Round: 2

Dec. 31, 2015

C58449

Andrews
Shantanu Bal
Sanjana Pattanshetti
Saravanan R
Shubham Rawat
Phaneendra Kumar
Sarvasidhi
Shobhit Saxena

Baldwin
Sourabh Barapatre
Suchi Datta
Swarup Krishna
Subha Mookherjee
Soubhagya Nayak
Shubhobrata Palit

Chester
Vikash Bhagat
TARUN GUPTA
swati kujur
U V HARISH TANARI
V K V S C Kumar Veluguri
Varun Yadav

Digby

Erie
Vineeth Chandra
Vishal Choudhary
Vineet Rai
Vivek Tomar
Vimal Vinoth
Rohit Wankhade

Ferris
Zeeshan Ali
Yatharth Chaudhary
Ankur Krishna
Anurag Minj
amit rajora
Anuj kumar Verma

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
-9.7%
0.92
-9.0%

Baldwin
1.6%
0.94
1.5%

Chester
-5.8%
0.96
-5.5%

Digby
2.0%
1.01
2.0%

Erie
-3.5%
0.90
-3.1%

Ferris
0.0%
1.03
0.0%

3.3

2.1

3.0

2.5

2.5

2.9

-29.3%
$7,537,202
$141,099,894
($8,178,096)
($13,712,669)
($17,590,531)
25.8%
28.5%

3.2%
$0
$146,506,342
$12,849,350
$2,374,162
$9,063,720
17.7%
34.3%

-16.5%
$0
$108,866,906
($542,980)
($6,278,174)
($5,615,966)
19.5%
27.9%

5.2%
$0
$135,652,191
$13,711,409
$2,744,984
$6,701,761
17.2%
33.9%

-7.9%
$6,453,934
$112,053,864
$2,776,513
($3,885,026)
($462,698)
21.4%
32.0%

0.0%
$0
$145,277,800
$11,113,603
$15,208
($2,395,391)
19.6%
35.7%

Page 1

Stock & Bonds

Round: 2
Dec. 31, 2015

C58449
Stock Market Summary

Close

Change

Shares

Andrews
Baldwin
Chester
Digby
Erie

$1.00
$33.44
$6.13
$25.29
$13.03

($15.11)
($2.22)
($5.23)
($0.52)
($10.10)

2,851,254
2,597,053
2,000,000
2,400,000
2,259,393

MarketCap
($M)
$3
$87
$12
$61
$29

Ferris

$16.21

$10.56

2,233,552

$36

Company

Book Value

EPS

Dividend

Yield

P/E

$16.40
$28.42
$19.07
$22.09
$21.82

($4.81)
$0.91
($3.14)
$1.14
($1.72)

$0.00
$0.00
$0.00
$0.00
$0.00

0.0%
0.0%
0.0%
0.0%
0.0%

-0.2
36.5
-1.9
22.1
-7.6

$22.10

$0.01

$0.00

0.0%

2075.8

Bond Market Summary

Company
Andrews

Series#

Face

Yield

Close$

12.5S2017
14.0S2019
11.3S2024
13.0S2025

$13,900,000
$20,850,000
$15,000,000
$30,000,000

12.8%
14.0%
13.0%
13.6%

97.69
100.29
87.09
95.29

12.5S2017
14.0S2019
11.3S2024
11.9S2025

$13,900,000
$20,850,000
$12,000,000
$20,000,000

12.5%
13.4%
12.1%
12.3%

100.00
104.51
93.73
96.68

12.5S2017
14.0S2019
12.9S2025

$13,900,000
$20,850,000
$15,000,000

12.8%
13.9%
13.5%

98.02
100.88
95.78

Baldwin

S&P Company
Digby
C
C
C
C
Erie
CCC
CCC
CCC
CCC Ferris

Chester
C
C
C

Series#

Face

Yield

Close$

S&P

12.5S2017
14.0S2019
11.3S2024
13.0S2025

$13,900,000
$20,850,000
$586,582
$11,910,310

12.7%
13.7%
12.6%
13.2%

98.67
102.07
89.85
98.39

CC
CC
CC
CC

12.5S2017
14.0S2019
12.3S2025

$13,900,000
$20,850,000
$15,000,000

12.7%
13.7%
13.0%

98.67
102.07
94.64

CC
CC
CC

12.5S2017
14.0S2019
11.3S2024
13.1S2025

$13,900,000
$20,850,000
$9,000,000
$35,138,000

12.7%
13.8%
12.8%
13.5%

98.18
101.17
88.46
97.35

C
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

C58449

Round: 2
Dec. 31, 2015

Andrews

Baldwin

Chester

Digby

Erie

Ferris

($13,713)

$2,374

($6,278)

$2,745

($3,885)

$15

$10,280
($193)

$9,720
$0

$6,267
$2,644

$7,893
$0

$8,480
($430)

$10,073
$376

($2,071)
$12,365
($1,119)
$5,549

$658
$3,776
($1,616)
$14,912

($3,978)
$37,991
($5,620)
$31,026

$1,384
$2,760
($2,593)
$12,190

($1,657)
($4,384)
$1,225
($652)

($2,790)
$17,670
($1,560)
$23,785

($30,620)

($20,000)

$2,036

($20,200)

($23,810)

($22,828)

$0
$7,600
$0
$30,000
$0
($25,066)
$5,000
$7,537

$0
$14,000
$0
$20,000
$0
$0
$0
$0

$0
$0
$0
$15,000
$0
($23,500)
$15,000
$0

$0
$10,324
$0
$11,910
$0
($20,343)
$20,042
$0

$0
$6,000
$0
$15,000
$0
($10,992)
$8,000
$6,454

$0
$0
$0
$35,138
$0
($30,756)
$0
$0

$25,071

$34,000

$6,500

$21,934

$24,462

$4,382

Net change in cash position

Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

$0
Andrews
$0
$11,597
$20,766
$32,363

$28,912
Baldwin
$46,200
$12,042
$1,633
$59,874

$39,562
Chester
$39,562
$13,422
$3,416
$56,399

$13,923
Digby
$35,716
$11,149
$6,567
$53,433

$0
Erie
$0
$10,745
$20,175
$30,919

$5,339
Ferris
$5,339
$11,941
$13,030
$30,310

Plant and equipment

Accumulated Depreciation
Total Fixed Assets

$173,800
($53,093)
$120,707

$145,800
($50,573)
$95,227

$101,200
($43,867)
$57,333

$129,400
($48,507)
$80,893

$142,800
($49,800)
$93,000

$161,500
($50,512)
$110,988

Total Assets

$153,070

$155,101

$113,733

$134,326

$123,919

$141,298

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$7,070
$19,487
$79,750
$106,307

$7,584
$6,950
$66,750
$81,284

$3,895
$21,950
$49,750
$75,595

$7,078
$26,992
$47,247
$81,316

$7,495
$17,383
$49,750
$74,629

$6,102
$6,950
$78,888
$91,940

$38,960
$7,803
$46,763

$39,360
$34,457
$73,817

$18,360
$19,778
$38,137

$28,684
$24,325
$53,009

$24,360
$24,931
$49,291

$26,360
$22,998
$49,358

Total Liabilities & Owners'' Equity

$153,070

$155,101

$113,733

$134,326

$123,919

$141,298

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
$141,100
$100,872
$10,280
$36,439
$1,687
($8,178)
$12,918
($7,384)
$0
($13,713)

Baldwin
$146,506
$96,240
$9,720
$25,997
$1,700
$12,849
$9,122
$1,304
$48
$2,374

Chester
$108,867
$78,527
$6,267
$21,222
$3,394
($543)
$9,116
($3,381)
$0
($6,278)

Digby
$135,652
$89,660
$7,893
$23,275
$1,112
$13,711
$9,402
$1,508
$56
$2,745

Erie
$112,054
$76,204
$8,480
$23,973
$620
$2,777
$8,753
($2,092)
$0
($3,885)

Ferris
$145,278
$93,472
$10,073
$28,486
$2,133
$11,114
$11,090
$8
$0
$15

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

Common Stock
Retained Earnings
Total Equity

CAPSTONE COURIER

Page 3

Size
Pfmn

Units
Sold
1,377
2,178
592
162
247
0
357
279

Unit
Inven
tory
374
0
0
0
0
0
187
279

Baker
Bead
Bid
Bold
Buddy
Black

Trad
Low
High
Pfmn
Size
High

1,738
2,246
460
512
413
228

Cake
Cedar
Coat
Cure
Chigh

Trad
Low
Pfmn
Size

Daze
Dell
Dixie
Dot
Dune
Doom

Price
$28.25
$20.00
$39.00
$34.00
$34.00
$0.00
$34.00
$34.00

Material Labor
Cost
Cost
$10.21
$7.64
$6.08 $7.58
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$14.14 $14.54
$15.94 $14.54

Contr.
Marg.
34%
30%
36%
28%
35%
0%
10%
-1%

2nd
Shift
&
Overtime
0%
57%
0%
0%
0%
0%
100%
100%

14.7
17.0
11.8
14.5
10.0
10.2

$26.50
$19.00
$39.00
$33.00
$34.00
$39.00

$9.71 $7.43
$6.38 $5.61
$14.11
$8.24
$14.83
$7.65
$12.58
$9.42
$15.30 $13.21

34%
35%
41%
31%
34%
26%

45%
68%
0%
0%
0%
35%

6.5
8.0
4.0
4.5
3.0
5.0

1,200 144%
1,300 167%
900 48%
600 76%
600 68%
500 76%

6.4
2.7
11.0
5.0
0.0

13.6
17.3
14.6
9.5
0.0

$26.50
$19.00
$33.00
$33.50
$0.00

$10.66
$6.10
$15.70
$13.18
$0.00

$8.23
$7.06
$9.41
$9.41
$0.00

27%
29%
24%
33%
0%

0%
0%
0%
0%
0%

4.0
5.0
3.0
3.0
3.0

1,800
1,400
500
500
400

18500
15000
24000
26000
19500
0

6.7
3.0
10.0
11.5
6.0
0.0

13.3
17.0
9.9
14.5
9.0
0.0

$29.00
$21.50
$39.00
$34.00
$34.00
$0.00

$11.24
$6.68
$16.07
$15.73
$13.62
$0.00

$7.64
$7.00
$9.51
$8.82
$8.82
$0.00

34%
34%
36%
28%
34%
0%

0%
21%
20%
0%
0%
0%

5.0
6.0
4.0
4.0
4.0
4.0

1,500 92%
1,400 120%
500 119%
600 74%
600 83%
500
0%

2.0
6.6
1.3
1.8
1.5
0.0
0.0

14000
12000
21000
27000
17000
0
0

5.7
3.0
9.8
10.5
4.8
0.0
0.0

14.5
17.0
10.2
15.3
10.7
0.0
0.0

$27.00
$21.50
$39.00
$33.50
$34.00
$0.00
$0.00

$8.85
$5.78
$14.94
$15.20
$11.49
$0.00
$0.00

$7.69
$8.52
$8.28
$8.63
$9.47
$0.00
$0.00

34%
28%
41%
26%
26%
0%
0%

0%
74%
0%
10%
0%
0%
0%

5.5
6.0
5.0
4.5
3.0
5.0
5.0

1,500 63%
1,400 171%
900 50%
600 108%
300 23%
300
0%
300
0%

1.8
6.6
1.3
1.5
1.5
0.6
0.0

14000
12000
22000
27000
18000
23500
0

6.5
3.0
9.5
11.5
5.4
9.5
0.0

14.0
17.0
9.9
14.5
9.0
10.4
0.0

$27.50
$21.00
$39.00
$34.00
$34.00
$40.00
$0.00

$9.47 $6.12
$5.78 $6.23
$15.24
$6.48
$16.03
$7.06
$13.00
$6.48
$15.45 $13.81
$0.00 $0.00

36%
38%
43%
27%
39%
26%
0%

0%
14%
0%
0%
0%
58%
0%

6.0
7.0
7.0
6.0
6.0
5.0
5.0

1,400 78%
1,400 113%
450 88%
550 81%
600 58%
450 88%
400
0%

Revision Date
9/7/2015
1/8/2015
9/26/2017
7/21/2016
9/6/2016
3/31/2016
7/15/2015
7/10/2015

Age
Dec.31
1.9
6.6
2.4
2.9
2.8
0.0
0.5
0.5

46
0
0
0
37
0

4/9/2015
5/25/2009
3/9/2015
5/10/2015
5/11/2015
6/5/2015

1,652
1,391
563
600
0

124
0
41
0
0

Trad
Low
High
Pfmn
Size

1,364
1,694
688
449
517
0

Eat
Ebb
Echo
Edge
Egg
Eagle
Electr

Trad
Low
High
Pfmn
Size

Fast
Feat
Fist
Foam
Fume
Fordh
Furrh

Trad
Low
High
Pfmn
Size
High

Name
Able
Acre
Adam
Aft
Agape
Ace
Afa
Aric

Primary
Segment
Trad
Low
High
Pfmn
Size

MTBF
16000
13000
24000
27000
19000
0
21000
27000

Pfmn
Coord
6.4
3.0
9.0
10.4
4.6
0.0
5.4
11.4

Size
Coord
13.6
17.0
11.1
15.3
9.7
0.0
8.6
14.6

2.1
6.6
1.8
1.8
1.8
0.6

17500
14000
23000
27000
19000
23000

5.5
3.0
8.4
9.5
5.0
9.3

7/27/2015
4/8/2015
6/28/2015
5/3/2015
7/4/2016

1.9
2.4
1.7
1.8
0.0

17500
14000
27000
20000
0

170
96
0
41
47
0

8/19/2015
1/8/2015
11/26/2015
9/17/2015
11/8/2015
8/28/2016

1.8
6.6
1.3
1.6
1.5
0.0

1,421
1,629
468
508
100
0
0

64
833
0
156
150
0
0

5/20/2015
1/29/2014
11/12/2015
8/9/2015
11/30/2015
9/27/2016
8/24/2016

1,376
1,903
445
471
537
396
0

270
160
0
232
44
0
0

10/4/2015
1/29/2015
10/21/2015
10/16/2015
10/16/2015
6/7/2015
9/16/2016

CAPSTONE COURIER

Round: 2
Dec. 31, 2015

C58449

Production Analysis

Auto
mation
Next
Round
7.0
7.0
3.5
4.5
4.0
3.4
1.0
1.0

Capacity
Next Plant
Round Utiliz.
1,500 85%
1,400 156%
800
0%
600
0%
600
0%
1,000
0%
600 91%
600 93%

36%
92%
59%
93%
0%

Page 4

Traditional Segment Analysis

C58449

Round: 2
Dec. 31, 2015

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

19%

1,666

4/9/2015

5.5

Cake

18%

1,628

7/27/2015

6.4

Eat

16%

1,390

5/20/2015

Able

16%

1,366

Fast

15%

Daze

15%

Bold

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.7

$26.50

17500

2.10

$2,000

94%

$2,500

75%

48

13.6

$26.50

17500

1.93

$2,200

92%

$2,200

63%

57

5.7

14.5

$27.00

14000

1.98

$1,600

88%

$2,200

71%

41

9/7/2015

6.4

13.6

$28.25

16000

1.87

$2,600

100%

$2,300

72%

51

1,352

10/4/2015

6.5

14.0

$27.50

14000

1.83

$2,000

100%

$2,500

75%

48

1,324

8/19/2015

6.7

13.3

$29.00

18500

1.85

$1,700

91%

$1,790

62%

46

1%

72

5/10/2015

9.5

14.5

$33.00

27000

1.80

$2,000

89%

$2,000

75%

Edge

0%

8/9/2015

10.5

15.3

$33.50

27000

1.77

$1,400

76%

$1,800

71%

Bead

0%

5/25/2009

YES

3.0

17.0

$19.00

14000

6.60

$1,800

89%

$2,200

75%

Acre

0%

1/8/2015

YES

3.0

17.0

$20.00

13000

6.60

$2,600

100%

$2,300

72%

Dell

0%

1/8/2015

3.0

17.0

$21.50

15000

6.60

$1,700

89%

$1,879

62%

CAPSTONE COURIER

Date

Stock

YES

Page 5

Low End Segment Analysis

C58449

Round: 2
Dec. 31, 2015

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

20%

2,244

5/25/2009

YES

3.0

Acre

19%

2,177

1/8/2015

YES

3.0

Feat

17%

1,903

1/29/2015

Dell

15%

1,693

1/8/2015

Ebb

15%

1,628

1/29/2014

Cedar

12%

1,391

4/8/2015

Baker

1%

71

Eat

0%

Fast
Cake
Able

List

Age

Promo Aware-

Price

MTBF

Dec.31

Budget

17.0

$19.00

14000

6.60

17.0

$20.00

13000

6.60

3.0

17.0

$21.00

12000

3.0

17.0

$21.50

3.0

17.0

2.7

17.3

4/9/2015

5.5

23

5/20/2015

0%

23

0%

18

0%

CAPSTONE COURIER

Cust.
Sales Access-

Dec.
Cust.

ness

Budget

ibility

Survey

$1,800

89%

$2,200

64%

40

$2,600

100%

$2,300

61%

35

6.60

$2,000

96%

$2,500

67%

30

15000

6.60

$1,700

89%

$1,879

51%

26

$21.50

12000

6.60

$1,600

87%

$2,200

63%

26

$19.00

14000

2.40

$2,200

91%

$2,000

53%

23

14.7

$26.50

17500

2.10

$2,000

94%

$2,500

64%

5.7

14.5

$27.00

14000

1.98

$1,600

88%

$2,200

63%

10/4/2015

6.5

14.0

$27.50

14000

1.83

$2,000

100%

$2,500

67%

7/27/2015

6.4

13.6

$26.50

17500

1.93

$2,200

92%

$2,200

53%

9/7/2015

6.4

13.6

$28.25

16000

1.87

$2,600

100%

$2,300

61%

YES

Page 6

High End Segment Analysis

C58449

Round: 2
Dec. 31, 2015

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
Coord

Name

Share

Seg

Date

Out

Coord

Dixie

20%

688

11/26/2015

YES

10.0

Adam

17%

592

9/26/2017

YES

9.0

Echo

14%

468

11/12/2015

YES

9.8

Bid

13%

460

3/9/2015

YES

8.4

Fist

13%

445

10/21/2015

YES

Fordh

11%

396

6/7/2015

YES

Black

7%

228

6/5/2015

Bold

3%

119

5/10/2015

Daze

1%

31

Dune

0%

11

Buddy

0%

Cake

0%

CAPSTONE COURIER

List

Age

Promo Aware-

Price

MTBF

Dec.31

Budget

9.9

$39.00

24000

1.25

11.1

$39.00

24000

2.40

10.2

$39.00

21000

11.8

$39.00

9.5

9.9

9.5

10.4

YES

9.3

YES

Cust.
Sales Access-

Dec.
Cust.

ness

Budget

ibility

Survey

$1,650

85%

$1,879

59%

41

$3,000

100%

$3,000

74%

16

1.31

$1,600

86%

$2,000

63%

27

23000

1.76

$1,800

94%

$2,200

74%

11

$39.00

22000

1.30

$1,000

73%

$2,000

75%

29

$40.00

23500

0.56

$1,000

46%

$1,000

75%

25

10.2

$39.00

23000

0.57

$1,000

46%

$1,500

74%

29

9.5

14.5

$33.00

27000

1.80

$2,000

89%

$2,000

74%

8/19/2015

6.7

13.3

$29.00

18500

1.85

$1,700

91%

$1,790

59%

11/8/2015

6.0

9.0

$34.00

19500

1.51

$1,350

75%

$1,700

59%

5/11/2015

5.0

10.0

$34.00

19000

1.83

$1,500

80%

$1,500

74%

7/27/2015

6.4

13.6

$26.50

17500

1.93

$2,200

92%

$2,200

34%

0
Page 7

Performance Segment Analysis

C58449

Round: 2
Dec. 31, 2015

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

Out

Coord

Coord

Name

Share

Seg

Date

Coat

20%

563

6/28/2015

11.0

Edge

18%

503

8/9/2015

10.5

Foam

17%

471

10/16/2015

Dot

16%

449

9/17/2015

Bold

12%

322

5/10/2015

Aric

10%

279

7/10/2015

Aft

6%

162

7/21/2016

CAPSTONE COURIER

YES
YES

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.6

$33.00

27000

1.72

$1,600

73%

$1,600

39%

43

15.3

$33.50

27000

1.77

$1,400

76%

$1,800

50%

40

11.5

14.5

$34.00

27000

1.54

$1,500

77%

$1,800

49%

45

11.5

14.5

$34.00

26000

1.60

$1,600

81%

$1,700

46%

36

9.5

14.5

$33.00

27000

1.80

$2,000

89%

$2,000

40%

34

11.4

14.6

$34.00

27000

0.47

$2,000

70%

$2,000

65%

48

10.4

15.3

$34.00

27000

2.90

$1,000

73%

$1,000

65%

35

Page 8

Size Segment Analysis

C58449

Round: 2
Dec. 31, 2015

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

Cure

22%

600

5/3/2015

YES

5.0

Fume

19%

537

10/16/2015

5.4

Dune

18%

506

11/8/2015

Buddy

15%

408

5/11/2015

Afa

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

9.5

$33.50

20000

1.81

$1,500

71%

$1,500

42%

34

9.0

$34.00

18000

1.54

$1,000

66%

$1,500

53%

39

6.0

9.0

$34.00

19500

1.51

$1,350

75%

$1,700

51%

40

5.0

10.0

$34.00

19000

1.83

$1,500

80%

$1,500

38%

22

5.4

8.6

$34.00

21000

0.46

$2,000

70%

$2,000

70%

50

4.6

9.7

$34.00

19000

2.84

$1,000

73%

$1,000

70%

17

13%

357

7/15/2015

Agape

9%

247

9/6/2016

Egg

4%

100

11/30/2015

4.8

10.7

$34.00

17000

1.53

$1,000

64%

$1,000

47%

11

Daze

0%

8/19/2015

6.7

13.3

$29.00

18500

1.85

$1,700

91%

$1,790

51%

Eat

0%

5/20/2015

5.7

14.5

$27.00

14000

1.98

$1,600

88%

$2,200

47%

Cake

0%

7/27/2015

6.4

13.6

$26.50

17500

1.93

$2,200

92%

$2,200

42%

Able

0%

9/7/2015

6.4

13.6

$28.25

16000

1.87

$2,600

100%

$2,300

70%

Fast

0%

10/4/2015

6.5

14.0

$27.50

14000

1.83

$2,000

100%

$2,500

53%

CAPSTONE COURIER

YES

Page 9

Market Share

C58449

Actual Market Share in Units

Industry Unit Sales
% of Market

Trad
8,809
30.4%

Low
11,180
38.6%

Able
Acre
Adam
Aft
Agape
Afa
Aric
Total

15.5%

15.5%

19.6%

Baker
Bead
Bid
Bold
Buddy
Black
Total

18.9%

0.6%
20.1%

19.8%

20.7%

Cake
Cedar
Coat
Cure
Total

18.5%

0.2%
12.4%

Daze
Dell
Dixie
Dot
Dune
Total

15.0%

15.0%

15.1%

Eat
Ebb
Echo
Edge
Egg
Total

15.8%

0.2%
14.6%

15.9%

14.8%

Fast
Feat
Fist
Foam
Fume
Fordh
Total

15.3%

0.2%
17.0%

High
3,448
11.9%

Pfmn
2,749
9.5%

Size
2,776
9.6%

19.5%
17.2%
5.9%
8.9%
12.9%

0.8%

17.2%

13.4%
3.4%
0.2%
6.6%
23.5%

10.1%
16.0%

21.8%

11.7%
14.7%
11.7%

14.7%
0.1%

20.5%
18.5%

12.6%

20.5%
0.9%

21.6%
21.7%
0.3%

15.1%
20.0%
16.3%
0.3%
21.2%

16.3%

18.2%
18.5%
0.3%

13.6%
18.3%
13.6%

18.3%

3.6%
3.9%

12.9%
17.1%
19.4%
15.4%

CAPSTONE COURIER

17.2%

11.5%
24.4%

17.1%

19.4%

Round: 2
Dec. 31, 2015

Potential Market Share in Units

Total
28,961 Units Demanded
100.0% % of Market

Trad
8,809
30.4%

Low
11,180
38.6%

4.8%
7.5%
2.0%
0.6%
0.9%
1.2%
1.0%
17.9%

Able
Acre
Adam
Aft
Agape
Afa
Aric
Total

15.5%

15.5%

19.2%

6.0%
7.8%
1.6%
1.8%
1.4%
0.8%
19.3%

Baker
Bead
Bid
Bold
Buddy
Black
Total

18.9%

0.6%
22.1%

5.7%
4.8%
1.9%
2.1%
14.5%

High
3,448
11.9%

Pfmn
2,749
9.5%

Size
2,776
9.6%

19.1%
17.4%
16.8%
17.0%
11.1%
17.5%

0.9%

11.4%
3.9%

19.9%

22.7%

11.7%
27.2%

Cake
Cedar
Coat
Cure
Total

18.5%

0.2%
14.0%

4.7%
5.9%
2.4%
1.5%
1.8%
16.3%

Daze
Dell
Dixie
Dot
Dune
Total

15.0%

15.0%

14.1%

4.9%
5.6%
1.6%
1.8%
0.3%
14.2%

Eat
Ebb
Echo
Edge
Egg
Total

15.8%

0.2%
13.6%

15.8%

13.8%

4.8%
6.6%
1.5%
1.6%
1.8%
1.4%
17.7%

Fast
Feat
Fist
Foam
Fume
Fordh
Total

15.3%

0.2%
15.9%

8.4%
25.2%

28.2%

13.1%

20.3%
20.4%

5.7%
5.4%
1.7%
1.9%
14.7%

13.1%

17.5%
18.4%

14.1%

17.5%
0.6%

0.3%

14.1%
16.9%
14.0%
0.2%
17.6%

14.0%

16.7%
17.0%
0.3%

11.8%
15.7%
11.8%

15.7%

3.3%
3.6%

16.1%
14.7%
17.7%
15.3%

16.1%

9.8%
25.9%

14.7%

4.7%
7.4%
2.1%
1.6%
1.6%
1.1%
0.8%
19.3%
6.0%
8.5%
1.4%
2.0%
1.3%
1.4%
20.5%

12.9%

12.9%

Total
28,961
100.0%

17.7%

4.7%
5.5%
2.0%
1.3%
1.6%
15.1%
4.9%
5.2%
1.4%
1.5%
0.3%
13.4%
4.7%
6.1%
1.9%
1.4%
1.7%
1.2%
17.0%

Page 10

Perceptual Map

C58449

Andrews
Name
Able
Acre
Adam
Aft
Agape
Afa
Aric

Pfmn
6.4
3.0
9.0
10.4
4.6
5.4
11.4

Name
Daze
Dell
Dixie
Dot
Dune

Pfmn
6.7
3.0
10.0
11.5
6.0

Size
13.6
17.0
11.1
15.3
9.7
8.6
14.6

Baldwin
Revised
9/7/2015
1/8/2015
9/26/2017
7/21/2016
9/6/2016
7/15/2015
7/10/2015

Name
Baker
Bead
Bid
Bold
Buddy
Black

Pfmn
5.5
3.0
8.4
9.5
5.0
9.3

Revised
8/19/2015
1/8/2015
11/26/2015
9/17/2015
11/8/2015

Name
Eat
Ebb
Echo
Edge
Egg

Pfmn
5.7
3.0
9.8
10.5
4.8

Digby

CAPSTONE COURIER

Size
13.3
17.0
9.9
14.5
9.0

Size
14.7
17.0
11.8
14.5
10.0
10.2

Chester
Revised
4/9/2015
5/25/2009
3/9/2015
5/10/2015
5/11/2015
6/5/2015

Name
Cake
Cedar
Coat
Cure

Pfmn
6.4
2.7
11.0
5.0

Revised
5/20/2015
1/29/2014
11/12/2015
8/9/2015
11/30/2015

Name
Fast
Feat
Fist
Foam
Fume
Fordh

Pfmn
6.5
3.0
9.5
11.5
5.4
9.5

Erie
Size
14.5
17.0
10.2
15.3
10.7

Round: 2
Dec. 31, 2015

Size
13.6
17.3
14.6
9.5

Revised
7/27/2015
4/8/2015
6/28/2015
5/3/2015

Ferris
Size
14.0
17.0
9.9
14.5
9.0
10.4

Revised
10/4/2015
1/29/2015
10/21/2015
10/16/2015
10/16/2015
6/7/2015

Page 11

HR/TQM Report

C58449

Round: 2
Dec. 31, 2015

HUMAN RESOURCES SUMMARY

Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
775
775
531
244

Baldwin
749
749
570
179

Chester
456
456
456
0

Digby
737
737
678
59

Erie
730
730
565
164

Ferris
614
614
552
62

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

0.0%
8.5%
66
203
$2,500
40
100.0%

0.0%
7.0%
52
0
$2,000
80
101.4%

0.0%
8.1%
37
388
$500
50
100.0%

0.0%
8.5%
180
0
$2,500
40
100.1%

0.0%
7.0%
51
143
$1,000
80
101.2%

0.0%
7.0%
43
345
$5,000
80
102.0%

Recruiting Cost
Separation Cost
Training Cost
Total HR Admin Cost

$231
$1,015
$620
$1,866

$157
$0
$1,198
$1,356

$56
$1,940
$456
$2,452

$629
$0
$590
$1,219

$102
$715
$1,168
$1,985

$258
$1,725
$982
$2,965

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

Ethics Report

Round: 2
Dec. 31, 2015

C58449
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

Chester

C58449

Round: 2
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

$56,400

2015
Common
Size
34.8%
11.8%
3.0%
49.6%

$0
$7,802
$41,407
$49,209

$57,333
$113,733

89.0%
-38.6%
50.4%
100.0%

$113,800
($45,520)
$68,280
$117,490

$75,595

3.4%
19.3%
43.7%
66.5%

$7,874
$23,500
$41,700
$73,074

$38,138
$113,733

16.1%
17.4%
33.5%
100.0%

$18,360
$26,056
$44,416
$117,490

$39,562
$13,422
$3,416

Plant & Equipment

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

$101,200
($43,867)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$3,895
$21,950
$49,750

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

$18,360
$19,778

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

2014

2015

2014

($6,278)

($3,526)

Depreciation

$6,267

$7,587

Extraordinary gains/losses/writeoffs

$2,644

$0

NetIncome(Loss)

Accounts Payable

($3,978)

$1,291

Inventory

$37,991

($32,790)

Accounts Receivable

($5,620)

$505

Net cash from operation

$31,026

($26,934)

$2,036

$0

Dividends Paid

$0

$0

Sales of Common Stock

$0

$0

Purchase of Common Stock

$0

$0

Cash from long term debt

$15,000

$0

Retirement of long term debt

($6,950)

$0

Change in current debt(net)

($1,550)

$23,500

$6,500

$23,500

Net Change in cash position

$39,562

($3,434)

Closing cash position

$39,562

$0

Cash Flows from Investing Activities

Plant Improvements
Cash Flows from Financing Activities

Net Cash from financing activities

Annual Report

Page 14

Annual Report

Chester

Round: 2
Dec. 31, 2015

C58449

2015 Income Statement

(Product Name)

$0

2015
Total
$108,867

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$34,203
$43,914
$410
$78,527

31.4%
40.3%
0.4%
72.1%

$0

$0

$0

$30,340

27.9%

$600
$340
$1,500
$1,500
$593
$4,533

$0
$1,000
$0
$0
$0
$1,000

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

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

$6,267
$3,209
$7,500
$7,300
$3,214
$27,489

5.8%
2.9%
6.9%
6.7%
3.0%
25.3%

$2,005

($1,000)

$0

$0

$2,851

2.6%

$3,394
($543)
$2,524
$6,592
($3,381)
$0
($6,278)

3.1%
-0.5%
2.3%
6.1%
-3.1%
0.0%
-5.8%

Cake

Cedar

Na

Coat

Cure

Chigh

NA

NA

Sales

$43,774

$26,431

$0

$18,575

$20,087

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$13,690
$18,195
$287
$32,172

$9,782
$8,853
$0
$18,635

$0
$0
$0
$0

$5,156
$8,892
$123
$14,171

$5,575
$7,974
$0
$13,549

$0
$0
$0
$0

Contribution Margin

$11,602

$7,796

$0

$4,404

$6,538

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

$2,640
$575
$2,200
$2,200
$1,292
$8,908

$2,427
$272
$2,200
$2,000
$780
$7,679

$0
$526
$0
$0
$0
$526

$600
$495
$1,600
$1,600
$548
$4,844

Net Margin

$2,694

$118

($526)

($440)

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 15