Round: 1

Dec. 31, 2016

C71795

Andrews
Ming Xin Goh
Hui Yee Khong
Jiong Yii Jason Pau
Yu Fuu Tan
Sze Yang Tee

Baldwin
Nur Hadaina Abdul Jalil
Siti Nur Hasimah Enche Jaih
Yu Li
Khiew Vun Sin
Tzun Yang Wong

Chester
Teck Kee Cheu
Jyh Jiun Lang
Jin Woei Lee
Huey Wen Wee
Yong Yuen Chiet

Digby

Erie
Wong Fui Fui Evelyn
Mohd Rafique Mohd Abdul
Kader
Shao Ting Ngu
Chung Xien Loong
Sim Shirlyn Xu Ling

Ferris
MAISARAH AHMAD
Anis Bouazra
Umi Norsyahirah Mohd Kamal
Wan Dee Wong
Shariq Zaheer

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
6.8%
1.16
7.8%

Baldwin
3.2%
1.07
3.4%

Chester
-2.1%
0.77
-1.6%

Digby
5.5%
1.14
6.3%

Erie
5.1%
1.09
5.5%

Ferris
-4.4%
0.69
-3.1%

2.0

1.8

2.5

2.5

2.1

2.4

15.8%
$0
$143,600,259
$22,235,276
$9,705,253
$13,840,635
11.5%
32.9%

6.1%
$0
$118,440,308
$11,412,170
$3,763,250
$7,898,631
11.5%
27.9%

-4.1%
$22,097,994
$91,232,183
$6,177,342
($1,906,577)
$2,228,805
15.0%
31.6%

15.5%
$0
$134,995,334
$19,380,257
$7,453,310
$11,588,691
12.1%
32.1%

11.6%
$0
$131,010,182
$17,336,917
$6,621,626
$10,757,008
12.8%
32.0%

-7.5%
$14,498,064
$96,888,952
$3,350,640
($4,308,061)
($172,679)
15.2%
30.1%

Page 1

Stock & Bonds

Round: 1
Dec. 31, 2016

C71795
Stock Market Summary

Company
Andrews
Baldwin
Chester
Digby
Erie
Ferris

Close

Change

Shares

$48.86
$37.95
$15.58
$44.99
$43.22
$18.56

$14.71
$3.80
($18.57)
$10.84
$9.07
($15.59)

2,146,424
2,292,848
2,029,285
2,000,000
2,073,212
2,400,000

MarketCap
($M)
$105
$87
$32
$90
$90
$45

Book Value

EPS

Dividend

Yield

P/E

$28.66
$26.89
$23.15
$23.97
$27.50
$23.85

$4.52
$1.64
($0.94)
$3.73
$3.19
($1.80)

$0.50
$0.00
$0.00
$3.70
$0.00
$0.00

1.0%
0.0%
0.0%
8.2%
0.0%
0.0%

10.8
23.1
-16.6
12.1
13.5
-10.3

Bond Market Summary

Company
Andrews

Series#

Face

Yield

Close$

11.2S2017
12.7S2019
14.2S2021
11.5S2026

$6,950,000
$13,900,000
$20,850,000
$13,000,000

11.3%
12.5%
13.2%
11.8%

99.29
101.68
107.93
97.17

11.2S2017
12.7S2019
14.2S2021

$6,950,000
$13,900,000
$20,850,000

11.2%
12.3%
12.8%

99.91
103.40
110.64

11.2S2017
12.7S2019
14.2S2021
11.5S2026

$6,950,000
$13,900,000
$20,850,000
$1,000,000

11.4%
12.8%
13.6%
12.5%

98.41
99.29
104.22
91.86

Baldwin

S&P Company
Digby
B
B
B
B
Erie
BB
BB
BB

Chester
CC Ferris
CC
CC
CC

Series#

Face

Yield

Close$

S&P

11.2S2017
12.7S2019
14.2S2021
11.5S2026

$6,950,000
$13,900,000
$20,850,000
$1,048,582

11.4%
12.8%
13.6%
12.4%

98.49
99.53
104.58
92.37

CC
CC
CC
CC

11.2S2017
12.7S2019
14.2S2021
11.5S2026

$6,950,000
$13,900,000
$20,850,000
$12,500,000

11.3%
12.5%
13.2%
12.0%

99.11
101.20
107.17
96.08

CCC
CCC
CCC
CCC

11.2S2017
12.7S2019
14.2S2021
11.5S2026

$6,950,000
$13,900,000
$20,850,000
$18,994,000

11.4%
12.8%
13.6%
12.4%

98.49
99.53
104.58
92.37

CC
CC
CC
CC

Next Year's Prime Rate 7.70%

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

C71795

Round: 1
Dec. 31, 2016

Andrews

Baldwin

Chester

Digby

Erie

Ferris

$9,705

$3,763

($1,907)

$7,453

$6,622

($4,308)

$7,587
$0

$7,587
$0

$8,834
$0

$7,267
$267

$6,868
$180

$9,400
$0

$897
$4,977
($3,495)
$19,671

$219
$1,764
($1,427)
$11,905

($368)
($16,138)
$809
($8,771)

$785
$1,173
($2,788)
$14,157

$2,331
($23,149)
($2,461)
($9,610)

$357
($20,143)
($3,638)
($18,332)

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

$0

$0

($18,708)

($800)

$7,007

($32,200)

($1,073)
$5,000
$0
$13,000
$0
$0
$0
$0

$0
$10,000
$0
$0
$0
$0
$0
$0

$0
$1,000
$0
$1,000
$0
$0
$0
$22,098

($7,407)
$0
$0
$1,049
$0
$0
$20,343
$0

$0
$2,500
$0
$12,500
$0
$0
$0
$0

$0
$13,659
$0
$18,994
$0
$0
$0
$14,498

Net cash from financing activities

$16,927

$10,000

$24,098

$13,984

$15,000

$47,151

Net change in cash position

Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

$36,598
Andrews
$39,978
$11,803
$3,640
$55,421

$21,905
Baldwin
$25,286
$9,735
$6,853
$41,874

($3,381)
Chester
$0
$7,499
$24,756
$32,254

$27,341
Digby
$30,721
$11,096
$7,444
$49,261

$12,397
Erie
$15,778
$10,768
$31,766
$58,312

($3,381)
Ferris
$0
$11,945
$28,760
$40,705

Plant and equipment

Accumulated Depreciation
Total Fixed Assets

$113,800
($45,520)
$68,280

$113,800
($45,520)
$68,280

$132,508
($46,767)
$85,741

$109,000
($39,867)
$69,133

$103,020
($41,208)
$61,812

$146,000
($47,333)
$98,667

Total Assets

$123,701

$110,154

$117,995

$118,394

$120,124

$139,372

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$7,480
$0
$54,700
$62,180

$6,802
$0
$41,700
$48,502

$6,215
$22,098
$42,700
$71,013

$7,368
$20,343
$42,749
$70,459

$8,914
$0
$54,200
$63,114

$6,940
$14,498
$60,694
$82,132

Common Stock
Retained Earnings
Total Equity

$23,360
$38,161
$61,521

$28,360
$33,292
$61,652

$19,360
$27,622
$46,982

$18,360
$29,575
$47,935

$20,860
$36,151
$57,010

$32,019
$25,221
$57,240

Total Liabilities & Owners'' Equity

$123,701

$110,154

$117,995

$118,394

$120,124

$139,372

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
$143,600
$96,423
$7,587
$16,455
$900
$22,235
$6,999
$5,333
$198
$9,705

Baldwin
$118,440
$85,343
$7,587
$13,598
$500
$11,412
$5,504
$2,068
$77
$3,763

Chester
$91,232
$62,447
$8,834
$13,674
$100
$6,177
$9,111
($1,027)
$0
($1,907)

Digby
$134,995
$91,710
$7,267
$16,319
$319
$19,380
$7,680
$4,095
$152
$7,453

Erie
$131,010
$89,114
$6,868
$16,761
$930
$17,337
$6,942
$3,638
$135
$6,622

Ferris
$96,889
$67,746
$9,400
$14,759
$1,633
$3,351
$9,978
($2,320)
$0
($4,308)

CAPSTONE COURIER

Page 3

C71795

Production Analysis

Name
Able
Acre
Adam
Aft
Agape

Primary
Segment
Trad
Low
High
Pfmn
Size

Units
Sold
1,906
2,059
397
462
361

Unit
Inven
tory
36
0
59
2
68

Baker
Bead
Bid
Bold
Buddy

Trad
Low
High
Pfmn
Size

1,179
1,945
460
474
411

Cake
Cedar
Cid
Coat
Cure

Trad
Low
High
Pfmn
Size

Daze
Dell
Dixie
Dot
Dune

Price
$28.48
$21.98
$39.48
$34.48
$34.48

Material
Cost
$10.80
$7.05
$14.84
$14.43
$12.63

Labor
Cost
$7.85
$7.72
$8.97
$8.97
$8.97

Contr.
Marg.
33%
31%
37%
30%
35%

2nd
Shift
&
Overtime
0%
46%
0%
0%
0%

14.0
16.7
11.3
15.0
10.2

$26.00
$21.00
$38.00
$33.50
$33.00

$11.36
$7.56
$16.06
$15.98
$13.77

$7.85
$7.62
$8.97
$8.97
$8.97

26%
27%
34%
27%
29%

0%
39%
0%
0%
0%

4.0
5.0
3.0
3.0
3.0

1,800 55%
1,400 138%
900 57%
600 66%
600 89%

6.2
2.9
8.7
11.5
5.7

14.7
18.0
12.2
14.7
9.8

$29.48
$21.98
$39.47
$34.50
$34.48

$10.65
$6.24
$14.84
$16.04
$13.82

$7.85
$7.31
$8.97
$8.97
$8.97

26%
34%
35%
26%
32%

0%
22%
0%
0%
0%

4.5
5.5
4.0
3.0
3.0

1,806 64%
1,700 121%
905 54%
601 73%
602 55%

17800
14000
23500
26000
19000

6.8
3.7
9.8
11.3
5.6

14.2
17.2
11.1
14.9
10.0

$29.50
$22.00
$39.50
$34.50
$34.50

$11.30
$7.05
$16.11
$16.14
$13.66

$7.85
$8.01
$9.35
$8.97
$8.97

34%
30%
35%
28%
34%

0%
68%
10%
0%
0%

5.0
6.0
3.0
3.0
3.0

1,400 81%
1,400 166%
500 109%
600 74%
600 58%

2.3
5.6
1.5
2.1
2.2

17500
14000
23000
25000
19000

5.7
3.7
9.6
10.1
4.7

15.2
17.2
11.3
16.2
10.8

$29.50
$24.00
$38.00
$35.99
$33.50

$10.14
$7.05
$15.76
$14.67
$12.87

$8.86
$7.84
$8.97
$8.97
$8.97

28%
35%
35%
28%
33%

37%
54%
0%
0%
0%

4.0
5.0
3.0
3.0
3.0

1,600 136%
1,300 152%
820 66%
520 84%
550 99%

2.2
3.1
1.4
1.8
1.9
0.0

14000
12000
22000
24000
18000
0

6.9
3.8
9.6
11.5
4.4
0.0

14.0
16.7
11.0
16.0
10.0
0.0

$27.69
$21.99
$38.99
$34.49
$33.99
$0.00

$10.31
$6.76
$15.62
$15.36
$13.03
$0.00

$7.85
$7.38
$8.97
$8.97
$8.97
$0.00

25%
32%
35%
27%
32%
0%

0%
25%
0%
0%
0%
0%

5.0
6.0
4.0
4.0
4.0
1.0

1,800 77%
1,600 124%
900 67%
600 67%
600 67%
500
0%

Revision Date
3/10/2016
5/25/2011
4/25/2017
5/12/2016
5/19/2016

Age
Dec.31
2.5
5.6
2.7
2.1
2.1

MTBF
17500
14000
23000
25000
19000

Pfmn
Coord
6.4
3.7
8.7
9.4
5.4

Size
Coord
14.6
17.2
12.2
15.5
11.5

0
24
95
0
186

7/26/2016
6/16/2016
10/2/2016
9/19/2016
9/19/2016

2.3
3.1
1.5
1.9
1.9

17500
14000
24000
26000
20000

6.9
4.2
9.6
11.1
5.4

593
1,734
362
367
252

747
0
161
150
139

11/20/2012
9/12/2016
2/24/2017
12/22/2016
12/22/2016

4.1
2.9
2.7
1.8
1.8

17500
14000
23000
25000
19000

Trad
Low
High
Pfmn
Size

1,245
2,366
458
473
342

83
0
126
50
67

6/10/2016
5/25/2011
11/22/2016
11/2/2016
11/1/2016

2.3
5.6
1.4
1.8
1.9

Eat
Ebb
Echo
Edge
Egg

Trad
Low
High
Pfmn
Size

1,390
1,652
567
307
530

977
367
18
206
77

5/25/2016
3/14/2017
9/18/2016
4/3/2016
3/18/2016

Fast
Feat
Fist
Foam
Fume
Fire

Trad
Low
High
Pfmn
Size

845
1,383
484
381
326
0

734
396
156
97
137
0

9/20/2016
6/9/2016
12/7/2016
11/20/2016
10/2/2016
1/14/2017

CAPSTONE COURIER

Round: 1
Dec. 31, 2016

Auto
mation
Next
Round
4.0
5.0
3.0
3.0
3.0

Capacity
Next Plant
Round Utiliz.
1,800 97%
1,400 144%
900 46%
600 64%
600 61%

Page 4

Traditional Segment Analysis

C71795

Round: 1
Dec. 31, 2016

Traditional Statistics
Total Industry Unit Demand

7,890

Actual Industry Unit Sales

7,890

Segment % of Total Industry

30.7%

Next Year's Segment Growth Rate

9.9%

Traditional Customer Buying Criteria

Expectations

Importance

1. Age

Ideal Age = 2.0

47%

2. Price

$19.50 - 29.50

23%

3. Ideal Position

Pfmn 6.4 Size 14.5

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

Able

23%

1,852

3/10/2016

6.4

Eat

17%

1,372

5/25/2016

5.7

Daze

15%

1,182

6/10/2016

Baker

14%

1,137

7/26/2016

Fast

10%

817

Cake

7%

573

Bead

5%

Feat

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.6

$28.48

17500

2.45

$1,510

73%

$1,810

65%

40

15.2

$29.50

17500

2.35

$1,500

73%

$1,400

59%

33

6.8

14.2

$29.50

17800

2.33

$1,100

61%

$1,330

58%

34

6.9

14.0

$26.00

17500

2.26

$1,000

58%

$1,000

51%

37

9/20/2016

6.9

14.0

$27.69

14000

2.18

$500

43%

$650

43%

26

11/20/2012

6.2

14.7

$29.48

17500

4.10

$1,100

61%

$1,000

51%

403

6/16/2016

4.2

16.7

$21.00

14000

3.07

$900

53%

$1,000

51%

2%

183

6/9/2016

3.8

16.7

$21.99

12000

3.08

$500

41%

$600

43%

Acre

1%

104

5/25/2011

YES

3.7

17.2

$21.98

14000

5.60

$1,510

71%

$1,810

65%

Dell

1%

103

5/25/2011

YES

3.7

17.2

$22.00

14000

5.60

$1,100

59%

$1,396

58%

Cedar

1%

79

9/12/2016

YES

2.9

18.0

$21.98

14000

2.95

$1,000

56%

$1,000

51%

Ebb

1%

78

3/14/2017

3.7

17.2

$24.00

14000

5.60

$1,400

68%

$1,350

59%

CAPSTONE COURIER

Date

Stock

YES

Page 5

Low End Segment Analysis

C71795

Round: 1
Dec. 31, 2016

Low End Statistics

Total Industry Unit Demand

10,206

Actual Industry Unit Sales

10,206

Segment % of Total Industry

39.7%

Next Year's Segment Growth Rate

11.3%

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 2.9 Size 18.0

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

Dell

22%

2,263

5/25/2011

YES

3.7

Acre

19%

1,955

5/25/2011

YES

3.7

Cedar

16%

1,655

9/12/2016

YES

Ebb

15%

1,574

Bead

15%

Feat

12%

Fast

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

17.2

$22.00

14000

5.60

$1,100

59%

$1,396

40%

14

17.2

$21.98

14000

5.60

$1,510

71%

$1,810

47%

16

2.9

18.0

$21.98

14000

2.95

$1,000

56%

$1,000

34%

10

3/14/2017

3.7

17.2

$24.00

14000

5.60

$1,400

68%

$1,350

40%

10

1,542

6/16/2016

4.2

16.7

$21.00

14000

3.07

$900

53%

$1,000

35%

1,200

6/9/2016

3.8

16.7

$21.99

12000

3.08

$500

41%

$600

30%

0%

9/20/2016

6.9

14.0

$27.69

14000

2.18

$500

43%

$650

30%

Baker

0%

7/26/2016

6.9

14.0

$26.00

17500

2.26

$1,000

58%

$1,000

35%

Able

0%

3/10/2016

6.4

14.6

$28.48

17500

2.45

$1,510

73%

$1,810

47%

CAPSTONE COURIER

YES

Page 6

High End Segment Analysis

C71795

Round: 1
Dec. 31, 2016

High End Statistics

Total Industry Unit Demand

3,075

Actual Industry Unit Sales

3,075

Segment % of Total Industry

12.0%

Next Year's Segment Growth Rate

17.2%

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 10.5 Size 10.4

4. Price

$29.50 - 39.50

9%

Top Products in High End Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Echo

18%

567

9/18/2016

9.6

Fist

16%

484

12/7/2016

9.6

Bid

15%

460

10/2/2016

Dixie

15%

458

Adam

13%

Cid

12%

Aft

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

11.3

$38.00

23000

1.49

$1,300

63%

$1,250

50%

25

11.0

$38.99

22000

1.38

$1,500

68%

$2,000

57%

29

9.6

11.3

$38.00

24000

1.47

$1,000

54%

$800

40%

24

11/22/2016

9.8

11.1

$39.50

23500

1.40

$1,100

57%

$1,396

53%

29

397

4/25/2017

8.7

12.2

$39.48

23000

2.70

$1,510

69%

$1,510

52%

362

2/24/2017

8.7

12.2

$39.47

23000

2.70

$1,300

63%

$1,100

46%

3%

92

5/12/2016

9.4

15.5

$34.48

25000

2.07

$1,510

67%

$310

52%

Bold

1%

39

9/19/2016

11.1

15.0

$33.50

26000

1.88

$1,000

52%

$1,000

40%

Daze

1%

36

6/10/2016

6.8

14.2

$29.50

17800

2.33

$1,100

61%

$1,330

53%

Dot

1%

34

11/2/2016

11.3

14.9

$34.50

26000

1.82

$1,100

55%

$1,263

53%

Foam

1%

27

11/20/2016

11.5

16.0

$34.49

24000

1.80

$700

42%

$700

57%

Coat

1%

27

12/22/2016

11.5

14.7

$34.50

25000

1.75

$650

41%

$700

46%

CAPSTONE COURIER

YES

Page 7

Performance Segment Analysis

C71795

Round: 1
Dec. 31, 2016

Performance Statistics
Total Industry Unit Demand

2,241

Actual Industry Unit Sales

2,241

Segment % of Total Industry

8.7%

Next Year's Segment Growth Rate

20.0%

Performance Customer Buying Criteria

Expectations

Importance

1. Reliability

MTBF 22000-27000

43%

2. Ideal Position

Pfmn 11.1 Size 15.5

29%

3. Price

$24.50 - 34.50

19%

4. Age

Ideal Age = 1.0

9%

Top Products in Performance Segment

Units
Market

Cust.

Sold to Revision

Name

Share

Seg

Date

Dot

20%

438

11/2/2016

Bold

19%

435

9/19/2016

Aft

16%

369

5/12/2016

Foam

16%

354

Coat

15%

Edge

13%

Daze

Stock

Pfmn

Size

Out

Coord

Coord

11.3
11.1

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.9

$34.50

26000

1.82

$1,100

55%

$1,263

37%

27

15.0

$33.50

26000

1.88

$1,000

52%

$1,000

33%

27

9.4

15.5

$34.48

25000

2.07

$1,510

67%

$310

26%

15

11/20/2016

11.5

16.0

$34.49

24000

1.80

$700

42%

$700

29%

15

340

12/22/2016

11.5

14.7

$34.50

25000

1.75

$650

41%

$700

29%

17

297

4/3/2016

10.1

16.2

$35.99

25000

2.12

$1,140

56%

$1,100

30%

12

0%

6/10/2016

6.8

14.2

$29.50

17800

2.33

$1,100

61%

$1,330

37%

Able

0%

3/10/2016

6.4

14.6

$28.48

17500

2.45

$1,510

73%

$1,810

26%

Baker

0%

7/26/2016

6.9

14.0

$26.00

17500

2.26

$1,000

58%

$1,000

33%

CAPSTONE COURIER

YES

YES

Page 8

Size Segment Analysis

C71795

Round: 1
Dec. 31, 2016

Size Statistics
Total Industry Unit Demand

2,301

Actual Industry Unit Sales

2,301

Segment % of Total Industry

8.9%

Next Year's Segment Growth Rate

17.4%

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 9.8

4. Price

$24.50 - 34.50

9%

Top Products in Size Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Egg

23%

529

3/18/2016

4.7

Buddy

18%

407

9/19/2016

5.4

Dune

15%

341

11/1/2016

Agape

15%

337

Fume

14%

Cure

11%

Baker

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

10.8

$33.50

19000

2.19

$1,200

58%

$1,250

44%

21

10.2

$33.00

20000

1.93

$900

49%

$800

36%

35

5.6

10.0

$34.50

19000

1.88

$1,100

55%

$1,263

44%

37

5/19/2016

5.4

11.5

$34.48

19000

2.11

$1,510

67%

$310

32%

14

324

10/2/2016

4.4

10.0

$33.99

18000

1.92

$900

49%

$1,100

39%

22

251

12/22/2016

5.7

9.8

$34.48

19000

1.80

$650

41%

$700

34%

31

1%

27

7/26/2016

6.9

14.0

$26.00

17500

2.26

$1,000

58%

$1,000

36%

Able

1%

26

3/10/2016

6.4

14.6

$28.48

17500

2.45

$1,510

73%

$1,810

32%

Daze

1%

25

6/10/2016

6.8

14.2

$29.50

17800

2.33

$1,100

61%

$1,330

44%

Fast

1%

14

9/20/2016

6.9

14.0

$27.69

14000

2.18

$500

43%

$650

39%

Eat

0%

11

5/25/2016

5.7

15.2

$29.50

17500

2.35

$1,500

73%

$1,400

44%

Cake

0%

10

11/20/2012

6.2

14.7

$29.48

17500

4.10

$1,100

61%

$1,000

34%

CAPSTONE COURIER

YES

Page 9

Market Share

C71795

Actual Market Share in Units

Trad
7,890
30.7%

Low
10,206
39.7%

Able
Acre
Adam
Aft
Agape
Total

23.5%
1.3%

19.2%

24.8%

19.2%

Baker
Bead
Bid
Bold
Buddy
Total

14.4%
5.1%

15.1%

19.6%

15.1%

Cake
Cedar
Cid
Coat
Cure
Total

7.3%
1.0%

16.2%

8.3%

16.2%

Daze
Dell
Dixie
Dot
Dune
Total

15.0%
1.3%

22.2%

16.3%

22.2%

Eat
Ebb
Echo
Edge
Egg
Total

17.4%
1.0%

15.4%

18.4%

15.4%

Fast
Feat
Fist
Foam
Fume
Total

10.4%
2.3%

11.8%

Industry Unit Sales

% of Market

High
3,075
12.0%

0.7%
12.9%
3.0%
0.7%
17.4%

16.6%

13.0%

16.5%

17.3%

19.4%
19.5%

19.0%

15.2%
15.2%

11.8%

16.8%

10.9%
11.3%
1.1%

19.6%
19.7%

14.8%
15.9%
0.5%

13.2%
13.3%

0.2%
15.7%
0.9%

17.7%
18.8%
0.4%

0.2%
18.4%
0.3%

14.6%
15.8%
1.1%

1.2%
14.9%
1.1%

CAPSTONE COURIER

16.5%

0.3%
11.8%
0.9%

Size
2,301
8.9%
1.1%

0.3%
15.0%
1.3%

12.7%

Pfmn
2,241
8.7%

23.0%
23.5%
0.6%

15.8%
15.8%

14.1%
14.7%

Round: 1
Dec. 31, 2016

Potential Market Share in Units

Total
25,712 Units Demanded
100.0% % of Market

Trad
7,890
30.7%

Low
10,206
39.7%
23.3%

7.4%
8.0%
1.5%
1.8%
1.4%
20.2%

Able
Acre
Adam
Aft
Agape
Total

23.1%
1.5%

24.6%

23.3%

4.6%
7.6%
1.8%
1.8%
1.6%
17.4%

Baker
Bead
Bid
Bold
Buddy
Total

15.5%
5.2%

15.1%

20.7%

15.1%

2.3%
6.7%
1.4%
1.4%
1.0%
12.9%

Cake
Cedar
Cid
Coat
Cure
Total

7.2%
1.1%

17.4%

8.2%

17.4%

4.8%
9.2%
1.8%
1.8%
1.3%
19.0%

Daze
Dell
Dixie
Dot
Dune
Total

14.7%
1.3%

20.3%

16.0%

20.3%

5.4%
6.4%
2.2%
1.2%
2.1%
17.3%

Eat
Ebb
Echo
Edge
Egg
Total

17.1%
1.0%

13.4%

18.1%

13.4%

3.3%
5.4%
1.9%
1.5%
1.3%
13.3%

Fast
Feat
Fist
Foam
Fume
Total

10.1%
2.3%

10.4%

12.4%

High
3,075
12.0%

Pfmn
2,241
8.7%

0.7%
12.9%
3.0%
0.7%
17.4%

Total
25,712
100.0%

1.1%

7.3%
9.7%
1.5%
1.8%
1.4%
21.7%

16.5%
16.6%

0.3%

14.6%
15.8%
1.2%

14.9%
1.3%

20.5%

16.6%

20.6%

0.3%

17.7%
18.9%
0.4%

11.8%
0.9%

14.9%

13.0%

14.9%

1.2%

10.9%
11.3%
1.1%

14.9%
1.1%

19.1%

17.2%

19.2%

0.2%

14.8%
15.9%
0.5%

18.4%
0.3%

13.0%

19.0%

13.0%

0.2%

10.5%

Size
2,301
8.9%

23.0%
23.5%
0.6%

15.7%
0.9%

15.5%

16.8%

15.6%

14.1%
14.7%

4.9%
7.6%
1.8%
1.9%
1.6%
17.8%
2.3%
7.2%
1.4%
1.4%
1.0%
13.3%
4.7%
8.5%
1.8%
1.8%
1.3%
18.1%
5.3%
5.6%
2.2%
1.2%
2.1%
16.4%
3.2%
4.8%
1.9%
1.5%
1.3%
12.7%

Page 10

Perceptual Map

C71795

Andrews
Name
Able
Acre
Adam
Aft
Agape

Pfmn
6.4
3.7
8.7
9.4
5.4

Name
Daze
Dell
Dixie
Dot
Dune

Pfmn
6.8
3.7
9.8
11.3
5.6

Size
14.6
17.2
12.2
15.5
11.5

Digby

CAPSTONE COURIER

Size
14.2
17.2
11.1
14.9
10.0

Baldwin
Revised
3/10/2016
5/25/2011
4/25/2017
5/12/2016
5/19/2016

Name
Baker
Bead
Bid
Bold
Buddy

Pfmn
6.9
4.2
9.6
11.1
5.4

Revised
6/10/2016
5/25/2011
11/22/2016
11/2/2016
11/1/2016

Name
Eat
Ebb
Echo
Edge
Egg

Pfmn
5.7
3.7
9.6
10.1
4.7

Size
14.0
16.7
11.3
15.0
10.2

Erie

Size
15.2
17.2
11.3
16.2
10.8

Round: 1
Dec. 31, 2016

Chester
Revised
7/26/2016
6/16/2016
10/2/2016
9/19/2016
9/19/2016

Name
Cake
Cedar
Cid
Coat
Cure

Pfmn
6.2
2.9
8.7
11.5
5.7

Revised
5/25/2016
3/14/2017
9/18/2016
4/3/2016
3/18/2016

Name
Fast
Feat
Fist
Foam
Fume

Pfmn
6.9
3.8
9.6
11.5
4.4

Size
14.7
18.0
12.2
14.7
9.8

Ferris

Size
14.0
16.7
11.0
16.0
10.0

Revised
11/20/2012
9/12/2016
2/24/2017
12/22/2016
12/22/2016

Revised
9/20/2016
6/9/2016
12/7/2016
11/20/2016
10/2/2016

Page 11

HR/TQM Report

C71795

Round: 1
Dec. 31, 2016

HUMAN RESOURCES SUMMARY

Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
819
819
727
92

Baldwin
730
730
651
79

Chester
685
685
640
45

Digby
792
792
645
147

Erie
955
955
753
202

Ferris
762
762
711
51

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

0.0%
10.0%
201
0
$0
0
100.0%

0.0%
10.0%
103
0
$0
0
100.0%

0.0%
10.0%
69
15
$0
0
100.0%

0.0%
10.0%
171
0
$0
0
100.0%

0.0%
10.0%
351
0
$0
0
100.0%

0.0%
10.0%
138
0
$0
0
100.0%

$201
$0
$0
$201

$103
$0
$0
$103

$69
$75
$0
$144

$171
$0
$0
$171

$351
$0
$0
$351

$138
$0
$0
$138

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

Baldwin

Chester

Digby

Erie

Ferris

Recruiting Cost
Separation Cost
Training Cost
Total HR Admin Cost
Labor Contract Next Year
Wages
Benefits
Profit Sharing
Annual Raise
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

Ethics Report

Round: 1
Dec. 31, 2016

C71795
ETHICS SUMMARY

Other (Fees, Writeoffs, etc.)

Demand Factor
Material Cost Impact
Admin Cost Impact
Productivity Impact
Awareness Impact
Accessibility Impact

Total
Other (Fees, Writeoffs, etc.)
Demand Factor
Material Cost Impact
Admin Cost Impact
Productivity Impact
Awareness Impact
Accessibility Impact

CAPSTONE COURIER

The actual dollar impact. Example, $120 means Other increased by $120.
The % of normal. 98% means demand fell 2%.
The % of normal. 104% means matieral costs rose 4%.
The % of normal. 103% means admin costs rose 3%.
The % of normal. 104% means productivity increased by 4%.
The % of normal. 105% means normal awareness was multiplied by 1.05.
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

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

Page 13

Annual Report
Annual Report

Baldwin

C71795

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

$41,874

2016
Common
Size
23.0%
8.8%
6.2%
38.0%

$3,381
$8,307
$8,617
$20,305

$68,280
$110,154

103.0%
-41.3%
62.0%
100.0%

$113,800
($37,933)
$75,867
$96,172

$48,502

6.2%
0.0%
37.9%
44.0%

$6,583
$0
$41,700
$48,283

$61,652
$110,154

25.7%
30.2%
56.0%
100.0%

$18,360
$29,529
$47,889
$96,172

$25,286
$9,735
$6,853

Plant & Equipment

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

$113,800
($45,520)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$6,802
$0
$41,700

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

$28,360
$33,292

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: 1
Dec. 31, 2016

Cash Flows from Operating Activities

2015

2016

2015

NetIncome(Loss)

$3,763

$4,135

Depreciation

$7,587

$7,587

$0

$0

Extraordinary gains/losses/writeoffs
Accounts Payable

$219

$3,583

$1,764

($8,617)

Accounts Receivable

($1,427)

($307)

Net cash from operation

$11,905

$6,381

$0

$0

Inventory

Cash Flows from Investing Activities

Plant Improvements
Cash Flows from Financing Activities
Dividends Paid

$0

($4,000)

$10,000

$0

Purchase of Common Stock

$0

$0

Cash from long term debt

$0

$0

Retirement of long term debt

$0

$0

Change in current debt(net)

$0

$0

Net Cash from financing activities

$10,000

($4,000)

Net Change in cash position

$21,905

$2,381

Closing cash position

$25,286

$3,381

Sales of Common Stock

Annual Report

Page 15

Annual Report

Baldwin

Round: 1
Dec. 31, 2016

C71795

2016 Income Statement

(Product Name)

$0

2016
Total
$118,440

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$36,001
$48,520
$822
$85,343

30.4%
41.0%
0.7%
72.1%

$0

$0

$0

$33,097

27.9%

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

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

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

$7,587
$3,266
$4,800
$4,600
$932
$21,185

6.4%
2.8%
4.1%
3.9%
0.8%
17.9%

$0

$0

$0

$11,912

10.1%

$500
$11,412
$0
$5,504
$2,068
$77
$3,763

0.4%
9.6%
0.0%
4.6%
1.7%
0.1%
3.2%

Baker

Bead

Bid

Bold

Buddy

NA

NA

NA

Sales

$30,657

$40,851

$17,492

$15,867

$13,574

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$9,187
$13,500
$0
$22,686

$14,811
$14,891
$45
$29,746

$4,115
$7,182
$280
$11,576

$4,217
$7,429
$0
$11,646

$3,672
$5,519
$498
$9,688

$0
$0
$0
$0

Contribution Margin

$7,970

$11,105

$5,916

$4,222

$3,885

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

$2,640
$575
$1,000
$1,000
$241
$5,457

$2,427
$464
$900
$1,000
$321
$5,113

$1,080
$765
$1,000
$800
$138
$3,783

$720
$730
$1,000
$1,000
$125
$3,575

$720
$730
$900
$800
$107
$3,257

Net Margin

$2,514

$5,992

$2,132

$646

$628

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

Page 16