The document provides financial and operational data for four companies - Andrews, Baldwin, Chester, and Digby. It includes key metrics like return on sales, assets, and equity as well as leverage, sales, profits, stock prices, and bond yields. It also provides production details for 16 products across three market segments (Traditional, Low End, High End). The top performing products in each segment are identified based on market share, sales, and customer survey results.

1. Round: 8
Dec. 31, 2022
C66763
Andrews
Jacob Chen
Simran Mahal
Hua Ping Tan
Baldwin
Bi Ying Chen
Felicia Feng
Michelle Fitzgerald
Chester
Cole Cedar
Ryan Kim
Maria Lobacheva
Digby
Chao NB Phan
Fei Jin Shi
Brian Yan Muk
Selected Financial Statistics
Andrews Baldwin Chester Digby
ROS 6.1% -18.9% 11.8% 11.0%
Asset Turnover 1.37 0.80 3.50 0.74
ROA 8.3% -15.2% 41.4% 8.1%
Leverage
(Assets/Equity)
2.0 2.6 4.7 1.9
ROE 17.0% -39.0% 194.5% 15.3%
Emergency Loan $0 $0 $11,759,918 $0
Sales $191,393,044 $35,619,491 $112,644,933 $228,050,882
EBIT $24,145,976 ($7,161,749) $23,823,706 $52,328,099
Profits $11,627,447 ($6,737,737) $13,321,488 $25,135,784
Cumulative Profit $11,215,910 ($33,951,902) ($8,988,299) $107,721,186
SG&A / Sales 12.0% 28.3% 13.6% 11.1%
Contrib. Margin % 28.8% 18.1% 25.8% 45.5%
CAPSTONE® COURIER Page 1

2. Stock & Bonds C66763
Round: 8
Dec. 31, 2022
Stock Market Summary
Company Close Change Shares
MarketCap
($M)
Book Value EPS Dividend Yield P/E
Andrews $42.04 $41.04 2,381,969 $100 $28.78 $4.88 $1.00 2.4% 8.6
Baldwin $1.00 $0.00 2,557,137 $3 $6.76 ($2.63) $0.00 0.0% -0.4
Chester $13.31 $12.31 1,992,892 $27 $3.44 $6.68 $23.01 172.8% 2.0
Digby $76.65 $13.85 3,939,577 $302 $41.60 $6.38 $5.00 6.5% 12.0
Bond Market Summary
Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Chester
7.9S2030 $42,943,369 11.8% 66.78 B 8.0S2029 $9,731,479 12.5% 64.12 DDD
12.5S2031 $20,000,000 14.5% 86.36 B Digby
Baldwin 11.3S2025 $18,994,000 12.3% 91.77 BB
11.3S2025 $2,000,000 12.7% 88.83 CC 12.4S2026 $11,632,000 13.4% 92.85 BB
12.9S2026 $10,000,000 14.2% 90.54 CC 13.0S2027 $7,946,000 13.9% 93.62 BB
13.0S2027 $6,000,000 14.6% 89.27 CC 7.9S2029 $25,000,000 11.2% 70.79 BB
7.9S2030 $2,000,000 12.4% 63.86 CC 7.6S2030 $51,300,000 11.3% 67.14 BB
12.5S2031 $6,000,000 15.1% 82.68 CC 11.3S2031 $21,000,000 13.7% 82.76 BB
Next Year's Prime Rate 11.00%
CAPSTONE® COURIER Page 2

3. Financial Summary C66763
Round: 8
Dec. 31, 2022
Cash Flow Statement Survey Andrews Baldwin Chester Digby
CashFlows from operating activities
Net Income(Loss) $11,627 ($6,738) $13,321 $25,136
Adjustment for non-cash items:
Depreciation $12,523 $5,147 $2,033 $25,987
Extraordinary gains/losses/writeoffs ($4,736) ($1,630) ($16,283) $0
Changes in current assets and liablilities
Acounts payable ($2,137) ($1,825) ($6,998) ($464)
Inventory $37,850 $24,408 $35,536 $3,007
Accounts Receivable ($3,155) $285 $5,747 ($9,776)
Net cash from operations $51,973 $19,647 $33,357 $43,889
Cash flows from investing activities
Plant improvements(net) $23,798 $13,824 $66,004 $0
Cash flows from financing activities
Dividends paid ($2,382) $0 ($45,856) ($19,698)
Sales of common stock $0 $0 $0 $0
Purchase of common stock ($125) $0 ($105) ($13,020)
Cash from long term debt issued $0 $0 $0 $0
Early retirement of long term debt ($23,000) $0 ($18,000) $0
Retirement of current debt ($35,798) ($32,264) ($47,160) ($8,353)
Cash from current debt borrowing $0 $0 $0 $0
Cash from emergency loan $0 $0 $11,760 $0
Net cash from financing activities ($61,305) ($32,264) ($99,361) ($41,071)
Net change in cash position $14,466 $1,207 $0 $2,818
Balance Sheet Survey Andrews Baldwin Chester Digby
Cash $14,466 $1,207 $0 $2,818
Accounts Receivable $15,731 $2,928 $9,258 $37,488
Inventory $3,031 $10,735 $11,679 $24,714
Total Current Assets $33,228 $14,870 $20,938 $65,020
Plant and equipment $187,850 $77,200 $30,496 $389,800
Accumulated Depreciation ($81,522) ($47,794) ($19,264) ($145,353)
Total Fixed Assets $106,328 $29,406 $11,232 $244,447
Total Assets $139,556 $44,275 $32,170 $309,467
Account Payable $8,056 $985 $3,829 $9,725
CurrentDebt $0 $0 $11,760 $0
Long Term Debt $62,943 $26,000 $9,731 $135,872
Total Liabilities $71,000 $26,985 $25,321 $145,597
Common Stock $36,283 $26,360 $37,664 $58,653
Retained Earnings $32,273 ($9,070) ($30,814) $105,217
Total Equity $68,556 $17,290 $6,849 $163,869
Total Liabilities & Owners'' Equity $139,556 $44,275 $32,170 $309,467
Income Statement Survey Andrews Baldwin Chester Digby
Sales $191,393 $35,619 $112,645 $228,051
Variable Costs(Labor,Material,Carry) $136,219 $29,179 $83,530 $124,295
Depreciation $12,523 $5,147 $2,033 $25,987
SGA(R&D,Promo,Sales,Admin) $22,894 $10,085 $15,270 $25,243
Other(Fees,Writeoffs,TQM,Bonuses) ($4,389) ($1,630) ($12,011) $198
EBIT $24,146 ($7,162) $23,824 $52,328
Interest(Short term,Long term) $5,893 $3,204 $2,911 $12,868
Taxes $6,389 ($3,628) $7,319 $13,811
Profit Sharing $237 $0 $272 $513
Net Profit $11,627 ($6,738) $13,321 $25,136
CAPSTONE® COURIER Page 3

4. Production Analysis C66763
Round: 8
Dec. 31, 2022
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 3,379 122 7/1/2021 2.9 14012 10.0 10.0 $18.50 $7.50 $7.70 16% 65% 6.0 1,830 164%
Acre Low 4,324 177 8/7/2020 7.5 12012 5.0 15.0 $11.00 $4.07 $1.36 40% 12% 10.0 2,150 111%
Aid High 800 0 2/22/2022 1.2 25000 16.1 3.9 $36.00 $14.05 $11.32 29% 24% 3.0 545 123%
Ahead High 900 0 3/6/2022 1.6 25000 15.3 4.8 $36.00 $13.56 $10.36 31% 0% 3.0 610 86%
Ajar Size 650 0 1/19/2022 1.4 21000 9.4 2.7 $31.00 $11.81 $7.77 36% 0% 5.0 510 88%
Baker Low 682 780 3/29/2022 2.2 18000 6.7 13.1 $16.00 $0.00 $0.00 2% 0% 6.5 1,500 0%
Bold Pfmn 603 0 6/11/2022 1.6 27000 17.4 12.9 $26.00 $13.06 $6.96 22% 0% 6.0 600 86%
Buddy Size 317 0 5/30/2022 1.6 19000 7.5 2.6 $28.50 $10.91 $7.66 30% 0% 5.5 400 22%
Cake Low 890 435 7/26/2016 7.9 17500 6.4 13.6 $18.30 $0.00 $0.00 24% 0% 6.5 1 0%
Cid Trad 764 0 6/2/2021 3.4 19000 9.9 10.1 $26.00 $0.00 $0.00 22% 0% 4.5 1 0%
Coat Pfmn 896 53 5/16/2022 1.5 27000 17.4 10.9 $31.49 $12.87 $9.80 27% 37% 4.5 560 135%
Cure Size 750 97 6/2/2022 1.5 21000 9.6 2.6 $31.49 $11.36 $11.43 25% 41% 3.5 450 140%
Crispy High 676 99 6/9/2022 1.5 25000 16.1 3.9 $36.49 $13.44 $11.64 29% 51% 3.5 400 150%
Daze Low 4,304 539 1/21/2018 9.4 12000 5.7 14.3 $11.00 $4.28 $1.39 46% 100% 10.0 2,300 198%
Dixie Trad 3,311 106 9/16/2021 3.1 14000 9.4 10.8 $16.00 $6.78 $1.12 48% 0% 10.0 2,600 97%
Dot Pfmn 1,522 117 7/28/2022 1.4 27000 17.4 10.4 $31.00 $12.95 $4.47 43% 0% 7.0 1,800 55%
Dune Size 1,293 577 7/28/2022 1.4 21000 9.6 2.6 $31.00 $11.36 $4.47 46% 0% 7.0 1,800 91%
Done High 1,125 495 7/7/2022 1.5 25000 16.1 3.9 $36.00 $13.44 $5.76 44% 7% 6.0 1,400 106%
CAPSTONE® COURIER Page 4

5. Traditional Segment Analysis C66763 Round: 8
Dec. 31, 2022
Traditional Statistics
Total Industry Unit Demand 7,451
Actual Industry Unit Sales 7,451
Segment % of Total Industry 27.4%
Next Year's Segment Growth Rate 9.2%
Traditional Customer Buying Criteria
Expectations Importance
1. Age Ideal Age = 2.0 47%
2. Price $16.00 - 26.00 23%
3. Ideal Position Pfmn 10.6 Size 9.4 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
Able 45% 3,379 7/1/2021 10.0 10.0 $18.50 14012 2.89 $1,400 100% $3,000 78% 48
Dixie 44% 3,309 9/16/2021 9.4 10.8 $16.00 14000 3.06 $1,400 100% $3,000 85% 42
Cid 10% 764 6/2/2021 YES 9.9 10.1 $26.00 19000 3.37 $0 47% $0 33% 11
CAPSTONE® COURIER Page 5

6. Low End Segment Analysis C66763 Round: 8
Dec. 31, 2022
Low End Statistics
Total Industry Unit Demand 10,202
Actual Industry Unit Sales 10,202
Segment % of Total Industry 37.5%
Next Year's Segment Growth Rate 11.7%
Low End Customer Buying Criteria
Expectations Importance
1. Price $11.00 - 21.00 53%
2. Age Ideal Age = 7.0 24%
3. Ideal Position Pfmn 5.7 Size 14.3 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
Acre 42% 4,324 8/7/2020 5.0 15.0 $11.00 12012 7.49 $1,400 100% $3,000 86% 86
Daze 42% 4,304 1/21/2018 5.7 14.3 $11.00 12000 9.37 $1,400 100% $3,000 84% 89
Cake 9% 890 7/26/2016 6.4 13.6 $18.30 17500 7.93 $0 58% $0 42% 20
Baker 7% 682 3/29/2022 6.7 13.1 $16.00 18000 2.24 $600 76% $700 51% 16
Dixie 0% 2 9/16/2021 9.4 10.8 $16.00 14000 3.06 $1,400 100% $3,000 84% 1
CAPSTONE® COURIER Page 6

7. High End Segment Analysis C66763 Round: 8
Dec. 31, 2022
High End Statistics
Total Industry Unit Demand 3,501
Actual Industry Unit Sales 3,501
Segment % of Total Industry 12.9%
Next Year's Segment Growth Rate 16.2%
High End Customer Buying Criteria
Expectations Importance
1. Ideal Position Pfmn 16.1 Size 3.9 43%
2. Age Ideal Age = 0.0 29%
3. Reliability MTBF 20000-25000 19%
4. Price $26.00 - 36.00 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
Done 32% 1,125 7/7/2022 16.1 3.9 $36.00 25000 1.50 $1,400 100% $3,000 83% 75
Ahead 26% 900 3/6/2022 YES 15.3 4.8 $36.00 25000 1.63 $1,400 100% $1,500 79% 48
Aid 23% 800 2/22/2022 YES 16.1 3.9 $36.00 25000 1.15 $2,000 82% $1,500 79% 64
Crispy 19% 676 6/9/2022 16.1 3.9 $36.49 25000 1.47 $1,500 80% $2,000 47% 44
CAPSTONE® COURIER Page 7

8. Performance Segment Analysis C66763 Round: 8
Dec. 31, 2022
Performance Statistics
Total Industry Unit Demand 3,021
Actual Industry Unit Sales 3,021
Segment % of Total Industry 11.1%
Next Year's Segment Growth Rate 19.8%
Performance Customer Buying Criteria
Expectations Importance
1. Reliability MTBF 22000-27000 43%
2. Ideal Position Pfmn 17.4 Size 10.4 29%
3. Price $21.00 - 31.00 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
Dot 50% 1,522 7/28/2022 17.4 10.4 $31.00 27000 1.43 $1,400 100% $3,000 83% 81
Coat 30% 896 5/16/2022 17.4 10.9 $31.49 27000 1.53 $1,500 86% $2,000 44% 46
Bold 20% 603 6/11/2022 YES 17.4 12.9 $26.00 27000 1.63 $1,200 94% $2,000 45% 41
CAPSTONE® COURIER Page 8

9. Size Segment Analysis C66763 Round: 8
Dec. 31, 2022
Size Statistics
Total Industry Unit Demand 3,009
Actual Industry Unit Sales 3,009
Segment % of Total Industry 11.1%
Next Year's Segment Growth Rate 18.3%
Size Customer Buying Criteria
Expectations Importance
1. Ideal Position Pfmn 9.6 Size 2.6 43%
2. Age Ideal Age = 1.5 29%
3. Reliability MTBF 16000-21000 19%
4. Price $21.00 - 31.00 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 43% 1,293 7/28/2022 9.6 2.6 $31.00 21000 1.42 $1,400 100% $3,000 81% 100
Cure 25% 750 6/2/2022 9.6 2.6 $31.49 21000 1.47 $1,500 86% $2,000 41% 58
Ajar 22% 650 1/19/2022 YES 9.4 2.7 $31.00 21000 1.42 $2,000 76% $3,000 51% 66
Buddy 11% 317 5/30/2022 YES 7.5 2.6 $28.50 19000 1.57 $1,500 98% $2,000 42% 21
CAPSTONE® COURIER Page 9

10. Market Share C66763
Round: 8
Dec. 31, 2022
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 7,451 10,202 3,501 3,021 3,009 27,183 Units Demanded 7,451 10,202 3,501 3,021 3,009 27,183
% of Market 27.4% 37.5% 12.9% 11.1% 11.1% 100.0% % of Market 27.4% 37.5% 12.9% 11.1% 11.1% 100.0%
Able 45.3% 12.4% Able 44.3% 12.1%
Acre 42.4% 15.9% Acre 42.4% 15.9%
Aid 22.9% 2.9% Aid 24.7% 3.2%
Ahead 25.7% 3.3% Ahead 26.1% 3.4%
Ajar 21.6% 2.4% Ajar 24.7% 2.7%
Total 45.3% 42.4% 48.6% 21.6% 37.0% Total 44.3% 42.4% 50.8% 24.7% 37.3%
Baker 6.7% 2.5% Baker 6.7% 2.5%
Bold 20.0% 2.2% Bold 25.8% 2.9%
Buddy 10.5% 1.2% Buddy 10.5% 1.2%
Total 6.7% 20.0% 10.5% 5.9% Total 6.7% 25.8% 10.5% 6.5%
Cake 8.7% 3.3% Cake 8.7% 3.3%
Cid 10.2% 2.8% Cid 12.2% 3.3%
Coat 29.6% 3.3% Coat 27.5% 3.1%
Cure 24.9% 2.8% Cure 23.8% 2.6%
Crispy 19.3% 2.5% Crispy 18.5% 2.4%
Total 10.2% 8.7% 19.3% 29.6% 24.9% 14.6% Total 12.2% 8.7% 18.5% 27.5% 23.8% 14.7%
Daze 42.2% 15.8% Daze 42.2% 15.8%
Dixie 44.4% 12.2% Dixie 43.5% 11.9%
Dot 50.4% 5.6% Dot 46.7% 5.2%
Dune 42.9% 4.8% Dune 41.0% 4.5%
Done 32.1% 4.1% Done 30.7% 4.0%
Total 44.4% 42.2% 32.1% 50.4% 42.9% 42.5% Total 43.5% 42.2% 30.7% 46.7% 41.0% 41.4%
CAPSTONE® COURIER Page 10

11. Perceptual Map C66763
Round: 8
Dec. 31, 2022
Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 10.0 10.0 7/1/2021 Baker 6.7 13.1 3/29/2022 Cake 6.4 13.6 7/26/2016
Acre 5.0 15.0 8/7/2020 Bold 17.4 12.9 6/11/2022 Cid 9.9 10.1 6/2/2021
Aid 16.1 3.9 2/22/2022 Buddy 7.5 2.6 5/30/2022 Coat 17.4 10.9 5/16/2022
Ahead 15.3 4.8 3/6/2022 Cure 9.6 2.6 6/2/2022
Ajar 9.4 2.7 1/19/2022 Crispy 16.1 3.9 6/9/2022
Digby
Name Pfmn Size Revised
Daze 5.7 14.3 1/21/2018
Dixie 9.4 10.8 9/16/2021
Dot 17.4 10.4 7/28/2022
Dune 9.6 2.6 7/28/2022
Done 16.1 3.9 7/7/2022
CAPSTONE® COURIER Page 11

12. HR/TQM Report C66763
Round: 8
Dec. 31, 2022
HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby
Needed Complement 619 67 295 453
Complement 619 67 295 453
1st Shift Complement 469 67 207 403
2nd Shift Complement 150 0 88 50
Overtime Percent 0.0% 0.0% 0.0% 0.1%
Turnover Rate 7.3% 9.6% 10.0% 6.3%
New Employees 45 6 30 29
Separated Employees 163 171 635 6
Recruiting Spend $0 $510 $0 $5,000
Training Hours 70 10 0 80
Productivity Index 115.7% 102.0% 100.0% 124.2%
Recruiting Cost $45 $10 $30 $172
Separation Cost $815 $855 $3,175 $30
Training Cost $867 $13 $0 $725
Total HR Admin Cost $1,727 $878 $3,205 $927
Labor Contract Next Year
Wages $31.04 $31.04 $31.04 $31.04
Benefits 2,500 2,500 2,500 2,500
Profit Sharing 2.0% 2.0% 2.0% 2.0%
Annual Raise 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
Process Mgt Budgets Last Year
CPI Systems $0 $0 $0 $0
Vendor/JIT $0 $0 $0 $0
Quality Initiative Training $0 $0 $0 $0
Channel Support Systems $0 $0 $1,500 $0
Concurrent Engineering $0 $0 $0 $0
UNEP Green Programs $0 $0 $1,000 $0
TQM Budgets Last Year
Benchmarking $0 $0 $0 $1
Quality Function Deployment Effort $0 $0 $1,500 $1
CCE/6 Sigma Training $0 $0 $0 $0
GEMI TQEM Sustainability Initiatives $0 $0 $0 $1
Total Expenditures $0 $0 $4,000 $3
Cumulative Impacts
Material Cost Reduction 7.73% 8.79% 11.77% 11.79%
Labor Cost Reduction 6.21% 8.61% 14.00% 13.96%
Reduction R&D Cycle Time 37.15% 36.31% 36.31% 40.01%
Reduction Admin Costs 55.78% 59.18% 58.97% 60.02%
Demand Increase 12.21% 7.20% 13.33% 14.40%
CAPSTONE® COURIER Page 12

13. Ethics Report C66763
Round: 8
Dec. 31, 2022
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
Total
Other (Fees, Writeoffs, etc.) $0 $0 $0 $0 $0
Demand Factor 100% 100% 100% 100% 100%
Material Cost Impact 100% 100% 100% 100% 100%
Admin Cost Impact 100% 100% 100% 100% 100%
Productivity Impact 100% 100% 100% 100% 100%
Awareness Impact 100% 100% 100% 100% 100%
Accessibility Impact 100% 100% 100% 100% 100%
CAPSTONE® COURIER Page 13

15. Annual Report
Annual Report Digby C66763
Round: 8
Dec. 31, 2022
Balance Sheet
DEFINITIONS: CommonSize: 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. LongTerm Debt: The company's long
term debt is in the form of bonds, and this
represents the total value of your bonds.
CommonStock: The amount of capital
invested by shareholders in the company.
RetainedEarnings: The profits that the
company chose to keep instead of paying to
shareholders as dividends.
ASSETS 2022
Common
Size
2021
Cash $2,818 0.9% $0
Account Receivable $37,488 12.1% $27,712
Inventory $24,714 8.0% $27,721
Total Current Assets $65,020 21.0% $55,433
Plant & Equipment $389,800 126.0% $389,800
Accumulated Depreciation ($145,353) -47.0% ($119,367)
Total Fixed Assets $244,447 79.0% $270,433
Total Assets $309,467 100.0% $325,866
LIABILITIES & OWNER'S
EQUITY
Accounts Payable $9,725 3.1% $10,189
Current Debt $0 0.0% $8,353
Long Term Debt $135,872 43.9% $135,872
Total Liabilities $145,597 47.0% $154,414
Common Stock $58,653 19.0% $63,473
Retained Earnings $105,217 34.0% $107,979
Total Equity $163,870 53.0% $171,452
Total Liab. & O. Equity $309,467 100.0% $325,866
Cash Flow StatementThe CashFlow 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 2022 2021
NetIncome(Loss) $25,136 $22,627
Depreciation $25,987 $25,987
Extraordinary gains/losses/writeoffs $0 $0
Accounts Payable ($464) ($2,059)
Inventory $3,007 ($6,680)
Accounts Receivable ($9,776) $1,852
Net cash from operation $43,889 $41,727
Cash Flows from Investing Activities
Plant Improvements $0 ($48,300)
Cash Flows from Financing Activities
Dividends Paid ($19,698) $0
Sales of Common Stock $0 $0
Purchase of Common Stock ($13,020) $0
Cash from long term debt $0 $21,000
Retirement of long term debt $0 $0
Change in current debt(net) ($8,353) ($14,427)
Net Cash from financing activities ($41,071) $6,573
Net Change in cash position $2,818 $0
Closing cash position $2,818 $0
Annual Report Page 15

16. Annual Report Digby C66763
Round: 8
Dec. 31, 2022
2022 Income Statement
(Product Name) Daze NA Dixie Dot Dune Done NA NA
2022
Total
Common
Size
Sales $47,346 $0 $52,976 $47,172 $40,069 $40,488 $0 $0 $228,051 100.0%
Variable Costs:
Direct Labor $5,959 $0 $3,922 $7,030 $5,830 $6,513 $0 $0 $29,254 12.8%
Direct Material $19,127 $0 $23,401 $19,775 $14,661 $15,111 $0 $0 $92,075 40.4%
Inventory Carry $377 $0 $105 $246 $1,097 $1,141 $0 $0 $2,966 1.3%
Total Variable $25,463 $0 $27,428 $27,051 $21,588 $22,765 $0 $0 $124,295 54.5%
Contribution Margin $21,884 $0 $25,548 $20,120 $18,481 $17,723 $0 $0 $103,756 45.5%
Period Costs:
Depreciation $7,053 $0 $7,973 $4,080 $4,080 $2,800 $0 $0 $25,987 11.4%
SG&A: R&D $0 $0 $0 $578 $578 $521 $0 $0 $1,678 0.7%
Promotions $1,400 $0 $1,400 $1,400 $1,400 $1,400 $0 $0 $7,000 3.1%
Sales $3,000 $0 $3,000 $3,000 $3,000 $3,000 $0 $0 $15,000 6.6%
Admin $325 $0 $364 $324 $275 $278 $0 $0 $1,565 0.7%
Total Period $11,778 $0 $12,737 $9,382 $9,333 $7,999 $0 $0 $51,230 22.5%
Net Margin $10,105 $0 $12,811 $10,738 $9,148 $9,724 $0 $0 $52,526 23.0%
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, LongTerm 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: EBITminus interest, taxes, and profit sharing.
Other $198 0.1%
EBIT $52,328 22.9%
Short Term Interest $0 0.0%
Long Term Interest $12,868 5.6%
Taxes $13,811 6.1%
Profit Sharing $513 0.2%
Net Profit $25,136 11.0%
Annual Report Page 16