Need 8-10 page Business Paper Assignment by 09/01/13

Round: 1 Dec. 31, 2014 C58538

Andrews Eugene Ellis Philip Mull

Baldwin Lisa Chastain Monica Dalke matt rix

Chester

Digby Erie Ferris

Selected Financial Statistics Andrews Baldwin Chester Digby Erie Ferris

ROS -5.8% 3.4% 4.2% 6.2% 5.2% 6.4% Asset Turnover 0.86 1.16 1.11 1.12 1.00 1.28 ROA -5.0% 4.0% 4.6% 6.9% 5.2% 8.2% Leverage (Assets/Equity)

2.0 2.1 2.0 1.9 2.0 1.9

ROE -9.8% 8.3% 9.2% 13.4% 10.1% 15.9% Emergency Loan $11,128,054 $0 $0 $0 $0 $0 Sales $88,190,464 $125,334,509 $122,141,540 $121,805,385 $114,407,018 $118,465,329 EBIT ($1,783,484) $12,201,664 $13,985,161 $17,564,769 $15,460,731 $16,683,558 Profits ($5,074,931) $4,319,283 $5,100,754 $7,511,917 $5,899,034 $7,581,960 Cumulative Profit ($886,424) $8,507,790 $9,289,261 $11,700,425 $10,087,541 $11,770,467 SG&A / Sales 15.4% 8.1% 12.0% 13.3% 9.6% 13.6% Contrib. Margin % 22.5% 23.8% 30.0% 34.0% 30.4% 33.5%

CAPSTONE® COURIER Page 1

Stock & Bonds C58538 Round: 1Dec. 31, 2014

Stock Market Summary

Company Close Change Shares MarketCap

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

Andrews $17.30 ($16.96) 2,291,939 $40 $22.61 ($2.21) $0.46 2.7% -7.8 Baldwin $38.80 $4.54 2,000,000 $78 $26.13 $2.16 $0.00 0.0% 18.0 Chester $40.36 $6.11 2,069,366 $84 $26.78 $2.46 $0.00 0.0% 16.4 Digby $45.15 $10.89 2,015,280 $91 $27.78 $3.73 $0.00 0.0% 12.1 Erie $41.87 $7.61 2,128,085 $89 $27.36 $2.77 $0.00 0.0% 15.1 Ferris $45.26 $11.01 2,000,000 $91 $23.91 $3.79 $3.85 8.5% 11.9

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

12.5S2017 $10,924,506 12.3% 101.93 B 12.5S2017 $13,828,904 12.2% 102.18 B 14.0S2019 $20,850,000 12.9% 108.35 B 14.0S2019 $20,850,000 12.9% 108.74 B

Baldwin Erie 11.0S2015 $6,950,000 11.1% 99.11 CCC 11.0S2015 $3,809,769 11.1% 99.37 B 12.5S2017 $13,900,000 12.4% 101.20 CCC 12.5S2017 $13,900,000 12.3% 101.93 B 14.0S2019 $20,850,000 13.1% 107.21 CCC 14.0S2019 $20,850,000 12.9% 108.35 B

Chester Ferris 11.0S2015 $1,788,091 11.1% 99.37 B 12.5S2017 $5,899,561 12.2% 102.18 B 12.5S2017 $13,900,000 12.3% 101.93 B 14.0S2019 $20,850,000 12.9% 108.74 B 14.0S2019 $20,850,000 12.9% 108.35 B

Next Year's Prime Rate 7.50%

CAPSTONE® COURIER Page 2

Financial Summary C58538 Round: 1Dec. 31, 2014 Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris CashFlows from operating activities Net Income(Loss) ($5,075) $4,319 $5,101 $7,512 $5,899 $7,582 Adjustment for non-cash items: Depreciation $7,227 $7,587 $7,573 $7,267 $7,987 $5,853 Extraordinary gains/losses/writeoffs $165 $0 $210 $234 $131 $774 Changes in current assets and liablilities Acounts payable $739 $7,747 $190 ($258) ($227) ($311) Inventory ($24,755) $8,227 $2,330 $2,753 $1,426 $1,668 Accounts Receivable $4,683 ($12,296) ($1,732) ($1,704) ($1,096) ($1,429) Net cash from operations ($17,017) $15,584 $13,672 $15,803 $14,119 $14,137

Cash flows from investing activities Plant improvements(net) $3,510 $0 ($4,770) ($800) ($9,080) $15,220 Cash flows from financing activities Dividends paid ($1,054) $0 $0 $0 $0 ($7,699) Sales of common stock $10,000 $0 $2,376 $523 $4,387 $0 Purchase of common stock $0 $0 $0 $0 $0 $0 Cash from long term debt issued $0 $0 $0 $0 $0 $0 Early retirement of long term debt ($10,000) $0 ($5,135) ($6,988) ($3,124) ($15,211) Retirement of current debt $0 $0 $0 $0 $0 $0 Cash from current debt borrowing $0 $0 $11,359 $11,359 $11,359 $11,359 Cash from emergency loan $11,128 $0 $0 $0 $0 $0

Net cash from financing activities $10,074 $0 $8,599 $4,894 $12,622 ($11,551)

Net change in cash position ($3,434) $15,584 $17,501 $19,897 $17,661 $17,805 Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris Cash $0 $19,018 $20,935 $23,331 $21,094 $21,239 Accounts Receivable $3,624 $20,603 $10,039 $10,011 $9,403 $9,737 Inventory $33,373 $390 $6,288 $5,864 $7,191 $6,950 Total Current Assets $36,997 $40,011 $37,262 $39,207 $37,689 $37,925

Plant and equipment $108,400 $113,800 $113,600 $109,000 $119,800 $87,800 Accumulated Depreciation ($43,360) ($45,520) ($40,773) ($39,867) ($42,987) ($33,520) Total Fixed Assets $65,040 $68,280 $72,827 $69,133 $76,813 $54,280

Total Assets $102,037 $108,291 $110,088 $108,340 $114,502 $92,205

Account Payable $7,322 $14,330 $6,773 $6,325 $6,356 $6,272 CurrentDebt $11,128 $0 $11,359 $11,359 $11,359 $11,359 Long Term Debt $31,775 $41,700 $36,538 $34,679 $38,560 $26,750 Total Liabilities $50,224 $56,030 $54,670 $52,363 $56,274 $44,381

Common Stock $28,360 $18,360 $20,736 $18,883 $22,747 $18,360 Retained Earnings $23,453 $33,901 $34,683 $37,094 $35,481 $29,465 Total Equity $51,813 $52,261 $55,419 $55,977 $58,228 $47,825

Total Liabilities & Owners'' Equity $102,037 $108,291 $110,088 $108,340 $114,502 $92,205

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris Sales $88,190 $125,335 $122,142 $121,805 $114,407 $118,465 Variable Costs(Labor,Material,Carry) $68,331 $95,449 $85,487 $80,415 $79,617 $78,816 Depreciation $7,227 $7,587 $7,573 $7,267 $7,987 $5,853 SGA(R&D,Promo,Sales,Admin) $13,602 $10,097 $14,690 $16,194 $10,945 $16,110 Other(Fees,Writeoffs,TQM,Bonuses) $815 $0 $406 $365 $397 $1,002 EBIT ($1,783) $12,202 $13,985 $17,565 $15,461 $16,684 Interest(Short term,Long term) $6,024 $5,421 $5,978 $5,772 $6,200 $4,781 Taxes ($2,733) $2,373 $2,803 $4,127 $3,241 $4,166 Profit Sharing $0 $88 $104 $153 $120 $155 Net Profit ($5,075) $4,319 $5,101 $7,512 $5,899 $7,582

CAPSTONE® COURIER Page 3

Production Analysis C58538 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 738 1,431 5/3/2015 4.1 17500 5.5 14.5 $25.00 $10.65 $8.22 5% 11% 4.0 1,800 110% Acre Low 1,673 0 4/3/2015 5.6 14000 3.0 17.0 $19.50 $7.05 $7.21 25% 18% 5.0 1,400 117% Adam High 338 78 5/12/2015 2.7 23000 8.0 12.0 $39.00 $14.84 $8.97 36% 0% 3.0 900 42% Aft Pfmn 453 11 6/11/2014 2.0 26000 10.0 15.0 $33.00 $15.66 $9.95 23% 30% 3.0 300 129% Agape Size 272 167 1/29/2015 3.6 19000 4.0 11.0 $33.00 $12.60 $8.97 28% 0% 3.0 600 63%

Baker Trad 1,571 0 4/4/2014 2.4 17500 5.8 14.2 $26.00 $10.95 $8.43 24% 0% 4.0 1,800 77% Bead Low 2,084 0 5/25/2009 5.6 14000 3.0 17.0 $19.00 $7.05 $8.49 17% 59% 5.0 1,400 146% Bid High 415 3 4/2/2014 1.7 23000 8.0 11.5 $38.00 $15.10 $9.64 34% 0% 3.0 900 42% Bold Pfmn 475 8 1/15/2014 3.5 26000 9.4 15.5 $33.00 $15.11 $9.64 24% 0% 3.0 600 68% Buddy Size 408 5 3/5/2014 2.2 19000 4.0 10.7 $33.00 $12.80 $9.64 31% 0% 3.0 600 58%

Cake Trad 1,358 118 4/22/2014 2.4 15000 5.7 14.3 $27.50 $10.10 $7.85 32% 0% 5.0 1,400 92% Cedar Low 1,893 27 1/29/2014 5.6 12000 3.0 17.0 $20.00 $6.45 $7.56 28% 36% 6.5 1,400 134% Cid High 527 58 11/26/2014 1.4 23000 9.1 10.9 $37.50 $15.96 $8.97 34% 0% 3.0 600 91% Coat Pfmn 451 72 11/13/2014 1.8 26000 10.6 14.7 $32.50 $16.14 $8.97 23% 0% 3.0 600 74% Cure Size 384 25 12/17/2014 1.8 18000 4.9 9.7 $32.50 $13.42 $8.97 32% 0% 3.0 600 58%

Daze Trad 1,232 95 6/11/2014 2.3 17800 6.1 14.0 $29.50 $11.30 $7.85 34% 0% 5.0 1,400 81% Dell Low 1,528 46 5/25/2009 5.6 14000 3.0 17.0 $22.00 $7.05 $7.03 34% 11% 6.0 1,400 110% Dixie High 541 44 11/23/2014 1.4 23500 9.1 10.9 $39.50 $16.11 $9.35 37% 10% 3.0 500 109% Dot Pfmn 431 43 11/3/2014 1.8 26000 10.6 14.7 $34.50 $16.14 $8.97 28% 0% 3.0 600 66% Dune Size 452 56 11/2/2014 1.9 19000 4.9 9.8 $34.50 $13.66 $8.97 35% 0% 3.0 600 74%

Eat Trad 1,490 85 3/17/2014 2.4 16500 5.6 14.5 $27.50 $10.40 $7.85 31% 0% 5.0 1,400 99% Ebb Low 1,940 30 1/15/2014 5.6 13000 3.0 17.0 $20.00 $6.75 $7.62 27% 39% 6.0 1,400 138% Echo High 359 77 12/23/2014 1.4 17000 7.0 12.9 $39.50 $12.08 $8.97 38% 0% 4.0 900 44% Edge Pfmn 294 81 6/30/2011 3.5 25000 9.4 15.5 $34.50 $14.81 $8.97 27% 0% 3.0 600 50% Egg Size 299 61 12/24/2015 3.6 19000 4.0 11.0 $34.50 $12.60 $8.97 35% 0% 3.0 600 50%

Fast Trad 1,445 80 3/3/2014 2.5 17500 5.6 14.5 $29.50 $10.70 $8.26 34% 12% 4.0 1,200 111% Feat Low 1,383 92 1/15/2014 5.6 13000 3.0 17.0 $22.00 $6.75 $7.72 32% 45% 5.0 1,000 144% Fist High 464 71 12/22/2014 1.4 24000 9.1 10.9 $39.50 $16.26 $8.97 37% 0% 3.0 500 99% Foam Pfmn 414 60 11/10/2014 1.8 26000 10.6 14.8 $34.50 $16.11 $8.97 28% 0% 4.0 600 66% Fume Size 371 38 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 C58538 Round: 1Dec. 31, 2014

Traditional Statistics Total Industry Unit Demand 8,067 Actual Industry Unit Sales 8,067 Segment % of Total Industry 31.4%

Next Year's Segment Growth Rate 9.2%

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 19% 1,512 4/4/2014 YES 5.8 14.2 $26.00 17500 2.42 $1,000 58% $1,000 50% 39 Eat 18% 1,450 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 51% 33 Fast 17% 1,394 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 54% 31 Cake 16% 1,325 4/22/2014 5.7 14.3 $27.50 15000 2.39 $1,100 61% $1,070 53% 32 Daze 14% 1,150 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 58% 34 Able 9% 686 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 50% 11 Bead 1% 102 5/25/2009 YES 3.0 17.0 $19.00 14000 5.60 $1,000 56% $900 50% 0 Acre 1% 98 4/3/2015 YES 3.0 17.0 $19.50 14000 5.60 $900 53% $900 50% 0 Dell 1% 95 5/25/2009 3.0 17.0 $22.00 14000 5.60 $1,100 59% $1,396 58% 0 Ebb 1% 94 1/15/2014 3.0 17.0 $20.00 13000 5.60 $1,050 58% $1,015 51% 0 Feat 1% 74 1/15/2014 3.0 17.0 $22.00 13000 5.60 $1,100 59% $1,175 54% 0 Cedar 1% 73 1/29/2014 3.0 17.0 $20.00 12000 5.60 $1,100 59% $1,123 53% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C58538 Round: 1Dec. 31, 2014

Low End Statistics Total Industry Unit Demand 10,009 Actual Industry Unit Sales 10,009 Segment % of Total Industry 39.0%

Next Year's Segment Growth Rate 11.7%

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 Bead 20% 1,982 5/25/2009 YES 3.0 17.0 $19.00 14000 5.60 $1,000 56% $900 34% 23 Ebb 18% 1,845 1/15/2014 3.0 17.0 $20.00 13000 5.60 $1,050 58% $1,015 35% 18 Cedar 18% 1,820 1/29/2014 3.0 17.0 $20.00 12000 5.60 $1,100 59% $1,123 37% 18 Acre 16% 1,574 4/3/2015 YES 3.0 17.0 $19.50 14000 5.60 $900 53% $900 34% 17 Dell 14% 1,433 5/25/2009 3.0 17.0 $22.00 14000 5.60 $1,100 59% $1,396 40% 14 Feat 13% 1,309 1/15/2014 3.0 17.0 $22.00 13000 5.60 $1,100 59% $1,175 37% 13 Able 0% 36 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 34% 1 Eat 0% 7 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 35% 0 Cake 0% 1 4/22/2014 5.7 14.3 $27.50 15000 2.39 $1,100 61% $1,070 37% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C58538 Round: 1Dec. 31, 2014

High End Statistics Total Industry Unit Demand 2,967 Actual Industry Unit Sales 2,967 Segment % of Total Industry 11.6%

Next Year's Segment Growth Rate 16.2%

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 18% 541 11/23/2014 9.1 10.9 $39.50 23500 1.40 $1,100 57% $1,396 53% 29 Cid 18% 527 11/26/2014 9.1 10.9 $37.50 23000 1.39 $1,000 54% $1,123 46% 27 Fist 16% 464 12/22/2014 9.1 10.9 $39.50 24000 1.36 $1,000 54% $1,175 49% 29 Bid 14% 415 4/2/2014 8.0 11.5 $38.00 23000 1.72 $800 48% $800 40% 13 Echo 12% 359 12/23/2014 7.0 12.9 $39.50 17000 1.36 $900 51% $725 38% 2 Adam 11% 338 5/12/2015 8.0 12.0 $39.00 23000 2.70 $900 51% $760 39% 6 Aft 2% 60 6/11/2014 10.0 15.0 $33.00 26000 2.03 $800 46% $700 39% 1 Daze 2% 45 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 53% 0 Coat 1% 40 11/13/2014 10.6 14.7 $32.50 26000 1.81 $1,000 52% $1,016 46% 1 Dot 1% 39 11/3/2014 10.6 14.7 $34.50 26000 1.82 $1,100 55% $1,263 53% 1 Foam 1% 35 11/10/2014 10.6 14.8 $34.50 26000 1.81 $1,000 52% $1,175 49% 0 Bold 1% 30 1/15/2014 9.4 15.5 $33.00 26000 3.50 $700 42% $700 40% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C58538 Round: 1Dec. 31, 2014

Performance Statistics Total Industry Unit Demand 2,294 Actual Industry Unit Sales 2,294 Segment % of Total Industry 8.9%

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 Bold 19% 444 1/15/2014 9.4 15.5 $33.00 26000 3.50 $700 42% $700 29% 21 Coat 18% 411 11/13/2014 10.6 14.7 $32.50 26000 1.81 $1,000 52% $1,016 33% 28 Aft 17% 392 6/11/2014 10.0 15.0 $33.00 26000 2.03 $800 46% $700 29% 22 Dot 17% 391 11/3/2014 10.6 14.7 $34.50 26000 1.82 $1,100 55% $1,263 37% 27 Foam 17% 379 11/10/2014 10.6 14.8 $34.50 26000 1.81 $1,000 52% $1,175 35% 26 Edge 12% 269 6/30/2011 9.4 15.5 $34.50 25000 3.50 $300 33% $145 25% 12 Daze 0% 2 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 37% 0 Baker 0% 2 4/4/2014 YES 5.8 14.2 $26.00 17500 2.42 $1,000 58% $1,000 29% 0 Fast 0% 1 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 35% 0 Able 0% 1 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 29% 0

CAPSTONE® COURIER Page 8

Size Segment Analysis C58538 Round: 1Dec. 31, 2014

Size Statistics Total Industry Unit Demand 2,347 Actual Industry Unit Sales 2,347 Segment % of Total Industry 9.1%

Next Year's Segment Growth Rate 18.3%

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 Dune 19% 451 11/2/2014 4.9 9.8 $34.50 19000 1.88 $1,100 55% $1,263 44% 37 Buddy 17% 407 3/5/2014 4.0 10.7 $33.00 19000 2.21 $700 42% $700 34% 17 Cure 16% 377 12/17/2014 4.9 9.7 $32.50 18000 1.81 $1,000 52% $1,016 39% 34 Fume 16% 370 12/10/2014 4.7 9.6 $34.50 19000 1.82 $1,000 52% $1,175 42% 37 Egg 13% 298 12/24/2015 4.0 11.0 $34.50 19000 3.60 $900 49% $725 35% 6 Agape 11% 267 1/29/2015 4.0 11.0 $33.00 19000 3.60 $700 42% $700 34% 6 Baker 2% 47 4/4/2014 YES 5.8 14.2 $26.00 17500 2.42 $1,000 58% $1,000 34% 1 Daze 1% 35 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 44% 1 Cake 1% 29 4/22/2014 5.7 14.3 $27.50 15000 2.39 $1,100 61% $1,070 39% 0 Fast 1% 28 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 42% 0 Eat 1% 25 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 35% 0 Able 1% 14 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 34% 0

CAPSTONE® COURIER Page 9

Market Share C58538 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 8,067 10,009 2,967 2,294 2,347 25,684 Units Demanded 8,067 10,009 2,967 2,294 2,347 25,684 % of Market 31.4% 39.0% 11.6% 8.9% 9.1% 100.0% % of Market 31.4% 39.0% 11.6% 8.9% 9.1% 100.0%

Able 8.5% 0.4% 0.6% 2.9% Able 8.4% 0.3% 0.6% 2.8% Acre 1.2% 15.7% 6.5% Acre 1.3% 17.0% 7.0% Adam 11.4% 1.3% Adam 10.6% 1.2% Aft 2.0% 17.1% 1.8% Aft 1.9% 17.0% 1.7% Agape 11.4% 1.1% Agape 10.5% 1.0% Total 9.8% 16.1% 13.5% 17.2% 12.0% 13.5% Total 9.8% 17.3% 12.5% 17.1% 11.1% 13.8%

Baker 18.8% 0.3% 2.0% 6.1% Baker 19.3% 0.3% 1.8% 6.3% Bead 1.3% 19.8% 8.1% Bead 1.5% 22.4% 9.2% Bid 14.0% 1.6% Bid 19.5% 2.3% Bold 1.0% 19.3% 1.8% Bold 1.0% 19.6% 1.9% Buddy 17.3% 1.6% Buddy 23.3% 2.1% Total 20.0% 19.8% 15.4% 19.4% 19.3% 19.3% Total 20.8% 22.4% 20.8% 19.7% 25.1% 21.7%

Cake 16.4% 1.2% 5.3% Cake 16.2% 1.1% 5.2% Cedar 0.9% 18.2% 7.4% Cedar 0.9% 17.1% 6.9% Cid 17.8% 2.1% Cid 16.7% 1.9% Coat 1.3% 17.9% 1.8% Coat 1.3% 17.9% 1.7% Cure 16.1% 1.5% Cure 14.9% 1.4% Total 17.4% 18.2% 19.2% 17.9% 17.3% 18.0% Total 17.2% 17.1% 18.1% 17.9% 16.1% 17.2%

Daze 14.3% 1.5% 1.5% 4.8% Daze 14.1% 1.4% 1.3% 4.7% Dell 1.2% 14.3% 5.9% Dell 1.2% 13.4% 5.6% Dixie 18.2% 2.1% Dixie 17.2% 2.0% Dot 1.3% 17.1% 1.7% Dot 1.3% 17.0% 1.7% Dune 19.2% 1.8% Dune 17.9% 1.6% Total 15.4% 14.3% 21.1% 17.2% 20.7% 16.3% Total 15.2% 13.4% 19.9% 17.1% 19.2% 15.6%

Eat 18.0% 0.3% 1.1% 5.8% Eat 17.8% 0.3% 1.0% 5.7% Ebb 1.2% 18.4% 7.5% Ebb 1.2% 17.5% 7.2% Echo 12.1% 1.4% Echo 11.2% 1.3% Edge 0.8% 11.7% 1.1% Edge 0.8% 11.7% 1.1% Egg 12.7% 1.2% Egg 11.8% 1.1% Total 19.1% 18.5% 13.2% 11.7% 13.8% 17.1% Total 18.9% 17.5% 12.3% 11.7% 12.7% 16.4%

Fast 17.3% 0.7% 1.2% 5.6% Fast 17.1% 0.7% 1.1% 5.6% Feat 0.9% 13.1% 5.4% Feat 0.9% 12.2% 5.0% Fist 15.6% 1.8% Fist 14.6% 1.7% Foam 1.2% 16.5% 1.6% Foam 1.1% 16.5% 1.6% Fume 15.8% 1.4% Fume 14.7% 1.3% Total 18.2% 13.1% 17.6% 16.6% 17.0% 15.9% Total 18.0% 12.2% 16.5% 16.5% 15.8% 15.2%

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Perceptual Map C58538 Round: 1Dec. 31, 2014

Andrews Baldwin Chester Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised Able 5.5 14.5 5/3/2015 Baker 5.8 14.2 4/4/2014 Cake 5.7 14.3 4/22/2014 Acre 3.0 17.0 4/3/2015 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 1/29/2014 Adam 8.0 12.0 5/12/2015 Bid 8.0 11.5 4/2/2014 Cid 9.1 10.9 11/26/2014 Aft 10.0 15.0 6/11/2014 Bold 9.4 15.5 1/15/2014 Coat 10.6 14.7 11/13/2014 Agape 4.0 11.0 1/29/2015 Buddy 4.0 10.7 3/5/2014 Cure 4.9 9.7 12/17/2014

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

CAPSTONE® COURIER Page 11

HR/TQM Report C58538 Round: 1Dec. 31, 2014

HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 796 809 752 686 709 677 Complement 796 809 752 686 709 677 1st Shift Complement 709 691 680 655 630 587 2nd Shift Complement 87 118 72 31 79 90

Overtime Percent 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% New Employees 176 190 127 69 80 68 Separated Employees 0 0 0 14 0 23 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 $176 $190 $127 $69 $80 $68 Separation Cost $0 $0 $0 $70 $0 $115 Training Cost $0 $0 $0 $0 $0 $0 Total HR Admin Cost $176 $190 $127 $139 $80 $183

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 C58538 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 C58538 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 $0 0.0% $3,434 Account Receivable $3,624 3.6% $8,307 Inventory $33,373 32.7% $8,617 Total Current Assets $36,997 36.3% $20,358

Plant & Equipment $108,400 106.0% $113,800 Accumulated Depreciation ($43,360) -42.5% ($37,933) Total Fixed Assets $65,040 63.7% $75,867 Total Assets $102,037 100.0% $96,225 LIABILITIES & OWNER'S EQUITY

Accounts Payable $7,322 7.2% $6,583 Current Debt $11,128 10.9% $0 Long Term Debt $31,775 31.1% $41,700 Total Liabilities $50,225 49.2% $48,283

Common Stock $28,360 27.8% $18,360 Retained Earnings $23,453 23.0% $29,582 Total Equity $51,813 50.8% $47,942 Total Liab. & O. Equity $102,037 100.0% $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) ($5,075) $4,189 Depreciation $7,227 $7,587 Extraordinary gains/losses/writeoffs $165 $0 Accounts Payable $739 $3,583 Inventory ($24,755) ($8,617) Accounts Receivable $4,683 ($307)

Net cash from operation ($17,017) $6,434 Cash Flows from Investing Activities Plant Improvements $3,510 $0 Cash Flows from Financing Activities Dividends Paid ($1,054) ($4,000) Sales of Common Stock $10,000 $0 Purchase of Common Stock $0 $0 Cash from long term debt $0 $0 Retirement of long term debt ($10,000) $0 Change in current debt(net) $11,128 $0

Net Cash from financing activities $10,074 ($4,000) Net Change in cash position ($3,434) $2,434 Closing cash position $0 $3,434

Annual Report Page 14

Annual Report Andrews C58538 Round: 1Dec. 31, 2014

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

Total Common

Size Sales $18,458 $32,617 $13,200 $14,936 $8,980 $0 $0 $0 $88,190 100.0%

Variable Costs: Direct Labor $6,024 $12,059 $3,024 $4,399 $2,426 $0 $0 $0 $27,931 31.7% Direct Material $8,177 $12,316 $5,194 $7,140 $3,567 $0 $0 $0 $36,395 41.3% Inventory Carry $3,303 $0 $228 $34 $440 $0 $0 $0 $4,005 4.5% Total Variable $17,504 $24,375 $8,446 $11,573 $6,433 $0 $0 $0 $68,331 77.5%

Contribution Margin $954 $8,242 $4,754 $3,363 $2,547 $0 $0 $0 $19,860 22.5%

Period Costs: Depreciation $2,640 $2,427 $1,080 $360 $720 $0 $0 $0 $7,227 8.2% SG&A: R&D $1,000 $1,000 $1,000 $449 $1,000 $0 $0 $0 $4,449 5.0% Promotions $1,000 $900 $900 $800 $700 $0 $0 $0 $4,300 4.9% Sales $1,000 $900 $760 $700 $700 $0 $0 $0 $4,060 4.6% Admin $166 $293 $119 $134 $81 $0 $0 $0 $793 0.9% Total Period $5,806 $5,520 $3,859 $2,443 $3,201 $0 $0 $0 $20,829 23.6%

Net Margin ($4,851) $2,722 $895 $919 ($654) $0 $0 $0 ($969) -1.1%

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 $815 0.9% EBIT ($1,783) -2.0% Short Term Interest $1,740 2.0% Long Term Interest $4,285 4.9% Taxes ($2,733) -3.1% Profit Sharing $0 0.0% Net Profit ($5,075) -5.8%

Annual Report Page 15