Round: 1

Dec. 31, 2015

C65234

Andrews
Team A6

Baldwin

Chester
Team A7

Digby
Team A8

Erie
Team A9

Ferris
Team A10

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
-2.0%
0.93
-1.9%

Baldwin
3.8%
1.02
3.9%

Chester
2.8%
0.96
2.7%

Digby
1.4%
0.93
1.3%

Erie
4.7%
1.09
5.1%

Ferris
0.5%
0.99
0.5%

2.1

2.4

2.2

2.2

2.1

2.4

-3.8%
$0
$114,253,990
$3,341,653
($2,279,126)
$1,909,382
11.5%
22.9%

9.3%
$0
$118,941,143
$14,462,136
$4,569,296
$8,757,803
12.0%
30.7%

6.0%
$13,675,102
$109,648,794
$12,348,652
$3,048,430
$7,236,937
9.1%
28.1%

2.9%
$11,522,635
$102,673,338
$9,571,054
$1,427,648
$5,616,155
10.2%
27.9%

10.9%
$0
$124,341,991
$15,575,158
$5,837,569
$10,026,076
9.9%
28.6%

1.2%
$0
$114,613,166
$8,466,758
$572,941
$4,761,448
10.9%
26.8%

Page 1

Stock & Bonds

Round: 1
Dec. 31, 2015

C65234
Stock Market Summary

Close

Change

Shares

Andrews
Baldwin
Chester
Digby
Erie

$28.07
$39.30
$29.42
$27.25
$41.83

($6.18)
$5.04
($4.83)
($7.00)
$7.58

2,399,957
2,000,000
2,000,000
2,000,000
2,000,000

MarketCap
($M)
$67
$79
$59
$55
$84

Ferris

$31.31

($2.95)

2,000,000

$63

Company

Book Value

EPS

Dividend

Yield

P/E

$24.73
$24.52
$25.50
$24.68
$26.89

($0.95)
$2.28
$1.52
$0.71
$2.92

$0.00
$1.73
$0.00
$0.00
$0.00

0.0%
4.4%
0.0%
0.0%
0.0%

-29.6
17.2
19.3
38.1
14.3

$24.26

$0.29

$0.00

0.0%

108.9

Bond Market Summary

Company
Andrews

Series#

Face

Yield

Close$

11.0S2016
12.5S2018
14.0S2020
11.3S2025

$6,950,000
$13,900,000
$20,850,000
$10,000,000

11.1%
12.3%
13.0%
11.7%

99.20
101.44
107.59
96.60

11.0S2016
12.5S2018
14.0S2020

$5,623,149
$13,900,000
$20,850,000

11.2%
12.5%
13.3%

98.58
99.76
104.97

11.0S2016
12.5S2018
14.0S2020

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

11.1%
12.4%
13.2%

98.84
100.48
106.08

Baldwin

Chester

S&P Company
Digby
B
B
B
B
Erie
CC
CC
CC
Ferris
CCC
CCC
CCC

Series#

Face

Yield

Close$

S&P

11.0S2016
12.5S2018
14.0S2020
11.3S2025

$6,950,000
$13,900,000
$20,850,000
$920,000

11.1%
12.4%
13.2%
12.0%

98.84
100.48
106.08
94.42

CCC
CCC
CCC
CCC

11.0S2016
12.5S2018
14.0S2020

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

11.1%
12.4%
13.1%

99.02
100.96
106.83

CCC
CCC
CCC

11.0S2016
12.5S2018
14.0S2020
11.3S2025

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

11.2%
12.5%
13.3%
12.2%

98.58
99.76
104.97
92.83

CC
CC
CC
CC

Next Year's Prime Rate 7.50%

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

C65234

Round: 1
Dec. 31, 2015

Andrews

Baldwin

Chester

Digby

Erie

Ferris

($2,279)

$4,569

$3,048

$1,428

$5,838

$573

$8,460
$0

$7,597
$140

$8,493
$0

$8,520
$60

$7,587
$0

$8,760
$0

$2,062
($20,592)
($1,083)
($13,432)

($80)
$2,551
($1,469)
$13,308

$914
($15,260)
($705)
($3,509)

$189
($10,681)
($131)
($616)

$1,853
($16,878)
($1,912)
($3,513)

$132
$1,317
($1,113)
$9,670

($13,100)

($3,240)

($13,600)

($15,260)

$0

($17,600)

$0
$13,700
$0
$10,000
$0
$0
$3,000
$0

($3,465)
$0
$0
$0
($1,320)
$0
$20,343
$0

$0
$0
$0
$0
$0
$0
$0
$13,675

$0
$0
$0
$920
$0
$0
$0
$11,523

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

$0
$0
$0
$18,994
$0
$0
$0
$0

$26,700

$15,558

$13,675

$12,443

$10,000

$18,994

Net change in cash position

Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

$168
Andrews
$3,601
$9,391
$29,209
$42,202

$25,626
Baldwin
$29,060
$9,776
$6,067
$44,903

($3,434)
Chester
$0
$9,012
$23,877
$32,890

($3,434)
Digby
$0
$8,439
$19,298
$27,737

$6,487
Erie
$9,921
$10,220
$25,495
$45,636

$11,064
Ferris
$14,497
$9,420
$7,300
$31,218

Plant and equipment

Accumulated Depreciation
Total Fixed Assets

$126,900
($46,393)
$80,507

$113,960
($42,597)
$71,363

$127,400
($46,427)
$80,973

$127,800
($45,253)
$82,547

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

$131,400
($46,693)
$84,707

Total Assets

$122,708

$116,265

$113,863

$110,284

$113,916

$115,924

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$8,645
$3,000
$51,700
$63,345

$6,503
$20,343
$40,373
$67,219

$7,498
$13,675
$41,700
$62,873

$6,772
$11,523
$42,620
$60,915

$8,436
$10,000
$41,700
$60,136

$6,715
$0
$60,694
$67,409

Common Stock
Retained Earnings
Total Equity

$32,060
$27,303
$59,363

$18,360
$30,687
$49,046

$18,360
$32,631
$50,990

$18,360
$31,010
$49,369

$18,360
$35,420
$53,779

$18,360
$30,155
$48,515

Total Liabilities & Owners'' Equity

$122,708

$116,265

$113,863

$110,284

$113,916

$115,924

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
$114,254
$88,100
$8,460
$13,167
$1,185
$3,342
$6,848
($1,227)
$0
($2,279)

Baldwin
$118,941
$82,397
$7,597
$14,325
$160
$14,462
$7,289
$2,511
$93
$4,569

Chester
$109,649
$78,826
$8,493
$9,981
$0
$12,349
$7,563
$1,675
$62
$3,048

Digby
$102,673
$74,027
$8,520
$10,450
$106
$9,571
$7,330
$784
$29
$1,428

Erie
$124,342
$88,825
$7,587
$12,355
$0
$15,575
$6,411
$3,207
$119
$5,838

Ferris
$114,613
$83,898
$8,760
$12,539
$950
$8,467
$7,567
$315
$12
$573

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

C65234

Production Analysis

Name
Able
Acre
Adam
Aft
Agape

Primary
Segment
Trad
Low
High
Pfmn
Size

Units
Sold
1,848
1,627
302
357
311

Unit
Inven
tory
718
392
144
107
128

Baker
Bead
Bid
Bold
Buddy

Trad
Low
High
Pfmn
Size

1,196
1,821
533
423
408

Cake
Cedar
Cid
Coat
Cure

Trad
Low
High
Pfmn
Size

Daze
Dell
Dixie
Dot
Dune

Price
$25.00
$21.00
$38.00
$34.00
$33.00

Material
Cost
$10.85
$7.60
$14.84
$15.47
$13.73

Labor
Cost
$8.78
$7.68
$8.97
$8.97
$8.97

Contr.
Marg.
17%
25%
33%
25%
29%

2nd
Shift
&
Overtime
33%
43%
0%
0%
0%

15.3
17.0
11.1
14.5
11.2

$27.30
$21.50
$37.60
$33.00
$32.15

$10.17
$7.05
$15.91
$14.85
$12.64

$7.85
$7.44
$8.97
$8.97
$8.97

31%
31%
34%
25%
30%

0%
29%
0%
0%
0%

4.6
5.4
3.4
3.4
3.4

1,400 81%
1,400 127%
900 61%
600 66%
600 66%

5.5
3.0
8.4
9.4
4.0

15.0
17.0
11.5
15.5
10.6

$27.50
$20.00
$38.00
$33.00
$33.00

$10.40
$7.05
$15.30
$14.81
$12.87

$8.04
$7.03
$8.97
$8.97
$8.97

25%
28%
35%
24%
29%

6%
11%
0%
0%
0%

5.0
5.5
3.0
3.5
4.0

1,800 105%
1,400 110%
900 55%
600 59%
600 97%

17500
14000
23000
27000
19000

5.5
3.0
8.9
9.5
4.0

14.5
17.0
11.3
15.5
10.6

$28.00
$21.00
$38.00
$33.00
$33.00

$10.65
$7.05
$15.66
$15.48
$12.87

$7.85
$7.68
$8.98
$8.98
$8.98

20%
27%
35%
25%
32%

0%
43%
0%
0%
0%

4.0
6.0
3.0
3.0
3.0

1,800 66%
1,800 141%
700 58%
600 78%
600 66%

2.5
5.6
1.6
3.5
2.2

17500
14000
23000
25000
19000

5.6
3.0
9.0
9.4
4.0

14.3
17.0
11.5
15.5
10.6

$27.50
$21.50
$37.75
$33.00
$34.50

$10.80
$7.05
$15.61
$14.81
$12.87

$8.22
$7.68
$8.97
$8.97
$8.97

25%
29%
33%
23%
35%

11%
43%
0%
0%
0%

4.0
5.0
3.0
3.0
3.0

1,800 110%
1,400 141%
900 72%
600 68%
600 68%

2.4
5.6
1.5
1.9
1.9

19000
14000
23000
27000
19000

5.7
3.0
8.9
10.4
4.7

14.3
17.0
11.1
15.3
9.6

$28.00
$19.00
$38.00
$32.50
$33.00

$11.30
$7.05
$15.76
$16.13
$13.73

$7.85
$7.59
$8.97
$8.97
$8.97

30%
21%
35%
24%
29%

0%
37%
0%
0%
0%

4.0
6.0
3.0
3.0
3.0

1,800 74%
1,800 136%
900 35%
600 71%
600 69%

Revision Date
3/17/2015
8/14/2015
4/19/2013
7/10/2015
11/18/2015

Age
Dec.31
2.4
3.0
2.7
2.0
1.9

MTBF
17500
14000
23000
25000
19000

Pfmn
Coord
5.7
3.0
8.0
10.4
4.7

Size
Coord
14.3
16.0
12.0
15.5
9.6

131
0
52
50
51

6/14/2015
5/25/2010
9/18/2015
7/24/2015
7/22/2015

2.3
5.6
1.5
2.0
2.0

17200
14000
23500
24000
18500

5.5
3.0
8.9
9.4
5.0

1,213
1,574
506
348
428

857
0
30
86
219

4/13/2015
5/25/2010
4/24/2015
6/29/2012
3/17/2015

2.4
5.6
1.7
3.5
2.2

17500
14000
23000
25000
19000

Trad
Low
High
Pfmn
Size

556
1,814
446
543
428

821
205
0
0
31

11/21/2011
5/25/2010
8/4/2015
3/18/2015
3/17/2015

4.1
5.6
1.6
2.1
2.2

Eat
Ebb
Echo
Edge
Egg

Trad
Low
High
Pfmn
Size

1,423
1,835
527
349
416

746
184
157
134
53

3/11/2015
5/25/2010
7/30/2015
6/29/2012
3/17/2015

Fast
Feat
Fist
Foam
Fume

Trad
Low
High
Pfmn
Size

1,331
1,940
357
497
326

195
0
0
7
152

4/7/2015
5/25/2010
9/10/2015
8/12/2015
11/18/2015

CAPSTONE COURIER

Round: 1
Dec. 31, 2015

Auto
mation
Next
Round
4.0
5.0
3.0
3.0
3.0

Capacity
Next Plant
Round Utiliz.
2,100 132%
1,650 141%
900 45%
600 64%
600 63%

Page 4

Traditional Segment Analysis

C65234

Round: 1
Dec. 31, 2015

Traditional Statistics
Total Industry Unit Demand

8,067

Actual Industry Unit Sales

8,067

Segment % of Total Industry

31.4%

Next Year's Segment Growth Rate

9.2%

Traditional Customer Buying Criteria

Expectations

Importance

1. Age

Ideal Age = 2.0

47%

2. Price

$19.50 - 29.50

23%

3. Ideal Position

Pfmn 5.7 Size 14.3

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

22%

1,797

3/17/2015

5.7

Eat

17%

1,365

3/11/2015

5.6

Fast

16%

1,268

4/7/2015

Cake

15%

1,173

Baker

14%

Daze

6%

Acre

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.3

$25.00

17500

2.45

$1,750

78%

$1,750

61%

48

14.3

$27.50

17500

2.45

$1,200

65%

$1,200

55%

36

5.7

14.3

$28.00

19000

2.42

$1,200

65%

$1,000

51%

37

4/13/2015

5.5

15.0

$27.50

17500

2.41

$1,000

58%

$1,000

50%

32

1,144

6/14/2015

5.5

15.3

$27.30

17200

2.32

$1,300

67%

$1,362

58%

36

523

11/21/2011

5.5

14.5

$28.00

17500

4.10

$1,000

58%

$1,000

50%

3%

264

8/14/2015

3.0

16.0

$21.00

14000

2.99

$1,000

56%

$1,000

61%

Bead

1%

94

5/25/2010

3.0

17.0

$21.50

14000

5.60

$1,300

65%

$1,362

58%

Ebb

1%

90

5/25/2010

3.0

17.0

$21.50

14000

5.60

$1,200

62%

$1,200

55%

Dell

1%

87

5/25/2010

3.0

17.0

$21.00

14000

5.60

$900

53%

$900

50%

Cedar

1%

83

5/25/2010

YES

3.0

17.0

$20.00

14000

5.60

$900

53%

$900

50%

Feat

1%

82

5/25/2010

YES

3.0

17.0

$19.00

14000

5.60

$900

53%

$1,200

51%

CAPSTONE COURIER

Date

Stock

YES

Page 5

Low End Segment Analysis

C65234

Round: 1
Dec. 31, 2015

Low End Statistics

Total Industry Unit Demand

10,009

Actual Industry Unit Sales

10,009

Segment % of Total Industry

39.0%

Next Year's Segment Growth Rate

11.7%

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 2.2 Size 17.8

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

YES

Name

Share

Seg

Feat

19%

1,858

5/25/2010

3.0

Ebb

17%

1,745

5/25/2010

3.0

Dell

17%

1,727

5/25/2010

Bead

17%

1,727

5/25/2010

Cedar

15%

1,491

5/25/2010

Acre

14%

1,363

8/14/2015

Baker

0%

40

Cake

0%

Daze
Able

List

Age

Price

MTBF

Dec.31

17.0

$19.00

14000

17.0

$21.50

14000

3.0

17.0

$21.00

YES

3.0

17.0

YES

3.0
3.0

6/14/2015

29

0%
0%

Eat
Fast

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Budget

ness

Budget

ibility

Survey

5.60

$900

53%

$1,200

38%

22

5.60

$1,200

62%

$1,200

38%

15

14000

5.60

$900

53%

$900

33%

15

$21.50

14000

5.60

$1,300

65%

$1,362

40%

16

17.0

$20.00

14000

5.60

$900

53%

$900

34%

18

16.0

$21.00

14000

2.99

$1,000

56%

$1,000

36%

5.5

15.3

$27.30

17200

2.32

$1,300

67%

$1,362

40%

4/13/2015

5.5

15.0

$27.50

17500

2.41

$1,000

58%

$1,000

34%

16

11/21/2011

5.5

14.5

$28.00

17500

4.10

$1,000

58%

$1,000

33%

3/17/2015

5.7

14.3

$25.00

17500

2.45

$1,750

78%

$1,750

36%

0%

3/11/2015

5.6

14.3

$27.50

17500

2.45

$1,200

65%

$1,200

38%

0%

4/7/2015

5.7

14.3

$28.00

19000

2.42

$1,200

65%

$1,000

38%

CAPSTONE COURIER

Page 6

High End Segment Analysis

C65234

Round: 1
Dec. 31, 2015

High End Statistics

Total Industry Unit Demand

2,967

Actual Industry Unit Sales

2,967

Segment % of Total Industry

11.6%

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 9.8 Size 10.2

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

Bid

18%

533

9/18/2015

8.9

Echo

18%

527

7/30/2015

9.0

Cid

17%

506

4/24/2015

Dixie

15%

446

8/4/2015

Fist

12%

357

9/10/2015

Adam

10%

302

4/19/2013

Bold

4%

104

7/24/2015

Dot

1%

30

3/18/2015

Edge

1%

25

Coat

1%

24

Foam

1%

Fast

1%

CAPSTONE COURIER

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

11.1

$37.60

23500

1.49

$1,250

62%

$1,362

49%

26

11.5

$37.75

23000

1.56

$1,300

63%

$1,300

48%

22

8.4

11.5

$38.00

23000

1.69

$800

48%

$800

41%

14

YES

8.9

11.3

$38.00

23000

1.55

$1,100

57%

$900

42%

21

YES

8.9

11.1

$38.00

23000

1.50

$1,000

54%

$500

37%

21

8.0

12.0

$38.00

23000

2.70

$800

48%

$800

39%

9.4

14.5

$33.00

24000

1.97

$900

49%

$654

49%

9.5

15.5

$33.00

27000

2.14

$700

42%

$700

42%

6/29/2012

9.4

15.5

$33.00

25000

3.50

$700

42%

$700

48%

6/29/2012

9.4

15.5

$33.00

25000

3.50

$700

42%

$700

41%

22

8/12/2015

10.4

15.3

$32.50

27000

1.94

$950

50%

$700

37%

21

4/7/2015

5.7

14.3

$28.00

19000

2.42

$1,200

65%

$1,000

37%

YES

Page 7

Performance Segment Analysis

C65234

Round: 1
Dec. 31, 2015

Performance Statistics
Total Industry Unit Demand

2,294

Actual Industry Unit Sales

2,294

Segment % of Total Industry

8.9%

Next Year's Segment Growth Rate

19.8%

Performance Customer Buying Criteria

Expectations

Importance

1. Reliability

MTBF 22000-27000

43%

2. Ideal Position

Pfmn 10.4 Size 15.3

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

Stock

Pfmn

Size

Coord

Coord

Name

Share

Seg

Date

Out

Dot

22%

512

3/18/2015

YES

9.5

Foam

21%

475

8/12/2015

10.4

Aft

15%

340

7/10/2015

Edge

14%

324

Coat

14%

Bold

13%

Fast

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

15.5

$33.00

27000

2.14

$700

42%

$700

29%

27

15.3

$32.50

27000

1.94

$950

50%

$700

29%

33

10.4

15.5

$34.00

25000

1.99

$600

40%

$700

29%

19

6/29/2012

9.4

15.5

$33.00

25000

3.50

$700

42%

$700

29%

15

324

6/29/2012

9.4

15.5

$33.00

25000

3.50

$700

42%

$700

29%

15

308

7/24/2015

9.4

14.5

$33.00

24000

1.97

$900

49%

$654

29%

13

0%

4/7/2015

5.7

14.3

$28.00

19000

2.42

$1,200

65%

$1,000

29%

Able

0%

3/17/2015

5.7

14.3

$25.00

17500

2.45

$1,750

78%

$1,750

29%

Cake

0%

4/13/2015

5.5

15.0

$27.50

17500

2.41

$1,000

58%

$1,000

29%

Baker

0%

6/14/2015

5.5

15.3

$27.30

17200

2.32

$1,300

67%

$1,362

29%

Eat

0%

3/11/2015

5.6

14.3

$27.50

17500

2.45

$1,200

65%

$1,200

29%

CAPSTONE COURIER

Page 8

Size Segment Analysis

C65234

Round: 1
Dec. 31, 2015

Size Statistics
Total Industry Unit Demand

2,347

Actual Industry Unit Sales

2,347

Segment % of Total Industry

9.1%

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 4.7 Size 9.6

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

Cure

18%

427

3/17/2015

4.0

Dune

18%

427

3/17/2015

4.0

Egg

18%

415

3/17/2015

Fume

14%

322

Buddy

13%

Agape

13%

Able

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

10.6

$33.00

19000

2.20

$700

42%

$700

34%

17

10.6

$33.00

19000

2.20

$700

42%

$700

34%

17

4.0

10.6

$34.50

19000

2.20

$700

42%

$700

35%

17

11/18/2015

4.7

9.6

$33.00

19000

1.85

$1,000

52%

$700

34%

36

312

7/22/2015

5.0

11.2

$32.15

18500

2.02

$900

49%

$708

36%

14

307

11/18/2015

4.7

9.6

$33.00

19000

1.85

$700

42%

$700

37%

34

2%

40

3/17/2015

5.7

14.3

$25.00

17500

2.45

$1,750

78%

$1,750

37%

Eat

2%

38

3/11/2015

5.6

14.3

$27.50

17500

2.45

$1,200

65%

$1,200

35%

Fast

2%

35

4/7/2015

5.7

14.3

$28.00

19000

2.42

$1,200

65%

$1,000

34%

Daze

0%

10

11/21/2011

5.5

14.5

$28.00

17500

4.10

$1,000

58%

$1,000

34%

Baker

0%

6/14/2015

5.5

15.3

$27.30

17200

2.32

$1,300

67%

$1,362

36%

Cake

0%

4/13/2015

5.5

15.0

$27.50

17500

2.41

$1,000

58%

$1,000

34%

CAPSTONE COURIER

Page 9

Market Share

C65234

Actual Market Share in Units

Trad
8,067
31.4%

Low
10,009
39.0%

Able
Acre
Adam
Aft
Agape
Total

22.3%
3.3%

13.6%

25.6%

13.7%

10.9%

Baker
Bead
Bid
Bold
Buddy
Total

14.2%
1.2%

0.4%
17.2%

0.1%

0.1%
1.0%
16.4%

17.7%

Cake
Cedar
Cid
Coat
Cure
Total

14.5%
1.0%

0.3%
14.9%

15.6%

15.2%

18.0%

Daze
Dell
Dixie
Dot
Dune
Total

6.5%
1.1%

0.2%
17.3%

0.2%

7.6%

17.4%

Eat
Ebb
Echo
Edge
Egg
Total

16.9%
1.1%

17.4%

18.0%

17.5%

Fast
Feat
Fist
Foam
Fume
Total

15.7%
1.0%

18.6%

Industry Unit Sales

% of Market

High
2,967
11.6%

18.0%
3.5%
0.6%
22.2%

14.8%
14.9%

15.0%
1.0%
16.3%

13.4%
13.5%

14.1%
14.2%

18.2%
18.4%
0.4%

22.3%
22.4%

18.2%
18.7%
1.6%

14.1%

19.1%

14.2%

17.7%
19.3%

0.7%

0.2%

1.5%

12.0%
0.7%
18.6%

13.3%
13.6%
0.2%

0.5%
17.8%
0.9%

13.1%
14.8%
0.3%

0.1%
17.1%
0.8%

CAPSTONE COURIER

Size
2,347
9.1%
1.7%

10.2%
0.6%

16.8%

Pfmn
2,294
8.9%

13.5%

20.7%
20.9%

13.7%
15.2%

Round: 1
Dec. 31, 2015

Potential Market Share in Units

Total
25,684 Units Demanded
100.0% % of Market

Trad
8,067
31.4%

Low
10,009
39.0%

12.1%

7.2%
6.3%
1.2%
1.4%
1.2%
17.3%

Able
Acre
Adam
Aft
Agape
Total

22.2%
3.3%

25.5%

12.2%

4.7%
7.1%
2.1%
1.7%
1.6%
17.1%

Baker
Bead
Bid
Bold
Buddy
Total

14.1%
1.2%

0.3%
16.0%

1.0%
16.4%

16.4%

4.7%
6.1%
2.0%
1.3%
1.7%
15.8%

Cake
Cedar
Cid
Coat
Cure
Total

14.5%
1.2%

0.3%
18.2%

15.7%

18.4%

2.2%
7.1%
1.7%
2.1%
1.7%
14.7%

Daze
Dell
Dixie
Dot
Dune
Total

6.4%
1.1%

15.2%

7.5%

15.3%

5.5%
7.1%
2.1%
1.4%
1.6%
17.7%

Eat
Ebb
Echo
Edge
Egg
Total

16.9%
1.1%

15.3%

18.0%

15.3%

5.2%
7.5%
1.4%
1.9%
1.3%
17.3%

Fast
Feat
Fist
Foam
Fume
Total

15.7%
1.2%

22.4%

16.9%

High
2,967
11.6%

Pfmn
2,294
8.9%

10.0%
0.6%

14.7%

10.7%

14.8%

Total
25,684
100.0%

1.7%

7.2%
5.7%
1.2%
1.4%
1.2%
16.6%

13.1%
14.8%
0.3%

17.1%
3.3%
0.6%
21.2%

13.3%
13.4%

13.3%
13.6%
0.2%

16.6%
0.8%

14.0%

17.5%

14.1%

0.2%

18.2%
18.4%
0.4%

15.7%
1.0%

23.0%

16.9%

23.0%

0.5%

22.4%

Size
2,347
9.1%

18.2%
18.7%
1.6%

17.0%
0.8%

14.0%

18.3%

14.1%

17.7%
19.3%

0.7%

0.2%

1.5%

13.9%
0.7%

20.5%

15.3%

20.7%

13.7%
15.2%

4.6%
6.6%
2.0%
1.6%
1.6%
16.4%
4.7%
7.5%
1.9%
1.3%
1.7%
17.1%
2.1%
6.2%
1.8%
2.2%
1.7%
14.0%
5.5%
6.3%
2.0%
1.4%
1.6%
16.8%
5.2%
9.1%
1.6%
1.9%
1.3%
19.1%

Page 10

Perceptual Map

C65234

Andrews
Name
Able
Acre
Adam
Aft
Agape

Pfmn
5.7
3.0
8.0
10.4
4.7

Name
Daze
Dell
Dixie
Dot
Dune

Pfmn
5.5
3.0
8.9
9.5
4.0

Size
14.3
16.0
12.0
15.5
9.6

Baldwin
Revised
3/17/2015
8/14/2015
4/19/2013
7/10/2015
11/18/2015

Name
Baker
Bead
Bid
Bold
Buddy

Pfmn
5.5
3.0
8.9
9.4
5.0

Revised
11/21/2011
5/25/2010
8/4/2015
3/18/2015
3/17/2015

Name
Eat
Ebb
Echo
Edge
Egg

Pfmn
5.6
3.0
9.0
9.4
4.0

Digby

CAPSTONE COURIER

Size
14.5
17.0
11.3
15.5
10.6

Size
15.3
17.0
11.1
14.5
11.2

Chester
Revised
6/14/2015
5/25/2010
9/18/2015
7/24/2015
7/22/2015

Name
Cake
Cedar
Cid
Coat
Cure

Pfmn
5.5
3.0
8.4
9.4
4.0

Revised
3/11/2015
5/25/2010
7/30/2015
6/29/2012
3/17/2015

Name
Fast
Feat
Fist
Foam
Fume

Pfmn
5.7
3.0
8.9
10.4
4.7

Erie
Size
14.3
17.0
11.5
15.5
10.6

Round: 1
Dec. 31, 2015

Size
15.0
17.0
11.5
15.5
10.6

Revised
4/13/2015
5/25/2010
4/24/2015
6/29/2012
3/17/2015

Ferris
Size
14.3
17.0
11.1
15.3
9.6

Revised
4/7/2015
5/25/2010
9/10/2015
8/12/2015
11/18/2015

Page 11

HR/TQM Report

C65234

Round: 1
Dec. 31, 2015

HUMAN RESOURCES SUMMARY

Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
919
919
732
187

Baldwin
713
713
655
58

Chester
822
822
784
38

Digby
737
737
650
87

Erie
908
908
788
120

Ferris
729
729
654
75

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

0.0%
10.0%
311
0
$0
0
100.0%

0.0%
10.0%
84
0
$0
0
100.0%

0.0%
10.0%
204
0
$0
0
100.0%

0.0%
10.0%
111
0
$0
0
100.0%

0.0%
10.0%
299
0
$0
0
100.0%

0.0%
10.0%
102
0
$0
0
100.0%

$311
$0
$0
$311

$84
$0
$0
$84

$204
$0
$0
$204

$111
$0
$0
$111

$299
$0
$0
$299

$102
$0
$0
$102

$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

Annual Report
Annual Report

Andrews

C65234

Round: 1
Dec. 31, 2015

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

$42,201

2015
Common
Size
2.9%
7.7%
23.8%
34.4%

$3,434
$8,307
$8,617
$20,358

$80,507
$122,708

103.0%
-37.8%
65.6%
100.0%

$113,800
($37,933)
$75,867
$96,225

$63,345

7.0%
2.4%
42.1%
51.6%

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

$59,363
$122,708

26.1%
22.3%
48.4%
100.0%

$18,360
$29,582
$47,942
$96,225

$3,601
$9,391
$29,209

Plant & Equipment

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

$126,900
($46,393)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$8,645
$3,000
$51,700

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

$32,060
$27,303

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

NetIncome(Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable
Inventory
Accounts Receivable
Net cash from operation

2014

2015

2014

($2,279)

$4,189

$8,460

$7,587

$0

$0

$2,062

$3,583

($20,592)

($8,617)

($1,083)

($307)

($13,432)

$6,434

($13,100)

$0

Cash Flows from Investing Activities

Plant Improvements
Cash Flows from Financing Activities
Dividends Paid
Sales of Common Stock
Purchase of Common Stock
Cash from long term debt
Retirement of long term debt
Change in current debt(net)
Net Cash from financing activities
Net Change in cash position
Closing cash position

Annual Report

$0

($4,000)

$13,700

$0

$0

$0

$10,000

$0

$0

$0

$3,000

$0

$26,700

($4,000)

$168

$2,434

$3,601

$3,434

Page 13

Annual Report

Andrews

Round: 1
Dec. 31, 2015

C65234

2015 Income Statement

(Product Name)

$0

2015
Total
$114,254

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$37,171
$47,423
$3,505
$88,100

32.5%
41.5%
3.1%
77.1%

$0

$0

$0

$26,154

22.9%

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

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

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

$8,460
$2,257
$4,850
$4,950
$1,111
$21,627

7.4%
2.0%
4.2%
4.3%
1.0%
18.9%

$0

$0

$0

$4,527

4.0%

$1,185
$3,342
$297
$6,551
($1,227)
$0
($2,279)

1.0%
2.9%
0.3%
5.7%
-1.1%
0.0%
-2.0%

Able

Acre

Adam

Aft

Agape

NA

NA

NA

Sales

$46,189

$34,174

$11,493

$12,135

$10,262

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$16,039
$20,732
$1,714
$38,486

$12,482
$12,344
$717
$25,543

$2,702
$4,640
$419
$7,760

$3,177
$5,581
$315
$9,073

$2,771
$4,127
$340
$7,238

$0
$0
$0
$0

Contribution Margin

$7,703

$8,631

$3,733

$3,062

$3,025

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

$3,080
$209
$1,750
$1,750
$449
$7,238

$2,860
$627
$1,000
$1,000
$332
$5,819

$1,080
$0
$800
$800
$112
$2,792

$720
$529
$600
$700
$118
$2,667

$720
$892
$700
$700
$100
$3,112

$465

$2,812

$941

$396

($87)

Net Margin

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 14