Statement Cash Flow Baldwin Company

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Page 1 Front Page Page 2 Stocks & Bonds Page 3 Financial Summary Page 4 Production Analysis

Page 5 Thrift Segment Analysis Page 6 Core Segment Analysis Page 7 Nano Segment Analysis Page 8 Elite Segment Analysis

Page 9 Market Share Page 10 Perceptual Map Page 11 HR/TQM Report

Annual Report Andrews Annual Report Baldwin Annual Report Chester Annual Report Digby

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Round: 2 Dec. 31, 2015

Student: Efren Escoto

EfrenEscoto

Andrews Efren Escoto

Baldwin

Chester

Digby

Selected Financial Statistics Andrews Baldwin Chester Digby ROS 6.0% 0.6% 9.1% -0.8% Asset Turnover 1.10 0.69 1.25 0.73 ROA 6.6% 0.4% 11.4% -0.6% Leverage (Assets/Equity) 1.7 2.5 1.9 2.9 ROE 11.2% 1.0% 22.3% -1.7% Emergency Loan $0 $0 $0 $0 Sales $160,547,759 $140,706,366 $177,076,547 $150,730,295 EBIT $20,702,998 $15,517,792 $31,740,664 $13,980,967 Profits $9,586,140 $796,755 $16,169,854 ($1,220,875) Cumulative Profit $14,326,212 $4,529,356 $29,192,092 $3,361,271 SG&A / Sales 10.2% 12.1% 6.9% 9.1% Contrib. Margin % 35.6% 34.4% 33.6% 32.8%

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Stocks & Bonds Efren Escoto Round: 2

December 31 , 2015

Stock Market Summary Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E Andrews $60.44 ($9.85) 2,050,942 $124 $41.80 $4.67 $0.00 0.0% 12.9 Baldwin $34.33 ($9.79) 2,675,670 $92 $30.13 $0.30 $0.00 0.0% 114.9 Chester $80.51 $13.92 1,915,875 $154 $37.89 $8.44 $0.00 0.0% 9.5 Digby $26.71 ($11.09) 2,882,967 $77 $24.49 ($0.42) $0.00 0.0% -63.2

Bond Market Summary Company Series# Face Yield Close$ S&P Andrews 11.2S2020 $8,837,000 11.4% 97.83 BBB 11.9S2021 $7,072,000 11.9% 100.41 BBB 10.9S2024 $12,000,000 11.5% 95.17 BBB 11.0S2025 $13,000,000 11.5% 95.44 BBB Baldwin 11.2S2020 $8,632,724 12.3% 91.03 CC 12.4S2021 $5,825,802 13.1% 94.53 CC 12.0S2023 $15,610,279 13.1% 91.59 CC 12.6S2024 $17,788,546 13.4% 94.02 CC 13.1S2025 $34,902,738 13.6% 96.32 CC Chester 11.1S2022 $2,509,600 11.9% 93.28 B 11.2S2023 $5,662,814 12.0% 93.19 B 11.5S2024 $1,377,976 12.2% 94.27 B 11.6S2025 $18,600,072 12.3% 94.49 B Digby 11.3S2020 $10,417,600 12.5% 90.09 C 12.5S2021 $14,665,611 13.4% 93.42 C 12.5S2022 $7,963,435 13.5% 92.75 C 12.5S2023 $9,569,958 13.6% 92.17 C 12.9S2024 $14,262,838 13.8% 93.62 C 13.4S2025 $28,649,980 14.0% 95.86 C

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Financial Summary Efren Escoto Round: 2December 31, 2015

Cash Flow Statement Survey Andrews Baldwin Chester Digby Cash flows from operating activities Net Income (Loss) $9,586 $797 $16,170 ($1,221) Adjustment for non-cash items: Depreciation $10,846 $13,224 $8,217 $14,367 Extraordinary gains/losses/writeoffs ($965) $0 $0 $0 Changes in current assets and liabilities: Accounts payable ($31) $864 $2,121 ($1,204) Inventory $5,097 $2,948 ($8,546) $8,042 Accounts receivable ($1,087) ($1,947) ($1,881) $95 Net cash from operations $23,447 $15,885 $16,081 $20,078

Cash flows from investing activities Plant improvements (net) ($29,448) ($53,460) ($29,300) ($37,940) Cash flows from financing activities Dividends paid $0 $0 $0 $0 Sales of common stock $0 $18,534 $2,360 $9,609 Purchase of common stock $0 $0 $0 $0 Cash from long term debt issued $13,000 $34,903 $18,600 $28,650 Early retirement of long term debt $0 $0 $0 $0 Retirement of current debt $0 ($21,710) ($13,971) ($25,277) Cash from current debt borrowing $0 $21,955 $19,361 $30,185 Cash from emergency loan $0 $0 $0 $0

Net cash from financing activities $13,000 $53,682 $26,349 $43,167 Net change in cash position $6,999 $16,108 $13,130 $25,305

Balance Sheet Survey Andrews Baldwin Chester Digby Cash $17,450 $35,643 $32,587 $50,770 Accounts Receivable $13,196 $11,565 $14,554 $12,389 Inventory $13,487 $8,324 $20,657 $4,059 Total Current Assets $44,133 $55,532 $67,799 $67,218 Plant and equipment $162,696 $218,760 $123,260 $215,500 Accumulated Depreciation ($60,952) ($70,400) ($49,504) ($77,471) Total Fixed Assets $101,744 $148,360 $73,756 $138,029 Total Assets $145,876 $203,892 $141,555 $205,247

Accounts Payable $7,940 $7,257 $10,159 $7,622 Current Debt $11,300 $33,255 $30,661 $41,485 Long Term Debt $40,909 $82,760 $28,150 $85,529 Total Liabilities $60,149 $123,272 $68,970 $134,636 Common Stock $12,081 $37,278 $11,159 $37,118 Retained Earnings $73,647 $43,342 $61,425 $33,493 Total Equity $85,728 $80,620 $72,584 $70,610 Total Liabilities & Owners' Equity $145,876 $203,892 $141,555 $205,247

Income Statement Survey Andrews Baldwin Chester Digby Sales $160,548 $140,706 $177,077 $150,730 Variable Costs (Labor, Material, Carry) $103,314 $92,239 $117,533 $101,267 Depreciation $10,846 $13,224 $8,217 $14,367 SGA (R&D, Promo, Sales, Admin) $16,350 $17,054 $12,288 $13,703 Other (Fees, Writeoffs, TQM, Bonuses) $9,335 $2,672 $7,298 $7,413 EBIT $20,703 $15,518 $31,741 $13,981 Interest (Short term, Long term) $5,654 $14,267 $6,356 $15,859 Taxes $5,267 $438 $8,885 ($657) Profit Sharing $196 $16 $330 $0 Net Profit $9,586 $797 $16,170 ($1,221)

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Production Analysis Efren Escoto Round: 2December 31, 2015

Production Information

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.

Ark Elite 1,059 0 8/30/2015 1.3 26000 14.7 7.9 $40.00 $14.72 $10.13 38% 50% 5.5 914 148% Able Thrift 1,356 0 11/19/2015 2.1 20000 7.3 12.6 $21.00 $7.91 $5.38 34% 0% 8.5 930 92% Acre Core 1,666 604 12/3/2015 1.3 20000 10.2 9.9 $26.50 $10.25 $5.60 35% 9% 7.6 1,800 108% Awe Nano 1,248 150 11/18/2015 1.2 22000 12.2 5.3 $36.50 $13.66 $10.01 35% 44% 5.5 1,228 142% Buzz Thrift 1,335 113 12/19/2016 3.5 14000 7.0 13.2 $18.00 $6.26 $2.33 50% 0% 9.5 1,250 91% Brat Core 2,091 34 12/7/2014 2.1 16000 9.4 10.8 $20.00 $9.01 $5.18 27% 30% 8.0 1,500 129% Baker Nano 1,022 164 12/17/2015 1.0 18000 12.1 5.7 $30.00 $13.17 $6.50 35% 31% 6.0 850 130% Bead Elite 841 175 12/18/2015 1.0 20000 14.9 7.9 $34.00 $14.05 $7.37 37% 13% 6.0 850 111% Bid Core 743 0 4/1/2015 0.8 16000 10.0 10.2 $21.00 $9.54 $5.78 26% 100% 7.0 1,040 149% Bold 0 0 2/10/2016 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 7.0 600 0% Cute Nano 1,561 23 12/3/2015 1.3 23000 12.0 6.2 $32.00 $13.96 $9.33 30% 100% 6.0 900 198% Crimp Elite 880 235 1/4/2015 2.4 25000 15.2 7.7 $35.00 $15.32 $8.73 28% 50% 6.5 850 149% Cake Nano 1,256 302 9/19/2015 1.2 23000 13.1 5.0 $37.00 $14.96 $8.13 36% 59% 6.0 1,000 157% Cedar Elite 1,279 320 8/17/2015 1.2 25000 15.0 7.2 $39.00 $15.41 $7.97 38% 47% 6.0 1,150 146% Dug Thrift 2,216 0 4/11/2015 2.7 17000 7.8 12.4 $17.00 $7.76 $3.93 31% 100% 9.0 1,450 198% Drat Thrift 2,310 0 4/11/2015 2.6 17000 8.0 12.2 $17.00 $7.94 $3.81 30% 72% 9.0 1,600 170% Deal Core 1,390 141 12/16/2015 1.1 18000 10.9 8.7 $25.00 $11.07 $4.49 37% 29% 8.0 1,050 127% Dell Core 1,561 113 12/18/2015 1.1 20000 11.6 9.2 $25.00 $11.75 $4.33 34% 16% 8.0 1,250 115%

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Thrift Market Segment Analysis Efren Escoto Round: 2December 31, 2015

Thrift Statistics Total Industry Unit Demand 6,293 Actual Industry Unit Sales 6,293 Segment % of Total Industry 26.4%

Next Year's Segment Growth Rate 11.0%

Thrift Customer Buying Criteria Expectations Importance 1. Price $14.00 - 26.00 55% 2. Reliability MTBF 14000-20000 20% 3. Ideal Position Pfmn 7.5 Size 12.7 15% 4. Age Ideal Age = 3.0 10%

Perceptual Map for Thrift Segment

Top Products in Elite Segment

Name Market Share

Units Sold to Seg

Revision Date Stock Out

Pfmn Coord

Size Coord

List Price MTBF

Age Dec.31

Promo Budget

Cust. Aware- ness

Sales Budget

Cust. Access- ibility

Dec. Cust. Survey

Cedar 24% 1,139 8/17/2015 15.0 7.2 $39.00 25000 1.24 $1,300 81% $800 87% 41 Crimp 19% 880 1/4/2015 15.2 7.7 $35.00 25000 2.45 $1,300 82% $900 87% 36 Ark 19% 872 8/30/2015 YES 14.7 7.9 $40.00 26000 1.30 $1,300 86% $1,200 73% 42 Bead 14% 677 12/18/2015 14.9 7.9 $34.00 20000 1.05 $1,050 61% $1,500 60% 30 Cute 9% 421 12/3/2015 12.0 6.2 $32.00 23000 1.35 $1,300 82% $900 87% 18 Awe 5% 213 11/18/2015 12.2 5.3 $36.50 22000 1.22 $1,500 95% $1,100 73% 2 Baker 4% 194 12/17/2015 12.1 5.7 $30.00 18000 1.04 $1,050 61% $900 60% 4 Cake 4% 176 9/19/2015 13.1 5.0 $37.00 23000 1.20 $1,300 82% $800 87% 1 Dell 1% 57 12/18/2015 11.6 9.2 $25.00 20000 1.10 $1,200 73% $900 11% 3 Deal 1% 29 12/16/2015 10.9 8.7 $25.00 18000 1.09 $1,200 73% $900 11% 1 Acre 1% 27 12/3/2015 10.2 9.9 $26.50 20000 1.35 $1,200 82% $1,000 73% 3

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Market Share Report Efren Escoto Round: 2December 31, 2015

Actual Market Share in Units Thrift Core Nano Elite Total Industry Unit Sales 6,293 8,089 4,747 4,684 23,814 % of Market 26.4% 34.0% 19.9% 19.7% 100.0% Ark 3.9% 18.6% 4.5% Able 18.0% 2.8% 5.7% Acre 4.0% 16.6% 1.1% 0.6% 7.0% Awe 21.8% 4.5% 5.2% Total 22.0% 19.3% 26.8% 23.7% 22.4% Buzz 18.1% 2.4% 5.6% Brat 6.8% 20.6% 8.8% Baker 17.4% 4.1% 4.3% Bead 3.5% 14.4% 3.5% Bid 0.4% 8.8% 3.1% Total 25.4% 31.8% 20.9% 18.6% 25.3% Cute 2.5% 19.8% 9.0% 6.5% Crimp 18.8% 3.7% Cake 22.7% 3.8% 5.3% Cedar 2.9% 24.3% 5.4% Total 2.5% 45.5% 55.9% 20.9% Dug 26.2% 7.0% 9.3% Drat 26.4% 8.0% 9.7% Deal 14.8% 3.5% 0.6% 5.8% Dell 16.7% 3.3% 1.2% 6.6% Total 52.7% 46.4% 6.8% 1.8% 31.4%

Potential Market Share in Units Thrift Core Nano Elite Total Units Demanded 6,293 8,089 4,747 4,684 23,814 % of Market 26.4% 34.0% 19.9% 19.7% 100.0% Ark 4.7% 22.3% 5.3% Able 24.8% 3.8% 7.8% Acre 3.6% 15.8% 1.1% 0.5% 6.6% Awe 21.6% 4.3% 5.2% Total 28.4% 19.6% 27.3% 27.2% 25.0% Buzz 16.1% 2.3% 5.1% Brat 5.8% 19.7% 8.2% Baker 17.3% 3.9% 4.2% Bead 3.4% 13.8% 3.4% Bid 0.6% 11.5% 4.1% Total 22.6% 33.5% 20.7% 17.7% 25.0% Cute 2.4% 19.8% 8.7% 6.5% Crimp 17.9% 3.5% Cake 22.5% 3.6% 5.2% Cedar 2.9% 23.1% 5.1% Total 2.4% 45.2% 53.3% 20.3% Dug 24.8% 6.8% 8.9% Drat 24.2% 7.7% 9.0% Deal 14.1% 3.5% 0.6% 5.6% Dell 15.9% 3.3% 1.2% 6.3% Total 49.0% 44.5% 6.7% 1.8% 29.7%

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Perceptual Map Efren Escoto Round: 2December 31, 2015

Perceptual Map for All Segments

Andrews Name Pfmn Size Revised Ark 14.7 7.9 8/30/2015 Able 7.3 12.6 11/19/2015 Acre 10.2 9.9 12/3/2015 Awe 12.2 5.3 11/18/2015

Baldwin Name Pfmn Size Revised Buzz 7.0 13.2 12/19/2016 Brat 9.4 10.8 12/7/2014 Baker 12.1 5.7 12/17/2015 Bead 14.9 7.9 12/18/2015 Bid 10.0 10.2 4/1/2015

Chester Name Pfmn Size Revised Cute 12.0 6.2 12/3/2015 Crimp 15.2 7.7 1/4/2015 Cake 13.1 5.0 9/19/2015 Cedar 15.0 7.2 8/17/2015

Digby Name Pfmn Size Revised Dug 7.8 12.4 4/11/2015 Drat 8.0 12.2 4/11/2015 Deal 10.9 8.7 12/16/2015 Dell 11.6 9.2 12/18/2015

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HR/TQM Report Efren Escoto Round: 2December 31, 2015

HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Needed Complement 629 489 662 430 Complement 629 489 662 430 1st Shift Complement 496 383 403 288 2nd Shift Complement 133 106 259 142 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 7.0% 6.3% 10.0% 8.0% New Employees 44 89 145 34 Separated Employees 69 0 0 182 Recruiting Spend $150 $5,000 $0 $2,500 Training Hours 80 80 0 40 Productivity Index 104.6% 124.2% 100.0% 113.9% Recruiting Cost $51 $537 $145 $121 Separation Cost $345 $0 $0 $912 Training Cost $1,006 $782 $0 $344 Total HR Admin Cost $1,402 $1,319 $145 $1,377 Labor Contract Next Year Wages $28.15 $28.15 $28.15 $28.15 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 $1,200 $0 $0 $1,250 Vendor/JIT $2,000 $0 $0 $1,250 Quality Initiative Training $800 $0 $1,250 $0 Channel Support Systems $500 $0 $1,250 $1,500 Concurrent Engineering $300 $0 $1,250 $0 UNEP Green Programs $1,000 $0 $0 $0 TQM Budgets Last Year Benchmarking $100 $0 $0 $0 Quality Function Deployment Effort $1,800 $0 $0 $0 CCE/6 Sigma Training $1,800 $0 $1,250 $750 GEMI TQEM Sustainability Initiatives $150 $0 $1,250 $750 Total Expenditures $9,650 $0 $6,250 $5,500 Cumulative Impacts Material Cost Reduction 6.51% 0.00% 2.92% 1.40% Labor Cost Reduction 5.12% 0.00% 11.25% 0.33% Reduction R&D Cycle Time 4.06% 0.00% 32.13% 0.00% Reduction Admin Costs 24.11% 0.00% 0.00% 3.25% Demand Increase 2.04% 0.00% 4.56% 1.16%

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Annual Report

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Top Annual Report Andrews C59559 Round: 2Dec. 31, 2015

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 2015 2014 CommonSize Cash $17,450 12.0% $10,451 Accounts Receivable $13,196 9.0% $12,109 Inventory $13,487 9.2% $18,584

Total Current Assets $44,133 30.3% $41,144 Plant & Equipment $162,696 111.5% $135,628 Accumulated Depreciation ($60,952) -41.8% ($53,451)

Total Fixed Assets $101,744 69.7% $82,177

Total Assets $145,876 100.0% $123,321

LIABILITIES & OWNERS' EQUITY Accounts Payable $7,940 5.4% $7,970 Current Debt $11,300 7.7% $0 Long Term Debt $40,909 28.0% $39,209

Total Liabilities $60,149 41.2% $47,179 Common Stock $12,081 8.3% $12,081 Retained Earnings $73,647 50.5% $64,060

Total Equity $85,728 58.8% $76,141

Total Liab. & O. Equity $145,876 100.0% $123,321

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: 2015 2014 Net Income (Loss) $9,586 $4,740 Depreciation $10,846 $9,042 Extraordinary gains/losses/writeoffs ($965) $0 Accounts Payable ($31) ($1,546) Inventory $5,097 $6,948

Accounts Receivable ($1,087) $1,347

Net cash from operations $23,447 $20,531 Cash Flows from Investing Activities: Plant Improvements ($29,448) ($38,804) 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 $13,000 $12,000 Retirement of long term debt ($11,300) $0

Change in current debt (net) $11,300 ($15,717)

Net cash from financing activities $13,000 ($3,717) Net change in cash position $6,999 ($21,990) Closing cash position $17,450 $10,451

Annual Report Page 1

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Top Annual Report Andrews C59559 Round: 2Dec. 31, 2015

2015 Income Statement (Product Name:) Ark Able Acre Awe Na Na Na Na 2015Total

Common Size

Sales $42,379 $28,472 $44,159 $45,538 $0 $0 $0 $0 $160,548 100.0% Variable Costs: Direct Labor $10,730 $8,244 $10,678 $12,510 $0 $0 $0 $0 $42,162 26.3% Direct Material $15,509 $10,532 $16,819 $16,674 $0 $0 $0 $0 $59,533 37.1% Inventory Carry $0 $0 $1,197 $422 $0 $0 $0 $0 $1,618 1.0% Total Variable $26,239 $18,776 $28,693 $29,606 $0 $0 $0 $0 $103,314 64.4% Contribution Margin $16,140 $9,696 $15,466 $15,932 $0 $0 $0 $0 $57,234 35.6% Period Costs: Depreciation $1,706 $2,480 $4,368 $2,292 $0 $0 $0 $0 $10,846 6.8% SG&A: R&D $672 $895 $935 $893 $0 $0 $0 $0 $3,395 2.1% Promotions $1,300 $1,400 $1,200 $1,500 $0 $0 $0 $0 $5,400 3.4% Sales $1,200 $2,000 $1,000 $1,100 $0 $0 $0 $0 $5,300 3.3% Admin $595 $400 $620 $640 $0 $0 $0 $0 $2,255 1.4% Total Period $5,474 $7,175 $8,123 $6,425 $0 $0 $0 $0 $27,196 16.9% Net Margin $10,667 $2,521 $7,343 $9,507 $0 $0 $0 $0 $30,038 18.7% 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 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.

Other $9,335 5.8% EBIT $20,703 12.9% Short Term Interest $1,085 0.7% LongTerm Interest $4,569 2.8% Taxes $5,267 3.3% Profit Sharing $196 0.1% Net Profit $9,586 6.0%

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Annual Report Page 2 PRINT

Annual Report

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Top Annual Report Baldwin C59559 Round: 2Dec. 31, 2015

ASSETS 2015 2014 CommonSize Cash $35,643 17.5% $19,535 Accounts Receivable $11,565 5.7% $9,617 Inventory $8,324 4.1% $11,272

Total Current Assets $55,532 27.2% $40,424 Plant & Equipment $218,760 107.3% $165,300 Accumulated Depreciation ($70,400) -34.5% ($57,176)

Total Fixed Assets $148,360 72.8% $108,124

Total Assets $203,892 100.0% $148,549

LIABILITIES & OWNERS' EQUITY Accounts Payable $7,257 3.6% $6,393 Current Debt $33,255 16.3% $21,710 Long Term Debt $82,760 40.6% $59,157

Total Liabilities $123,272 60.5% $87,260 Common Stock $37,278 18.3% $18,743 Retained Earnings $43,342 21.3% $42,545

Total Equity $80,620 39.5% $61,288

Total Liab. & O. Equity $203,892 100.0% $148,549

Cash Flows from Operating Activities: 2015 2014 Net Income (Loss) $797 $3,733 Depreciation $13,224 $9,887 Extraordinary gains/losses/writeoffs $0 $0 Accounts Payable $864 $596 Inventory $2,948 ($3,891)

Accounts Receivable ($1,947) $132

Net cash from operations $15,885 $10,456 Cash Flows from Investing Activities: Plant Improvements ($53,460) ($40,900) Cash Flows from Financing Activities: Dividends Paid $0 $0 Sales of Common Stock $18,534 $4,365 Purchase of Common Stock $0 $0 Cash from long term debt $34,903 $17,789 Retirement of long term debt ($11,300) $0

Change in current debt (net) $11,545 ($3,812)

Net cash from financing activities $53,682 $18,341 Net change in cash position $16,108 ($12,103) Closing cash position $35,643 $19,535

Annual Report Page 1

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Top Annual Report Baldwin C59559 Round: 2Dec. 31, 2015

2015 Income Statement (Product Name:) Buzz Brat Baker Bead Bid Bold Na Na 2015Total

Common Size

Sales $24,021 $41,814 $30,671 $28,604 $15,596 $0 $0 $0 $140,706 100.0% Variable Costs: Direct Labor $3,226 $10,918 $6,591 $6,158 $4,293 $0 $0 $0 $31,186 22.2% Direct Material $8,780 $19,508 $13,065 $11,420 $7,281 $0 $0 $0 $60,054 42.7% Inventory Carry $122 $60 $379 $438 $0 $0 $0 $0 $999 0.7% Total Variable $12,128 $30,486 $20,035 $18,017 $11,574 $0 $0 $0 $92,239 65.6% Contribution Margin $11,893 $11,329 $10,636 $10,587 $4,022 $0 $0 $0 $48,467 34.4% Period Costs: Depreciation $3,667 $3,800 $1,700 $1,700 $2,357 $0 $0 $0 $13,224 9.4% SG&A: R&D $1,000 $0 $973 $977 $250 $1,000 $0 $0 $4,200 3.0% Promotions $1,050 $1,050 $1,050 $1,050 $1,050 $0 $0 $0 $5,250 3.7% Sales $1,000 $1,000 $900 $1,500 $900 $0 $0 $0 $5,300 3.8% Admin $393 $685 $502 $468 $255 $0 $0 $0 $2,304 1.6% Total Period $7,110 $6,535 $5,125 $5,695 $4,813 $1,000 $0 $0 $30,278 21.5% Net Margin $4,783 $4,794 $5,511 $4,892 ($791) ($1,000) $0 $0 $18,190 12.9% Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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 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.

Other $2,672 1.9% EBIT $15,518 11.0% Short Term Interest $3,891 2.8% LongTerm Interest $10,376 7.4% Taxes $438 0.3% Profit Sharing $16 0.0% Net Profit $797 0.6%

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Annual Report

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Top Annual Report Chester C59559 Round: 2Dec. 31, 2015

ASSETS 2015 2014 CommonSize Cash $32,587 23.0% $19,458 Accounts Receivable $14,554 10.3% $12,673 Inventory $20,657 14.6% $12,111

Total Current Assets $67,798 47.9% $44,242 Plant & Equipment $123,260 87.1% $93,960 Accumulated Depreciation ($49,504) -35.0% ($41,287)

Total Fixed Assets $73,756 52.1% $52,673

Total Assets $141,555 100.0% $96,915

LIABILITIES & OWNERS' EQUITY Accounts Payable $10,159 7.2% $8,038 Current Debt $30,661 21.7% $13,971 Long Term Debt $28,150 19.9% $20,850

Total Liabilities $68,970 48.7% $42,859 Common Stock $11,159 7.9% $8,799 Retained Earnings $61,425 43.4% $45,256

Total Equity $72,584 51.3% $54,055

Total Liab. & O. Equity $141,555 100.0% $96,915

Cash Flows from Operating Activities: 2015 2014 Net Income (Loss) $16,170 $13,022 Depreciation $8,217 $6,264 Extraordinary gains/losses/writeoffs $0 $0 Accounts Payable $2,121 $1,437 Inventory ($8,546) $4,720

Accounts Receivable ($1,881) ($2,832)

Net cash from operations $16,081 $22,611 Cash Flows from Investing Activities: Plant Improvements ($29,300) ($9,580) Cash Flows from Financing Activities: Dividends Paid $0 ($6,494) Sales of Common Stock $2,360 $0 Purchase of Common Stock $0 ($1,609) Cash from long term debt $18,600 $1,378 Retirement of long term debt ($11,300) $0

Change in current debt (net) $16,689 ($4,473)

Net cash from financing activities $26,349 ($11,198) Net change in cash position $13,130 $1,833 Closing cash position $32,587 $19,458

Annual Report Page 1

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Top Annual Report Chester C59559 Round: 2Dec. 31, 2015

2015 Income Statement (Product Name:) Cute Crimp Cake Cedar Na Na Na Na 2015Total

Common Size

Sales $49,950 $30,795 $46,457 $49,875 $0 $0 $0 $0 $177,077 100.0% Variable Costs: Direct Labor $14,571 $7,680 $10,285 $10,226 $0 $0 $0 $0 $42,763 24.1% Direct Material $20,404 $13,769 $18,500 $19,618 $0 $0 $0 $0 $72,291 40.8% Inventory Carry $63 $688 $832 $897 $0 $0 $0 $0 $2,479 1.4% Total Variable $35,038 $22,137 $29,617 $30,741 $0 $0 $0 $0 $117,533 66.4% Contribution Margin $14,912 $8,658 $16,840 $19,134 $0 $0 $0 $0 $59,544 33.6% Period Costs: Depreciation $2,104 $1,813 $2,000 $2,300 $0 $0 $0 $0 $8,217 4.6% SG&A: R&D $934 $9 $727 $634 $0 $0 $0 $0 $2,304 1.3% Promotions $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 2.9% Sales $900 $900 $800 $800 $0 $0 $0 $0 $3,400 1.9% Admin $390 $241 $363 $390 $0 $0 $0 $0 $1,384 0.8% Total Period $5,629 $4,263 $5,190 $5,423 $0 $0 $0 $0 $20,505 11.6% Net Margin $9,283 $4,395 $11,650 $13,711 $0 $0 $0 $0 $39,039 22.0% 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 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.

Other $7,298 4.1% EBIT $31,741 17.9% Short Term Interest $3,127 1.8% LongTerm Interest $3,229 1.8% Taxes $8,885 5.0% Profit Sharing $330 0.2% Net Profit $16,170 9.1%

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Top Annual Report Digby C59559 Round: 2Dec. 31, 2015

ASSETS 2015 2014 CommonSize Cash $50,770 24.7% $25,465 Accounts Receivable $12,389 6.0% $12,483 Inventory $4,059 2.0% $12,101

Total Current Assets $67,218 32.7% $50,049 Plant & Equipment $215,500 105.0% $177,560 Accumulated Depreciation ($77,471) -37.7% ($63,104)

Total Fixed Assets $138,029 67.3% $114,456

Total Assets $205,247 100.0% $164,505

LIABILITIES & OWNERS' EQUITY Accounts Payable $7,622 3.7% $8,826 Current Debt $41,485 20.2% $25,277 Long Term Debt $85,529 41.7% $68,179

Total Liabilities $134,636 65.6% $102,282 Common Stock $37,118 18.1% $27,509 Retained Earnings $33,493 16.3% $34,713

Total Equity $70,611 34.4% $62,222

Total Liab. & O. Equity $205,247 100.0% $164,505

Cash Flows from Operating Activities: 2015 2014 Net Income (Loss) ($1,221) $4,582 Depreciation $14,367 $11,837 Extraordinary gains/losses/writeoffs $0 $0 Accounts Payable ($1,204) $1,628 Inventory $8,042 ($2,107)

Accounts Receivable $95 ($1,636)

Net cash from operations $20,078 $14,304 Cash Flows from Investing Activities: Plant Improvements ($37,940) ($34,660) Cash Flows from Financing Activities: Dividends Paid $0 $0 Sales of Common Stock $9,609 $2,840 Purchase of Common Stock $0 $0 Cash from long term debt $28,650 $14,263 Retirement of long term debt ($11,300) $0

Change in current debt (net) $16,208 ($4,005)

Net cash from financing activities $43,167 $13,098 Net change in cash position $25,305 ($7,259) Closing cash position $50,770 $25,465

Annual Report Page 1

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Top Annual Report Digby C59559 Round: 2Dec. 31, 2015

2015 Income Statement (Product Name:) Dug Drat Deal Dell Na Na Na Na 2015Total

Common Size

Sales $37,677 $39,268 $34,752 $39,032 $0 $0 $0 $0 $150,730 100.0% Variable Costs: Direct Labor $8,795 $8,909 $6,705 $7,435 $0 $0 $0 $0 $31,844 21.1% Direct Material $17,304 $18,460 $15,112 $18,059 $0 $0 $0 $0 $68,936 45.7% Inventory Carry $0 $0 $265 $222 $0 $0 $0 $0 $487 0.3% Total Variable $26,099 $27,370 $22,083 $25,716 $0 $0 $0 $0 $101,267 67.2% Contribution Margin $11,578 $11,899 $12,670 $13,316 $0 $0 $0 $0 $49,463 32.8% Period Costs: Depreciation $4,060 $4,480 $2,660 $3,167 $0 $0 $0 $0 $14,367 9.5% SG&A: R&D $279 $279 $970 $976 $0 $0 $0 $0 $2,505 1.7% Promotions $1,200 $1,200 $1,200 $1,200 $0 $0 $0 $0 $4,800 3.2% Sales $1,100 $1,100 $900 $900 $0 $0 $0 $0 $4,000 2.7% Admin $599 $625 $553 $621 $0 $0 $0 $0 $2,398 1.6% Total Period $7,238 $7,684 $6,283 $6,864 $0 $0 $0 $0 $28,069 18.6% Net Margin $4,340 $4,215 $6,387 $6,452 $0 $0 $0 $0 $21,394 14.2% 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 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.

Other $7,413 4.9% EBIT $13,981 9.3% Short Term Interest $4,978 3.3% LongTerm Interest $10,881 7.2% Taxes ($657) -0.4% Profit Sharing $0 0.0% Net Profit ($1,221) -0.8%

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