cost Labor Cost

Contr. Marg.

2nd Shift

& Over-

time

Auto mation

Next Round

Capacity Next

Round Plant

Utiliz. Able Trad 1,561 39 4/17/2014 2.4 19000 5.7 14.2 $24.50 $11.35 $7.85 21% 0% 5.0 1,800 78% Acre Low 1,846 0 5/25/2009 5.6 14000 3.0 17.0 $20.00 $7.05 $7.47 26% 30% 7.0 1,400 129% Adam High 500 1 3/18/2014 1.7 25000 8.1 12.0 $38.00 $15.50 $8.97 35% 0% 3.0 700 66% Aft Pfmn 498 0 3/18/2014 2.1 27000 9.5 15.5 $33.50 $15.48 $8.97 26% 0% 3.0 600 70% Agape Size 498 10 3/20/2014 2.2 21000 4.1 10.9 $33.00 $13.30 $8.97 32% 0% 3.0 600 74%

Baker Trad 1,766 304 3/17/2014 2.4 17500 5.7 14.3 $25.50 $10.85 $8.04 23% 6% 4.0 2,150 105% Bead Low 1,796 0 5/25/2009 5.6 14000 3.0 17.0 $19.00 $7.05 $7.40 22% 27% 6.0 1,900 126% Bid High 404 17 5/11/2015 2.7 23000 8.0 12.0 $38.00 $14.84 $8.97 36% 0% 3.0 900 42% Bold Pfmn 434 0 5/3/2014 2.1 26000 10.0 15.5 $31.50 $15.51 $8.97 22% 0% 3.0 600 59% Buddy Size 360 29 11/18/2014 1.9 19000 4.7 9.6 $34.00 $13.73 $8.97 34% 0% 3.0 600 54%

Cake Trad 730 3 7/1/2015 4.1 17500 5.5 14.5 $26.50 $10.65 $7.85 28% 0% 5.0 1,800 30% Cedar Low 1,841 0 5/25/2009 5.6 14000 3.0 17.0 $20.00 $7.05 $7.46 26% 30% 6.0 1,400 129% Cid High 323 4 4/26/2015 2.7 23000 8.0 12.0 $38.00 $14.84 $8.97 36% 0% 3.0 900 32% Coat Pfmn 325 0 8/10/2015 3.5 25000 9.4 15.5 $33.00 $14.81 $8.97 26% 0% 3.0 600 41% Cure Size 245 213 7/17/2015 3.6 19000 4.0 11.0 $22.50 $12.60 $8.97 -8% 0% 3.0 600 66%

Daze Trad 1,095 134 6/11/2014 2.3 17800 6.1 14.0 $29.50 $11.30 $7.85 34% 0% 5.0 1,400 74% Dell Low 1,610 13 5/25/2009 5.6 14000 3.0 17.0 $22.00 $7.05 $7.12 34% 14% 6.0 1,400 113% Dixie High 626 58 11/23/2014 1.4 23500 9.1 10.9 $39.50 $16.11 $9.95 35% 30% 3.0 500 129% Dot Pfmn 440 34 11/3/2014 1.8 26000 10.6 14.7 $34.50 $16.14 $8.97 28% 0% 3.0 600 66% Dune Size 410 49 11/2/2014 1.9 19000 4.9 9.8 $34.50 $13.66 $8.97 35% 0% 3.0 600 66%

Eat Trad 1,355 71 3/17/2014 2.4 16500 5.6 14.5 $27.50 $10.40 $7.85 31% 0% 5.0 1,400 88% Ebb Low 2,011 8 1/15/2014 5.6 13000 3.0 17.0 $20.00 $6.75 $7.68 26% 43% 6.0 1,400 141% Echo High 399 38 12/23/2014 1.4 17000 7.0 12.9 $39.50 $12.08 $8.97 38% 0% 4.0 900 44% Edge Pfmn 296 29 6/30/2011 3.5 25000 9.4 15.5 $34.50 $14.81 $8.97 29% 0% 3.0 600 41% Egg Size 281 78 12/24/2015 3.6 19000 4.0 11.0 $34.50 $12.60 $8.97 34% 0% 3.0 600 50%

Fast Trad 1,269 108 3/3/2014 2.5 17500 5.6 14.5 $29.50 $10.70 $7.85 35% 0% 4.0 1,200 99% Feat Low 1,467 8 1/15/2014 5.6 13000 3.0 17.0 $22.00 $6.75 $7.71 33% 45% 5.0 1,000 144% Fist High 527 58 12/22/2014 1.4 24000 9.1 10.9 $39.50 $16.26 $9.35 37% 10% 3.0 500 109% Foam Pfmn 422 52 11/10/2014 1.8 26000 10.6 14.8 $34.50 $16.11 $8.97 28% 0% 4.0 600 66% Fume Size 350 59 12/10/2014 1.8 19000 4.7 9.6 $34.50 $13.73 $8.97 35% 0% 4.0 600 58%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C59351 Round: 1Dec. 31, 2014

Traditional Statistics Total Industry Unit Demand 7,882 Actual Industry Unit Sales 7,882 Segment % of Total Industry 30.7%

Next Year's Segment Growth Rate 9.8%

Traditional Customer Buying Criteria Expectations Importance

1. Age Ideal Age = 2.0 47% 2. Price $19.50 - 29.50 23% 3. Ideal Position Pfmn 5.7 Size 14.3 21% 4. Reliability MTBF 14000-19000 9%

Top Products in Traditional Segment

Name Market Share

Units Sold to

Seg Revision Date

Stock Out

Pfmn Coord

Size Coord

List Price MTBF

Age Dec.31

Promo Budget

Cust. Aware- ness

Sales Budget

Cust. Access-

ibility

Dec. Cust.

Survey Baker 22% 1,702 3/17/2014 5.7 14.3 $25.50 17500 2.45 $2,000 82% $1,300 54% 45 Able 19% 1,491 4/17/2014 5.7 14.2 $24.50 19000 2.40 $1,000 58% $1,000 50% 43 Eat 16% 1,267 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 51% 33 Fast 15% 1,218 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 54% 31 Daze 13% 1,009 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 58% 34 Cake 8% 643 7/1/2015 5.5 14.5 $26.50 17500 4.10 $1,200 65% $1,200 54% 12 Cedar 1% 98 5/25/2009 YES 3.0 17.0 $20.00 14000 5.60 $1,000 56% $1,000 54% 0 Acre 1% 96 5/25/2009 YES 3.0 17.0 $20.00 14000 5.60 $900 53% $900 50% 0 Dell 1% 84 5/25/2009 3.0 17.0 $22.00 14000 5.60 $1,100 59% $1,396 58% 0 Ebb 1% 83 1/15/2014 3.0 17.0 $20.00 13000 5.60 $1,050 58% $1,015 51% 0 Bead 1% 79 5/25/2009 YES 3.0 17.0 $19.00 14000 5.60 $950 55% $950 54% 0 Feat 1% 65 1/15/2014 3.0 17.0 $22.00 13000 5.60 $1,100 59% $1,175 54% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C59351 Round: 1Dec. 31, 2014

Low End Statistics Total Industry Unit Demand 10,197 Actual Industry Unit Sales 10,197 Segment % of Total Industry 39.7%

Next Year's Segment Growth Rate 11.2%

Low End Customer Buying Criteria Expectations Importance

1. Price $14.50 - 24.50 53% 2. Age Ideal Age = 7.0 24% 3. Ideal Position Pfmn 2.2 Size 17.8 16% 4. Reliability MTBF 12000-17000 7%

Top Products in Low End Segment

Name Market Share

Units Sold to

Seg Revision Date

Stock Out

Pfmn Coord

Size Coord

List Price MTBF

Age Dec.31

Promo Budget

Cust. Aware- ness

Sales Budget

Cust. Access-

ibility

Dec. Cust.

Survey Ebb 19% 1,928 1/15/2014 3.0 17.0 $20.00 13000 5.60 $1,050 58% $1,015 35% 18 Acre 17% 1,750 5/25/2009 YES 3.0 17.0 $20.00 14000 5.60 $900 53% $900 34% 18 Cedar 17% 1,743 5/25/2009 YES 3.0 17.0 $20.00 14000 5.60 $1,000 56% $1,000 35% 19 Bead 17% 1,717 5/25/2009 YES 3.0 17.0 $19.00 14000 5.60 $950 55% $950 35% 21 Dell 15% 1,527 5/25/2009 3.0 17.0 $22.00 14000 5.60 $1,100 59% $1,396 40% 14 Feat 14% 1,402 1/15/2014 3.0 17.0 $22.00 13000 5.60 $1,100 59% $1,175 37% 13 Cake 1% 68 7/1/2015 5.5 14.5 $26.50 17500 4.10 $1,200 65% $1,200 35% 0 Eat 1% 56 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 35% 0 Baker 0% 5 3/17/2014 5.7 14.3 $25.50 17500 2.45 $2,000 82% $1,300 35% 0 Able 0% 2 4/17/2014 5.7 14.2 $24.50 19000 2.40 $1,000 58% $1,000 34% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C59351 Round: 1Dec. 31, 2014

High End Statistics Total Industry Unit Demand 3,069 Actual Industry Unit Sales 3,069 Segment % of Total Industry 11.9%

Next Year's Segment Growth Rate 17.1%

High End Customer Buying Criteria Expectations Importance

1. Ideal Position Pfmn 9.8 Size 10.2 43% 2. Age Ideal Age = 0.0 29% 3. Reliability MTBF 20000-25000 19% 4. Price $29.50 - 39.50 9%

Top Products in High End Segment

Name Market Share

Units Sold to

Seg Revision Date

Stock Out

Pfmn Coord

Size Coord

List Price MTBF

Age Dec.31

Promo Budget

Cust. Aware- ness

Sales Budget

Cust. Access-

ibility

Dec. Cust.

Survey Dixie 20% 626 11/23/2014 9.1 10.9 $39.50 23500 1.40 $1,100 57% $1,396 53% 29 Fist 17% 527 12/22/2014 9.1 10.9 $39.50 24000 1.36 $1,000 54% $1,175 49% 29 Adam 16% 500 3/18/2014 8.1 12.0 $38.00 25000 1.74 $700 45% $700 38% 13 Bid 13% 404 5/11/2015 8.0 12.0 $38.00 23000 2.70 $950 52% $800 40% 7 Echo 13% 399 12/23/2014 7.0 12.9 $39.50 17000 1.36 $900 51% $725 38% 2 Cid 11% 323 4/26/2015 8.0 12.0 $38.00 23000 2.70 $800 48% $800 40% 7 Daze 2% 53 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 53% 0 Dot 1% 44 11/3/2014 10.6 14.7 $34.50 26000 1.82 $1,100 55% $1,263 53% 1 Foam 1% 39 11/10/2014 10.6 14.8 $34.50 26000 1.81 $1,000 52% $1,175 49% 0 Aft 1% 35 3/18/2014 YES 9.5 15.5 $33.50 27000 2.14 $700 42% $700 38% 0 Coat 1% 29 8/10/2015 YES 9.4 15.5 $33.00 25000 3.50 $700 42% $700 40% 0 Edge 1% 26 6/30/2011 9.4 15.5 $34.50 25000 3.50 $300 33% $145 38% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C59351 Round: 1Dec. 31, 2014

Performance Statistics Total Industry Unit Demand 2,239 Actual Industry Unit Sales 2,239 Segment % of Total Industry 8.7%

Next Year's Segment Growth Rate 19.8%

Performance Customer Buying Criteria Expectations Importance

1. Reliability MTBF 22000-27000 43% 2. Ideal Position Pfmn 10.4 Size 15.3 29% 3. Price $24.50 - 34.50 19% 4. Age Ideal Age = 1.0 9%

Top Products in Performance Segment

Name Market Share

Units Sold to

Seg Revision Date

Stock Out

Pfmn Coord

Size Coord

List Price MTBF

Age Dec.31

Promo Budget

Cust. Aware- ness

Sales Budget

Cust. Access-

ibility

Dec. Cust.

Survey Aft 21% 464 3/18/2014 YES 9.5 15.5 $33.50 27000 2.14 $700 42% $700 29% 27 Bold 19% 419 5/3/2014 YES 10.0 15.5 $31.50 26000 2.08 $750 44% $700 29% 26 Dot 18% 395 11/3/2014 10.6 14.7 $34.50 26000 1.82 $1,100 55% $1,263 37% 27 Foam 17% 383 11/10/2014 10.6 14.8 $34.50 26000 1.81 $1,000 52% $1,175 35% 26 Coat 13% 296 8/10/2015 YES 9.4 15.5 $33.00 25000 3.50 $700 42% $700 29% 15 Edge 12% 270 6/30/2011 9.4 15.5 $34.50 25000 3.50 $300 33% $145 25% 12 Able 0% 5 4/17/2014 5.7 14.2 $24.50 19000 2.40 $1,000 58% $1,000 29% 0 Baker 0% 2 3/17/2014 5.7 14.3 $25.50 17500 2.45 $2,000 82% $1,300 29% 0 Daze 0% 2 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 37% 0 Fast 0% 1 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 35% 0 Cake 0% 1 7/1/2015 5.5 14.5 $26.50 17500 4.10 $1,200 65% $1,200 29% 0

CAPSTONE® COURIER Page 8

Size Segment Analysis C59351 Round: 1Dec. 31, 2014

Size Statistics Total Industry Unit Demand 2,299 Actual Industry Unit Sales 2,299 Segment % of Total Industry 8.9%

Next Year's Segment Growth Rate 17.3%

Size Customer Buying Criteria Expectations Importance

1. Ideal Position Pfmn 4.7 Size 9.6 43% 2. Age Ideal Age = 1.5 29% 3. Reliability MTBF 16000-21000 19% 4. Price $24.50 - 34.50 9%

Top Products in Size Segment

Name Market Share

Units Sold to

Seg Revision Date

Stock Out

Pfmn Coord

Size Coord

List Price MTBF

Age Dec.31

Promo Budget

Cust. Aware- ness

Sales Budget

Cust. Access-

ibility

Dec. Cust.

Survey Agape 21% 485 3/20/2014 4.1 10.9 $33.00 21000 2.19 $700 42% $700 34% 19 Dune 18% 408 11/2/2014 4.9 9.8 $34.50 19000 1.88 $1,100 55% $1,263 44% 37 Buddy 16% 358 11/18/2014 4.7 9.6 $34.00 19000 1.85 $750 44% $750 36% 34 Fume 15% 349 12/10/2014 4.7 9.6 $34.50 19000 1.82 $1,000 52% $1,175 42% 37 Egg 12% 280 12/24/2015 4.0 11.0 $34.50 19000 3.60 $900 49% $725 35% 6 Cure 9% 210 7/17/2015 4.0 11.0 $22.50 19000 3.60 $700 42% $700 32% 5 Able 3% 63 4/17/2014 5.7 14.2 $24.50 19000 2.40 $1,000 58% $1,000 34% 2 Baker 2% 50 3/17/2014 5.7 14.3 $25.50 17500 2.45 $2,000 82% $1,300 36% 0 Daze 1% 31 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 44% 1 Fast 1% 26 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 42% 0 Eat 1% 23 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 35% 0 Cake 1% 14 7/1/2015 5.5 14.5 $26.50 17500 4.10 $1,200 65% $1,200 32% 0

CAPSTONE® COURIER Page 9

Market Share C59351 Round: 1Dec. 31, 2014

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

Industry Unit Sales 7,882 10,197 3,069 2,239 2,299 25,686 Units Demanded 7,882 10,197 3,069 2,239 2,299 25,686 % of Market 30.7% 39.7% 11.9% 8.7% 8.9% 100.0% % of Market 30.7% 39.7% 11.9% 8.7% 8.9% 100.0%

Able 18.9% 0.2% 2.7% 6.1% Able 18.8% 0.2% 2.6% 6.0% Acre 1.2% 17.2% 7.2% Acre 1.3% 17.5% 7.3% Adam 16.3% 2.0% Adam 20.8% 2.5% Aft 1.1% 20.7% 1.9% Aft 1.1% 22.2% 2.1% Agape 0.1% 21.1% 1.9% Agape 0.2% 23.7% 2.2% Total 20.3% 17.2% 17.5% 20.9% 23.8% 19.1% Total 20.3% 17.5% 21.9% 22.4% 26.3% 20.1%

Baker 21.6% 0.2% 2.2% 6.9% Baker 21.5% 0.2% 2.1% 6.8% Bead 1.0% 16.8% 7.0% Bead 1.3% 21.0% 8.7% Bid 13.2% 1.6% Bid 12.9% 1.5% Bold 0.5% 18.7% 1.7% Bold 0.5% 20.2% 1.8% Buddy 15.6% 1.4% Buddy 15.1% 1.4% Total 22.6% 16.9% 13.9% 18.8% 17.8% 18.5% Total 22.8% 21.1% 13.6% 20.3% 17.2% 20.3%

Cake 8.2% 0.7% 0.1% 0.6% 2.8% Cake 8.1% 0.3% 0.6% 2.7% Cedar 1.2% 17.1% 7.2% Cedar 1.3% 18.1% 7.6% Cid 10.5% 1.3% Cid 12.5% 1.5% Coat 0.9% 13.2% 1.3% Coat 0.9% 13.8% 1.3% Cure 0.4% 9.1% 1.0% Cure 0.5% 8.8% 0.9% Total 9.9% 17.8% 11.6% 13.3% 9.7% 13.5% Total 9.9% 18.4% 13.6% 13.9% 9.4% 14.0%

Daze 12.8% 1.7% 1.4% 4.3% Daze 12.8% 1.4% 1.3% 4.2% Dell 1.1% 15.0% 6.3% Dell 1.1% 13.4% 5.6% Dixie 20.4% 2.4% Dixie 18.4% 2.2% Dot 1.4% 17.7% 1.7% Dot 1.3% 16.3% 1.6% Dune 17.7% 1.6% Dune 17.2% 1.5% Total 13.9% 15.0% 23.6% 17.7% 19.1% 16.3% Total 13.8% 13.4% 21.2% 16.4% 18.5% 15.2%

Eat 16.1% 0.5% 0.3% 1.0% 5.3% Eat 16.0% 0.3% 1.0% 5.1% Ebb 1.1% 18.9% 7.8% Ebb 1.0% 17.4% 7.2% Echo 13.0% 1.5% Echo 11.5% 1.4% Edge 0.9% 12.1% 1.1% Edge 0.8% 11.2% 1.1% Egg 12.2% 1.1% Egg 11.8% 1.1% Total 17.1% 19.5% 14.1% 12.1% 13.2% 16.9% Total 17.1% 17.5% 12.5% 11.2% 12.7% 15.8%

Fast 15.4% 0.8% 1.1% 4.9% Fast 15.4% 0.7% 1.1% 4.9% Feat 0.8% 13.8% 5.7% Feat 0.8% 12.2% 5.1% Fist 17.2% 2.1% Fist 15.4% 1.8% Foam 1.3% 17.1% 1.6% Foam 1.1% 15.8% 1.5% Fume 15.2% 1.4% Fume 14.7% 1.3% Total 16.3% 13.8% 19.2% 17.2% 16.3% 15.7% Total 16.2% 12.2% 17.2% 15.9% 15.8% 14.7%

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Perceptual Map C59351 Round: 1Dec. 31, 2014

Andrews Baldwin Chester Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised Able 5.7 14.2 4/17/2014 Baker 5.7 14.3 3/17/2014 Cake 5.5 14.5 7/1/2015 Acre 3.0 17.0 5/25/2009 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 5/25/2009 Adam 8.1 12.0 3/18/2014 Bid 8.0 12.0 5/11/2015 Cid 8.0 12.0 4/26/2015 Aft 9.5 15.5 3/18/2014 Bold 10.0 15.5 5/3/2014 Coat 9.4 15.5 8/10/2015 Agape 4.1 10.9 3/20/2014 Buddy 4.7 9.6 11/18/2014 Cure 4.0 11.0 7/17/2015

Digby Erie Ferris Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised Daze 6.1 14.0 6/11/2014 Eat 5.6 14.5 3/17/2014 Fast 5.6 14.5 3/3/2014 Dell 3.0 17.0 5/25/2009 Ebb 3.0 17.0 1/15/2014 Feat 3.0 17.0 1/15/2014 Dixie 9.1 10.9 11/23/2014 Echo 7.0 12.9 12/23/2014 Fist 9.1 10.9 12/22/2014 Dot 10.6 14.7 11/3/2014 Edge 9.4 15.5 6/30/2011 Foam 10.6 14.8 11/10/2014 Dune 4.9 9.8 11/2/2014 Egg 4.0 11.0 12/24/2015 Fume 4.7 9.6 12/10/2014

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HR/TQM Report C59351 Round: 1Dec. 31, 2014

HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 761 782 536 686 681 661 Complement 761 782 536 686 681 661 1st Shift Complement 700 712 475 629 595 587 2nd Shift Complement 61 70 61 57 86 74

Overtime Percent 0.0% 0.1% 0.0% 0.0% 0.1% 0.0% Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% New Employees 137 160 54 69 68 66 Separated Employees 0 0 164 14 19 39 Recruiting Spend $0 $0 $0 $0 $0 $0 Training Hours 0 0 0 0 0 0 Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $137 $160 $54 $69 $68 $66 Separation Cost $0 $0 $820 $70 $95 $195 Training Cost $0 $0 $0 $0 $0 $0 Total HR Admin Cost $137 $160 $874 $139 $163 $261

Labor Contract Next Year Wages $22.05 $22.05 $22.05 $22.05 $22.05 $22.05 Benefits 2,500 2,500 2,500 2,500 2,500 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 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 Erie Ferris

Process Mgt Budgets Last Year CPI Systems $0 $0 $0 $0 $0 $0 Vendor/JIT $0 $0 $0 $0 $0 $0 Quality Initiative Training $0 $0 $0 $0 $0 $0 Channel Support Systems $0 $0 $0 $0 $0 $0 Concurrent Engineering $0 $0 $0 $0 $0 $0 UNEP Green Programs $0 $0 $0 $0 $0 $0

TQM Budgets Last Year Benchmarking $0 $0 $0 $0 $0 $0 Quality Function Deployment Effort $0 $0 $0 $0 $0 $0 CCE/6 Sigma Training $0 $0 $0 $0 $0 $0 GEMI TQEM Sustainability Initiatives $0 $0 $0 $0 $0 $0 Total Expenditures $0 $0 $0 $0 $0 $0

Cumulative Impacts Material Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Labor Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Reduction R&D Cycle Time 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Reduction Admin Costs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Demand Increase 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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Ethics Report C59351 Round: 1Dec. 31, 2014

ETHICS SUMMARY Other (Fees, Writeoffs, etc.) The actual dollar impact. Example, $120 means Other increased by $120. Demand Factor The % of normal. 98% means demand fell 2%. Material Cost Impact The % of normal. 104% means matieral costs rose 4%. Admin Cost Impact The % of normal. 103% means admin costs rose 3%. Productivity Impact The % of normal. 104% means productivity increased by 4%. Awareness Impact The % of normal. 105% means normal awareness was multiplied by 1.05. Accessibility Impact The % of normal. 98% means normal accessiblity was multiplied by 0.98.

Normal means the value that would have been produced if the problem had not been presented.

No Impact Andrews Baldwin Chester Digby Erie Ferris Total Other (Fees, Writeoffs, etc.) $0 $0 $0 $0 $0 $0 $0 Demand Factor 100% 100% 100% 100% 100% 100% 100% Material Cost Impact 100% 100% 100% 100% 100% 100% 100% Admin Cost Impact 100% 100% 100% 100% 100% 100% 100% Productivity Impact 100% 100% 100% 100% 100% 100% 100% Awareness Impact 100% 100% 100% 100% 100% 100% 100% Accessibility Impact 100% 100% 100% 100% 100% 100% 100%

CAPSTONE® COURIER Page 13

Annual Report Annual Report Andrews C59351 Round: 1Dec. 31, 2014

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 by shareholders in the company. Retained Earnings: The profits that the company chose to keep instead of paying to shareholders as dividends.

ASSETS 2014 Common

Size

2013

Cash $15,395 14.0% $3,434 Account Receivable $10,462 9.5% $8,307 Inventory $1,003 0.9% $8,617 Total Current Assets $26,860 24.4% $20,358

Plant & Equipment $128,600 117.0% $113,800 Accumulated Depreciation ($45,307) -41.1% ($37,933) Total Fixed Assets $83,293 75.6% $75,867 Total Assets $110,153 100.0% $96,225 LIABILITIES & OWNER'S EQUITY

Accounts Payable $7,062 6.4% $6,583 Current Debt $2,500 2.3% $0 Long Term Debt $46,700 42.4% $41,700 Total Liabilities $56,262 51.1% $48,283

Common Stock $18,860 17.1% $18,360 Retained Earnings $35,031 31.8% $29,582 Total Equity $53,891 48.9% $47,942 Total Liab. & O. Equity $110,153 100.0% $96,225

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 NetIncome(Loss) $5,449 $4,189 Depreciation $8,573 $7,587 Extraordinary gains/losses/writeoffs $60 $0 Accounts Payable $479 $3,583 Inventory $7,615 ($8,617) Accounts Receivable ($2,154) ($307)

Net cash from operation $20,021 $6,434 Cash Flows from Investing Activities Plant Improvements ($16,060) $0 Cash Flows from Financing Activities Dividends Paid $0 ($4,000) Sales of Common Stock $500 $0 Purchase of Common Stock $0 $0 Cash from long term debt $5,000 $0 Retirement of long term debt $0 $0 Change in current debt(net) $2,500 $0

Net Cash from financing activities $8,000 ($4,000) Net Change in cash position $11,961 $2,434 Closing cash position $15,395 $3,434

Annual Report Page 14

Annual Report Andrews C59351 Round: 1Dec. 31, 2014

2014 Income Statement (Product Name) Able Acre Adam Aft Agape NA NA NA 2014

Total Common

Size Sales $38,250 $36,919 $19,000 $16,697 $16,421 $0 $0 $0 $127,286 100.0%

Variable Costs: Direct Labor $12,192 $13,775 $4,470 $4,441 $4,440 $0 $0 $0 $39,318 30.9% Direct Material $18,070 $13,589 $7,914 $7,883 $6,766 $0 $0 $0 $54,222 42.6% Inventory Carry $90 $0 $2 $0 $28 $0 $0 $0 $120 0.1% Total Variable $30,352 $27,365 $12,386 $12,324 $11,234 $0 $0 $0 $93,660 73.6%

Contribution Margin $7,898 $9,554 $6,614 $4,373 $5,187 $0 $0 $0 $33,626 26.4%

Period Costs: Depreciation $3,120 $3,173 $840 $720 $720 $0 $0 $0 $8,573 6.7% SG&A: R&D $295 $0 $213 $213 $219 $0 $0 $0 $940 0.7% Promotions $1,000 $900 $700 $700 $700 $0 $0 $0 $4,000 3.1% Sales $1,000 $900 $700 $700 $700 $0 $0 $0 $4,000 3.1% Admin $309 $298 $153 $135 $133 $0 $0 $0 $1,028 0.8% Total Period $5,724 $5,272 $2,607 $2,468 $2,472 $0 $0 $0 $18,542 14.6%

Net Margin $2,175 $4,283 $4,007 $1,905 $2,715 $0 $0 $0 $15,085 11.9%

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year''s current debt, including short term debt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Other $335 0.3% EBIT $14,750 11.6% Short Term Interest $235 0.2% Long Term Interest $5,961 4.7% Taxes $2,994 2.4% Profit Sharing $111 0.1% Net Profit $5,449 4.3%

Annual Report Page 15