Round: 2

Dec. 31, 2017

C72512

Andrews
Team A1

Baldwin

Chester
Team A2

Digby
Team A3

Erie
Team A4

Ferris
Team A5

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
1.7%
1.27
2.2%

Baldwin
5.6%
1.12
6.3%

Chester
-13.4%
0.82
-11.0%

Digby
2.7%
1.48
4.1%

Erie
-17.4%
0.59
-10.3%

Ferris
-8.9%
0.79
-7.1%

2.2

2.3

3.2

2.0

4.3

3.2

4.9%
$7,928,399
$158,479,016
$11,982,788
$2,721,888
$3,615,698
15.8%
29.7%

14.6%
$0
$157,721,473
$22,679,330
$8,841,305
$18,969,947
11.5%
31.2%

-35.5%
$0
$91,509,350
($10,022,284)
($12,259,236)
($9,214,211)
21.1%
19.4%

8.3%
$0
$161,279,667
$12,759,837
$4,413,478
$12,366,860
14.3%
27.3%

-44.5%
$18,215,582
$84,163,073
($8,312,198)
($14,619,604)
($20,893,316)
16.9%
23.6%

-22.9%
$29,882,834
$109,414,107
($3,284,069)
($9,761,658)
($7,139,239)
13.4%
16.9%

Page 1

Stock & Bonds

Round: 2
Dec. 31, 2017

C72512
Stock Market Summary

Company
Andrews
Baldwin
Chester
Digby
Erie
Ferris

Close

Change

Shares

$22.76
$50.55
$1.00
$38.45
$1.00
$1.00

($3.63)
$8.51
($24.09)
$0.76
($0.72)
($26.26)

2,279,959
2,027,304
2,000,000
2,000,000
2,291,939
2,473,317

MarketCap
($M)
$52
$102
$2
$77
$2
$2

Book Value

EPS

Dividend

Yield

P/E

$24.40
$29.80
$17.27
$26.56
$14.34
$17.21

$1.19
$4.36
($6.13)
$2.21
($6.38)
($3.95)

$1.00
$0.00
$0.00
$1.50
$0.00
$2.00

4.4%
0.0%
0.0%
3.9%
0.0%
200.0%

19.0
11.6
-0.2
17.4
-0.2
-0.3

Bond Market Summary

Company
Andrews

Series#

Face

Yield

Close$

12.5S2019
14.0S2021
11.3S2026

$10,811,424
$20,850,000
$18,994,000

12.6%
13.5%
12.2%

99.50
103.58
92.25

12.5S2019
14.0S2021
12.5S2027

$13,900,000
$20,850,000
$6,763,680

12.6%
13.6%
12.8%

99.17
102.97
97.29

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

12.5S2019
14.0S2021
12.0S2027

$13,900,000
$20,850,000
$19,874,000

12.8%
13.9%
13.3%

97.85
100.58
90.54

C Ferris
C
C

Baldwin

Chester

Series#

Face

Yield

Close$

S&P

12.5S2019
14.0S2021
11.3S2026

$13,900,000
$20,850,000
$4,000,000

12.5%
13.4%
12.0%

100.17
104.82
94.23

B
B
B

12.5S2019
14.0S2021
11.3S2026
13.1S2027

$13,900,000
$20,850,000
$10,000,000
$34,126,000

12.8%
14.0%
13.1%
13.8%

97.37
99.71
86.20
94.80

DDD
DDD
DDD
DDD

12.5S2019
14.0S2021
11.3S2026
12.3S2027

$13,272,544
$20,850,000
$18,994,000
$800,000

12.8%
14.0%
13.0%
13.4%

97.69
100.29
87.09
91.62

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

C72512

Round: 2
Dec. 31, 2017

Andrews

Baldwin

Chester

Digby

Erie

Ferris

$2,722

$8,841

($12,259)

$4,413

($14,620)

($9,762)

$9,933
($39)

$8,124
($45)

$8,027
($530)

$8,280
$0

$11,038
$1,144

$6,507
$381

$4,065
($18,195)
($3,065)
($4,578)

$2,659
($4,287)
($2,881)
$12,413

($1,299)
$10,394
($382)
$3,950

$2,616
($6,209)
($1,902)
$7,199

($3,434)
$4,687
$1,921
$737

$4,973
($55,011)
($1,245)
($54,158)

($27,200)

($15,786)

($24,710)

($6,400)

($24,754)

$9,261

($2,280)
$0
($3,166)
$0
($10,000)
$0
$0
$7,928

$0
$1,148
$0
$6,764
$0
($20,343)
$24,086
$0

$0
$0
$0
$19,874
$0
($3,342)
$10,000
$0

($3,000)
$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$34,126
$0
($28,324)
$0
$18,216

($4,947)
$2,000
$0
$800
($7,500)
$0
$0
$29,883

($7,517)

$11,655

$26,532

($3,000)

$24,017

$20,236

Net change in cash position

Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

($39,296)
Andrews
$0
$13,026
$18,638
$31,664

$8,282
Baldwin
$39,938
$12,963
$8,839
$61,741

$5,773
Chester
$5,773
$7,521
$12,410
$25,704

($2,201)
Digby
$18,807
$13,256
$6,440
$38,502

$0
Erie
$0
$6,918
$23,763
$30,680

($24,660)
Ferris
$0
$8,993
$76,765
$85,758

Plant and equipment

Accumulated Depreciation
Total Fixed Assets

$149,000
($55,987)
$93,013

$129,060
($49,991)
$79,069

$134,800
($49,307)
$85,493

$124,200
($53,800)
$70,400

$165,570
($54,403)
$111,167

$97,600
($45,547)
$52,053

Total Assets

$124,677

$140,810

$111,197

$108,902

$141,847

$137,812

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$10,470
$7,928
$50,655
$69,054

$9,180
$29,710
$41,514
$80,404

$5,084
$16,950
$54,624
$76,658

$10,082
$6,950
$38,750
$55,782

$4,945
$25,166
$78,876
$108,987

$11,445
$29,883
$53,917
$95,244

Common Stock
Retained Earnings
Total Equity

$30,320
$25,303
$55,623

$19,508
$40,899
$60,406

$18,360
$16,179
$34,539

$18,360
$34,760
$53,120

$28,360
$4,500
$32,860

$34,060
$8,508
$42,568

Total Liabilities & Owners'' Equity

$124,677

$140,810

$111,197

$108,902

$141,847

$137,812

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
$158,479
$111,428
$9,933
$24,976
$159
$11,983
$7,710
$1,496
$56
$2,722

Baldwin
$157,721
$108,467
$8,124
$18,101
$351
$22,679
$8,800
$4,858
$180
$8,841

Chester
$91,509
$73,741
$8,027
$19,300
$464
($10,022)
$8,838
($6,601)
$0
($12,259)

Digby
$161,280
$117,231
$8,280
$23,009
$0
$12,760
$5,831
$2,425
$90
$4,413

Erie
$84,163
$64,338
$11,038
$14,249
$2,850
($8,312)
$14,180
($7,872)
$0
($14,620)

Ferris
$109,414
$90,906
$6,507
$14,651
$634
($3,284)
$11,734
($5,256)
$0
($9,762)

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

C72512

Production Analysis

Primary
Segment
Trad
Low
High
Pfmn
Size

Units
Sold
1,413
1,891
761
842
743
0
0

Unit
Inven
tory
369
881
0
0
0
0
0

Baker
Bead
Bid
Bold
Buddy
Brass

Trad
Low
High
High
Size

1,574
1,805
981
620
707
0

Cake
Cedar
Cid
Coat
Cure
Cup

Trad
Low
High
Pfmn
Size

Daze
Dell
Dixie
Dot
Dune
Dix2

Revision Date
12/3/2017
7/27/2017
4/13/2017
8/18/2017
9/9/2017
12/21/2017
7/7/2017

Age
Dec.31
1.7
2.1
2.2
1.6
1.6
0.0
0.5

314
192
18
0
0
0

3/27/2017
5/25/2011
3/18/2017
8/23/2017
8/29/2017
10/11/2018

847
2,475
230
352
237
0

133
0
75
250
102
0

Trad
Low
High
Pfmn
Size
High

1,798
2,238
604
614
595
136

Eat
Ebb
Echo
Edge

Trad
Low
High
Pfmn

Fast
Feat
Foam
Fume

Trad
Low
Pfmn
Size

Name
Able
Acre
Adam
Aft
Agape
Adam2
Aft2

Contr.
Marg.
31%
24%
35%
23%
37%
0%
0%

2nd
Shift
&
Overtime
0%
100%
0%
42%
25%
0%
0%

Auto
mation
Next
Round
5.0
6.0
3.0
3.0
4.0
1.0
2.0

Capacity
Next
Round
1,800
1,700
900
600
600
400
500

Plant
Utiliz.
99%
198%
83%
140%
124%
0%
0%
134%
138%
118%
99%
107%
0%

MTBF
17500
14000
23000
27000
19000
23000
27000

Pfmn
Coord
7.0
2.7
9.5
11.4
5.5
11.0
11.4

Size
Coord
13.2
17.5
10.7
14.6
9.0
8.8
14.6

Price
$27.99
$18.50
$37.99
$34.50
$35.00
$37.00
$35.00

2.0
6.6
1.6
1.7
1.7
0.0

16800
14000
22000
22000
18500
0

5.5
3.0
8.8
9.6
6.1
0.0

15.1
17.0
11.2
13.5
10.8
0.0

$26.70
$20.80
$36.80
$32.00
$31.40
$0.00

$9.32
$6.38
$14.29
$13.73
$12.31
$0.00

$8.46
$7.46
$9.60
$8.93
$9.26
$0.00

31%
31%
34%
28%
31%
0%

36%
39%
19%
0%
8%
0%

5.2
5.8
3.8
3.8
3.8
3.0

1,400
1,400
800
600
650
400

11/20/2012
1/28/2019
4/16/2017
2/23/2018
12/12/2017
7/5/2018

5.1
6.6
2.2
4.5
2.3
0.0

17500
14000
20000
25000
21000
0

5.5
3.0
7.8
9.4
4.9
0.0

14.5
17.0
12.2
15.5
9.8
0.0

$24.00
$18.00
$38.00
$30.00
$31.00
$0.00

$9.81
$6.38
$12.74
$13.87
$13.27
$0.00

$8.22
$8.51
$9.39
$9.39
$9.39
$0.00

21%
16%
36%
14%
26%
0%

0%
79%
0%
0%
0%
0%

4.0
5.0
3.5
3.0
3.0
3.0

1,400 25%
2,000 177%
800 25%
600 73%
600 25%
800
0%

331
0
0
0
0
0

8/2/2017
5/25/2011
7/22/2019
7/29/2017
8/20/2017
10/26/2017

1.9
6.6
2.4
1.7
1.7
0.2

17500
14000
23000
27000
19000
25000

6.4
3.0
9.0
11.2
5.1
10.7

13.6
17.0
11.0
14.8
9.0
9.3

$27.50
$19.50
$38.00
$33.00
$33.00
$39.50

$10.66
$8.86
$6.38 $8.32
$14.78
$9.40
$15.77
$9.54
$13.22
$9.40
$16.99 $14.53

28%
23%
35%
23%
32%
20%

19%
61%
0%
3%
0%
100%

4.5
5.5
3.0
3.0
3.0
1.0

1,800 118%
1,400 160%
900 67%
600 102%
600 97%
400 34%

793
2,004
239
527

281
1,208
0
67

11/6/2017
7/12/2017
12/13/2017
3/12/2017

2.6
3.5
1.9
1.9

18000
15000
23000
26000

7.8
4.7
10.6
10.6

12.2
15.3
9.4
15.0

$24.25
$19.25
$37.50
$33.00

$12.14
$8.30
$16.30
$15.04

$6.47
$6.17
$9.41
$9.41

21%
22%
36%
24%

0%
54%
0%
0%

7.0
8.0
4.0
5.0

1,800 16%
1,815 153%
900 11%
600 99%

1,966
833
343
795

1,716
1,454
376
393

3/12/2017
9/9/2016
10/2/2017
10/18/2017

2.0
3.9
1.6
1.6

18000
14000
25000
20000

6.4
4.0
11.4
4.7

13.6
16.5
14.6
8.7

$26.50
$21.00
$35.00
$35.00

$10.81
$9.93
$7.10 $7.82
$15.34
$9.68
$13.60 $11.62

13%
13%
20%
25%

78%
30%
7%
100%

4.0
5.0
3.0
3.0

1,800
1,400
600
600

CAPSTONE COURIER

Material Labor
Cost
Cost
$11.13
$8.22
$6.01 $7.26
$15.16
$9.39
$15.94 $10.70
$13.33
$9.00
$0.00 $0.00
$0.00 $0.00

Round: 2
Dec. 31, 2017

176%
129%
106%
198%

Page 4

Traditional Segment Analysis

C72512

Round: 2
Dec. 31, 2017

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

Fast

22%

1,895

3/12/2017

6.4

Daze

20%

1,774

8/2/2017

6.4

Baker

17%

1,503

3/27/2017

Able

16%

1,375

Eat

7%

Cake

6%

Ebb

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

13.6

$26.50

18000

1.97

$2,000

84%

$1,500

61%

51

13.6

$27.50

17500

1.93

$1,800

95%

$1,800

63%

51

5.5

15.1

$26.70

16800

2.04

$1,425

79%

$1,687

61%

35

12/3/2017

7.0

13.2

$27.99

17500

1.72

$1,500

85%

$2,000

63%

42

608

11/6/2017

7.8

12.2

$24.25

18000

2.62

$1,000

70%

$1,000

53%

27

572

11/20/2012

5.5

14.5

$24.00

17500

5.10

$1,800

81%

$1,800

58%

10

4%

384

7/12/2017

4.7

15.3

$19.25

15000

3.53

$1,500

83%

$1,500

53%

14

Buddy

3%

296

8/29/2017

6.1

10.8

$31.40

18500

1.68

$1,050

56%

$482

61%

Feat

3%

228

9/9/2016

4.0

16.5

$21.00

14000

3.95

$900

54%

$1,900

61%

Bold

1%

129

8/23/2017

9.6

13.5

$32.00

22000

1.66

$1,125

58%

$482

61%

Coat

0%

21

2/23/2018

9.4

15.5

$30.00

25000

4.50

$1,200

56%

$1,200

58%

Cure

0%

19

12/12/2017

4.9

9.8

$31.00

21000

2.32

$1,200

56%

$1,200

58%

CAPSTONE COURIER

Date

Stock

YES
YES

Page 5

Low End Segment Analysis

C72512

Round: 2
Dec. 31, 2017

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

Cedar

22%

2,474

1/28/2019

YES

3.0

Dell

20%

2,236

5/25/2011

YES

3.0

Acre

17%

1,891

7/27/2017

Bead

16%

1,803

Ebb

14%

Feat

5%

Cake

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

17.0

$18.00

14000

6.60

$1,800

77%

$1,500

50%

38

17.0

$19.50

14000

6.60

$1,600

87%

$1,600

49%

33

2.7

17.5

$18.50

14000

2.14

$1,650

87%

$2,500

57%

24

5/25/2011

3.0

17.0

$20.80

14000

6.60

$1,425

78%

$1,687

53%

27

1,620

7/12/2017

4.7

15.3

$19.25

15000

3.53

$1,500

83%

$1,500

56%

15

605

9/9/2016

4.0

16.5

$21.00

14000

3.95

$900

54%

$1,900

43%

10

2%

275

11/20/2012

5.5

14.5

$24.00

17500

5.10

$1,800

81%

$1,800

50%

Eat

2%

184

11/6/2017

7.8

12.2

$24.25

18000

2.62

$1,000

70%

$1,000

56%

Baker

1%

71

3/27/2017

5.5

15.1

$26.70

16800

2.04

$1,425

79%

$1,687

53%

Daze

0%

12

8/2/2017

6.4

13.6

$27.50

17500

1.93

$1,800

95%

$1,800

49%

Able

0%

12/3/2017

7.0

13.2

$27.99

17500

1.72

$1,500

85%

$2,000

57%

CAPSTONE COURIER

Page 6

High End Segment Analysis

C72512

Round: 2
Dec. 31, 2017

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

Out

Coord

Coord

Name

Share

Seg

Date

Bid

28%

981

3/18/2017

8.8

Adam

22%

761

4/13/2017

YES

9.5

Dixie

18%

604

7/22/2019

YES

Bold

9%

308

8/23/2017

Echo

7%

239

12/13/2017

Cid

7%

230

4/16/2017

Dix2

4%

136

10/26/2017

Foam

3%

88

10/2/2017

Buddy

1%

45

8/29/2017

Fast

1%

32

3/12/2017

Able

0%

Daze

0%

CAPSTONE COURIER

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

11.2

$36.80

22000

1.64

$1,400

75%

$1,687

54%

12

10.7

$37.99

23000

2.21

$1,500

82%

$2,000

62%

18

9.0

11.0

$38.00

23000

2.44

$1,500

82%

$1,500

56%

11

YES

9.6

13.5

$32.00

22000

1.66

$1,125

58%

$482

54%

YES

10.6

9.4

$37.50

23000

1.87

$900

52%

$900

34%

24

7.8

12.2

$38.00

20000

2.20

$1,000

53%

$1,000

34%

10.7

9.3

$39.50

25000

0.17

$500

32%

$500

56%

37

11.4

14.6

$35.00

25000

1.59

$500

35%

$1,000

29%

6.1

10.8

$31.40

18500

1.68

$1,050

56%

$482

54%

6.4

13.6

$26.50

18000

1.97

$2,000

84%

$1,500

29%

12/3/2017

7.0

13.2

$27.99

17500

1.72

$1,500

85%

$2,000

62%

8/2/2017

6.4

13.6

$27.50

17500

1.93

$1,800

95%

$1,800

56%

YES
YES

Page 7

Performance Segment Analysis

C72512

Round: 2
Dec. 31, 2017

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

Name

Share

Seg

Date

Out

Coord

Coord

Aft

31%

842

8/18/2017

YES

11.4

Dot

22%

614

7/29/2017

YES

11.2

Edge

19%

523

3/12/2017

Coat

12%

331

2/23/2018

Foam

9%

255

10/2/2017

Bold

7%

184

8/23/2017

Fast

0%

3/12/2017

CAPSTONE COURIER

YES

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.6

$34.50

27000

1.62

$2,000

89%

$2,500

52%

45

14.8

$33.00

27000

1.69

$1,350

72%

$1,350

37%

40

10.6

15.0

$33.00

26000

1.87

$1,000

51%

$1,000

28%

24

9.4

15.5

$30.00

25000

4.50

$1,200

56%

$1,200

30%

13

11.4

14.6

$35.00

25000

1.59

$500

35%

$1,000

25%

15

9.6

13.5

$32.00

22000

1.66

$1,125

58%

$482

21%

6.4

13.6

$26.50

18000

1.97

$2,000

84%

$1,500

25%

Page 8

Size Segment Analysis

C72512

Round: 2
Dec. 31, 2017

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

Out

Coord

Coord

Name

Share

Seg

Date

Fume

29%

795

10/18/2017

4.7

Agape

27%

739

9/9/2017

YES

5.5

Dune

21%

595

8/20/2017

YES

Buddy

13%

366

8/29/2017

YES

Cure

8%

218

12/12/2017

Fast

1%

37

3/12/2017

Able

1%

20

Daze

0%

CAPSTONE COURIER

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

8.7

$35.00

20000

1.60

$1,700

69%

$1,700

38%

30

9.0

$35.00

19000

1.58

$1,600

89%

$1,500

44%

37

5.1

9.0

$33.00

19000

1.67

$1,300

72%

$1,300

43%

40

6.1

10.8

$31.40

18500

1.68

$1,050

56%

$482

26%

11

4.9

9.8

$31.00

21000

2.32

$1,200

56%

$1,200

34%

22

6.4

13.6

$26.50

18000

1.97

$2,000

84%

$1,500

38%

12/3/2017

7.0

13.2

$27.99

17500

1.72

$1,500

85%

$2,000

44%

8/2/2017

6.4

13.6

$27.50

17500

1.93

$1,800

95%

$1,800

43%

Page 9

Market Share

C72512

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
Total

15.6%

15.6%

17.0%

Baker
Bead
Bid
Bold
Buddy
Total

17.1%

0.6%
16.1%

Cake
Cedar
Cid
Coat
Cure
Total

6.5%

Daze
Dell
Dixie
Dot
Dune
Dix2
Total

20.1%

20.2%

20.1%

Eat
Ebb
Echo
Edge
Total

6.9%
4.4%

1.6%
14.5%

Fast
Feat
Foam
Fume
Total

High
3,448
11.9%

Pfmn
2,749
9.5%

0.3%

Size
2,776
9.6%
0.7%

1.5%
3.4%
21.9%

16.8%

28.4%
8.9%
1.3%
38.7%

26.6%
27.4%

15.6%

16.8%

Baker
Bead
Bid
Bold
Buddy
Total

17.1%

0.6%
15.9%

13.2%
13.2%

5.4%
6.2%
3.4%
2.1%
2.4%
19.6%

Cake
Cedar
Cid
Coat
Cure
Total

6.5%

7.9%
7.9%

2.9%
8.6%
0.8%
1.2%
0.8%
14.3%
6.2%
7.7%
2.1%
2.1%
2.1%
0.5%
20.7%

Daze
Dell
Dixie
Dot
Dune
Dix2
Total

20.1%

20.2%

19.9%

2.7%
6.9%
0.8%
1.8%
12.3%

Eat
Ebb
Echo
Edge
Total

6.9%
4.4%

1.6%
14.4%

6.8%
2.9%
1.2%
2.8%
13.6%

Fast
Feat
Foam
Fume
Total

6.7%
6.7%

2.5%
22.1%
6.7%

0.2%
0.2%
7.0%

12.0%
24.6%

6.7%

0.1%
20.0%

0.2%

12.0%

0.2%

17.5%
22.3%
21.4%

11.3%

16.1%

21.5%
2.6%

5.4%

4.0%
21.6%

6.9%
0.1%
7.1%

CAPSTONE COURIER

5.4%

3.5%

21.6%

19.0%
19.0%

0.9%
2.6%

24.1%

22.3%

1.3%
9.3%
9.3%

Low
11,180
38.6%

15.6%

30.6%
30.6%

Trad
8,809
30.4%

Able
Acre
Adam
Aft
Agape
Total

22.1%
22.4%

Potential Market Share in Units

Total
28,961 Units Demanded
100.0% % of Market
4.9%
6.5%
2.6%
2.9%
2.6%
19.5%

16.9%

28.6%
30.0%

Round: 2
Dec. 31, 2017

High
3,448
11.9%

Pfmn
2,749
9.5%

0.2%

Size
2,776
9.6%

Total
28,961
100.0%

0.6%

29.3%
29.8%

4.9%
6.4%
2.9%
2.8%
2.8%
19.9%

10.1%
10.1%

5.4%
6.1%
2.8%
1.8%
2.1%
18.2%

5.5%
5.5%

2.9%
8.9%
0.5%
1.1%
0.6%
14.1%

16.7%
24.5%
29.9%

1.5%
3.4%
21.9%

16.5%

24.7%

23.2%
6.0%
1.1%
30.3%

29.9%

6.2%
6.2%

2.4%
23.1%
4.3%

0.2%
0.2%
7.0%

11.0%
25.6%

4.3%

11.0%

19.8%
22.4%
27.0%
34.0%
9.0%
31.6%

27.0%

34.1%

2.7%
6.9%
0.8%
1.7%
12.0%

6.6%
11.3%

16.0%

21.5%
2.6%

5.3%

24.1%

6.7%

17.4%
17.4%

0.6%

5.3%

1.0%

1.7%

8.4%

2.4%

8.5%

6.2%
7.6%
2.7%
2.6%
3.3%
1.1%
23.4%

19.5%
20.4%

6.7%
2.8%
1.0%
1.9%
12.4%

Page 10

Perceptual Map

C72512

Andrews
Name
Able
Acre
Adam
Aft
Agape
Adam2
Aft2

Pfmn
7.0
2.7
9.5
11.4
5.5
11.0
11.4

Name
Daze
Dell
Dixie
Dot
Dune
Dix2

Pfmn
6.4
3.0
9.0
11.2
5.1
10.7

Size
13.2
17.5
10.7
14.6
9.0
8.8
14.6

Digby

CAPSTONE COURIER

Size
13.6
17.0
11.0
14.8
9.0
9.3

Baldwin
Revised
12/3/2017
7/27/2017
4/13/2017
8/18/2017
9/9/2017
12/21/2017
7/7/2017

Name
Baker
Bead
Bid
Bold
Buddy

Pfmn
5.5
3.0
8.8
9.6
6.1

Revised
8/2/2017
5/25/2011
7/22/2019
7/29/2017
8/20/2017
10/26/2017

Name
Eat
Ebb
Echo
Edge

Pfmn
7.8
4.7
10.6
10.6

Size
15.1
17.0
11.2
13.5
10.8

Erie

Size
12.2
15.3
9.4
15.0

Round: 2
Dec. 31, 2017

Chester
Revised
3/27/2017
5/25/2011
3/18/2017
8/23/2017
8/29/2017

Name
Cake
Cedar
Cid
Coat
Cure

Pfmn
5.5
3.0
7.8
9.4
4.9

Revised
11/6/2017
7/12/2017
12/13/2017
3/12/2017

Name
Fast
Feat
Foam
Fume

Pfmn
6.4
4.0
11.4
4.7

Size
14.5
17.0
12.2
15.5
9.8

Ferris

Size
13.6
16.5
14.6
8.7

Revised
11/20/2012
1/28/2019
4/16/2017
2/23/2018
12/12/2017

Revised
3/12/2017
9/9/2016
10/2/2017
10/18/2017

Page 11

HR/TQM Report

C72512

Round: 2
Dec. 31, 2017

HUMAN RESOURCES SUMMARY

Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
1,073
1,073
832
241

Baldwin
973
973
782
191

Chester
571
571
413
158

Digby
1,076
1,076
872
204

Erie
479
479
372
107

Ferris
1,163
1,163
741
422

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

0.0%
10.0%
479
0
$0
0
100.0%

0.0%
8.7%
343
0
$2,200
35
100.0%

0.1%
10.0%
57
130
$0
0
100.0%

0.0%
9.6%
369
0
$1,500
10
100.0%

0.0%
9.6%
46
432
$100
10
100.0%

0.0%
9.4%
572
0
$0
15
100.0%

$479
$0
$0
$479

$1,096
$0
$681
$1,778

$57
$650
$0
$707

$921
$0
$215
$1,137

$51
$2,160
$96
$2,307

$572
$0
$349
$921

$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

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: 2
Dec. 31, 2017

C72512
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

Digby

C72512

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

$38,503

2017
Common
Size
17.3%
12.2%
5.9%
35.4%

$21,008
$11,354
$230
$32,592

$70,400
$108,902

114.0%
-49.4%
64.6%
100.0%

$117,800
($45,520)
$72,280
$104,873

$55,782

9.3%
6.4%
35.6%
51.2%

$7,466
$0
$45,700
$53,166

$53,120
$108,902

16.9%
31.9%
48.8%
100.0%

$18,360
$33,347
$51,707
$104,873

$18,807
$13,256
$6,440

Plant & Equipment

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

$124,200
($53,800)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$10,082
$6,950
$38,750

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

$18,360
$34,760

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: 2
Dec. 31, 2017

Cash Flows from Operating Activities

2016

2017

2016

NetIncome(Loss)

$4,413

$3,765

Depreciation

$8,280

$7,587

$0

$0

Extraordinary gains/losses/writeoffs
Accounts Payable

$2,616

$883

Inventory

($6,209)

$8,387

Accounts Receivable

($1,902)

($3,047)

$7,199

$17,575

($6,400)

($4,000)

Net cash from operation

Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities
Dividends Paid

Annual Report

($3,000)

$0

Sales of Common Stock

$0

$0

Purchase of Common Stock

$0

$0

Cash from long term debt

$0

$4,000

Retirement of long term debt

($6,950)

$0

Change in current debt(net)

$6,950

$0

Net Cash from financing activities

($3,000)

$4,000

Net Change in cash position

($2,201)

$17,575

Closing cash position

$18,807

$21,008

Page 15

Annual Report

Digby

Round: 2
Dec. 31, 2017

C72512

2017 Income Statement

(Product Name)

$0

2017
Total
$161,280

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$53,623
$62,835
$773
$117,231

33.2%
39.0%
0.5%
72.7%

$1,078

$0

$0

$44,049

27.3%

$720
$642
$1,300
$1,300
$276
$4,237

$267
$828
$500
$500
$76
$2,170

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

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

$8,280
$4,643
$8,050
$8,050
$2,266
$31,289

5.1%
2.9%
5.0%
5.0%
1.4%
19.4%

$2,003

($1,093)

$0

($1,000)

$12,760

7.9%

$0
$12,760
$723
$5,109
$2,425
$90
$4,413

0.0%
7.9%
0.4%
3.2%
1.5%
0.1%
2.7%

Daze

Dell

Dixie

Dot

Dune

Dix2

NA

D2

Sales

$49,433

$43,636

$22,952

$20,259

$19,619

$5,381

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$15,918
$19,023
$773
$35,714

$18,613
$14,870
$0
$33,484

$5,675
$9,146
$0
$14,821

$5,856
$9,674
$0
$15,530

$5,581
$7,798
$0
$13,379

$1,979
$2,324
$0
$4,303

Contribution Margin

$13,719

$10,153

$8,131

$4,728

$6,241

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

$2,880
$592
$1,800
$1,800
$694
$7,766

$2,613
$0
$1,600
$1,600
$613
$6,426

$1,080
$1,000
$1,500
$1,500
$322
$5,402

$720
$582
$1,350
$1,350
$285
$4,286

Net Margin

$5,952

$3,726

$2,729

$442

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