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

Round: 5 Dec. 31, 2018 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 -19.6% -1.2% 6.8% 5.2% 10.2% 4.7% Asset Turnover 0.75 1.21 1.11 1.03 0.97 1.18 ROA -14.7% -1.5% 7.5% 5.3% 9.9% 5.6% Leverage (Assets/Equity)

-2.4 2.1 2.1 2.1 1.9 2.0

ROE -35.0% -3.1% 15.5% 11.1% 19.0% 11.4% Emergency Loan $105,583,142 $20,325,028 $0 $0 $0 $0 Sales $67,336,667 $108,130,631 $221,330,602 $233,665,953 $220,090,490 $242,146,784 EBIT $2,460,785 $4,571,252 $35,109,568 $32,357,440 $47,748,831 $29,612,346 Profits ($13,191,015) ($1,297,803) $15,037,220 $12,174,914 $22,360,139 $11,495,535 Cumulative Profit ($90,335,004) ($1,743,807) $62,774,268 $63,774,089 $57,636,889 $56,805,581 SG&A / Sales 11.1% 7.3% 9.8% 11.1% 6.7% 9.1% Contrib. Margin % 6.9% 18.6% 32.1% 31.7% 36.2% 26.2%

CAPSTONE® COURIER Page 1

Stock & Bonds C58538 Round: 5Dec. 31, 2018

Stock Market Summary

Company Close Change Shares MarketCap

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

Andrews $1.00 $0.00 2,291,939 $2 ($16.42) ($5.76) $0.00 0.0% -0.2 Baldwin $6.27 $1.26 2,000,000 $13 $21.00 ($0.65) $0.00 0.0% -9.7 Chester $89.62 $12.03 2,124,345 $190 $45.75 $7.08 $2.27 2.5% 12.7 Digby $88.94 $5.88 2,089,792 $186 $52.65 $5.83 $0.00 0.0% 15.3 Erie $84.15 $27.36 2,452,736 $206 $48.02 $9.12 $0.00 0.0% 9.2 Ferris $73.41 $5.35 2,187,083 $161 $45.97 $5.26 $0.00 0.0% 14.0

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

14.0S2019 $20,850,000 14.2% 98.45 DDD 14.0S2019 $20,850,000 14.0% 100.09 B Baldwin 11.6S2025 $3,523,690 12.9% 90.11 B

14.0S2019 $20,850,000 14.0% 99.91 CCC 12.2S2026 $8,623,471 13.2% 92.09 B Chester 12.9S2027 $16,806,601 13.6% 95.04 B

14.0S2019 $20,850,000 14.0% 100.09 B 13.4S2028 $15,253,268 13.8% 97.38 B 12.1S2026 $13,308,235 13.2% 91.62 B Erie 12.9S2027 $12,249,416 13.6% 95.04 B 14.0S2019 $20,850,000 13.9% 100.44 B 13.4S2028 $10,916,191 13.8% 97.38 B 11.7S2025 $1,722,021 12.7% 92.16 B

12.3S2026 $11,199,852 13.0% 94.34 B 13.0S2027 $25,774,968 13.3% 97.48 B 13.5S2028 $15,359,294 13.5% 100.00 B

Ferris 14.0S2019 $20,850,000 14.0% 100.09 B 12.2S2026 $8,738,656 13.2% 92.09 B 12.9S2027 $15,268,932 13.6% 95.04 B 13.4S2028 $14,780,458 13.8% 97.38 B

Next Year's Prime Rate 9.50%

CAPSTONE® COURIER Page 2

Financial Summary C58538 Round: 5Dec. 31, 2018 Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris CashFlows from operating activities Net Income(Loss) ($13,191) ($1,298) $15,037 $12,175 $22,360 $11,496 Adjustment for non-cash items: Depreciation $4,588 $7,587 $13,793 $15,000 $16,053 $11,400 Extraordinary gains/losses/writeoffs ($9,895) $0 $0 $0 $0 ($550) Changes in current assets and liablilities Acounts payable ($3,984) ($2,083) $2,698 $1,775 $3,267 $3,856 Inventory $45,914 $8,396 ($8,052) ($10,962) $904 ($10,284) Accounts Receivable $571 $1 ($1,935) ($549) ($4,638) ($3,400) Net cash from operations $24,003 $12,603 $21,541 $17,439 $37,946 $12,518

Cash flows from investing activities Plant improvements(net) $25,726 $0 ($43,600) ($54,100) ($50,500) ($44,570) Cash flows from financing activities Dividends paid $0 $0 ($4,824) $0 $0 $0 Sales of common stock $0 $0 $0 $2,979 $8,013 $5,433 Purchase of common stock $0 $0 $0 $0 $0 $0 Cash from long term debt issued $0 $0 $10,916 $15,253 $15,359 $14,780 Early retirement of long term debt $0 $0 $0 $0 $0 $0 Retirement of current debt ($155,312) ($32,928) ($35,285) ($39,209) ($27,955) ($30,911) Cash from current debt borrowing $0 $0 $32,758 $38,773 $22,515 $30,255 Cash from emergency loan $105,583 $20,325 $0 $0 $0 $0

Net cash from financing activities ($49,728) ($12,603) $3,565 $17,796 $17,932 $19,558

Net change in cash position $0 $0 ($18,493) ($18,865) $5,378 ($12,495) Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris Cash $0 $0 $35,035 $35,068 $49,536 $31,007 Accounts Receivable $5,535 $8,887 $18,192 $19,205 $18,090 $19,902 Inventory $61,098 $42,492 $20,052 $28,816 $4,387 $23,994 Total Current Assets $66,633 $51,380 $73,279 $83,090 $72,012 $74,903

Plant and equipment $68,822 $113,800 $206,900 $225,000 $240,800 $187,800 Accumulated Depreciation ($45,881) ($75,867) ($80,100) ($80,500) ($86,200) ($56,980) Total Fixed Assets $22,941 $37,933 $126,800 $144,500 $154,600 $130,820

Total Assets $89,573 $89,313 $200,079 $227,590 $226,612 $205,723

Account Payable $776 $6,128 $12,817 $13,726 $11,416 $15,301 CurrentDebt $105,583 $20,325 $32,758 $38,773 $22,515 $30,255 Long Term Debt $20,850 $20,850 $57,324 $65,057 $74,906 $59,638 Total Liabilities $127,209 $47,303 $102,899 $117,556 $108,837 $105,194

Common Stock $28,360 $18,360 $23,767 $23,657 $40,177 $30,294 Retained Earnings ($65,996) $23,650 $73,412 $86,377 $77,598 $70,235 Total Equity ($37,636) $42,010 $97,179 $110,034 $117,775 $100,530

Total Liabilities & Owners'' Equity $89,573 $89,313 $200,079 $227,590 $226,612 $205,723

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris Sales $67,337 $108,131 $221,331 $233,666 $220,090 $242,147 Variable Costs(Labor,Material,Carry) $62,690 $88,058 $150,295 $159,498 $140,330 $178,752 Depreciation $4,588 $7,587 $13,793 $15,000 $16,053 $11,400 SGA(R&D,Promo,Sales,Admin) $7,492 $7,914 $21,587 $25,899 $14,790 $21,922 Other(Fees,Writeoffs,TQM,Bonuses) ($9,895) $0 $546 $912 $1,169 $461 EBIT $2,461 $4,571 $35,110 $32,357 $47,749 $29,612 Interest(Short term,Long term) $22,755 $6,568 $11,503 $13,245 $12,647 $11,566 Taxes ($7,103) ($699) $8,262 $6,690 $12,286 $6,316 Profit Sharing $0 $0 $307 $248 $456 $235 Net Profit ($13,191) ($1,298) $15,037 $12,175 $22,360 $11,496

CAPSTONE® COURIER Page 3

Production Analysis C58538 Round: 5Dec. 31, 2018

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 959 2,397 7/4/2018 2.3 20000 6.0 13.0 $23.50 $0.00 $0.00 -9% 0% 4.0 1 0% Acre Low 1,515 0 7/10/2018 2.4 15000 4.5 17.0 $17.40 $5.82 $8.13 15% 0% 5.0 1,400 7% Adam Size 244 221 5/23/2018 2.1 22000 8.9 8.8 $33.00 $12.70 $10.83 18% 0% 3.0 900 6% Aft Pfmn 92 56 6/5/2018 2.1 22000 11.8 14.5 $29.90 $12.12 $10.83 15% 0% 3.0 300 50% Agape Size 262 322 6/10/2018 2.3 20000 5.8 8.0 $29.00 $11.68 $10.83 10% 0% 3.0 600 25%

Baker Trad 1,949 478 8/16/2018 2.0 17500 7.5 12.2 $25.00 $9.44 $9.46 23% 0% 4.0 1,800 99% Bead Low 2,609 395 5/25/2009 9.6 14000 3.0 17.0 $18.50 $4.82 $9.85 18% 82% 5.0 1,400 180% Bid High 49 868 6/9/2016 4.1 22000 9.9 10.0 $36.50 $0.00 $0.00 -107% 0% 3.0 900 0% Bold Pfmn 137 38 7/16/2016 3.9 26000 11.4 15.1 $33.00 $13.02 $10.81 24% 0% 3.0 600 25% Buddy Size 146 270 5/4/2017 3.3 19000 5.4 8.6 $33.00 $0.00 $0.00 20% 0% 3.0 600 0%

Cake Trad 1,994 0 9/14/2017 2.4 14000 7.8 12.2 $25.50 $8.51 $8.36 33% 100% 6.5 1,300 198% Cedar Low 2,806 311 2/5/2020 9.6 12000 3.0 17.0 $18.50 $4.22 $4.68 50% 49% 8.5 1,900 147% Cid High 1,194 354 11/15/2018 1.1 23000 13.6 6.4 $36.50 $15.67 $12.75 21% 61% 3.5 1,150 160% Coat Pfmn 1,049 145 12/14/2018 1.2 27000 14.7 12.3 $31.50 $15.53 $9.35 21% 16% 5.0 1,150 115% Cure Size 1,332 173 12/14/2018 1.2 17000 7.7 5.3 $31.50 $12.53 $9.97 29% 40% 5.0 1,400 139%

Daze Trad 1,957 193 9/18/2018 1.4 19000 8.9 11.2 $28.50 $10.82 $9.20 30% 100% 6.0 1,300 198% Dell Low 1,783 361 6/19/2019 9.6 14000 3.0 17.0 $21.00 $4.82 $4.98 51% 13% 8.0 1,600 111% Dixie High 845 352 1/1/2018 2.1 25000 13.5 6.5 $38.50 $16.19 $11.06 25% 5% 3.5 1,100 104% Dot Pfmn 945 150 10/6/2018 1.3 27000 14.8 12.1 $33.50 $15.62 $9.45 24% 0% 4.5 1,100 99% Dune Size 1,350 195 1/9/2019 2.3 19000 7.2 6.4 $33.50 $12.47 $10.25 30% 22% 4.5 1,450 121% Doom Pfmn 928 151 11/30/2018 1.0 27000 14.7 12.2 $33.50 $15.55 $7.98 29% 62% 6.0 1,200 160% Dust 0 0 5/25/2018 0.6 19000 7.8 5.4 $0.00 $0.00 $0.00 0% 0% 1.0 600 0%

Eat Low 1,973 119 1/15/2018 5.1 12500 5.5 14.5 $20.00 $6.29 $4.56 43% 36% 8.5 1,400 134% Ebb Low 3,224 246 6/18/2019 9.6 12000 3.0 17.0 $18.00 $4.22 $4.94 47% 86% 8.5 2,000 184% Echo Trad 2,235 42 10/19/2018 1.3 14000 8.5 11.5 $25.50 $9.05 $7.52 35% 100% 6.5 1,700 198% Egg Trad 2,573 2 10/30/2018 1.4 15000 8.7 11.3 $25.50 $9.50 $10.03 24% 100% 5.5 1,800 198%

Fast Low 877 0 1/29/2017 5.1 12000 5.5 14.5 $20.50 $6.14 $11.71 12% 100% 4.0 400 198% Feat Low 1,161 262 7/27/2018 5.0 27000 13.8 12.9 $22.50 $14.95 $7.12 24% 13% 6.0 1,250 112% Fist High 1,576 263 12/26/2018 1.0 25000 13.7 6.4 $37.50 $16.31 $13.38 21% 100% 4.0 1,150 198% Foam Pfmn 1,012 128 10/19/2018 1.2 27000 14.8 12.1 $32.50 $15.62 $8.84 24% 24% 5.5 950 122% Fume Size 1,347 157 11/19/2018 1.1 17000 7.4 4.8 $32.50 $12.72 $9.25 32% 42% 5.5 1,100 141% Fox High 1,661 221 11/16/2018 0.9 25000 13.9 6.1 $37.50 $16.50 $8.54 33% 46% 5.5 1,500 145% Fuel 0 0 6/3/2019 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 5.5 600 0%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C58538 Round: 5Dec. 31, 2018

Traditional Statistics Total Industry Unit Demand 11,471 Actual Industry Unit Sales 11,471 Segment % of Total Industry 27.5%

Next Year's Segment Growth Rate 9.2%

Traditional Customer Buying Criteria Expectations Importance

1. Age Ideal Age = 2.0 47% 2. Price $17.50 - 27.50 23% 3. Ideal Position Pfmn 8.5 Size 11.5 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 Egg 22% 2,573 10/30/2018 8.7 11.3 $25.50 15000 1.43 $1,500 87% $1,056 77% 38 Echo 19% 2,235 10/19/2018 8.5 11.5 $25.50 14000 1.26 $1,500 87% $1,056 77% 33 Cake 17% 1,994 9/14/2017 YES 7.8 12.2 $25.50 14000 2.45 $1,300 78% $1,930 55% 30 Daze 17% 1,957 9/18/2018 8.9 11.2 $28.50 19000 1.36 $1,350 84% $1,556 45% 25 Baker 16% 1,865 8/16/2018 7.5 12.2 $25.00 17500 1.96 $1,350 74% $1,350 35% 33 Able 7% 759 7/4/2018 6.0 13.0 $23.50 20000 2.27 $200 22% $200 14% 11 Eat 1% 64 1/15/2018 5.5 14.5 $20.00 12500 5.09 $1,500 89% $1,056 77% 0 Fast 0% 25 1/29/2017 YES 5.5 14.5 $20.50 12000 5.08 $500 45% $715 18% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C58538 Round: 5Dec. 31, 2018

Low End Statistics Total Industry Unit Demand 15,581 Actual Industry Unit Sales 15,581 Segment % of Total Industry 37.3%

Next Year's Segment Growth Rate 11.7%

Low End Customer Buying Criteria Expectations Importance

1. Price $12.50 - 22.50 53% 2. Age Ideal Age = 7.0 24% 3. Ideal Position Pfmn 4.2 Size 15.8 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 21% 3,224 6/18/2019 3.0 17.0 $18.00 12000 9.60 $1,500 88% $1,056 61% 13 Cedar 18% 2,806 2/5/2020 3.0 17.0 $18.50 12000 9.60 $1,300 78% $2,026 56% 11 Bead 17% 2,609 5/25/2009 3.0 17.0 $18.50 14000 9.60 $1,350 69% $1,350 42% 11 Eat 12% 1,909 1/15/2018 5.5 14.5 $20.00 12500 5.09 $1,500 89% $1,056 61% 13 Dell 11% 1,783 6/19/2019 3.0 17.0 $21.00 14000 9.60 $1,350 83% $1,556 49% 7 Acre 10% 1,515 7/10/2018 YES 4.5 17.0 $17.40 15000 2.44 $200 21% $200 13% 8 Fast 5% 852 1/29/2017 YES 5.5 14.5 $20.50 12000 5.08 $500 45% $715 58% 8 Feat 4% 597 7/27/2018 13.8 12.9 $22.50 27000 5.01 $1,400 80% $1,287 58% 0 Able 1% 201 7/4/2018 6.0 13.0 $23.50 20000 2.27 $200 22% $200 13% 1 Baker 1% 84 8/16/2018 7.5 12.2 $25.00 17500 1.96 $1,350 74% $1,350 42% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C58538 Round: 5Dec. 31, 2018

High End Statistics Total Industry Unit Demand 5,410 Actual Industry Unit Sales 5,410 Segment % of Total Industry 13.0%

Next Year's Segment Growth Rate 16.2%

High End Customer Buying Criteria Expectations Importance

1. Ideal Position Pfmn 13.4 Size 6.6 43% 2. Age Ideal Age = 0.0 29% 3. Reliability MTBF 20000-25000 19% 4. Price $27.50 - 37.50 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 Fox 31% 1,661 11/16/2018 13.9 6.1 $37.50 25000 0.94 $1,450 74% $1,287 73% 45 Fist 29% 1,576 12/26/2018 13.7 6.4 $37.50 25000 1.03 $1,450 85% $1,287 73% 56 Cid 22% 1,194 11/15/2018 13.6 6.4 $36.50 23000 1.12 $1,250 73% $2,026 56% 41 Dixie 16% 845 1/1/2018 13.5 6.5 $38.50 25000 2.07 $1,375 84% $1,653 47% 29 Adam 2% 86 5/23/2018 8.9 8.8 $33.00 22000 2.12 $200 24% $200 13% 1 Bid 1% 49 6/9/2016 9.9 10.0 $36.50 22000 4.14 $0 40% $0 14% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C58538 Round: 5Dec. 31, 2018

Performance Statistics Total Industry Unit Demand 4,726 Actual Industry Unit Sales 4,726 Segment % of Total Industry 11.3%

Next Year's Segment Growth Rate 19.8%

Performance Customer Buying Criteria Expectations Importance

1. Reliability MTBF 22000-27000 43% 2. Ideal Position Pfmn 14.4 Size 12.5 29% 3. Price $22.50 - 32.50 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 Coat 22% 1,049 12/14/2018 14.7 12.3 $31.50 27000 1.23 $1,200 71% $1,833 48% 45 Foam 21% 1,012 10/19/2018 14.8 12.1 $32.50 27000 1.24 $1,400 83% $1,287 36% 41 Dot 20% 945 10/6/2018 14.8 12.1 $33.50 27000 1.28 $1,350 82% $1,653 57% 38 Doom 20% 928 11/30/2018 14.7 12.2 $33.50 27000 0.97 $1,350 74% $1,653 57% 37 Feat 12% 564 7/27/2018 13.8 12.9 $22.50 27000 5.01 $1,400 80% $1,287 36% 49 Bold 3% 137 7/16/2016 11.4 15.1 $33.00 26000 3.92 $0 16% $0 8% 5 Aft 2% 92 6/5/2018 11.8 14.5 $29.90 22000 2.05 $100 22% $100 10% 2

CAPSTONE® COURIER Page 8

Size Segment Analysis C58538 Round: 5Dec. 31, 2018

Size Statistics Total Industry Unit Demand 4,596 Actual Industry Unit Sales 4,596 Segment % of Total Industry 11.0%

Next Year's Segment Growth Rate 18.3%

Size Customer Buying Criteria Expectations Importance

1. Ideal Position Pfmn 7.5 Size 5.6 43% 2. Age Ideal Age = 1.5 29% 3. Reliability MTBF 16000-21000 19% 4. Price $22.50 - 32.50 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 29% 1,350 1/9/2019 7.2 6.4 $33.50 19000 2.29 $1,350 82% $1,653 42% 24 Fume 29% 1,347 11/19/2018 7.4 4.8 $32.50 17000 1.14 $1,400 83% $1,287 37% 27 Cure 29% 1,332 12/14/2018 7.7 5.3 $31.50 17000 1.19 $1,200 72% $1,833 49% 37 Agape 6% 262 6/10/2018 5.8 8.0 $29.00 20000 2.32 $200 23% $200 13% 7 Adam 3% 159 5/23/2018 8.9 8.8 $33.00 22000 2.12 $200 24% $200 13% 5 Buddy 3% 146 5/4/2017 5.4 8.6 $33.00 19000 3.29 $0 30% $0 14% 2

CAPSTONE® COURIER Page 9

Market Share C58538 Round: 5Dec. 31, 2018

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 11,471 15,581 5,410 4,726 4,596 41,784 Units Demanded 11,471 15,581 5,410 4,726 4,596 41,784 % of Market 27.5% 37.3% 13.0% 11.3% 11.0% 100.0% % of Market 27.5% 37.3% 13.0% 11.3% 11.0% 100.0%

Able 6.6% 1.3% 2.3% Able 5.3% 1.3% 1.9% Acre 9.7% 3.6% Acre 9.8% 3.7% Adam 1.6% 3.5% 0.6% Adam 1.6% 3.5% 0.6% Aft 2.0% 0.2% Aft 3.5% 0.4% Agape 5.7% 0.6% Agape 5.7% 0.6% Total 6.6% 11.0% 1.6% 2.0% 9.2% 7.4% Total 5.3% 11.1% 1.6% 3.5% 9.2% 7.2%

Baker 16.3% 0.5% 4.7% Baker 13.2% 0.5% 3.8% Bead 16.8% 6.3% Bead 16.3% 6.1% Bid 0.9% 0.1% Bid 0.9% Bold 2.9% 0.3% Bold 2.9% 0.3% Buddy 3.2% 0.4% Buddy 3.2% 0.3% Total 16.3% 17.3% 0.9% 2.9% 3.2% 11.7% Total 13.2% 16.9% 0.9% 2.9% 3.2% 10.7%

Cake 17.4% 4.8% Cake 19.5% 5.4% Cedar 18.0% 6.7% Cedar 17.6% 6.6% Cid 22.1% 2.9% Cid 22.1% 2.9% Coat 22.2% 2.5% Coat 21.8% 2.5% Cure 29.0% 3.2% Cure 29.0% 3.2% Total 17.4% 18.0% 22.1% 22.2% 29.0% 20.0% Total 19.5% 17.6% 22.1% 21.8% 29.0% 20.4%

Daze 17.1% 4.7% Daze 15.4% 4.2% Dell 11.4% 4.3% Dell 11.2% 4.2% Dixie 15.6% 2.0% Dixie 15.6% 2.0% Dot 20.0% 2.3% Dot 19.6% 2.2% Dune 29.4% 3.2% Dune 29.4% 3.2% Doom 19.6% 2.2% Doom 19.3% 2.2% Total 17.1% 11.4% 15.6% 39.6% 29.4% 18.7% Total 15.4% 11.2% 15.6% 38.9% 29.4% 18.0%

Eat 0.6% 12.2% 4.7% Eat 0.4% 11.8% 4.5% Ebb 20.7% 7.7% Ebb 20.2% 7.5% Echo 19.5% 5.3% Echo 21.8% 6.0% Egg 22.4% 6.2% Egg 24.2% 6.6% Total 42.5% 32.9% 23.9% Total 46.4% 32.0% 24.7%

Fast 0.2% 5.5% 2.1% Fast 0.2% 7.4% 2.8% Feat 3.8% 11.9% 2.8% Feat 3.8% 11.9% 2.8% Fist 29.1% 3.8% Fist 29.1% 3.8% Foam 21.4% 2.4% Foam 21.0% 2.4% Fume 29.3% 3.2% Fume 29.3% 3.2% Fox 30.7% 4.0% Fox 30.7% 4.0% Total 0.2% 9.3% 59.8% 33.3% 29.3% 18.3% Total 0.2% 11.2% 59.8% 33.0% 29.3% 18.9%

CAPSTONE® COURIER Page 10

Perceptual Map C58538 Round: 5Dec. 31, 2018

Andrews Baldwin Chester Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised Able 6.0 13.0 7/4/2018 Baker 7.5 12.2 8/16/2018 Cake 7.8 12.2 9/14/2017 Acre 4.5 17.0 7/10/2018 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 2/5/2020 Adam 8.9 8.8 5/23/2018 Bid 9.9 10.0 6/9/2016 Cid 13.6 6.4 11/15/2018 Aft 11.8 14.5 6/5/2018 Bold 11.4 15.1 7/16/2016 Coat 14.7 12.3 12/14/2018 Agape 5.8 8.0 6/10/2018 Buddy 5.4 8.6 5/4/2017 Cure 7.7 5.3 12/14/2018 Abum 5.5 14.8 4/7/2018 Ajoy 6.1 14.8 2/18/2018 Apps 5.9 14.5 3/31/2018

Digby Erie Ferris Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised Daze 8.9 11.2 9/18/2018 Eat 5.5 14.5 1/15/2018 Fast 5.5 14.5 1/29/2017 Dell 3.0 17.0 6/19/2019 Ebb 3.0 17.0 6/18/2019 Feat 13.8 12.9 7/27/2018 Dixie 13.5 6.5 1/1/2018 Echo 8.5 11.5 10/19/2018 Fist 13.7 6.4 12/26/2018 Dot 14.8 12.1 10/6/2018 Egg 8.7 11.3 10/30/2018 Foam 14.8 12.1 10/19/2018 Dune 7.2 6.4 1/9/2019 Fume 7.4 4.8 11/19/2018 Doom 14.7 12.2 11/30/2018 Fox 13.9 6.1 11/16/2018 Dust 7.8 5.4 5/25/2018

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HR/TQM Report C58538 Round: 5Dec. 31, 2018

HUMAN RESOURCES SUMMARY Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 82 700 1,108 1,151 995 1,215 Complement 82 700 1,108 1,151 995 1,215 1st Shift Complement 82 534 731 896 539 800 2nd Shift Complement 0 166 377 255 456 415

Overtime Percent 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% New Employees 8 70 322 240 335 309 Separated Employees 449 211 0 0 0 0 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 $8 $70 $322 $240 $335 $309 Separation Cost $2,245 $1,055 $0 $0 $0 $0 Training Cost $0 $0 $0 $0 $0 $0 Total HR Admin Cost $2,253 $1,125 $322 $240 $335 $309

Labor Contract Next Year Wages $26.81 $26.81 $26.81 $26.81 $26.81 $26.81 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%

CAPSTONE® COURIER Page 12

Ethics Report C58538 Round: 5Dec. 31, 2018

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: 5Dec. 31, 2018

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 2018 Common

Size

2017

Cash $0 0.0% $0 Account Receivable $5,535 6.2% $6,105 Inventory $61,098 68.2% $107,012 Total Current Assets $66,633 74.4% $113,117

Plant & Equipment $68,822 76.8% $108,400 Accumulated Depreciation ($45,881) -51.2% ($65,040) Total Fixed Assets $22,941 25.6% $43,360 Total Assets $89,573 100.0% $156,477 LIABILITIES & OWNER'S EQUITY

Accounts Payable $776 0.9% $4,760 Current Debt $105,583 118.0% $155,312 Long Term Debt $20,850 23.3% $20,850 Total Liabilities $127,209 142.0% $180,922

Common Stock $28,360 31.7% $28,360 Retained Earnings ($65,996) -73.7% ($52,805) Total Equity ($37,636) -42.0% ($24,445) Total Liab. & O. Equity $89,573 100.0% $156,477

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 2018 2017 NetIncome(Loss) ($13,191) ($28,964) Depreciation $4,588 $7,227 Extraordinary gains/losses/writeoffs ($9,895) $0 Accounts Payable ($3,984) ($171) Inventory $45,914 $3,669 Accounts Receivable $571 ($355)

Net cash from operation $24,003 ($18,594) Cash Flows from Investing Activities Plant Improvements $25,726 $0 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 $0 ($10,925) Change in current debt(net) ($49,728) $29,518

Net Cash from financing activities ($49,728) $18,594 Net Change in cash position $0 $0 Closing cash position $0 $0

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Annual Report Andrews C58538 Round: 5Dec. 31, 2018

2018 Income Statement (Product Name) Able Acre Adam Aft Agape Abum Ajoy Apps 2018

Total Common

Size Sales $22,543 $26,364 $8,064 $2,757 $7,609 $0 $0 $0 $67,337 100.0%

Variable Costs: Direct Labor $8,555 $11,719 $2,431 $999 $2,714 $0 $0 $0 $26,418 39.2% Direct Material $10,263 $10,689 $3,555 $1,190 $3,244 $0 $0 $0 $28,941 43.0% Inventory Carry $5,643 $0 $650 $160 $878 $0 $0 $0 $7,332 10.9% Total Variable $24,461 $22,408 $6,636 $2,350 $6,836 $0 $0 $0 $62,690 93.1%

Contribution Margin ($1,918) $3,956 $1,428 $408 $773 $0 $0 $0 $4,647 6.9%

Period Costs: Depreciation $1 $2,427 $1,080 $360 $720 $0 $0 $0 $4,588 6.8% SG&A: R&D $512 $530 $396 $432 $445 $269 $134 $249 $2,968 4.4% Promotions $200 $200 $200 $100 $200 $0 $0 $0 $900 1.3% Sales $200 $200 $200 $100 $200 $0 $0 $0 $900 1.3% Admin $912 $1,067 $326 $112 $308 $0 $0 $0 $2,725 4.0% Total Period $1,826 $4,423 $2,203 $1,104 $1,873 $269 $134 $249 $12,080 17.9%

Net Margin ($3,744) ($467) ($775) ($696) ($1,101) ($269) ($134) ($249) ($7,434) -11.0%

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost 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 ($9,895) -14.7% EBIT $2,461 3.7% Short Term Interest $19,836 29.5% Long Term Interest $2,919 4.3% Taxes ($7,103) -10.5% Profit Sharing $0 0.0% Net Profit ($13,191) -19.6%

Annual Report Page 15