10/09/2019 Report Page

Page 1 Front Page
Page 2 Stocks & Bonds
Page 3 Financial Summary
Page 4 Production Analysis
Page 5 Thrift Segment Analysis Page 9 Market Share
Page 6 Core Segment Analysis
Page 7 Nano Segment Analysis Page 10 Perceptual Map
Page 11 HR/TQM Report
Page 8 Elite Segment Analysis

Annual Report Andrews Annual Report Baldwin Annual Report Chester Annual Report Digby

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Round: 3 gunadeep
Dec. 31, 2021 reddy
Student: gunadeep reddy

Andrews Baldwin Chester

gunadeep reddy

Digby

Selected Financial Statistics

Andrews Baldwin Chester Digby
ROS 6.8% 11.6% 1.1% -0.5%
Asset Turnover 1.07 1.17 0.69 0.72
ROA 7.3% 13.5% 0.7% -0.4%
Leverage (Assets/Equity) 1.3 1.8 2.5 2.4
ROE 9.5% 24.3% 1.9% -1.0%
Emergency Loan $0 $0 $0 $0
Sales $155,964,117 $202,785,940 $152,775,166 $176,241,802
EBIT $19,700,956 $44,401,285 $18,994,328 $15,496,849
Profits $10,656,711 $23,480,869 $1,652,825 ($966,861)
Cumulative Profit $11,302,669 $56,219,025 $6,187,661 $5,546,459
SG&A / Sales 12.0% 6.6% 8.8% 12.3%
Contrib. Margin % 37.1% 37.2% 36.3% 36.0%

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Round: 3
Stocks & Bonds gunadeep reddy
December 31 , 2021

Stock Market Summary

Company Close Change Shares MarketCap ($M) Book Value EPS Dividend Yield P/E
Andrews $61.80 $17.94 2,358,840 $146 $47.42 $4.52 $0.00 0.0% 13.7
Baldwin $108.57 $20.56 1,914,102 $208 $50.46 $12.27 $1.01 0.9% 8.8
Chester $26.72 ($1.57) 3,345,620 $89 $26.05 $0.49 $0.00 0.0% 54.0
Digby $32.47 ($4.85) 3,198,900 $104 $31.77 ($0.30) $0.00 0.0% -107.8

Bond Market Summary

Company Series# Face Yield Close$ S&P
Andrews
11.2S2025 $8,837,000 11.1% 101.25 AAA
11.9S2026 $7,072,000 11.4% 104.09 AAA
11.4S2029 $10,001,000 11.1% 103.11 AAA
Baldwin
11.1S2027 $2,504,080 11.8% 93.94 BB
11.2S2028 $5,675,277 11.9% 93.73 BB
12.0S2029 $1,307,561 12.4% 97.08 BB
12.2S2030 $20,134,479 12.5% 97.92 BB
12.4S2031 $9,970,892 12.5% 98.90 BB
Chester
11.3S2025 $10,417,600 12.4% 91.31 CC
12.5S2026 $14,665,611 13.3% 93.86 CC
12.5S2027 $7,981,720 13.4% 93.06 CC
12.5S2028 $9,473,587 13.5% 92.35 CC
13.4S2029 $14,407,694 14.0% 95.87 CC
13.9S2030 $33,090,061 14.2% 98.04 CC
14.2S2031 $5,406,441 14.3% 99.48 CC

Digby
11.2S2025 $8,639,846 12.2% 91.57 CC
12.4S2026 $5,828,840 13.2% 94.18 CC
11.9S2028 $15,600,742 13.1% 90.59 CC
13.0S2029 $17,783,553 13.7% 94.91 CC
13.6S2030 $35,755,719 13.9% 97.54 CC
13.8S2031 $20,004,100 14.0% 98.44 CC

Next Year's Prime Rate 9.00%

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Round: 3
Financial Summary gunadeep reddy December 31, 2021

Cash Flow Statement Survey Andrews Baldwin Chester Digby

Cash flows from operating activities
Net Income (Loss) $10,657 $23,481 $1,653 ($967)
Adjustment for non-cash items:
Depreciation $9,325 $10,957 $16,627 $18,255
Extraordinary gains/losses/writeoffs $0 $0 $0 $0
Changes in current assets and liabilities:
Accounts payable $5,674 $2,832 $811 $3,288
Inventory $0 ($25,697) ($11,011) ($17,128)
Accounts receivable ($2,282) ($1,222) $357 ($2,336)
Net cash from operations $23,373 $10,352 $8,436 $1,112

Cash flows from investing activities

Plant improvements (net) ($32,900) ($38,100) ($25,900) ($53,560)
Cash flows from financing activities
Dividends paid $0 ($1,941) $0 $0
Sales of common stock $0 $0 $12,035 $19,896
Purchase of common stock $0 ($2,503) $0 $0
Cash from long term debt issued $0 $9,971 $5,406 $20,004
Early retirement of long term debt $0 $0 $0 $0
Retirement of current debt ($11,300) ($29,893) ($43,086) ($34,262)
Cash from current debt borrowing $0 $25,240 $30,543 $28,244
Cash from emergency loan $0 $0 $0 $0

Net cash from financing activities ($11,300) $874 $4,897 $33,882

Net change in cash position ($20,827) ($26,874) ($12,566) ($18,566)

Balance Sheet Survey Andrews Baldwin Chester Digby

Cash $52,678 $20,737 $40,872 $23,416
Accounts Receivable $12,819 $16,667 $12,557 $14,486
Inventory $0 $32,563 $13,725 $21,008
Total Current Assets $65,497 $69,967 $67,154 $58,910

Plant and equipment $139,876 $164,360 $249,400 $273,820

Accumulated Depreciation ($59,537) ($60,661) ($94,629) ($88,754)
Total Fixed Assets $80,339 $103,699 $154,771 $185,066

Total Assets $145,837 $173,666 $221,925 $243,975

Accounts Payable $8,069 $12,251 $8,772 $10,476

Current Debt $0 $25,240 $30,543 $28,244
Long Term Debt $25,910 $39,592 $95,443 $103,613
Total Liabilities $33,979 $77,083 $134,758 $142,332

Common Stock $46,705 $12,450 $50,984 $57,294

Retained Earnings $65,152 $84,133 $36,183 $44,350
Total Equity $111,857 $96,583 $87,167 $101,643

Total Liabilities & Owners' Equity $145,837 $173,666 $221,925 $243,975

Income Statement Survey Andrews Baldwin Chester Digby

Sales $155,964 $202,786 $152,775 $176,242
Variable Costs (Labor, Material, Carry) $98,176 $127,267 $97,365 $112,847
Depreciation $9,325 $10,957 $16,627 $18,255
SGA (R&D, Promo, Sales, Admin) $18,762 $13,374 $13,417 $21,648
Other (Fees, Writeoffs, TQM, Bonuses) $10,000 $6,786 $6,372 $7,995
EBIT $19,701 $44,401 $18,994 $15,497
Interest (Short term, Long term) $2,971 $7,540 $16,400 $16,984
Taxes $5,855 $12,902 $908 ($521)
Profit Sharing $217 $479 $34 $0
Net Profit $10,657 $23,481 $1,653 ($967)

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Round: 3
Production Analysis gunadeep reddy December 31, 2021

Production Information
2nd Shift Auto
Unit & mation Capacity
Primary Units Inven Age Pfmn Size Material Labor Contr. Over- Next Next Plant
Name Segment Sold tory Revision Date Dec.31 MTBF Coord Coord Price Cost Cost Marg. time Round Round Utiliz.

Attic Nano 1,644 0 7/30/2021 1.4 24000 13.5 3.7 $29.50 $13.07 $7.73 30% 93% 6.0 1,008 192%
Axe Elite 1,335 0 8/15/2021 1.4 26000 16.3 6.6 $35.50 $13.56 $6.22 45% 100% 7.0 974 198%
Apple Thrift 1,248 0 12/21/2021 1.7 20000 9.0 11.9 $19.00 $7.35 $6.22 33% 100% 7.0 930 198%
Ate Core 1,456 0 12/22/2021 1.4 22000 10.9 10.1 $25.00 $9.21 $6.77 40% 20% 6.0 1,230 118%
Ace 0 0 2/9/2021 0.9 20000 8.6 11.5 $19.00 $0.00 $0.00 0% 0% 1.0 800 0%

Bill Nano 1,700 182 11/5/2021 1.2 23000 14.1 4.0 $34.00 $13.66 $7.91 38% 100% 7.0 1,150 198%
Boat Elite 1,328 252 8/24/2021 1.9 25000 16.9 6.0 $34.00 $14.56 $6.93 35% 76% 7.0 850 175%
Best Nano 1,200 543 7/3/2021 1.3 23000 14.6 3.5 $37.00 $14.04 $7.55 38% 62% 7.0 1,300 160%
Bam Elite 1,499 522 7/25/2021 1.3 25000 16.7 5.7 $37.00 $14.57 $7.59 38% 65% 7.0 1,400 164%

Clack Thrift 1,866 114 6/10/2022 3.7 17000 8.4 11.7 $16.00 $6.80 $2.87 38% 33% 10.0 1,500 132%
Cone Thrift 2,025 261 6/10/2022 3.6 17000 8.6 11.5 $16.00 $6.96 $2.89 36% 36% 10.0 1,650 135%
Cure Core 1,782 334 12/15/2020 2.1 18000 11.5 8.0 $24.00 $9.72 $4.70 37% 86% 8.0 1,250 185%
Cat Core 1,989 328 12/17/2020 2.1 20000 12.2 8.5 $24.00 $10.36 $4.65 35% 77% 8.0 1,500 175%

Dim Thrift 932 287 12/20/2021 2.2 14000 9.1 11.0 $17.00 $6.82 $1.79 52% 0% 10.0 1,250 83%
Don Core 1,966 251 12/7/2019 3.1 16000 10.0 10.1 $19.00 $8.14 $4.12 33% 47% 10.0 1,550 145%
Drum Nano 1,138 397 12/17/2021 1.0 18000 13.5 3.9 $30.00 $12.74 $7.15 32% 72% 7.0 1,050 171%
Daft Elite 823 349 12/17/2021 1.0 20000 16.6 6.4 $36.00 $13.59 $6.60 42% 29% 7.0 950 128%
Deal Core 1,720 62 12/25/2021 0.9 16000 11.4 8.6 $21.00 $9.31 $5.73 30% 73% 8.0 1,050 171%
Dino Core 1,053 0 2/10/2021 0.9 16000 11.1 9.0 $22.00 $9.03 $4.43 38% 100% 8.0 1,040 176%

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Round: 3
Thrift Market Segment Analysis gunadeep reddy
December 31, 2021

Thrift Statistics
Total Industry Unit Demand 6,978
Actual Industry Unit Sales 6,978
Segment % of Total Industry 26.1%

Next Year's Segment Growth Rate 11.0%

Thrift Customer Buying Criteria

Expectations Importance
1. Price $14.00 - 26.00 55%
2. Reliability MTBF 14000-20000 20%
3. Ideal Position Pfmn 8.6 Size 11.5 15%
4. Age Ideal Age = 3.0 10%

Perceptual Map for Thrift Segment

Top Products in Thrift Segment

Market Units Sold Revision Pfmn Size List Age Promo Cust. Aware- Sales Cust. Access- Dec. Cust.
Name Share to Seg Date Stock Out Coord Coord Price MTBF Dec.31 Budget ness Budget ibility Survey
Cone 25% 1,717 6/10/2022 8.6 11.5 $16.00 17000 3.64 $1,250 79% $1,400 75% 55
Clack 24% 1,672 6/10/2022 8.4 11.7 $16.00 17000 3.74 $1,250 78% $1,400 75% 54
Apple 18% 1,230 12/21/2021 YES 9.0 11.9 $19.00 20000 1.70 $1,200 70% $1,200 74% 48
Dim 13% 907 12/20/2021 9.1 11.0 $17.00 14000 2.25 $1,140 66% $1,000 72% 31
Don 10% 689 12/7/2019 10.0 10.1 $19.00 16000 3.11 $1,140 67% $1,000 72% 24
Ate 8% 558 12/22/2021 YES 10.9 10.1 $25.00 22000 1.44 $1,200 70% $1,200 74% 11
Deal 3% 180 12/25/2021 11.4 8.6 $21.00 16000 0.88 $1,140 58% $900 72% 0
Dino 0% 24 2/10/2021 YES 11.1 9.0 $22.00 16000 0.89 $1,140 51% $900 72% 3
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Round: 3
Core Market Segment Analysis gunadeep reddy December 31, 2021

Core Statistics
Total Industry Unit Demand 8,889
Actual Industry Unit Sales 8,889
Segment % of Total Industry 33.3%

Next Year's Segment Growth Rate 10.0%

Core Customer Buying Criteria

Expectations Importance
1. Price $20.00 - 32.00 46%
2. Age Ideal Age = 2.0 20%
3. Reliability MTBF 16000-22000 18%
4. Ideal Position Pfmn 11.6 Size 8.5 16%

Perceptual Map for Core Segment

Top Products in Core Segment

Market Units Sold Revision Pfmn Size List Age Promo Cust. Aware- Sales Cust. Access- Dec. Cust.
Name Share to Seg Date Stock Out Coord Coord Price MTBF Dec.31 Budget ness Budget ibility Survey
Cat 21% 1,911 12/17/2020 12.2 8.5 $24.00 20000 2.10 $1,250 78% $1,100 76% 50
Cure 19% 1,687 12/15/2020 11.5 8.0 $24.00 18000 2.09 $1,250 78% $1,100 76% 44
Deal 17% 1,540 12/25/2021 11.4 8.6 $21.00 16000 0.88 $1,140 58% $900 72% 38
Don 14% 1,277 12/7/2019 10.0 10.1 $19.00 16000 3.11 $1,140 67% $1,000 72% 26
Dino 12% 1,029 2/10/2021 YES 11.1 9.0 $22.00 16000 0.89 $1,140 51% $900 72% 31
Ate 10% 897 12/22/2021 YES 10.9 10.1 $25.00 22000 1.44 $1,200 70% $1,200 49% 35
Cone 3% 309 6/10/2022 8.6 11.5 $16.00 17000 3.64 $1,250 79% $1,400 76% 2
Clack 2% 194 6/10/2022 8.4 11.7 $16.00 17000 3.74 $1,250 78% $1,400 76% 0
Dim 0% 24 12/20/2021 9.1 11.0 $17.00 14000 2.25 $1,140 66% $1,000 72% 8
Apple 0% 17 12/21/2021 YES 9.0 11.9 $19.00 20000 1.70 $1,200 70% $1,200 49% 7
Bill 0% 4 11/5/2021 14.1 4.0 $34.00 23000 1.24 $1,350 87% $1,000 11% 0
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Round: 3
Nano Market Segment Analysis gunadeep reddy
December 31, 2021

Nano Statistics
Total Industry Unit Demand 5,407
Actual Industry Unit Sales 5,407
Segment % of Total Industry 20.3%

Next Year's Segment Growth Rate 14.0%

Nano Customer Buying Criteria

Expectations Importance
1. Ideal Position Pfmn 13.5 Size 3.7 35%
2. Price $28.00 - 40.00 27%
3. Age Ideal Age = 1.0 20%
4. Reliability MTBF 18000-24000 18%

Perceptual Map for Nano Segment

Top Products in Nano Segment

Market Units Sold Revision Pfmn Size List Age Promo Cust. Aware- Sales Cust. Access- Dec. Cust.
Name Share to Seg Date Stock Out Coord Coord Price MTBF Dec.31 Budget ness Budget ibility Survey
Attic 29% 1,542 7/30/2021 YES 13.5 3.7 $29.50 24000 1.44 $1,700 92% $1,700 65% 85
Bill 24% 1,311 11/5/2021 14.1 4.0 $34.00 23000 1.24 $1,350 87% $1,000 83% 62
Best 21% 1,146 7/3/2021 14.6 3.5 $37.00 23000 1.34 $1,350 87% $900 83% 48
Drum 19% 1,014 12/17/2021 13.5 3.9 $30.00 18000 1.03 $1,140 67% $1,900 70% 46
Cure 2% 95 12/15/2020 11.5 8.0 $24.00 18000 2.09 $1,250 78% $1,100 18% 2
Bam 1% 80 7/25/2021 16.7 5.7 $37.00 25000 1.34 $1,350 87% $900 83% 0
Cat 1% 78 12/17/2020 12.2 8.5 $24.00 20000 2.10 $1,250 78% $1,100 18% 1
Axe 1% 65 8/15/2021 YES 16.3 6.6 $35.50 26000 1.41 $1,200 72% $1,200 65% 0
Daft 1% 59 12/17/2021 16.6 6.4 $36.00 20000 1.04 $1,140 67% $2,200 70% 0
Boat 0% 16 8/24/2021 16.9 6.0 $34.00 25000 1.90 $1,350 87% $1,000 83% 0
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Round: 3
Elite Market Segment Analysis gunadeep reddy December 31, 2021

Elite Statistics
Total Industry Unit Demand 5,428
Actual Industry Unit Sales 5,428
Segment % of Total Industry 20.3%

Next Year's Segment Growth Rate 16.0%

Elite Customer Buying Criteria

Expectations Importance
1. Age Ideal Age = 0.0 34%
2. Price $30.00 - 42.00 24%
3. Ideal Position Pfmn 16.4 Size 6.6 22%
4. Reliability MTBF 20000-26000 20%

Perceptual Map for Elite Segment

Top Products in Elite Segment

Market Units Sold Revision Pfmn Size List Age Promo Cust. Aware- Sales Cust. Access- Dec. Cust.
Name Share to Seg Date Stock Out Coord Coord Price MTBF Dec.31 Budget ness Budget ibility Survey
Bam 26% 1,419 7/25/2021 16.7 5.7 $37.00 25000 1.34 $1,350 87% $900 87% 48
Boat 24% 1,312 8/24/2021 16.9 6.0 $34.00 25000 1.90 $1,350 87% $1,000 87% 47
Axe 23% 1,270 8/15/2021 YES 16.3 6.6 $35.50 26000 1.41 $1,200 72% $1,200 62% 49
Daft 14% 763 12/17/2021 16.6 6.4 $36.00 20000 1.04 $1,140 67% $2,200 69% 30
Bill 7% 385 11/5/2021 14.1 4.0 $34.00 23000 1.24 $1,350 87% $1,000 87% 8
Drum 2% 124 12/17/2021 13.5 3.9 $30.00 18000 1.03 $1,140 67% $1,900 69% 1
Attic 2% 102 7/30/2021 YES 13.5 3.7 $29.50 24000 1.44 $1,700 92% $1,700 62% 0
Best 1% 54 7/3/2021 14.6 3.5 $37.00 23000 1.34 $1,350 87% $900 87% 1
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Round: 3
Market Share Report gunadeep reddy December 31, 2021

Actual Market Share in Units Potential Market Share in Units

Thrift Core Nano Elite Total Thrift Core Nano Elite Total
Industry Unit 6,978 8,889 5,407 5,428 26,702 Units 6,978 8,889 5,407 5,428 26,702
Sales Demanded
% of Market 26.1% 33.3% 20.3% 20.3% 100.0% % of Market 26.1% 33.3% 20.3% 20.3% 100.0%
Attic 28.5% 1.9% 6.2% Attic 34.5% 2.2% 7.4%
Axe 1.2% 23.4% 5.0% Axe 1.2% 25.5% 5.4%
Apple 17.6% 0.2% 4.7% Apple 18.3% 0.2% 4.9%
Ate 8.0% 10.1% 5.5% Ate 9.3% 12.0% 6.4%
Total 25.6% 10.3% 29.7% 25.3% 21.3% Total 27.6% 12.3% 35.8% 27.7% 24.2%
Bill 0.0% 24.3% 7.1% 6.4% Bill 22.2% 6.9% 5.9%
Boat 0.3% 24.2% 5.0% Boat 0.3% 23.3% 4.8%
Best 21.2% 1.0% 4.5% Best 19.4% 1.0% 4.1%
Bam 1.5% 26.1% 5.6% Bam 1.4% 25.3% 5.4%
Total 0.0% 47.2% 58.4% 21.4% Total 0.0% 43.2% 56.5% 20.2%

Clack 24.0% 2.2% 7.0% Clack 23.8% 2.2% 6.9%

Cone 24.6% 3.5% 7.6% Cone 23.7% 3.3% 7.3%
Cure 19.0% 1.8% 6.7% Cure 18.2% 1.6% 6.4%
Cat 21.5% 1.4% 7.5% Cat 20.6% 1.3% 7.1%
Total 48.6% 46.1% 3.2% 28.7% Total 47.5% 44.3% 2.9% 27.8%

Dim 13.0% 0.3% 3.5% Dim 12.5% 0.3% 3.3%

Don 9.9% 14.4% 7.4% Don 9.5% 13.7% 7.1%
Drum 18.8% 2.3% 4.3% Drum 17.1% 2.2% 3.9%
Daft 1.1% 14.1% 3.1% Daft 1.0% 13.6% 3.0%
Deal 2.6% 17.3% 6.4% Deal 2.5% 16.7% 6.2%
Dino 0.3% 11.6% 3.9% Dino 0.4% 12.6% 4.3%
Total 25.8% 43.5% 19.9% 16.4% 28.6% Total 24.9% 43.4% 18.1% 15.8% 27.8%
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Round: 3
Perceptual Map gunadeep reddy December 31, 2021

Perceptual Map for All Segments

Andrews Baldwin Chester

Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Attic 13.5 3.7 7/30/2021 Bill 14.1 4.0 11/5/2021 Clack 8.4 11.7 6/10/2022
Axe 16.3 6.6 8/15/2021 Boat 16.9 6.0 8/24/2021 Cone 8.6 11.5 6/10/2022
Apple 9.0 11.9 12/21/2021 Best 14.6 3.5 7/3/2021 Cure 11.5 8.0 12/15/2020
Ate 10.9 10.1 12/22/2021 Bam 16.7 5.7 7/25/2021 Cat 12.2 8.5 12/17/2020
Ace 8.6 11.5 2/9/2021

Digby
Name Pfmn Size Revised
Dim 9.1 11.0 12/20/2021
Don 10.0 10.1 12/7/2019
Drum 13.5 3.9 12/17/2021
Daft 16.6 6.4 12/17/2021
Deal 11.4 8.6 12/25/2021
Dino 11.1 9.0 2/10/2021

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Round: 3
HR/TQM Report gunadeep reddy December 31, 2021

HUMAN RESOURCES SUMMARY

Andrews Baldwin Chester Digby
Needed Complement 543 709 457 638
Complement 543 709 457 638
1st Shift Complement 326 405 286 413
2nd Shift Complement 217 304 171 225

Overtime% 0.1% 0.0% 0.0% 0.0%

Turnover Rate 8.0% 10.0% 8.0% 6.2%
New Employees 373 160 44 191
Separated Employees 0 0 0 0
Recruiting Spend $3,000 $0 $2,500 $5,000
Training Hours 50 0 40 80
Productivity Index 105.1% 100.0% 115.9% 124.7%

Recruiting Cost $1,491 $160 $156 $1,147

Separation Cost $0 $0 $0 $0
Training Cost $543 $0 $365 $1,021
Total HR Admin Cost $2,034 $160 $521 $2,168

Labor Contract Next Year

Wages $29.56 $29.56 $29.56 $29.56
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 $1,000 $0 $1,250 $1,500
Vendor/JIT $1,000 $0 $1,250 $1,500
Quality Initiative Training $1,000 $1,250 $0 $0
Channel Support Systems $1,000 $1,250 $1,500 $0
Concurrent Engineering $1,000 $1,250 $0 $0
UNEP Green Programs $1,000 $0 $0 $1,500
TQM Budgets Last Year
Benchmarking $1,000 $0 $0 $1,500
Quality Function Deployment Effort $1,000 $0 $0 $0
CCE/6 Sigma Training $1,000 $1,250 $750 $0
GEMI TQEM Sustainability Initiatives $1,000 $1,250 $750 $0
Total Expenditures $10,000 $6,250 $5,500 $6,000
Cumulative Impacts
Material Cost Reduction 11.78% 6.43% 6.03% 1.41%
Labor Cost Reduction 14.00% 13.93% 1.78% 0.05%
Reduction R&D Cycle Time 40.01% 39.79% 0.00% 0.00%
Reduction Admin Costs 60.02% 0.00% 16.23% 43.11%
Demand Increase 14.40% 9.37% 5.47% 0.45%
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Round: 3
Annual Report Andrews C59559
Dec. 31, 2021

Balance Sheet
DEFINITIONS: Common Size: The common size column ASSETS 2021 2020
simply represents each item as a percentage of total assets Common
for that year. Cash: Your end-of-year cash position. Size
Accounts Receivable: Reflects the lag between delivery Cash $52,678 36.1% $73,505
and payment of your products. Inventories: The current Accounts Receivable $12,819 8.8% $10,537
value of your inventory across all products. A zero indicates Inventory $0 0.0% $0
your company stocked out. Unmet demand would, of course,
fall to your competitors. Plant & Equipment: The current Total Current Assets $65,497 44.9% $84,042
value of your plant. Accum Deprec: The total accumulated
depreciation from your plant. Accts Payable: What the Plant & Equipment $139,876 95.9% $106,976
company currently owes suppliers for materials and Accumulated Depreciation ($59,537) -40.8% ($50,212)
services. Current Debt: The debt the company is obligated
to pay during the next year of operations. It includes Total Fixed Assets $80,339 55.1% $56,764
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 Total Assets $145,837 100.0% $140,806
represents the total value of your bonds. Common Stock:
The amount of capital invested by shareholders in the LIABILITIES & OWNERS' EQUITY
company. Retained Earnings: The profits that the company
chose to keep instead of paying to shareholders as Accounts Payable $8,069 5.5% $2,395
dividends. Current Debt $0 0.0% $11,300
Long Term Debt $25,910 17.8% $25,910

Total Liabilities $33,979 23.3% $39,605

Common Stock $46,705 32.0% $46,705

Retained Earnings $65,152 44.7% $54,495

Total Equity $111,857 76.7% $101,200

Total Liab. & O. Equity $145,837 100.0% $140,806

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account during the Cash Flows from Operating Activities: 2021 2020
year. Cash injections appear as positive numbers and cash withdrawals as negative Net Income (Loss) $10,657 $978
numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. Depreciation $9,325 $7,132
When negative cash flows exceed positives, you are forced to seek emergency funding. Extraordinary gains/losses/writeoffs $0 $0
For example, if sales are bad and you find yourself carrying an abundance of excess Accounts Payable $5,674 ($7,768)
inventory, the report would show the increase in inventory as a huge negative cash flow. Inventory $0 $60,859
Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and ($2,282) $488
Accounts Receivable
force you to beg for money to keep your company afloat.
Net cash from operations $23,373 $61,689
Cash Flows from Investing Activities:
Plant Improvements ($32,900) ($13,568)
Cash Flows from Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $0 $0
Purchase of Common Stock $0 $0
Cash from long term debt $0 $0
Retirement of long term debt $0 ($11,300)
($11,300) $11,300
Change in current debt (net)
Net cash from financing activities ($11,300) $0
Net change in cash position ($20,827) $48,121
Closing cash position $52,678 $73,505

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Round: 3
Annual Report Andrews C59559
Dec. 31, 2021
2021 Income Statement
(Product Name:) Attic Axe Apple Ate Ace NA NA NA 2021 Common
Total Size
Sales $48,488 $47,383 $23,704 $36,388 $0 $0 $0 $0 $155,964 100.0%

Variable Costs:
Direct Labor $12,701 $8,305 $7,763 $9,848 $0 $0 $0 $0 $38,619 24.8%
Direct Material $21,318 $17,995 $8,135 $12,109 $0 $0 $0 $0 $59,557 38.2%
Inventory Carry $0 $0 $0 $0 $0 $0 $0 $0 $0 0.0%
Total Variable $34,020 $26,300 $15,899 $21,957 $0 $0 $0 $0 $98,176 62.9%

Contribution Margin $14,468 $21,083 $7,806 $14,431 $0 $0 $0 $0 $57,788 37.1%

Period Costs:
Depreciation $2,016 $2,208 $2,108 $2,460 $533 $0 $0 $0 $9,325 6.0%
SG&A: R&D $584 $628 $985 $987 $109 $0 $0 $0 $3,292 2.1%
Promotions $1,700 $1,200 $1,200 $1,200 $1,200 $0 $0 $0 $6,500 4.2%
Sales $1,700 $1,200 $1,200 $1,200 $1,200 $0 $0 $0 $6,500 4.2%
Admin $768 $750 $375 $576 $0 $0 $0 $0 $2,470 1.6%
Total Period $6,768 $5,986 $5,868 $6,423 $3,042 $0 $0 $0 $28,088 18.0%

Net Margin $7,701 $15,097 $1,938 $8,008 ($3,042) $0 $0 $0 $29,701 19.0%

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year Other $10,000 6.4%
depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration EBIT $19,701 12.6%
overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force Short Term Interest $0 0.0%
budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees LongTerm Interest $2,971 1.9%
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your Taxes $5,855 3.8%
instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as Profit Sharing $217 0.1%
the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on Net Profit $10,657 6.8%
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.

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Round: 3
Annual Report Baldwin C59559
Dec. 31, 2021

Balance Sheet
DEFINITIONS: Common Size: The common size column ASSETS 2021 2020
simply represents each item as a percentage of total assets Common
for that year. Cash: Your end-of-year cash position. Size
Accounts Receivable: Reflects the lag between delivery Cash $20,737 11.9% $47,611
and payment of your products. Inventories: The current Accounts Receivable $16,667 9.6% $15,446
value of your inventory across all products. A zero indicates Inventory $32,563 18.8% $6,866
your company stocked out. Unmet demand would, of course,
fall to your competitors. Plant & Equipment: The current Total Current Assets $69,967 40.3% $69,923
value of your plant. Accum Deprec: The total accumulated
depreciation from your plant. Accts Payable: What the Plant & Equipment $164,360 94.6% $126,260
company currently owes suppliers for materials and Accumulated Depreciation ($60,661) -34.9% ($49,704)
services. Current Debt: The debt the company is obligated
to pay during the next year of operations. It includes Total Fixed Assets $103,699 59.7% $76,556
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 Total Assets $173,666 100.0% $146,479
represents the total value of your bonds. Common Stock:
The amount of capital invested by shareholders in the LIABILITIES & OWNERS' EQUITY
company. Retained Earnings: The profits that the company
chose to keep instead of paying to shareholders as Accounts Payable $12,251 7.1% $9,419
dividends. Current Debt $25,240 14.5% $29,893
Long Term Debt $39,592 22.8% $29,621

Total Liabilities $77,083 44.4% $68,933

Common Stock $12,450 7.2% $12,865

Retained Earnings $84,133 48.4% $64,680

Total Equity $96,583 55.6% $77,545

Total Liab. & O. Equity $173,666 100.0% $146,479

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account during the Cash Flows from Operating Activities: 2021 2020
year. Cash injections appear as positive numbers and cash withdrawals as negative Net Income (Loss) $23,481 $19,711
numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. Depreciation $10,957 $8,417
When negative cash flows exceed positives, you are forced to seek emergency funding. Extraordinary gains/losses/writeoffs $0 $0
For example, if sales are bad and you find yourself carrying an abundance of excess Accounts Payable $2,832 $944
inventory, the report would show the increase in inventory as a huge negative cash flow. Inventory ($25,697) $6,637
Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and ($1,222) ($2,588)
Accounts Receivable
force you to beg for money to keep your company afloat.
Net cash from operations $10,352 $33,122
Cash Flows from Investing Activities:
Plant Improvements ($38,100) ($32,300)
Cash Flows from Financing Activities:
Dividends Paid ($1,941) $0
Sales of Common Stock $0 $4,047
Purchase of Common Stock ($2,503) $0
Cash from long term debt $9,971 $20,134
Retirement of long term debt $0 ($11,300)
($4,653) $15,608
Change in current debt (net)
Net cash from financing activities $874 $28,489
Net change in cash position ($26,874) $29,312
Closing cash position $20,737 $47,611

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Round: 3
Annual Report Baldwin C59559
Dec. 31, 2021
2021 Income Statement
2021 Common
(Product Name:) Bill Boat Best Bam Na Na Na Na Total Size
Sales $57,791 $45,153 $44,383 $55,459 $0 $0 $0 $0 $202,786 100.0%
Variable Costs:
Direct Labor $13,442 $9,324 $9,079 $11,392 $0 $0 $0 $0 $43,238 21.3%
Direct Material $22,119 $19,246 $16,883 $21,874 $0 $0 $0 $0 $80,122 39.5%
Inventory Carry $456 $651 $1,411 $1,389 $0 $0 $0 $0 $3,908 1.9%
Total Variable $36,017 $29,221 $27,374 $34,655 $0 $0 $0 $0 $127,267 62.8%

Contribution Margin $21,774 $15,932 $17,010 $20,803 $0 $0 $0 $0 $75,519 37.2%

Period Costs:
Depreciation $2,911 $1,927 $2,947 $3,173 $0 $0 $0 $0 $10,957 5.4%
SG&A: R&D $858 $655 $510 $571 $0 $0 $0 $0 $2,595 1.3%
Promotions $1,350 $1,350 $1,350 $1,350 $0 $0 $0 $0 $5,400 2.7%
Sales $1,000 $1,000 $900 $900 $0 $0 $0 $0 $3,800 1.9%
Admin $450 $352 $346 $432 $0 $0 $0 $0 $1,580 0.8%
Total Period $6,569 $5,284 $6,052 $6,426 $0 $0 $0 $0 $24,332 12.0%

Net Margin $15,205 $10,648 $10,957 $14,377 $0 $0 $0 $0 $51,187 25.2%

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year Other $6,786 3.3%
depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration EBIT $44,401 21.9%
overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force Short Term Interest $2,776 1.4%
budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees LongTerm Interest $4,763 2.3%
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your Taxes $12,902 6.4%
instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as Profit Sharing $479 0.2%
the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on Net Profit $23,481 11.6%
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.

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Round: 3
Annual Report Chester C59559
Dec. 31, 2021

Balance Sheet
DEFINITIONS: Common Size: The common size column ASSETS 2021 2020
simply represents each item as a percentage of total assets Common
for that year. Cash: Your end-of-year cash position. Size
Accounts Receivable: Reflects the lag between delivery Cash $40,872 18.4% $53,438
and payment of your products. Inventories: The current Accounts Receivable $12,557 5.7% $12,914
value of your inventory across all products. A zero indicates Inventory $13,725 6.2% $2,714
your company stocked out. Unmet demand would, of course,
fall to your competitors. Plant & Equipment: The current Total Current Assets $67,154 30.3% $69,066
value of your plant. Accum Deprec: The total accumulated
depreciation from your plant. Accts Payable: What the Plant & Equipment $249,400 112.4% $223,500
company currently owes suppliers for materials and Accumulated Depreciation ($94,629) -42.6% ($78,002)
services. Current Debt: The debt the company is obligated
to pay during the next year of operations. It includes Total Fixed Assets $154,771 69.7% $145,498
emergency loans used to keep your company solvent should
you run out of cash during the year. Long Term Debt: The Total Assets $221,925 100.0% $214,564
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 LIABILITIES & OWNERS' EQUITY
company. Retained Earnings: The profits that the company
chose to keep instead of paying to shareholders as Accounts Payable $8,772 4.0% $7,961
dividends. Current Debt $30,543 13.8% $43,086
Long Term Debt $95,443 43.0% $90,036

Total Liabilities $134,758 60.7% $141,083

Common Stock $50,984 23.0% $38,950

Retained Earnings $36,183 16.3% $34,530

Total Equity $87,167 39.3% $73,480

Total Liab. & O. Equity $221,925 100.0% $214,564

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account during the Cash Flows from Operating Activities: 2021 2020
year. Cash injections appear as positive numbers and cash withdrawals as negative Net Income (Loss) $1,653 ($1,194)
numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. Depreciation $16,627 $14,900
When negative cash flows exceed positives, you are forced to seek emergency funding. Extraordinary gains/losses/writeoffs $0 $0
For example, if sales are bad and you find yourself carrying an abundance of excess Accounts Payable $811 ($1,204)
inventory, the report would show the increase in inventory as a huge negative cash flow. Inventory ($11,011) $8,251
Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and $357 $205
Accounts Receivable
force you to beg for money to keep your company afloat.
Net cash from operations $8,436 $20,958
Cash Flows from Investing Activities:
Plant Improvements ($25,900) ($45,940)
Cash Flows from Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $12,035 $11,319
Purchase of Common Stock $0 $0
Cash from long term debt $5,406 $33,090
Retirement of long term debt $0 ($11,300)
($12,544) $17,883
Change in current debt (net)
Net cash from financing activities $4,897 $50,992
Net change in cash position ($12,566) $26,010
Closing cash position $40,872 $53,438

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Round: 3
Annual Report Chester C59559
Dec. 31, 2021
2021 Income Statement
(Product Name:) Clack Cone Cure Cat Na Na Na Na 2021 Common
Total Size
Sales $29,861 $32,403 $42,774 $47,737 $0 $0 $0 $0 $152,775 100.0%
Variable Costs:
Direct Labor $5,360 $5,910 $8,394 $9,252 $0 $0 $0 $0 $28,916 18.9%
Direct Material $13,117 $14,595 $17,888 $21,202 $0 $0 $0 $0 $66,802 43.7%
Inventory Carry $135 $317 $591 $604 $0 $0 $0 $0 $1,647 1.1%
Total Variable $18,612 $20,822 $26,872 $31,058 $0 $0 $0 $0 $97,365 63.7%

Contribution Margin $11,249 $11,581 $15,902 $16,678 $0 $0 $0 $0 $55,410 36.3%

Period Costs:
Depreciation $4,600 $5,060 $3,167 $3,800 $0 $0 $0 $0 $16,627 10.9%
SG&A: R&D $1,000 $1,000 $0 $0 $0 $0 $0 $0 $2,000 1.3%
Promotions $1,250 $1,250 $1,250 $1,250 $0 $0 $0 $0 $5,000 3.3%
Sales $1,400 $1,400 $1,100 $1,100 $0 $0 $0 $0 $5,000 3.3%
Admin $277 $301 $397 $443 $0 $0 $0 $0 $1,417 0.9%
Total Period $8,527 $9,011 $5,913 $6,593 $0 $0 $0 $0 $30,044 19.7%

Net Margin $2,722 $2,570 $9,989 $10,086 $0 $0 $0 $0 $25,366 16.6%

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year Other $6,372 4.2%
depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration EBIT $18,994 12.4%
overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force Short Term Interest $3,909 2.6%
budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees LongTerm Interest $12,490 8.2%
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your Taxes $908 0.6%
instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as Profit Sharing $34 0.0%
the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on Net Profit $1,653 1.1%
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.

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Round: 3
Annual Report Digby C59559
Dec. 31, 2021

Balance Sheet
DEFINITIONS: Common Size: The common size column ASSETS 2021 2020
simply represents each item as a percentage of total assets Common
for that year. Cash: Your end-of-year cash position. Size
Accounts Receivable: Reflects the lag between delivery Cash $23,416 9.6% $41,982
and payment of your products. Inventories: The current Accounts Receivable $14,486 5.9% $12,150
value of your inventory across all products. A zero indicates Inventory $21,008 8.6% $3,881
your company stocked out. Unmet demand would, of course,
fall to your competitors. Plant & Equipment: The current Total Current Assets $58,910 24.1% $58,013
value of your plant. Accum Deprec: The total accumulated
depreciation from your plant. Accts Payable: What the Plant & Equipment $273,820 112.2% $220,260
company currently owes suppliers for materials and Accumulated Depreciation ($88,754) -36.4% ($70,500)
services. Current Debt: The debt the company is obligated
to pay during the next year of operations. It includes Total Fixed Assets $185,066 75.9% $149,760
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 Total Assets $243,975 100.0% $207,773
represents the total value of your bonds. Common Stock:
The amount of capital invested by shareholders in the LIABILITIES & OWNERS' EQUITY
company. Retained Earnings: The profits that the company
chose to keep instead of paying to shareholders as Accounts Payable $10,476 4.3% $7,188
dividends. Current Debt $28,244 11.6% $34,262
Long Term Debt $103,613 42.5% $83,609

Total Liabilities $142,333 58.3% $125,059

Common Stock $57,294 23.5% $37,398

Retained Earnings $44,350 18.2% $45,317

Total Equity $101,644 41.7% $82,715

Total Liab. & O. Equity $243,975 100.0% $207,773

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account during the Cash Flows from Operating Activities: 2021 2020
year. Cash injections appear as positive numbers and cash withdrawals as negative Net Income (Loss) ($967) $2,136
numbers. The Cash Flow Statement is an excellent tool for diagnosing emergency loans. Depreciation $18,255 $13,324
When negative cash flows exceed positives, you are forced to seek emergency funding. Extraordinary gains/losses/writeoffs $0 $0
For example, if sales are bad and you find yourself carrying an abundance of excess Accounts Payable $3,288 $323
inventory, the report would show the increase in inventory as a huge negative cash flow. Inventory ($17,128) $8,705
Too much unexpected inventory could outstrip your inflows, exhaust your starting cash and ($2,336) ($2,114)
Accounts Receivable
force you to beg for money to keep your company afloat.
Net cash from operations $1,112 $22,374
Cash Flows from Investing Activities:
Plant Improvements ($53,560) ($54,960)
Cash Flows from Financing Activities:
Dividends Paid $0 $0
Sales of Common Stock $19,896 $18,751
Purchase of Common Stock $0 $0
Cash from long term debt $20,004 $35,756
Retirement of long term debt $0 ($11,300)
($6,018) $12,522
Change in current debt (net)
Net cash from financing activities $33,882 $55,729
Net change in cash position ($18,566) $23,143
Closing cash position $23,416 $41,982

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Round: 3
Annual Report Digby C59559
Dec. 31, 2021
2021 Income Statement
2021 Common
(Product Name:) Dim Don Drum Daft Deal Dino Na Na Total Size
Sales $15,842 $37,346 $34,141 $29,617 $36,129 $23,167 $0 $0 $176,242 100.0%

Variable Costs:
Direct Labor $1,755 $8,137 $8,139 $5,457 $9,855 $4,664 $0 $0 $38,008 21.6%
Direct Material $5,612 $16,550 $14,070 $10,892 $15,413 $9,782 $0 $0 $72,318 41.0%
Inventory Carry $273 $379 $929 $832 $109 $0 $0 $0 $2,521 1.4%
Total Variable $7,640 $25,066 $23,138 $17,181 $25,377 $14,446 $0 $0 $112,847 64.0%

Contribution Margin $8,202 $12,280 $11,003 $12,436 $10,752 $8,721 $0 $0 $63,395 36.0%

Period Costs:
Depreciation $3,833 $4,753 $2,380 $2,153 $2,660 $2,475 $0 $0 $18,255 10.4%
SG&A: R&D $983 $0 $973 $973 $995 $114 $0 $0 $4,039 2.3%
Promotions $1,140 $1,140 $1,140 $1,140 $1,140 $1,140 $0 $0 $6,840 3.9%
Sales $1,000 $1,000 $1,900 $2,200 $900 $900 $0 $0 $7,900 4.5%
Admin $258 $608 $556 $482 $588 $377 $0 $0 $2,870 1.6%
Total Period $7,214 $7,501 $6,949 $6,949 $6,284 $5,006 $0 $0 $39,903 22.6%

Net Margin $988 $4,779 $4,053 $5,488 $4,469 $3,716 $0 $0 $23,492 13.3%

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year Other $7,995 4.5%
depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration EBIT $15,497 8.8%
overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force Short Term Interest $3,502 2.0%
budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees LongTerm Interest $13,482 7.6%
include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your Taxes ($521) -0.3%
instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as Profit Sharing $0 0.0%
the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on Net Profit ($967) -0.5%
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 Page 2

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