Annual Report

Round: 1
Annual Report Ferris C109777
Dec. 31, 2020
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2020 2019
assets for that year. Cash: Your end-of-year cash Common
position. Accounts Receivable: Reflects the lag between
Size
delivery and payment of your products. Inventories: The Cash $0 0.0% $3,434
current value of your inventory across all products. A zero
Account Receivable $9,983 8.7% $8,307
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $33,154 28.9% $8,617
Equipment: The current value of your plant. Accum Total Current Assets $43,137 37.6% $20,358
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $117,240 102.0% $113,800
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($45,749) -39.9% ($37,933)
of operations. It includes emergency loans used to keep Total Fixed Assets $71,491 62.4% $75,867
your company solvent should you run out of cash during Total Assets $114,627 100.0% $96,225
the year. Long Term Debt: The companys long term debt
is in the form of bonds, and this represents the total value LIABILITIES & OWNERS
of your bonds. Common Stock: The amount of capital
EQUITY
invested by shareholders in the company. Retained
Earnings: The profits that the company chose to keep Accounts Payable $9,145 8.0% $6,583
instead of paying to shareholders as dividends.
Current Debt $17,169 15.0% $0
Long Term Debt $43,700 38.1% $41,700
Total Liabilities $70,014 61.1% $48,283

Common Stock $20,360 17.8% $18,360

Retained Earnings $24,254 21.2% $29,582
Total Equity $44,614 38.9% $47,942
Total Liab. & O. Equity $114,627 100.0% $96,225

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2020 2019
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($5,328) $4,189
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $7,816 $7,587
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs $0 $0
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable $2,561 $3,583
are bad and you find yourself carrying an abundance of excess inventory,
Inventory ($24,536) ($8,617)
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($1,675) ($307)
flow. Too much unexpected inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money to keep your company Net cash from operation ($21,163) $6,434
afloat. Cash Flows from Investing Activities
Plant Improvements ($3,440) $0
Cash Flows from Financing Activities
Dividends paid $0 ($4,000)
Sales of common stock $2,000 $0
Purchase of common stock $0 $0
Cash from long term debt $2,000 $0
Retirement of long term debt $0 $0
Change in current debt(net) $17,169 $0
Net cash from financing activities $21,169 ($4,000)
Net change in cash position ($3,434) $2,434
Closing cash position $0 $3,434

Annual Report Page 1

 Round: 1
Annual Report Ferris C109777
Dec. 31, 2020
2020 Income Statement
2020 Common
(Product Name) Fast Feat Fist Foam Fume
Total
Size
Sales $35,237 $41,394 $17,733 $13,544 $13,549 $0 $0 $0 $121,456 100.0%
Variable Costs:
Direct Labor $10,354 $15,494 $4,121 $3,950 $3,724 $0 $0 $0 $37,642 31.0%
Direct Material $14,515 $15,339 $7,162 $6,491 $5,573 $0 $0 $0 $49,080 40.4%
Inventory Carry $1,953 $0 $453 $1,064 $509 $0 $0 $0 $3,978 3.3%
Total Variable $26,821 $30,832 $11,736 $11,505 $9,806 $0 $0 $0 $90,700 74.7%
Contribution Margin $8,415 $10,562 $5,997 $2,039 $3,743 $0 $0 $0 $30,756 25.3%
Period Costs:
Depreciation $2,736 $2,464 $1,128 $752 $736 $0 $0 $0 $7,816 6.4%
SG&A: R&D $337 $357 $821 $313 $622 $0 $0 $0 $2,449 2.0%
Promotions $2,000 $2,000 $1,800 $1,800 $1,800 $0 $0 $0 $9,400 7.7%
Sales $2,000 $2,000 $2,000 $2,000 $2,000 $0 $0 $0 $10,000 8.2%
Admin $353 $414 $178 $136 $136 $0 $0 $0 $1,216 1.0%
Total Period $7,425 $7,236 $5,926 $5,000 $5,294 $0 $0 $0 $30,881 25.4%
Net Margin $990 $3,326 $71 ($2,961) ($1,551) $0 $0 $0 ($125) -0.1%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $200 0.2%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT ($325) -0.3%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $2,225 1.8%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $5,647 4.6%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($2,869) -2.4%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($5,328) -4.4%
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 years 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 Page 2