Round: 2

Dec. 31, 2017

C72522

Andrews
Team E6

Baldwin

Chester
Team E7
Team E7

Digby
Team E8

Erie
Team E9

Ferris
Team E10

Selected Financial Statistics

ROS
Asset Turnover
ROA
Leverage
(Assets/Equity)
ROE
Emergency Loan
Sales
EBIT
Profits
Cumulative Profit
SG&A / Sales
Contrib. Margin %

CAPSTONE COURIER

Andrews
-23.8%
0.42
-10.0%

Baldwin
7.1%
1.40
10.0%

Chester
-12.5%
0.50
-6.3%

Digby
7.0%
1.31
9.2%

Erie
5.8%
1.00
5.8%

Ferris
-7.0%
0.98
-6.9%

3.2

2.3

3.8

2.1

1.8

3.5

-32.4%
$41,127,088
$53,496,692
($7,486,927)
($12,727,252)
($4,459,059)
20.4%
22.1%

23.2%
$0
$230,495,770
$35,548,069
$16,477,182
$31,525,997
8.7%
27.9%

-23.9%
$62,969,903
$80,766,037
$610,088
($10,103,637)
($1,533,156)
9.6%
21.8%

19.0%
$0
$156,024,005
$23,700,077
$10,928,389
$13,704,093
7.9%
28.9%

10.3%
$0
$110,022,637
$15,343,821
$6,369,535
$18,381,074
9.9%
30.7%

-23.7%
$9,930,045
$131,761,684
($4,898,897)
($9,197,910)
($5,015,093)
8.7%
11.4%

Page 1

Stock & Bonds

Round: 2
Dec. 31, 2017

C72522
Stock Market Summary

Company
Andrews
Baldwin
Chester
Digby
Erie
Ferris

Close

Change

Shares

$1.00
$73.22
$1.00
$43.71
$48.44
$1.00

($32.17)
$21.34
($37.92)
$16.37
$2.64
($29.15)

2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000

MarketCap
($M)
$2
$146
$2
$87
$97
$2

Book Value

EPS

Dividend

Yield

P/E

$19.65
$35.54
$21.11
$28.73
$31.07
$19.37

($6.36)
$8.24
($5.05)
$5.46
$3.18
($4.60)

$0.00
$0.37
$0.00
$0.00
$0.00
$0.00

0.0%
0.5%
0.0%
0.0%
0.0%
0.0%

-0.2
8.9
-0.2
8.0
15.2
-0.2

Bond Market Summary

Company
Andrews

Series#

Face

Yield

Close$

12.5S2019
14.0S2021

$13,900,000
$20,850,000

12.8%
14.0%

97.69
100.29

12.5S2019
14.0S2021
12.3S2027

$13,900,000
$20,850,000
$8,638,528

12.6%
13.6%
12.8%

99.17
102.97
96.20

12.5S2019
14.0S2021
11.3S2026

$13,900,000
$20,850,000
$6,000,000

12.8%
14.0%
13.0%

97.53
100.00
86.64

S&P Company
Digby
C
C

Baldwin

Chester

CC Erie
CC
CC
Ferris
DDD
DDD
DDD

Series#

Face

Yield

Close$

S&P

12.5S2019
14.0S2021
11.3S2026

$13,900,000
$20,850,000
$10,000,000

12.5%
13.4%
12.0%

100.17
104.82
94.23

B
B
B

12.5S2019
14.0S2021

$13,900,000
$20,850,000

12.3%
13.0%

101.70
107.67

BB
BB

12.5S2019
14.0S2021
11.3S2026

$13,900,000
$20,850,000
$18,994,000

12.8%
14.0%
13.0%

97.69
100.29
87.09

C
C
C

Next Year's Prime Rate 8.00%

CAPSTONE COURIER

Page 2

Financial Summary
Cash Flow Statement Survey
CashFlows from operating activities
Net Income(Loss)
Adjustment for non-cash items:
Depreciation
Extraordinary gains/losses/writeoffs
Changes in current assets and liablilities
Acounts payable
Inventory
Accounts Receivable
Net cash from operations

C72522

Round: 2
Dec. 31, 2017

Andrews

Baldwin

Chester

Digby

Erie

Ferris

($12,727)

$16,477

($10,104)

$10,928

$6,370

($9,198)

$8,402
$0

$8,477
($45)

$9,187
$0

$9,027
$0

$7,587
$0

$8,493
$0

($2,294)
($24,277)
$66
($30,830)

$5,981
($6,712)
($6,269)
$17,910

$2,602
($56,817)
$1,335
($53,797)

$3,225
($7,361)
($7,836)
$7,983

$171
$1,287
$352
$15,767

$14,997
($38,751)
($5,955)
($30,414)

$0

($21,086)

($24,000)

$0

$0

$0

$0
$0
$0
$0
$0
($10,297)
$0
$41,127

($735)
$0
$0
$8,639
$0
($20,343)
$30,727
$0

$0
$0
$0
$0
$0
$0
$0
$62,970

$0
$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0
$9,930

$30,830

$18,288

$62,970

$0

$0

$9,930

Net change in cash position

Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

$0
Andrews
$0
$8,794
$46,991
$55,785

$15,112
Baldwin
$54,814
$18,945
$7,177
$80,935

($14,827)
Chester
$0
$5,532
$72,195
$77,727

$7,983
Digby
$14,932
$17,099
$7,361
$39,391

$15,767
Erie
$38,942
$9,043
$1,303
$49,288

($20,484)
Ferris
$0
$21,659
$39,984
$61,643

Plant and equipment

Accumulated Depreciation
Total Fixed Assets

$126,030
($54,737)
$71,293

$134,360
($50,344)
$84,016

$137,800
($54,707)
$83,093

$135,400
($55,987)
$79,413

$113,800
($53,107)
$60,693

$127,400
($54,920)
$72,480

Total Assets

$127,077

$164,951

$160,821

$118,805

$109,981

$134,123

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$4,956
$48,077
$34,750
$87,783

$14,132
$36,350
$43,389
$93,871

$7,931
$69,920
$40,750
$118,600

$9,647
$6,950
$44,750
$61,347

$6,147
$6,950
$34,750
$47,847

$24,761
$16,880
$53,744
$95,385

Common Stock
Retained Earnings
Total Equity

$18,360
$20,935
$39,294

$18,360
$52,720
$71,080

$18,360
$23,860
$42,220

$18,360
$39,098
$57,457

$18,360
$43,775
$62,134

$18,360
$20,379
$38,738

Total Liabilities & Owners'' Equity

$127,077

$164,951

$160,821

$118,805

$109,981

$134,123

Income Statement Survey

Sales
Variable Costs(Labor,Material,Carry)
Depreciation
SGA(R&D,Promo,Sales,Admin)
Other(Fees,Writeoffs,TQM,Bonuses)
EBIT
Interest(Short term,Long term)
Taxes
Profit Sharing
Net Profit

Andrews
$53,497
$41,659
$8,402
$10,923
$0
($7,487)
$12,093
($6,853)
$0
($12,727)

Baldwin
$230,496
$166,091
$8,477
$19,992
$387
$35,548
$9,681
$9,053
$336
$16,477

Chester
$80,766
$63,179
$9,187
$7,790
$0
$610
$16,154
($5,440)
$0
($10,104)

Digby
$156,024
$110,898
$9,027
$12,399
$0
$23,700
$6,544
$6,005
$223
$10,928

Erie
$110,023
$76,226
$7,587
$10,866
$0
$15,344
$5,345
$3,500
$130
$6,370

Ferris
$131,762
$116,678
$8,493
$11,490
$0
($4,899)
$9,252
($4,953)
$0
($9,198)

Cash flows from investing activities

Plant improvements(net)
Cash flows from financing activities
Dividends paid
Sales of common stock
Purchase of common stock
Cash from long term debt issued
Early retirement of long term debt
Retirement of current debt
Cash from current debt borrowing
Cash from emergency loan
Net cash from financing activities

CAPSTONE COURIER

Page 3

C72522

Production Analysis

Name
Able
Acre
Adam
Aft
Agape

Primary
Segment
Trad
High
Pfmn
Size

Units
Sold
582
0
232
547
314

Unit
Inven
tory
1,265
0
543
94
393

Revision Date
11/20/2012
11/17/2019
4/19/2014
6/30/2013
5/25/2013

Age
Dec.31
5.1
6.6
3.7
4.5
4.6

MTBF
17500
14000
23000
25000
19000

Pfmn
Coord
5.5
3.0
8.0
9.4
4.0

Size
Coord
14.5
17.0
12.0
15.5
11.0

Price
$28.00
$21.00
$38.00
$33.00
$33.00

Material
Cost
$9.81
$0.00
$13.83
$13.87
$11.69

Labor
Cost
$8.22
$0.00
$9.40
$9.40
$9.40

Contr.
Marg.
17%
0%
20%
27%
25%

2nd
Shift
&
Overtime
0%
0%
0%
0%
0%

Round: 2
Dec. 31, 2017

Auto
mation
Next
Round
4.0
5.0
3.0
3.0
3.0

Capacity
Next Plant
Round Utiliz.
1,950 71%
1,650
0%
950 57%
640 76%
645 77%

Baker
Bead
Bid
Bold
Buddy
Brass

Trad
Low
High
Pfmn
Size

2,677
2,723
997
887
1,188
0

95
0
210
5
0
0

3/27/2017
5/25/2011
3/18/2017
8/23/2017
8/29/2017
10/11/2018

2.0
6.6
1.6
1.7
1.7
0.0

16800
14000
22000
22000
18500
0

5.5
3.0
8.8
9.6
6.1
0.0

15.1
17.0
11.2
13.5
10.8
0.0

$26.70
$20.80
$36.80
$32.00
$31.40
$0.00

$9.32 $9.30
$6.38 $8.11
$14.29 $10.34
$13.73 $10.34
$12.31 $11.05
$0.00 $0.00

29%
29%
30%
23%
26%
0%

100%
96%
50%
50%
100%
0%

5.2
5.8
3.8
3.8
3.8
3.0

1,400
1,400
800
700
800
400

Cake
Cedar
Cid
Coat
Cure

Trad
Low
High
Pfmn
Size

866
1,046
186
496
289

1,749
941
485
161
426

11/20/2012
5/25/2011
4/19/2014
6/30/2013
5/25/2013

5.1
6.6
3.7
4.5
4.6

17500
14000
23000
25000
19000

5.5
3.0
8.0
9.4
4.0

14.5
17.0
12.0
15.5
11.0

$25.00
$25.00
$38.00
$33.00
$33.00

$9.81
$6.38
$13.83
$13.87
$11.69

$9.28
$8.02
$9.37
$9.37
$9.37

4%
35%
18%
25%
23%

39%
43%
0%
0%
0%

7.0
5.3
3.0
3.0
3.3

1,800 138%
1,400 142%
900 55%
600 83%
600 83%

Daze
Dell
Dixie
Dot
Dune

Trad
Low
High
Pfmn
Size

1,796
2,228
743
644
644

383
0
0
0
0

3/16/2016
5/25/2011
6/20/2017
7/1/2017
7/27/2017

3.4
6.6
2.1
1.8
1.7

17500
14000
23000
25000
19000

5.7
3.0
9.8
10.2
4.8

14.3
17.0
10.2
14.5
9.5

$26.00
$20.00
$33.50
$31.00
$31.00

$10.00
$6.38
$15.54
$14.64
$12.83

$8.93
$8.31
$7.04
$6.08
$6.08

24%
25%
34%
33%
39%

22%
61%
0%
8%
8%

4.0
5.0
5.0
6.0
6.0

1,800
1,400
900
600
600

Eat
Ebb
Echo
Edge
Egg

Trad
Low
High
Pfmn
Size

969
1,883
574
255
495

71
0
0
0
0

3/25/2018
5/25/2011
10/4/2017
6/3/2017
5/2/2016

5.1
6.6
1.5
2.5
3.1

17500
14000
23000
25000
19000

5.5
3.0
9.5
10.0
4.5

14.5
17.0
10.5
14.9
10.5

$25.00
$21.00
$37.50
$33.00
$33.00

$9.81
$6.38
$15.25
$14.40
$12.13

$8.22
$7.92
$9.39
$9.39
$9.39

26%
31%
35%
27%
34%

0%
36%
0%
0%
0%

4.0
5.0
3.0
3.0
3.0

1,800 58%
1,400 134%
900 64%
600 25%
600 83%

Fast
Feat
Fist
Foam
Fume

Trad
Low
Trad
Pfmn
Size

2,211
1,624
848
553
468

0
955
821
0
128

6/6/2018
7/15/2017
4/19/2014
6/30/2013
5/25/2013

5.1
3.5
3.7
4.5
4.6

17500
14000
23000
25000
19000

5.5
5.7
8.0
9.4
4.0

14.5
17.0
12.0
15.5
11.0

$19.75
$21.50
$29.00
$28.00
$28.00

$9.81 $7.76
$7.89 $8.59
$13.83 $12.49
$13.87 $10.10
$11.69 $10.10

10%
20%
-3%
13%
18%

33%
100%
100%
0%
0%

5.5
5.5
3.0
3.0
3.0

1,800 123%
1,400 184%
900 184%
600 92%
600 92%

CAPSTONE COURIER

198%
195%
149%
149%
198%
0%

121%
159%
83%
107%
107%

Page 4

Traditional Segment Analysis

C72522

Round: 2
Dec. 31, 2017

Traditional Statistics
Total Industry Unit Demand

8,809

Actual Industry Unit Sales

8,809

Segment % of Total Industry

30.4%

Next Year's Segment Growth Rate

9.2%

Traditional Customer Buying Criteria

Expectations

Importance

1. Age

Ideal Age = 2.0

47%

2. Price

$19.00 - 29.00

23%

3. Ideal Position

Pfmn 6.4 Size 13.6

21%

4. Reliability

MTBF 14000-19000

9%

Top Products in Traditional Segment

Units
Market

Cust.

Sold to Revision

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Baker

29%

2,547

3/27/2017

5.5

Daze

19%

1,704

3/16/2016

5.7

Fast

14%

1,204

6/6/2018

Eat

7%

658

Cake

7%

Able

6%

Fist

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

15.1

$26.70

16800

2.04

$1,425

79%

$1,687

61%

35

14.3

$26.00

17500

3.45

$1,000

61%

$1,100

46%

14

5.5

14.5

$19.75

17500

5.10

$1,000

61%

$1,000

56%

14

3/25/2018

5.5

14.5

$25.00

17500

5.10

$1,000

61%

$1,000

42%

603

11/20/2012

5.5

14.5

$25.00

17500

5.10

$500

36%

$1,500

55%

502

11/20/2012

5.5

14.5

$28.00

17500

5.10

$1,000

61%

$1,000

42%

6%

486

4/19/2014

8.0

12.0

$29.00

23000

3.70

$800

47%

$800

56%

Buddy

5%

479

8/29/2017

6.1

10.8

$31.40

18500

1.68

$1,050

56%

$482

61%

Bold

3%

223

8/23/2017

9.6

13.5

$32.00

22000

1.66

$1,125

58%

$482

61%

Feat

2%

196

7/15/2017

5.7

17.0

$21.50

14000

3.53

$900

54%

$900

56%

Fume

1%

62

5/25/2013

4.0

11.0

$28.00

19000

4.60

$700

40%

$700

56%

Foam

1%

46

6/30/2013

9.4

15.5

$28.00

25000

4.50

$700

40%

$700

56%

CAPSTONE COURIER

Date

Stock

YES

YES

YES

Page 5

Low End Segment Analysis

C72522

Round: 2
Dec. 31, 2017

Low End Statistics

Total Industry Unit Demand

11,180

Actual Industry Unit Sales

11,180

Segment % of Total Industry

38.6%

Next Year's Segment Growth Rate

11.7%

Low End Customer Buying Criteria

Expectations

Importance

1. Price

$14.00 - 24.00

53%

2. Age

Ideal Age = 7.0

24%

3. Ideal Position

Pfmn 2.7 Size 17.3

16%

4. Reliability

MTBF 12000-17000

7%

Top Products in Low End Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Date

Out

Coord

Coord

Name

Share

Seg

Bead

24%

2,721

5/25/2011

YES

3.0

Dell

20%

2,226

5/25/2011

YES

3.0

Ebb

17%

1,881

5/25/2011

YES

Feat

13%

1,428

7/15/2017

Cedar

9%

1,045

5/25/2011

Fast

9%

1,007

6/6/2018

Eat

3%

310

Cake

2%

263

Baker

1%

Daze

1%

Able

1%

CAPSTONE COURIER

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

17.0

$20.80

14000

6.60

$1,425

78%

$1,687

53%

27

17.0

$20.00

14000

6.60

$1,000

59%

$1,000

35%

24

3.0

17.0

$21.00

14000

6.60

$900

54%

$900

35%

19

5.7

17.0

$21.50

14000

3.53

$900

54%

$900

37%

3.0

17.0

$25.00

14000

6.60

$900

54%

$900

36%

5.5

14.5

$19.75

17500

5.10

$1,000

61%

$1,000

37%

12

3/25/2018

5.5

14.5

$25.00

17500

5.10

$1,000

61%

$1,000

35%

11/20/2012

5.5

14.5

$25.00

17500

5.10

$500

36%

$1,500

36%

130

3/27/2017

5.5

15.1

$26.70

16800

2.04

$1,425

79%

$1,687

53%

88

3/16/2016

5.7

14.3

$26.00

17500

3.45

$1,000

61%

$1,100

35%

80

11/20/2012

5.5

14.5

$28.00

17500

5.10

$1,000

61%

$1,000

30%

YES

Page 6

High End Segment Analysis

C72522

Round: 2
Dec. 31, 2017

High End Statistics

Total Industry Unit Demand

3,448

Actual Industry Unit Sales

3,448

Segment % of Total Industry

11.9%

Next Year's Segment Growth Rate

16.2%

High End Customer Buying Criteria

Expectations
1. Ideal Position

43%

Ideal Age = 0.0

29%

MTBF 20000-25000

19%

2. Age
3. Reliability

Importance

Pfmn 10.7 Size 9.3

4. Price

$29.00 - 39.00

9%

Top Products in High End Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Bid

29%

997

3/18/2017

8.8

Dixie

21%

722

6/20/2017

YES

9.8

Echo

17%

574

10/4/2017

YES

Fist

10%

361

Bold

8%

Adam

7%

Cid

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

11.2

$36.80

22000

1.64

$1,400

75%

$1,687

54%

12

10.2

$33.50

23000

2.11

$950

54%

$950

35%

19

9.5

10.5

$37.50

23000

1.46

$800

47%

$800

32%

16

4/19/2014

8.0

12.0

$29.00

23000

3.70

$800

47%

$800

32%

280

8/23/2017

9.6

13.5

$32.00

22000

1.66

$1,125

58%

$482

54%

232

4/19/2014

8.0

12.0

$38.00

23000

3.70

$800

47%

$800

32%

5%

186

4/19/2014

8.0

12.0

$38.00

23000

3.70

$200

37%

$200

28%

Dot

1%

50

7/1/2017

YES

10.2

14.5

$31.00

25000

1.79

$850

47%

$850

35%

Buddy

1%

44

8/29/2017

YES

6.1

10.8

$31.40

18500

1.68

$1,050

56%

$482

54%

CAPSTONE COURIER

Page 7

Performance Segment Analysis

C72522

Round: 2
Dec. 31, 2017

Performance Statistics
Total Industry Unit Demand

2,749

Actual Industry Unit Sales

2,749

Segment % of Total Industry

9.5%

Next Year's Segment Growth Rate

19.8%

Performance Customer Buying Criteria

Expectations

Importance

1. Reliability

MTBF 22000-27000

43%

2. Ideal Position

Pfmn 11.4 Size 14.6

29%

3. Price

$24.00 - 34.00

19%

4. Age

Ideal Age = 1.0

9%

Top Products in Performance Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Name

Share

Seg

Date

Out

Coord

Coord

Dot

21%

581

7/1/2017

YES

10.2

Aft

20%

539

6/30/2013

9.4

Foam

18%

507

6/30/2013

Coat

18%

488

6/30/2013

Bold

14%

383

8/23/2017

Edge

9%

250

6/3/2017

CAPSTONE COURIER

YES

YES

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.5

$31.00

25000

1.79

$850

47%

$850

26%

20

15.5

$33.00

25000

4.50

$700

40%

$700

24%

10

9.4

15.5

$28.00

25000

4.50

$700

40%

$700

24%

13

9.4

15.5

$33.00

25000

4.50

$500

39%

$700

24%

9.6

13.5

$32.00

22000

1.66

$1,125

58%

$482

21%

10.0

14.9

$33.00

25000

2.54

$450

34%

$550

22%

12

Page 8

Size Segment Analysis

C72522

Round: 2
Dec. 31, 2017

Size Statistics
Total Industry Unit Demand

2,776

Actual Industry Unit Sales

2,776

Segment % of Total Industry

9.6%

Next Year's Segment Growth Rate

18.3%

Size Customer Buying Criteria

Expectations
1. Ideal Position

43%

Ideal Age = 1.5

29%

MTBF 16000-21000

19%

2. Age
3. Reliability

Importance

Pfmn 5.4 Size 8.6

4. Price

$24.00 - 34.00

9%

Top Products in Size Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Name

Share

Seg

Date

Out

Coord

Coord

Buddy

24%

665

8/29/2017

YES

6.1

Dune

23%

644

7/27/2017

YES

4.8

Egg

17%

474

5/2/2016

YES

Fume

15%

406

Agape

11%

Cure

10%

Daze

0%

CAPSTONE COURIER

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

10.8

$31.40

18500

1.68

$1,050

56%

$482

26%

11

9.5

$31.00

19000

1.73

$850

47%

$850

30%

23

4.5

10.5

$33.00

19000

3.13

$700

40%

$700

27%

5/25/2013

4.0

11.0

$28.00

19000

4.60

$700

40%

$700

27%

304

5/25/2013

4.0

11.0

$33.00

19000

4.60

$700

40%

$700

27%

280

5/25/2013

4.0

11.0

$33.00

19000

4.60

$700

40%

$700

28%

3/16/2016

5.7

14.3

$26.00

17500

3.45

$1,000

61%

$1,100

30%

Page 9

Market Share

C72522

Actual Market Share in Units

Trad
8,809
30.4%

Low
11,180
38.6%

Able
Adam
Aft
Agape
Total

5.7%

0.7%

Baker
Bead
Bid
Bold
Buddy
Total

28.9%

Cake
Cedar
Cid
Coat
Cure
Total

6.9%

Daze
Dell
Dixie
Dot
Dune
Total

19.4%

19.7%

20.7%

Eat
Ebb
Echo
Edge
Egg
Total

7.5%

2.8%
16.8%

Fast
Feat
Fist
Foam
Fume
Total

13.7%
2.2%
5.5%
0.5%
0.7%
22.6%

Industry Unit Sales

% of Market

High
3,448
11.9%

Pfmn
2,749
9.5%

Size
2,776
9.6%

2.5%
5.4%
36.9%

0.7%

6.7%

19.6%

25.5%

5.9%

16.0%

Baker
Bead
Bid
Bold
Buddy
Total

28.6%

0.8%
21.3%

23.9%
23.9%

9.2%
9.4%
3.4%
3.1%
4.1%
29.2%

Cake
Cedar
Cid
Coat
Cure
Total

6.8%

10.1%
10.1%

3.0%
3.6%
0.6%
1.7%
1.0%
10.0%

7.0%

8.3%

Daze
Dell
Dixie
Dot
Dune
Total

19.3%

0.6%
19.0%

23.2%
23.3%

6.2%
7.7%
2.6%
2.2%
2.2%
20.9%

19.7%

19.6%

Eat
Ebb
Echo
Edge
Egg
Total

7.4%

2.0%
15.1%

17.1%
17.1%

3.3%
6.5%
2.0%
0.9%
1.7%
14.4%

14.6%
14.6%

7.6%
5.6%
2.9%
1.9%
1.6%
19.7%

Fast
Feat
Fist
Foam
Fume
Total

14.0%
2.2%
5.5%
0.6%
0.7%
22.9%

2.4%
9.3%
5.4%
17.8%

0.1%
7.0%

11.7%

5.4%

17.8%

0.8%
19.9%

0.2%
0.2%

20.9%
1.4%
22.4%

21.1%
21.1%

16.7%
9.1%
0.2%
7.8%

CAPSTONE COURIER

19.6%

16.7%

9.1%

9.0%
12.8%
10.5%
18.4%
21.8%

10.5%

18.4%

0.5%

11.0%
11.0%

14.0%
14.0%

Low
11,180
38.6%

5.6%

1.2%
24.3%
28.9%
8.1%
1.3%
38.3%

Trad
8,809
30.4%

Able
Adam
Aft
Agape
Total

19.6%
0.1%
5.9%

Potential Market Share in Units

Total
28,961 Units Demanded
100.0% % of Market
2.0%
0.8%
1.9%
1.1%
5.8%

6.7%

Round: 2
Dec. 31, 2017

High
3,448
11.9%

Pfmn
2,749
9.5%

Size
2,776
9.6%

Total
28,961
100.0%

5.9%
5.9%

1.9%
0.7%
1.4%
0.6%
10.7%

18.5%
18.5%

9.0%
8.2%
3.4%
2.7%
3.6%
27.0%

5.5%
5.5%

2.7%
2.6%
0.6%
1.3%
0.6%
7.7%

43.9%
44.0%

6.1%
7.3%
2.9%
2.7%
4.2%
23.2%

18.3%
18.3%

3.0%
5.8%
1.9%
1.6%
1.8%
14.2%

7.9%
7.9%

7.1%
4.4%
2.8%
2.1%
1.0%
17.3%

6.3%
14.6%

2.5%
5.7%
36.8%

22.1%

6.3%

28.9%
7.4%
1.4%
37.7%

14.6%

10.9%
10.9%

1.7%
6.7%
5.0%
13.2%

0.2%
0.2%

5.0%

13.2%

23.4%
1.8%

25.2%

25.2%

25.2%

16.1%
16.2%
0.3%
7.8%

17.0%

16.2%

16.2%

7.3%
9.6%
9.7%
19.9%
16.9%

9.7%

19.9%

Page 10

Perceptual Map

C72522

Andrews
Name
Able
Acre
Adam
Aft
Agape

Pfmn
5.5
3.0
8.0
9.4
4.0

Name
Daze
Dell
Dixie
Dot
Dune

Pfmn
5.7
3.0
9.8
10.2
4.8

Size
14.5
17.0
12.0
15.5
11.0

Digby

CAPSTONE COURIER

Size
14.3
17.0
10.2
14.5
9.5

Baldwin
Revised
11/20/2012
11/17/2019
4/19/2014
6/30/2013
5/25/2013

Name
Baker
Bead
Bid
Bold
Buddy

Pfmn
5.5
3.0
8.8
9.6
6.1

Revised
3/16/2016
5/25/2011
6/20/2017
7/1/2017
7/27/2017

Name
Eat
Ebb
Echo
Edge
Egg

Pfmn
5.5
3.0
9.5
10.0
4.5

Size
15.1
17.0
11.2
13.5
10.8

Erie

Size
14.5
17.0
10.5
14.9
10.5

Round: 2
Dec. 31, 2017

Chester
Revised
3/27/2017
5/25/2011
3/18/2017
8/23/2017
8/29/2017

Name
Cake
Cedar
Cid
Coat
Cure

Pfmn
5.5
3.0
8.0
9.4
4.0

Revised
3/25/2018
5/25/2011
10/4/2017
6/3/2017
5/2/2016

Name
Fast
Feat
Fist
Foam
Fume

Pfmn
5.5
5.7
8.0
9.4
4.0

Size
14.5
17.0
12.0
15.5
11.0

Ferris

Size
14.5
17.0
12.0
15.5
11.0

Revised
11/20/2012
5/25/2011
4/19/2014
6/30/2013
5/25/2013

Revised
6/6/2018
7/15/2017
4/19/2014
6/30/2013
5/25/2013

Page 11

HR/TQM Report

C72522

Round: 2
Dec. 31, 2017

HUMAN RESOURCES SUMMARY

Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
532
532
532
0

Baldwin
1,428
1,428
782
645

Chester
998
998
794
204

Digby
959
959
757
202

Erie
687
687
615
72

Ferris
1,264
1,264
827
437

Overtime Percent
Turnover Rate
New Employees
Separated Employees
Recruiting Spend
Training Hours
Productivity Index

0.0%
10.0%
53
259
$0
0
100.0%

0.0%
8.7%
675
0
$2,200
35
100.3%

0.0%
10.0%
425
0
$0
0
100.0%

0.0%
10.0%
354
0
$0
0
100.0%

0.0%
10.0%
102
0
$0
0
100.0%

0.1%
10.0%
825
0
$0
0
100.0%

Recruiting Cost
Separation Cost
Training Cost
Total HR Admin Cost

$53
$1,295
$0
$1,348

$2,160
$0
$1,000
$3,159

$425
$0
$0
$425

$354
$0
$0
$354

$102
$0
$0
$102

$825
$0
$0
$825

Labor Contract Next Year

Wages
Benefits
Profit Sharing
Annual Raise

$23.15
2,500
2.0%
5.0%

$23.15
2,500
2.0%
5.0%

$23.15
2,500
2.0%
5.0%

$23.15
2,500
2.0%
5.0%

$23.15
2,500
2.0%
5.0%

$23.15
2,500
2.0%
5.0%

Baldwin

Chester

Digby

Erie

Ferris

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

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

TQM Budgets Last Year

Benchmarking
Quality Function Deployment Effort
CCE/6 Sigma Training
GEMI TQEM Sustainability Initiatives
Total Expenditures

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

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

CAPSTONE COURIER

Page 12

Annual Report
Annual Report

Digby

C72522

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

Cash
Account Receivable
Inventory
Total Current Assets

$39,392

2017
Common
Size
12.6%
14.4%
6.2%
33.2%

$6,949
$9,262
$0
$16,211

$79,413
$118,805

114.0%
-47.1%
66.8%
100.0%

$135,400
($46,960)
$88,440
$104,651

$61,347

8.1%
5.8%
37.7%
51.6%

$6,422
$0
$51,700
$58,122

$57,458
$118,805

15.5%
32.9%
48.4%
100.0%

$18,360
$28,169
$46,529
$104,651

$14,932
$17,099
$7,361

Plant & Equipment

Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY

$135,400
($55,987)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$9,647
$6,950
$44,750

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$18,360
$39,098

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.

Round: 2
Dec. 31, 2017

Cash Flows from Operating Activities

NetIncome(Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable

2016

2017

2016

$10,928

($1,413)

$9,027

$9,027

$0

$0

$3,225

($161)

Inventory

($7,361)

$8,617

Accounts Receivable

($7,836)

($955)

$7,983

$15,115

$0

($21,600)

Dividends Paid

$0

$0

Sales of Common Stock

$0

$0

Purchase of Common Stock

$0

$0

Cash from long term debt

$0

$10,000

Retirement of long term debt

($6,950)

$0

Change in current debt(net)

$6,950

$0

$0

$10,000

$7,983

$3,515

$14,932

$6,949

Net cash from operation

Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities

Net Cash from financing activities

Net Change in cash position
Closing cash position

Annual Report

Page 13

Annual Report

Digby

Round: 2
Dec. 31, 2017

C72522

2017 Income Statement

(Product Name)

$0

2017
Total
$156,024

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$47,601
$62,414
$883
$110,898

30.5%
40.0%
0.6%
71.1%

$0

$0

$0

$45,126

28.9%

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$9,027
$1,553
$4,650
$4,750
$1,446
$21,425

5.8%
1.0%
3.0%
3.0%
0.9%
13.7%

$0

$0

$0

$23,700

15.2%

$0
$23,700
$758
$5,787
$6,005
$223
$10,928

0.0%
15.2%
0.5%
3.7%
3.8%
0.1%
7.0%

Daze

Dell

Dixie

Dot

Dune

NA

NA

NA

Sales

$46,686

$44,557

$24,878

$19,952

$19,952

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$16,030
$18,502
$883
$35,415

$18,506
$14,805
$0
$33,311

$5,232
$11,275
$0
$16,506

$3,916
$9,514
$0
$13,431

$3,916
$8,319
$0
$12,235

$0
$0
$0
$0

Contribution Margin

$11,270

$11,246

$8,371

$6,521

$7,717

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period

$2,640
$0
$1,000
$1,100
$433
$5,173

$2,427
$0
$1,000
$1,000
$413
$4,840

$1,560
$473
$950
$950
$231
$4,163

$1,200
$503
$850
$850
$185
$3,588

$1,200
$577
$850
$850
$185
$3,662

Net Margin

$6,098

$6,407

$4,208

$2,933

$4,055

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.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

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