Round: 6

Dec. 31, F150012

2030
Andrews Baldwin Chester
Alex Brown Samuel Adeyanju Logan Davis
Dolfin Helg Uzoma Agwu Johanna-Maria Minso
Donaldo Zarate Collins Ebube Lucky Laura Rodriguez
Rebecca Steinmetz

Digby Erie Ferris

Ana calderon rodrig Kathryn Hanson
Diana Gamboa Karla Landaverde
Anita Sukei Hidalgo Rachel Tafua
Kevin Ponce Moana Vaea

Selected Financial Statistics

Andrews Baldwin Chester Digby Erie Ferris
ROS 7.8% 0.0% 13.3% 4.7% 12.3% 0.0%
Asset Turnover 0.89 0.52 0.85 1.28 0.61 0.09
ROA 6.9% -55.7% 11.3% 6.0% 7.5% -14.7%
Leverage 2.4 -1.8 2.0 1.5 1.8 3.9
ROE 16.4% -102.3% 22.4% 8.9% 13.6% -57.3%
Emergency Loan $0 $33,414,177 $0 $0 $0 $42,222,981
Sales $205,073,562 $16,837,802 $145,326,006 $84,284,521 $63,372,354 $5,880,079
EBIT $38,716,925 ($20,423,594) $38,276,323 $7,695,739 $16,499,221 ($8,270,211)
Profits $15,943,298 ($18,103,182) $19,375,210 $3,936,939 $7,793,106 ($9,302,300)
Cumulative Profit $69,088,279 ($47,373,094) $71,889,240 $19,409,079 $46,732,723 $5,874,862
SG&A / Sales 13.3% 82.2% 16.0% 19.3% 17.7% 35.9%
Contrib. Margin % 42.9% 20.1% 49.6% 35.8% 57.6% -88.4%

FOUNDATION ® FAST TRACK Page 1

 Round: 6
Stock & Bonds F150012 Dec. 31, 2030
Stock Market Summary
MarketCap Book Value
Company Close Change Shares EPS Dividend Yield P/E
($M) Per Share
Andrews $60.00 $18.74 2,973,483 $178 $32.70 $5.36 $0.01 0.0% 11.2
Baldwin $1.00 $0.00 5,864,298 $6 ($3.02) ($3.09) $0.00 0.0% -0.3
Chester $77.99 $10.86 2,369,421 $185 $36.47 $8.18 $0.00 0.0% 9.5
Digby $19.16 $7.81 2,764,438 $53 $16.01 $1.42 $0.00 0.0% 13.4
Erie $51.78 $0.95 2,001,967 $104 $28.57 $3.89 $0.00 0.0% 13.3
Ferris $1.00 ($4.06) 2,000,000 $2 $8.12 ($4.65) $0.00 0.0% -0.2

Bond Market Summary

Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Digby
10.3S2036 $3,000,000 10.8% 95.00 CC 9.4S2035 $1,700,000 9.2% 102.35 AA
10.1S2037 $5,000,000 10.8% 93.51 CC 9.4S2036 $1,300,000 9.2% 102.71 AA
10.2S2038 $15,000,000 10.9% 93.43 CC 8.9S2037 $2,900,000 8.9% 100.51 AA
10.4S2039 $29,000,000 11.1% 94.03 CC 8.6S2038 $3,000,000 8.7% 98.89 AA
12.1S2040 $40,000,000 11.7% 103.46 CC 9.3S2039 $2,000,000 9.0% 103.02 AA
Baldwin 8.6S2040 $4,000,000 8.7% 98.70 AA
9.4S2035 $2,480,000 10.6% 88.31 DDD Erie
8.7S2036 $99,000 10.4% 83.88 DDD 10.1S2036 $7,746,000 10.1% 100.00 BB
8.6S2038 $1,391,000 10.7% 80.12 DDD 11.0S2037 $3,000,000 10.5% 104.37 BB
9.6S2039 $640,000 11.4% 83.91 DDD 10.4S2038 $10,000,000 10.2% 101.59 BB
12.7S2040 $4,463,000 12.7% 100.00 DDD 9.7S2040 $11,000,000 9.9% 97.55 BB
Chester Ferris
9.4S2035 $2,480,000 9.8% 95.52 B
11.0S2036 $4,000,000 10.8% 101.71 B
9.9S2037 $4,000,000 10.2% 96.66 B
10.3S2038 $10,187,000 10.5% 98.43 B
10.2S2039 $20,000,000 10.4% 97.75 B
10.5S2040 $20,000,000 10.6% 99.40 B

Next Year's Prime Rate6.40%

FOUNDATION ® FAST TRACK Page 2
 Round: 6
Financial Summary F150012 Dec. 31, 2030
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) $15,943 ($18,103) $19,375 $3,937 $7,793 ($9,302)
Adjustment for non-cash items:
Depreciation $11,520 $1,705 $9,603 $2,920 $5,807 $960
Extraordinary gains/losses/writeoffs $0 $0 $0 ($980) $0 $0
Changes in current assets and liablilities
Accounts payable ($545) ($3,151) $1,892 $1,343 $139 ($46)
Inventory ($13,143) $8,029 ($11,760) $5,686 ($327) ($25,250)
Accounts Receivable ($3,756) $591 ($1,515) ($954) ($1,829) $368
Net cash from operations $10,019 ($10,929) $17,595 $11,952 $11,582 ($33,270)

Cash flows from investing activities

Plant improvements(net) ($32,300) ($3,800) ($45,652) ($6,560) ($18,400) $0
Cash flows from financing activities
Dividends paid ($30) $0 $0 $0 $0 $0
Sales of common stock $20,000 $977 $0 $2,500 $100 $0
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $40,000 $4,463 $20,000 $4,000 $11,000 $0
Early retirement of long term debt $0 $0 $0 $0 $0 $0
Retirement of current debt ($55,147) ($28,959) ($14,267) $0 ($9,600) ($8,953)
Cash from current debt borrowing $30,000 $4,834 $15,000 $0 $10,000 $0
Cash from emergency loan $0 $33,414 $0 $0 $0 $42,223

Net cash from financing activities $34,823 $14,729 $20,733 $6,500 $11,500 $33,270

Net change in cash position $12,542 $0 ($7,323) $11,892 $4,682 $0

Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $12,542 $0 $12,741 $20,936 $11,864 $0
Accounts Receivable $19,665 $1,384 $11,945 $6,927 $7,813 $483
Inventory $59,807 $17,677 $17,260 $8,326 $5,459 $59,137
Total Current Assets $92,013 $19,061 $41,945 $36,190 $25,137 $59,620

Plant and equipment $172,800 $25,580 $162,048 $43,800 $105,500 $14,400

Accumulated Depreciation ($34,559) ($12,144) ($32,503) ($14,320) ($26,913) ($10,560)
Total Fixed Assets $138,241 $13,436 $129,545 $29,480 $78,587 $3,840

Total Assets $230,254 $32,497 $171,490 $65,670 $103,723 $63,460

Accounts Payable $8,434 $271 $6,811 $3,901 $2,183 $2,402

Current Debt $32,600 $40,848 $17,600 $2,600 $12,600 $44,823
Total Current Liabilities $41,034 $41,119 $24,411 $6,501 $14,783 $47,225

Long Term Debt $92,000 $9,073 $60,667 $14,900 $31,746 $0

Total Liabilities $133,034 $50,192 $85,078 $21,401 $46,529 $47,225

Common Stock $32,263 $21,641 $6,682 $16,823 $2,423 $2,323

Retained Earnings $64,957 ($39,336) $79,731 $27,446 $54,770 $13,912
Total Equity $97,220 ($17,695) $86,412 $44,269 $57,193 $16,235

Total Liabilities & Owners Equity $230,254 $32,497 $171,490 $65,670 $103,723 $63,460

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris

Sales $205,074 $16,838 $145,326 $84,285 $63,372 $5,880
Variable Costs(Labor,Material,Carry) $117,164 $13,451 $73,178 $54,142 $26,893 $11,077
Contribution Margin $87,910 $3,387 $72,148 $30,143 $36,479 ($5,197)
Depreciation $11,520 $1,705 $9,603 $2,920 $5,807 $960
SGA(R&D,Promo,Sales,Admin) $27,173 $13,833 $23,269 $16,282 $11,218 $2,113
Other(Fees,Writeoffs,TQM,Bonuses) $10,500 $8,272 $1,000 $3,245 $2,955 $0
EBIT $38,717 ($20,424) $38,276 $7,696 $16,499 ($8,270)
Interest(Short term,Long term) $13,688 $7,427 $7,860 $1,515 $4,265 $6,041
Taxes $8,760 ($9,748) $10,646 $2,163 $4,282 ($5,009)
Profit Sharing $325 $0 $395 $80 $159 $0
Net Profit $15,943 ($18,103) $19,375 $3,937 $7,793 ($9,302)
FOUNDATION ® FAST TRACK Page 3
 Round: 6
Production Analysis F150012 Dec. 31, 2030

2nd
Shift Auto
Unit & mation Capacity
Primary Units Inven Revision Age Pfmn Size Material Labor Contr. Over- Next Next Plant
Name Segment Sold tory Date Dec.31 MTBF Coord Coord Price Cost Cost Marg. time Round Round Utiliz.
Able Low 2,014 468 7/16/2029 2.9 20000 7.9 12.6 $29.00 $8.99 $4.33 50% 59% 8.0 1,500 158%
Advent High 783 888 6/17/2030 1.5 23900 11.8 8.5 $42.00 $16.45 $8.42 31% 0% 3.5 900 81%
Aspire Low 1,718 436 9/14/2030 1.6 20000 8.4 12.1 $29.50 $9.79 $4.40 52% 70% 8.0 1,200 169%
Agile High 833 879 6/18/2030 1.1 24000 11.9 8.6 $42.50 $16.47 $10.12 30% 73% 3.5 900 172%
Aries Low 932 62 2/13/2030 0.9 20000 8.0 12.5 $29.75 $9.15 $7.21 43% 42% 8.0 900 124%

Baker Low 495 773 4/13/2030 2.3 14000 7.1 13.1 $34.00 $6.37 $8.52 20% 0% 4.0 990 20%
B_Able 0 0 4/24/2030 1.5 17000 11.5 9.0 $43.00 $0.00 $0.00 0% 0% 3.5 100 0%
B_Piza 0 0 7/5/2030 1.7 23000 10.8 9.7 $30.00 $0.00 $0.00 0% 0% 3.0 100 0%

Cake Low 1,268 960 3/31/2031 4.3 20000 7.0 13.3 $32.00 $7.71 $1.27 68% 69% 10.0 1,300 168%
Cookie High 835 167 4/29/2030 1.6 23000 11.7 8.8 $40.40 $15.89 $6.36 42% 0% 6.0 1,000 79%
Crepe Low 1,022 52 7/30/2030 1.1 20000 8.1 12.4 $32.50 $9.31 $3.60 61% 80% 10.0 788 178%
Churro High 956 133 4/12/2030 1.2 23000 11.7 8.8 $39.50 $15.89 $12.25 27% 83% 6.0 600 182%
Creme 0 0 3/13/2031 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 6.0 600 0%

Daze High 528 170 1/28/2029 3.3 17000 10.7 9.8 $31.90 $12.69 $9.03 25% 0% 4.0 700 26%
D_Inka High 562 31 3/25/2029 2.9 18000 10.8 9.7 $32.50 $13.12 $9.77 28% 99% 5.0 400 198%
Dono High 595 65 4/30/2030 1.5 19000 12.2 8.3 $43.50 $15.63 $8.19 44% 79% 5.0 375 177%
Dona High 529 83 5/31/2030 1.3 19000 12.5 8.1 $44.00 $16.03 $9.71 41% 93% 4.0 375 191%

Eat Low 1,169 511 10/13/2030 3.0 21000 8.0 12.6 $29.99 $9.43 $1.11 63% 4% 10.0 1,200 103%
Eazy High 644 0 5/18/2030 1.6 22000 12.0 8.5 $43.99 $16.28 $4.69 52% 18% 7.0 550 117%
Echo 0 0 4/8/2031 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 10.0 400 0%

Fast Low 173 2,569 11/21/2021 9.1 21000 7.0 13.5 $34.00 $8.85 $13.40 -88% 63% 3.0 800 161%

FOUNDATION ® FAST TRACK Page 4

Low Tech Segment Analysis F150012 Round: 6
Dec. 31, 2030

Low Tech Statistics

Total Industry Unit Demand 8,726
Actual Industry Unit Sales |8,726
Segment % of Total Industry |58.0%

Next Year's Segment Growth Rate |9.9%

Low Tech Customer Buying Criteria
Expectations Importance
1. Price $15.00 - 35.00 41%
2. Age Ideal Age = 3.0 29%
3. Reliability MTBF 14000-20000 21%
4. Ideal Position Pfmn 8.4 Size 12.1 9%

Top Products in Low Tech Segment

Units Cust. Cust. Dec.
Market Sold to Revision Stock Pfmn Size List Age Promo Aware- Sales Access- Cust
Name Share Seg Date Out Coord Coord Price MTBF Dec.31 Budget ness Budget ibility Survey
Able 22% 1,945 7/16/2029 7.9 12.6 $29.00 20000 2.91 $1,800 100% $2,300 98% 63
Aspire 19% 1,649 9/14/2030 8.4 12.1 $29.50 20000 1.57 $1,800 100% $2,500 98% 49
Cake 15% 1,268 3/31/2031 7.0 13.3 $32.00 20000 4.29 $1,400 100% $2,250 91% 33
Eat 13% 1,164 10/13/2030 8.0 12.6 $29.99 21000 2.96 $1,400 100% $2,500 76% 55
Crepe 11% 972 7/30/2030 8.1 12.4 $32.50 20000 1.15 $3,000 100% $2,250 91% 32
Aries 9% 806 2/13/2030 8.0 12.5 $29.75 20000 0.88 $1,800 67% $2,500 98% 31
Baker 5% 439 4/13/2030 7.1 13.1 $34.00 14000 2.29 $1,900 100% $2,000 80% 15
Daze 2% 182 1/28/2029 10.7 9.8 $31.90 17000 3.32 $1,800 100% $1,800 38% 10
Fast 2% 173 11/21/2021 7.0 13.5 $34.00 21000 9.10 $1,000 64% $1,000 25% 5
D_Inka 1% 128 3/25/2029 10.8 9.7 $32.50 18000 2.86 $1,800 100% $1,800 38% 9

FOUNDATION ® FAST TRACK Page 5

High Tech Segment Analysis F150012 Round: 6
Dec. 31, 2030

High Tech Statistics

Total Industry Unit Demand 6,330
Actual Industry Unit Sales |6,330
Segment % of Total Industry |42.0%

Next Year's Segment Growth Rate |19.0%

High Tech Customer Buying Criteria
Expectations Importance
1. Ideal Position Pfmn 12.2 Size 8.3 33%
2. Age Ideal Age = 0.0 29%
3. Price $25.00 - 45.00 25%
4. Reliability MTBF 17000-23000 13%

Top Products in High Tech Segment

Units Cust. Cust. Dec.
Market Sold to Revision Stock Pfmn Size List Age Promo Aware- Sales Access- Cust
Name Share Seg Date Out Coord Coord Price MTBF Dec.31 Budget ness Budget ibility Survey
Churro 15% 956 4/12/2030 11.7 8.8 $39.50 23000 1.23 $3,000 100% $2,250 100% 65
Cookie 13% 835 4/29/2030 11.7 8.8 $40.40 23000 1.57 $1,400 100% $2,250 100% 57
Agile 13% 833 6/18/2030 11.9 8.6 $42.50 24000 1.10 $1,800 92% $2,600 97% 62
Advent 12% 783 6/17/2030 11.8 8.5 $42.00 23900 1.47 $1,800 100% $3,000 97% 60
Eazy 10% 644 5/18/2030 YES 12.0 8.5 $43.99 22000 1.63 $1,500 87% $3,000 87% 47
Dono 9% 595 4/30/2030 12.2 8.3 $43.50 19000 1.46 $1,900 100% $1,700 96% 43
Dona 8% 529 5/31/2030 12.5 8.1 $44.00 19000 1.31 $1,900 90% $1,700 96% 41
D_Inka 7% 435 3/25/2029 10.8 9.7 $32.50 18000 2.86 $1,800 100% $1,800 96% 24
Daze 5% 345 1/28/2029 10.7 9.8 $31.90 17000 3.32 $1,800 100% $1,800 96% 19
Aries 2% 126 2/13/2030 8.0 12.5 $29.75 20000 0.88 $1,800 67% $2,500 97% 1
Able 1% 69 7/16/2029 7.9 12.6 $29.00 20000 2.91 $1,800 100% $2,300 97% 0
Aspire 1% 69 9/14/2030 8.4 12.1 $29.50 20000 1.57 $1,800 100% $2,500 97% 12

FOUNDATION ® FAST TRACK Page 6

 Round: 6
Market Share F150012 Dec. 31, 2030

Actual Market Share in Units Potential Market Share in Units

Low High Total Low High Total
Industry Unit Sales 8,726 6,330 15,057 Units Demanded 8,726 6,330 15,057
% of Market 58.0% 42.0% 100.0% % of Market 58.0% 42.0% 100.0%

Able 22.3% 1.1% 13.4% Able 22.3% 1.1% 13.4%

Advent 12.4% 5.2% Advent 12.3% 5.2%
Aspire 18.9% 1.1% 11.4% Aspire 18.9% 1.1% 11.4%
Agile 13.2% 5.5% Agile 13.1% 5.5%
Aries 9.2% 2.0% 6.2% Aries 9.3% 2.0% 6.2%
Total 50.4% 29.7% 41.7% Total 50.4% 29.6% 41.6%

Baker 5.0% 0.9% 3.3% Baker 5.0% 0.9% 3.3%

Total 5.0% 0.9% 3.3% Total 5.0% 0.9% 3.3%

Cake 14.5% 8.4% Cake 14.5% 8.4%

Cookie 13.2% 5.5% Cookie 13.1% 5.5%
Crepe 11.1% 0.8% 6.8% Crepe 11.2% 0.8% 6.8%
Churro 15.1% 6.3% Churro 15.0% 6.3%
Total 25.7% 29.1% 27.1% Total 25.7% 29.0% 27.1%

Daze 2.1% 5.5% 3.5% Daze 2.1% 5.4% 3.5%

D_Inka 1.5% 6.9% 3.7% D_Inka 1.5% 6.8% 3.7%
Dono 9.4% 4.0% Dono 9.4% 3.9%
Dona 8.4% 3.5% Dona 8.3% 3.5%
Total 3.5% 30.1% 14.7% Total 3.5% 30.0% 14.7%

Eat 13.3% 7.8% Eat 13.3% 7.8%

Eazy 10.2% 4.3% Eazy 10.5% 4.4%
Total 13.3% 10.3% 12.0% Total 13.3% 10.6% 12.2%

Fast 2.0% 1.1% Fast 2.0% 1.1%

Total 2.0% 1.1% Total 2.0% 1.1%

FOUNDATION ® FAST TRACK Page 7

 Round: 6
Perceptual Map F150012 Dec. 31, 2030

Andrews Baldwin Chester

Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 7.9 12.6 7/16/2029 Baker 7.1 13.1 4/13/2030 Cake 7.0 13.3 3/31/2031
Advent 11.8 8.5 6/17/2030 B_Able 11.5 9.0 4/24/2030 Cookie 11.7 8.8 4/29/2030
Aspire 8.4 12.1 9/14/2030 B_Piza 10.8 9.7 7/5/2030 Crepe 8.1 12.4 7/30/2030
Agile 11.9 8.6 6/18/2030 Churro 11.7 8.8 4/12/2030
Aries 8.0 12.5 2/13/2030

Digby Erie Ferris

Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Daze 10.7 9.8 1/28/2029 Eat 8.0 12.6 10/13/2030 Fast 7.0 13.5 11/21/2021
D_Inka 10.8 9.7 3/25/2029 Eazy 12.0 8.5 5/18/2030
Dono 12.2 8.3 4/30/2030
Dona 12.5 8.1 5/31/2030

FOUNDATION ® FAST TRACK Page 8

 Round: 6
HR/TQM Report F150012 Dec. 31, 2030
HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris
Needed Complement 675 29 383 267 74 250
Complement 675 29 383 268 74 250
1st Shift Complement 454 29 252 155 66 154
2nd Shift Complement 221 0 131 113 8 96
Overtime Percent 0.0% 0.0% 0.0% 0.0% 0.4% 0.0%
Turnover Rate 6.1% 9.9% 6.4% 7.0% 6.8% 10.0%
New Employees 41 3 131 100 36 25
Separated Employees 190 243 0 0 0 0
Recruiting Spend $5,000 $100 $5,000 $1,000 $3,000 $0
Training Hours 80 3 80 80 80 0
Productivity Index 120.3% 100.0% 117.7% 108.2% 113.3% 100.0%
Recruiting Cost $246 $3 $789 $200 $144 $25
Separation Cost $950 $1,215 $0 $0 $0 $0
Training Cost $1,080 $2 $613 $429 $118 $0
Total HR Admin Cost $2,276 $1,220 $1,401 $628 $263 $25
Strike Days

TQM SUMMARY
Andrews Baldwin Chester Digby Erie Ferris
Process Mgt Budgets Last Year
CPI Systems $750 $800 $0 $750 $0 $0
VendorJIT $750 $800 $0 $750 $0 $0
Quality Initiative Training $750 $800 $0 $750 $0 $0
Channel Support Systems $750 $800 $0 $750 $0 $0
Concurrent Engineering $750 $800 $0 $0 $0 $0
UNEP Green Programs $750 $800 $0 $0 $800 $0

TQM Budgets Last Year

Benchmarking $750 $800 $0 $0 $0 $0
Quality Function Deployment Effort $750 $800 $0 $0 $800 $0
CCE/6 Sigma Training $750 $800 $0 $900 $0 $0
GEMI TQEM Sustainability Initiatives $750 $800 $0 $0 $800 $0
Total Expenditures $7,500 $8,000 $0 $3,900 $2,400 $0

Cumulative Impacts
Material Cost Reduction 11.80% 11.80% 11.80% 11.80% 10.84% 0.00%
Labor Cost Reduction 14.00% 14.00% 14.00% 14.00% 11.04% 0.00%
Reduction R&D Cycle Time 40.01% 40.01% 40.01% 40.01% 39.89% 0.00%
Reduction Admin Costs 60.02% 60.02% 60.02% 60.02% 60.02% 0.00%
Demand Increase 14.40% 14.40% 14.40% 14.40% 14.32% 0.00%

FOUNDATION ® FAST TRACK Page 9

 Round: 6
Ethics Report F150012 Dec. 31, 2030
ETHICS SUMMARY
Other (Fees, Writeoffs, etc.) The actual dollar impact. Example, $120 means Other increased by $120.
Demand Factor The % of normal. 98% means demand fell 2%.
Material Cost Impact The % of normal. 104% means matieral costs rose 4%.
Admin Cost Impact The % of normal. 103% means admin costs rose 3%.
Productivity Impact The % of normal. 104% means productivity increased by 4%.
Awareness Impact The % of normal. 105% means normal awareness was multiplied by 1.05.
Accessibility Impact The % of normal. 98% means normal accessiblity was multiplied by 0.98.
Normal means the value that would have been produced if the problem had not been presented.

No Impact Andrews Baldwin Chester Digby Erie Ferris

Total
Other (Fees, Writeoffs, etc.) $0 $0 $0 $0 $0 $0 $0
Demand Factor 100% 100% 100% 100% 100% 100% 100%
Material Cost Impact 100% 100% 100% 100% 100% 100% 100%
Admin Cost Impact 100% 100% 100% 100% 100% 100% 100%
Productivity Impact 100% 100% 100% 100% 100% 100% 100%
Awareness Impact 100% 100% 100% 100% 100% 100% 100%
Accessibility Impact 100% 100% 100% 100% 100% 100% 100%

FOUNDATION ® FAST TRACK Page 10

 Annual Report
Round: 6
Annual Report Digby F150012
Dec. 31, 2030
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2030 2029
assets for that year. Cash: Your end-of-year cash Common
position. Accounts Receivable: Reflects the lag between Size
delivery and payment of your products. Inventories: The Cash $20,936 31.9% $9,044
current value of your inventory across all products. A zero
Account Receivable $6,927 10.5% $5,974
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $8,326 12.7% $14,011
Equipment: The current value of your plant. Accum Total Current Assets $36,189 55.1% $29,029
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $43,800 66.7% $38,500
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($14,320) -21.8% ($13,640)
of operations. It includes emergency loans used to keep Total Fixed Assets $29,480 44.9% $24,860
your company solvent should you run out of cash during Total Assets $65,670 100.0% $53,889
the year. Long Term Debt: The companys long term debt
is in the form of bonds, and this represents the total value LIABILITIES & OWNERS
of your bonds. Common Stock: The amount of capital EQUITY
invested by shareholders in the company. Retained
Earnings: The profits that the company chose to keep Accounts Payable $3,901 5.9% $2,557
instead of paying to shareholders as dividends.
Current Debt $2,600 4.0% $0
Long Term Debt $14,900 22.7% $13,500
Total Liabilities $21,401 32.6% $16,057

Common Stock $16,823 25.6% $14,323

Retained Earnings $27,446 41.8% $23,509
Total Equity $44,269 67.4% $37,832
Total Liab. & O. Equity $65,670 100.0% $53,889

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2030 2029
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) $3,937 ($1,428)
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $2,920 $2,567
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs ($980) $0
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable $1,343 ($1,835)
are bad and you find yourself carrying an abundance of excess inventory,
Inventory $5,686 $13,515
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($954) ($954)
flow. Too much unexpected inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money to keep your company Net cash from operation $11,952 $11,865
afloat. Cash Flows from Investing Activities
Plant Improvements ($6,560) ($5,800)
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $2,500 $2,500
Purchase of common stock $0 $0
Cash from long term debt $4,000 $2,000
Retirement of long term debt ($2,600) $0
Change in current debt(net) $2,600 ($6,462)
Net cash from financing activities $6,500 ($1,962)
Net change in cash position $11,892 $4,102
Closing cash position $20,936 $9,044

Annual Report Page 11

 Round: 6
Annual Report Digby F150012
Dec. 31, 2030
2030 Income Statement
2030 Common
(Product Name) Daze D_Inka Dono Do
Total Size
Sales $16,832 $18,275 $25,895 $23,283 $0 $0 $0 $0 $84,285 100.0%
Variable Costs:
Direct Labor $5,193 $5,492 $4,926 $5,134 $0 $0 $0 $0 $20,745 24.6%
Direct Material $6,986 $7,649 $9,424 $8,339 $0 $0 $0 $0 $32,397 38.4%
Inventory Carry $471 $86 $188 $253 $0 $0 $0 $0 $999 1.2%
Total Variable $12,650 $13,227 $14,538 $13,726 $0 $0 $0 $0 $54,142 64.2%
Contribution Margin $4,182 $5,047 $11,357 $9,557 $0 $0 $0 $0 $30,143 35.8%
Period Costs:
Depreciation $1,027 $693 $650 $550 $0 $0 $0 $0 $2,920 3.5%
SG&A: R&D $0 $0 $331 $417 $0 $0 $0 $0 $748 0.9%
Promotions $1,800 $1,800 $1,900 $1,900 $0 $0 $0 $0 $7,400 8.8%
Sales $1,800 $1,800 $1,700 $1,700 $0 $0 $0 $0 $7,000 8.3%
Admin $226 $246 $348 $313 $0 $0 $0 $0 $1,134 1.3%
Total Period $4,853 $4,539 $4,929 $4,880 $0 $0 $0 $0 $19,202 22.8%
Net Margin ($671) $508 $6,427 $4,676 $0 $0 $0 $0 $10,941 13.0%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $3,245 3.9%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $7,696 9.1%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $187 0.2%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $1,328 1.6%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes $2,163 2.6%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $80 0.1%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit $3,937 4.7%
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 years 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 12