Round: 4

Dec. 31, C155860

2029
Andrews Baldwin Chester
Ibrahim Alamoudi Ali Al Nassrullah Feras ALdossary
Abdulrahman Alkhald Faisal Alfozan Marwan Alghamdi
Mohammed Al-Mahmud Fahad Alghofaili Faisal Alghamdi
Abdullah Almusharra Ali AlHashim Abdulsalam AL-Ghamd
Ali Alshammasi Loai Aljishi Ahmed Aljumaan
Ahmed Mualem Rayan Jad Danyal Altarrah

Digby Erie Ferris

Faisal Albuali Mahmoud Alhaddad Yosuf Alamoudi
Nasser Almansour Ali Alkhamees Yousef Aldossary
Khaled Alromaihi Rakan Almutlaq Khaled AlEnazi
yousef AL-Romaihi Hassan Alnemer Waleed Almansour
Mohammed Sharrofna Saleh Alnaser

Selected Financial Statistics

Andrews Baldwin Chester Digby Erie Ferris
ROS -3.7% -0.8% -24.8% -0.9% -23.1% -4.8%
Asset Turnover 1.30 0.83 0.77 1.06 0.76 1.06
ROA -4.8% -0.7% -19.1% -1.0% -17.5% -5.1%
Leverage 2.8 2.7 14.4 2.9 -4.2 2.9
ROE -13.4% -1.8% -275.3% -2.8% -73.6% -14.6%
Emergency Loan $0 $7,064,298 $65,212,878 $0 $68,147,765 $0
Sales $172,595,779 $200,716,203 $118,608,441 $186,355,396 $77,488,815 $159,749,985
EBIT $88,301 $15,977,757 ($23,585,321) $11,180,398 ($7,419,599) $62,841
Profits ($6,344,542) ($1,642,747) ($29,360,303) ($1,685,726) ($17,925,353) ($7,642,038)
Cumulative Profit ($4,597,904) $6,686,403 ($33,488,634) $3,600,213 ($68,524,760) ($8,254,206)
SG&A / Sales 18.9% 15.7% 23.2% 18.3% 21.4% 16.2%
Contrib. Margin % 36.9% 39.1% 18.3% 37.4% 13.6% 37.8%

CAPSTONE ® COURIER Page 1

 Round: 4
Stock & Bonds C155860 Dec. 31, 2029
Stock Market Summary
MarketCap Book Value
Company Close Change Shares EPS Dividend Yield P/E
($M) Per Share
Andrews $11.90 ($10.63) 2,279,937 $27 $20.77 ($2.78) $0.00 0.0% -4.3
Baldwin $26.17 ($4.42) 3,329,002 $87 $26.90 ($0.49) $0.00 0.0% -53.1
Chester $1.00 $0.00 2,400,000 $2 $4.44 ($12.23) $0.00 0.0% -0.1
Digby $26.38 ($5.20) 2,413,596 $64 $25.01 ($0.70) $0.00 0.0% -37.8
Erie $1.00 $0.00 2,400,000 $2 ($10.15) ($7.47) $0.00 0.0% -0.1
Ferris $9.54 ($9.49) 2,902,075 $28 $18.09 ($2.63) $0.00 0.0% -3.6

Bond Market Summary

Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Digby
14.0S2031 $20,850,000 14.1% 99.02 C 14.0S2031 $20,850,000 14.2% 98.86 C
11.3S2036 $18,994,000 13.1% 86.10 C 11.3S2036 $18,994,000 13.2% 85.73 C
12.7S2037 $14,416,000 13.9% 91.36 C 12.7S2037 $18,000,000 14.0% 90.94 C
13.4S2039 $17,692,000 14.3% 93.89 C 13.5S2038 $10,000,000 14.3% 94.21 C
Baldwin 13.9S2039 $15,000,000 14.5% 95.94 C
14.0S2031 $20,850,000 14.1% 99.18 C Erie
11.3S2036 $18,994,000 13.1% 86.48 C 14.0S2031 $20,850,000 14.3% 97.89 DDD
12.3S2037 $18,000,000 13.7% 89.96 C 12.9S2037 $10,000,000 14.4% 89.34 DDD
12.9S2038 $29,374,000 14.0% 92.23 C 14.8S2039 $13,246,000 15.2% 97.52 DDD
13.6S2039 $30,000,000 14.3% 95.40 C Ferris
Chester 14.0S2031 $20,850,000 14.1% 99.02 C
14.0S2031 $20,850,000 14.3% 97.89 DDD 11.3S2036 $18,994,000 13.1% 86.10 C
14.5S2039 $31,300,000 15.1% 96.03 DDD 12.8S2037 $10,000,000 13.9% 91.81 C
13.5S2038 $4,000,000 14.3% 94.68 C
13.9S2039 $23,000,000 14.4% 96.43 C

Next Year's Prime Rate9.00%

CAPSTONE ® COURIER Page 2
 Round: 4
Financial Summary C155860 Dec. 31, 2029
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) ($6,345) ($1,643) ($29,360) ($1,686) ($17,925) ($7,642)
Adjustment for non-cash items:
Depreciation $11,493 $17,365 $7,840 $13,680 $3,820 $12,753
Extraordinary gains/losses/writeoffs ($1,526) $0 ($1,647) $0 ($7,303) $0
Changes in current assets and liablilities
Accounts payable $262 ($747) ($1,648) ($88) ($2,840) ($1,787)
Inventory $7,966 ($9,103) ($18,399) $0 $10,775 $12,815
Accounts Receivable ($2,355) ($659) $11 ($1,161) ($108) ($1,130)
Net cash from operations $9,496 $5,213 ($43,202) $10,745 ($13,583) $15,009

Cash flows from investing activities

Plant improvements(net) ($23,050) ($54,690) $40 ($21,400) $24,550 ($32,800)
Cash flows from financing activities
Dividends paid $0 $0 $0 $0 $0 $0
Sales of common stock $0 $10,420 $400 $0 $400 $9,000
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $17,692 $30,000 $31,300 $15,000 $13,246 $23,000
Early retirement of long term debt ($2,000) $0 $0 $0 $0 $0
Retirement of current debt $0 ($1,507) ($57,251) ($8,000) ($92,761) ($5,778)
Cash from current debt borrowing $0 $3,500 $3,500 $10,000 $0 $0
Cash from emergency loan $0 $7,064 $65,213 $0 $68,148 $0

Net cash from financing activities $15,692 $49,477 $43,162 $17,000 ($10,967) $26,222

Net change in cash position $2,138 $0 $0 $6,345 $0 $8,432

Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $6,946 $0 $0 $9,982 $0 $8,432
Accounts Receivable $14,186 $16,497 $9,749 $15,317 $6,369 $13,130
Inventory $5,766 $33,341 $85,365 $22,535 $62,266 $11,875
Total Current Assets $26,898 $49,838 $95,114 $47,834 $68,635 $33,437

Plant and equipment $172,400 $270,748 $119,400 $210,600 $57,300 $191,300

Accumulated Depreciation ($66,893) ($78,876) ($60,447) ($81,973) ($23,247) ($74,493)
Total Fixed Assets $105,507 $191,872 $58,953 $128,627 $34,053 $116,807

Total Assets $132,405 $241,710 $154,067 $176,461 $102,688 $150,244

Accounts Payable $8,241 $10,468 $8,639 $9,364 $4,002 $7,001

Current Debt $4,852 $24,464 $82,613 $23,900 $78,962 $13,900
Total Current Liabilities $13,093 $34,932 $91,252 $33,264 $82,964 $20,901

Long Term Debt $71,952 $117,218 $52,150 $82,844 $44,096 $76,844

Total Liabilities $85,045 $152,150 $143,402 $116,108 $127,060 $97,745

Common Stock $27,839 $57,480 $18,760 $31,360 $18,760 $35,360

Retained Earnings $19,521 $32,080 ($8,095) $28,994 ($43,131) $17,139
Total Equity $47,360 $89,560 $10,665 $60,354 ($24,371) $52,499

Total Liabilities & Owners Equity $132,405 $241,710 $154,067 $176,461 $102,688 $150,244

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris

Sales $172,596 $200,716 $118,608 $186,355 $77,489 $159,750
Variable Costs(Labor,Material,Carry) $108,924 $122,258 $96,957 $116,628 $66,937 $99,413
Contribution Margin $63,672 $78,458 $21,651 $69,727 $10,552 $60,337
Depreciation $11,493 $17,365 $7,840 $13,680 $3,820 $12,753
SGA(R&D,Promo,Sales,Admin) $32,701 $31,594 $27,458 $34,117 $16,572 $25,921
Other(Fees,Writeoffs,TQM,Bonuses) $19,389 $13,521 $9,938 $10,750 ($2,421) $21,600
EBIT $88 $15,978 ($23,585) $11,180 ($7,420) $63
Interest(Short term,Long term) $9,849 $18,505 $21,584 $13,774 $20,158 $11,820
Taxes ($3,416) ($885) ($15,809) ($908) ($9,652) ($4,115)
Profit Sharing $0 $0 $0 $0 $0 $0
Net Profit ($6,345) ($1,643) ($29,360) ($1,686) ($17,925) ($7,642)
CAPSTONE ® COURIER Page 3
 Round: 4
Production Analysis C155860 Dec. 31, 2029

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 Trad 1,919 0 8/13/2029 1.5 17000 7.8 12.5 $24.50 $9.42 $6.37 36% 12% 6.0 1,500 111%
Acre Low 2,573 595 10/26/2029 2.5 12000 4.2 16.0 $15.50 $5.25 $3.40 41% 100% 10.0 2,000 198%
Adam High 538 0 1/2/2029 2.1 25000 11.4 9.3 $38.00 $14.33 $7.70 36% 0% 4.0 300 74%
Aft Pfmn 733 0 5/6/2029 1.5 27000 13.0 13.0 $33.50 $14.48 $8.99 29% 55% 4.5 450 153%
Agape Size 555 0 4/5/2029 1.5 19000 6.8 7.0 $33.50 $12.17 $8.31 38% 20% 4.5 450 119%
Ace High 574 20 8/8/2029 0.9 22000 12.0 8.0 $38.50 $14.21 $8.85 40% 100% 4.5 300 198%

Baker Trad 1,940 416 8/11/2029 1.5 15000 7.5 12.5 $24.39 $8.82 $5.30 40% 39% 7.5 1,625 137%
Bead Low 2,966 614 7/19/2030 8.6 12000 3.0 17.0 $14.99 $4.44 $1.18 57% 1% 10.0 2,499 100%
Bid High 677 83 8/25/2029 1.3 24000 11.9 8.1 $37.99 $14.83 $7.89 38% 9% 5.0 631 108%
Bold Pfmn 821 292 8/8/2029 1.5 27000 13.1 13.4 $32.99 $14.57 $9.83 23% 74% 4.5 889 172%
Buddy Size 599 285 8/8/2029 1.5 19000 6.6 6.9 $32.99 $12.29 $9.76 29% 68% 4.5 697 166%
Bling High 957 341 8/9/2029 1.0 25000 12.5 7.5 $37.99 $15.59 $8.72 34% 45% 5.0 1,252 143%
Byte 0 0 5/13/2030 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 4.5 428 0%

Cake Trad 1,440 0 10/26/2029 1.5 16000 7.6 12.5 $25.00 $9.44 $7.33 35% 0% 5.0 1,300 99%
Cedar Low 2,284 1,151 1/19/2029 8.6 13500 3.0 17.0 $16.50 $5.02 $7.53 14% 6% 5.0 1,700 105%
Cid High 306 786 11/13/2029 1.3 24000 11.3 8.4 $37.00 $14.94 $10.70 11% 25% 4.0 600 124%
Coat Pfmn 619 847 8/25/2029 1.5 27000 12.6 13.8 $33.00 $14.68 $9.52 13% 31% 4.0 700 130%
Cure Size 404 1,220 7/20/2029 1.5 18500 6.1 7.6 $32.50 $12.06 $11.91 -1% 86% 4.0 500 184%
Car 0 0 3/1/2030 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 3.0 100 0%

Daze Trad 1,802 313 11/3/2029 1.4 19000 7.6 12.4 $26.49 $10.36 $3.97 45% 37% 9.0 1,500 135%
Dell Low 1,969 559 10/23/2029 4.4 14000 3.3 16.7 $17.00 $5.41 $2.48 50% 14% 10.0 1,600 113%
Duck High 523 339 11/27/2029 1.2 25000 12.0 8.0 $37.99 $15.68 $8.22 32% 0% 4.0 900 58%
Dot Pfmn 741 160 9/9/2029 1.4 27000 13.4 13.1 $32.99 $15.26 $7.55 28% 18% 5.0 600 117%
Dune Size 788 59 8/27/2029 1.3 20500 6.8 6.5 $32.99 $13.38 $9.22 31% 35% 4.0 600 133%
Drum Size 788 12 9/9/2029 1.1 21000 6.8 6.6 $32.99 $13.47 $9.70 30% 62% 4.0 500 160%
Dawn High 233 0 8/7/2029 0.4 25000 12.0 8.0 $37.99 $15.68 $11.61 28% 99% 3.0 500 78%
Dram 0 0 7/15/2030 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 3.0 300 0%

Eat Trad 1,440 98 9/27/2029 1.6 16000 8.0 11.5 $25.00 $10.20 $9.01 25% 60% 3.0 400 159%
Ebb Low 1,239 444 10/31/2029 1.8 14000 4.5 15.3 $16.00 $6.59 $6.26 16% 62% 2.5 400 160%
Echo High 308 722 9/14/2029 1.4 23000 11.0 9.2 $30.00 $14.48 $8.89 -1% 52% 3.0 250 151%
Edge Pfmn 225 803 10/14/2029 1.5 23000 11.8 13.0 $30.00 $13.55 $9.54 -11% 50% 2.0 300 149%
Egg Size 189 902 9/15/2029 1.5 18000 6.7 8.5 $30.00 $11.81 $8.86 -10% 50% 2.5 300 149%

Fast Trad 1,936 0 9/4/2029 1.4 19000 8.0 12.2 $25.00 $10.18 $6.53 36% 0% 7.0 1,600 91%
Feat Low 2,867 437 10/19/2029 4.4 14000 3.7 16.8 $15.00 $5.33 $2.59 49% 67% 10.0 2,090 165%
Fist High 575 394 10/16/2029 1.2 25000 12.1 7.9 $38.00 $15.14 $6.77 38% 8% 5.0 730 107%
Foam Pfmn 833 0 7/27/2029 1.4 27000 13.4 13.2 $33.00 $14.63 $8.92 27% 6% 3.0 680 104%
Fume Size 576 0 8/19/2029 1.4 21000 6.8 6.6 $33.00 $12.94 $8.70 34% 0% 3.0 530 85%

CAPSTONE ® COURIER Page 4

Traditional Segment Analysis C155860 Round: 4
Dec. 31, 2029

Traditional Statistics
Total Industry Unit Demand 10,504
Actual Industry Unit Sales |10,504
Segment % of Total Industry |28.4%

Next Year's Segment Growth Rate |9.2%

Traditional Customer Buying Criteria
Expectations Importance
1. Age Ideal Age = 2.0 47%
2. Price $18.00 - 28.00 23%
3. Ideal Position Pfmn 7.8 Size 12.2 21%
4. Reliability MTBF 14000-19000 9%

Top Products in Traditional 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
Fast 18% 1,934 9/4/2029 YES 8.0 12.2 $25.00 19000 1.44 $1,400 100% $2,500 78% 59
Baker 18% 1,930 8/11/2029 7.5 12.5 $24.39 15000 1.49 $1,400 100% $3,000 87% 55
Able 18% 1,904 8/13/2029 YES 7.8 12.5 $24.50 17000 1.47 $1,400 100% $3,000 88% 64
Daze 17% 1,799 11/3/2029 7.6 12.4 $26.49 19000 1.38 $1,400 100% $2,000 67% 46
Eat 14% 1,440 9/27/2029 8.0 11.5 $25.00 16000 1.57 $1,000 88% $1,000 59% 39
Cake 14% 1,420 10/26/2029 YES 7.6 12.5 $25.00 16000 1.46 $1,400 100% $2,500 83% 51
Echo 0% 36 9/14/2029 11.0 9.2 $30.00 23000 1.38 $1,000 86% $1,000 59% 0
Edge 0% 29 10/14/2029 11.8 13.0 $30.00 23000 1.53 $1,000 78% $1,000 59% 0
Egg 0% 13 9/15/2029 6.7 8.5 $30.00 18000 1.54 $1,000 78% $1,000 59% 1

CAPSTONE ® COURIER Page 5

Low End Segment Analysis C155860 Round: 4
Dec. 31, 2029

Low End Statistics

Total Industry Unit Demand 13,949
Actual Industry Unit Sales |13,949
Segment % of Total Industry |37.8%

Next Year's Segment Growth Rate |11.7%

Low End Customer Buying Criteria
Expectations Importance
1. Price $13.00 - 23.00 53%
2. Age Ideal Age = 7.0 24%
3. Ideal Position Pfmn 3.7 Size 16.3 16%
4. Reliability MTBF 12000-17000 7%

Top Products in Low End 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
Bead 21% 2,966 7/19/2030 3.0 17.0 $14.99 12000 8.60 $1,400 100% $3,000 86% 57
Feat 21% 2,867 10/19/2029 3.7 16.8 $15.00 14000 4.40 $1,400 100% $2,500 79% 57
Acre 18% 2,573 10/26/2029 4.2 16.0 $15.50 12000 2.52 $1,400 100% $3,000 90% 43
Cedar 16% 2,284 1/19/2029 3.0 17.0 $16.50 13500 8.60 $1,400 100% $2,500 72% 44
Dell 14% 1,969 10/23/2029 3.3 16.7 $17.00 14000 4.39 $1,400 100% $2,000 63% 36
Ebb 9% 1,239 10/31/2029 4.5 15.3 $16.00 14000 1.81 $1,000 88% $1,000 52% 21
Cake 0% 20 10/26/2029 YES 7.6 12.5 $25.00 16000 1.46 $1,400 100% $2,500 72% 0
Able 0% 16 8/13/2029 YES 7.8 12.5 $24.50 17000 1.47 $1,400 100% $3,000 90% 0
Baker 0% 10 8/11/2029 7.5 12.5 $24.39 15000 1.49 $1,400 100% $3,000 86% 0
Daze 0% 3 11/3/2029 7.6 12.4 $26.49 19000 1.38 $1,400 100% $2,000 63% 0
Fast 0% 2 9/4/2029 YES 8.0 12.2 $25.00 19000 1.44 $1,400 100% $2,500 79% 0

CAPSTONE ® COURIER Page 6

High End Segment Analysis C155860 Round: 4
Dec. 31, 2029

High End Statistics

Total Industry Unit Demand 4,656
Actual Industry Unit Sales |4,656
Segment % of Total Industry |12.6%

Next Year's Segment Growth Rate |16.2%

High End Customer Buying Criteria
Expectations Importance
1. Ideal Position Pfmn 12.5 Size 7.5 43%
2. Age Ideal Age = 0.0 29%
3. Reliability MTBF 20000-25000 19%
4. Price $28.00 - 38.00 9%

Top Products in High End 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
Bling 21% 957 8/9/2029 12.5 7.5 $37.99 25000 1.03 $1,400 100% $2,000 91% 73
Bid 15% 677 8/25/2029 11.9 8.1 $37.99 24000 1.27 $1,400 100% $2,000 91% 55
Fist 12% 575 10/16/2029 12.1 7.9 $38.00 25000 1.24 $1,400 100% $2,500 73% 62
Ace 12% 574 8/8/2029 12.0 8.0 $38.50 22000 0.93 $2,000 68% $3,000 85% 43
Adam 12% 538 1/2/2029 YES 11.4 9.3 $38.00 25000 2.15 $1,400 100% $3,000 85% 29
Duck 11% 523 11/27/2029 12.0 8.0 $37.99 25000 1.17 $1,400 100% $2,000 78% 59
Cid 7% 306 11/13/2029 11.3 8.4 $37.00 24000 1.31 $1,500 97% $2,300 66% 38
Echo 6% 272 9/14/2029 11.0 9.2 $30.00 23000 1.38 $1,000 86% $1,000 53% 23
Dawn 5% 233 8/7/2029 YES 12.0 8.0 $37.99 25000 0.39 $2,000 70% $2,000 78% 60

CAPSTONE ® COURIER Page 7

Performance Segment Analysis C155860 Round: 4
Dec. 31, 2029

Performance Statistics
Total Industry Unit Demand 3,945
Actual Industry Unit Sales |3,945
Segment % of Total Industry |10.7%

Next Year's Segment Growth Rate |19.8%

Performance Customer Buying Criteria
Expectations Importance
1. Reliability MTBF 22000-27000 43%
2. Ideal Position Pfmn 13.4 Size 13.2 29%
3. Price $23.00 - 33.00 19%
4. Age Ideal Age = 1.0 9%

Top Products in Performance 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
Foam 21% 833 7/27/2029 YES 13.4 13.2 $33.00 27000 1.41 $1,400 100% $2,500 70% 64
Bold 21% 821 8/8/2029 13.1 13.4 $32.99 27000 1.47 $1,400 100% $2,500 76% 63
Dot 19% 741 9/9/2029 13.4 13.1 $32.99 27000 1.37 $1,400 100% $2,000 61% 56
Aft 19% 733 5/6/2029 YES 13.0 13.0 $33.50 27000 1.52 $1,700 100% $3,000 66% 58
Coat 16% 619 8/25/2029 12.6 13.8 $33.00 27000 1.53 $1,500 92% $3,000 53% 48
Edge 5% 197 10/14/2029 11.8 13.0 $30.00 23000 1.53 $1,000 78% $1,000 40% 13

CAPSTONE ® COURIER Page 8

Size Segment Analysis C155860 Round: 4
Dec. 31, 2029

Size Statistics
Total Industry Unit Demand 3,885
Actual Industry Unit Sales |3,885
Segment % of Total Industry |10.5%

Next Year's Segment Growth Rate |18.3%

Size Customer Buying Criteria
Expectations Importance
1. Ideal Position Pfmn 6.8 Size 6.6 43%
2. Age Ideal Age = 1.5 29%
3. Reliability MTBF 16000-21000 19%
4. Price $23.00 - 33.00 9%

Top Products in Size 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
Drum 20% 788 9/9/2029 6.8 6.6 $32.99 21000 1.07 $2,000 100% $2,000 90% 79
Dune 20% 788 8/27/2029 6.8 6.5 $32.99 20500 1.34 $1,400 100% $2,000 90% 79
Buddy 15% 599 8/8/2029 6.6 6.9 $32.99 19000 1.45 $1,400 100% $2,500 78% 66
Fume 15% 576 8/19/2029 YES 6.8 6.6 $33.00 21000 1.36 $1,400 100% $2,500 75% 81
Agape 14% 555 4/5/2029 YES 6.8 7.0 $33.50 19000 1.53 $1,700 100% $3,000 68% 60
Cure 10% 404 7/20/2029 6.1 7.6 $32.50 18500 1.49 $1,500 96% $2,500 76% 37
Egg 5% 175 9/15/2029 6.7 8.5 $30.00 18000 1.54 $1,000 78% $1,000 42% 16

CAPSTONE ® COURIER Page 9

 Round: 4
Market Share C155860 Dec. 31, 2029

Actual Market Share in Units Potential Market Share in Units

Trad Low High Pfmn Size Total Trad Low High Pfmn Size Total
Industry Unit Sales 10,504 13,949 4,656 3,945 3,885 36,939 Units Demanded 10,504 13,949 4,656 3,945 3,885 36,939
% of Market 28.4% 37.8% 12.6% 10.7% 10.5% 100.0% % of Market 28.4% 37.8% 12.6% 10.7% 10.5% 100.0%

Able 18.1% 0.1% 5.2% Able 19.8% 0.1% 5.7%

Acre 18.4% 7.0% Acre 18.4% 7.0%
Adam 11.6% 1.5% Adam 13.2% 1.7%
Aft 18.6% 2.0% Aft 19.9% 2.1%
Agape 14.3% 1.5% Agape 15.7% 1.7%
Ace 12.3% 1.6% Ace 11.8% 1.5%
Total 18.1% 18.6% 23.9% 18.6% 14.3% 18.7% Total 19.8% 18.6% 25.0% 19.9% 15.8% 19.6%

Baker 18.4% 0.1% 5.3% Baker 17.4% 0.1% 5.0%

Bead 21.3% 8.0% Bead 21.3% 8.0%
Bid 14.5% 1.8% Bid 13.9% 1.8%
Bold 20.8% 2.2% Bold 20.4% 2.2%
Buddy 15.4% 1.6% Buddy 14.5% 1.5%
Bling 20.5% 2.6% Bling 19.8% 2.5%
Total 18.4% 21.3% 35.1% 20.8% 15.4% 21.6% Total 17.4% 21.3% 33.7% 20.4% 14.5% 20.9%

Cake 13.5% 0.1% 3.9% Cake 15.3% 0.2% 4.4%

Cedar 16.4% 6.2% Cedar 16.4% 6.2%
Cid 6.6% 0.8% Cid 6.4% 0.8%
Coat 15.7% 1.7% Coat 15.4% 1.6%
Cure 10.4% 1.1% Cure 9.8% 1.0%
Total 13.5% 16.5% 6.6% 15.7% 10.4% 13.7% Total 15.3% 16.5% 6.4% 15.4% 9.8% 14.1%

Daze 17.1% 0.0% 4.9% Daze 16.2% 4.6%

Dell 14.1% 5.3% Dell 14.1% 5.3%
Duck 11.2% 1.4% Duck 10.9% 1.4%
Dot 18.8% 2.0% Dot 18.4% 2.0%
Dune 20.3% 2.1% Dune 19.1% 2.0%
Drum 20.3% 2.1% Drum 19.4% 2.0%
Dawn 5.0% 0.6% Dawn 6.4% 0.8%
Total 17.1% 14.1% 16.2% 18.8% 40.6% 18.5% Total 16.2% 14.1% 17.3% 18.4% 38.5% 18.1%

Eat 13.7% 3.9% Eat 13.0% 3.7%

Ebb 8.9% 3.4% Ebb 8.9% 3.4%
Echo 0.3% 5.9% 0.8% Echo 0.3% 5.6% 0.8%
Edge 0.3% 5.0% 0.6% Edge 0.3% 4.9% 0.6%
Egg 0.1% 4.5% 0.5% Egg 0.1% 4.3% 0.5%
Total 14.4% 8.9% 5.9% 5.0% 4.5% 9.2% Total 13.7% 8.9% 5.6% 4.9% 4.3% 8.9%

Fast 18.4% 0.0% 5.2% Fast 17.6% 5.0%

Feat 20.5% 7.8% Feat 20.5% 7.8%
Fist 12.4% 1.6% Fist 11.9% 1.5%
Foam 21.1% 2.3% Foam 21.1% 2.3%
Fume 14.8% 1.6% Fume 17.1% 1.8%
Total 18.4% 20.6% 12.4% 21.1% 14.8% 18.4% Total 17.6% 20.6% 11.9% 21.1% 17.1% 18.3%

CAPSTONE ® COURIER Page 10

 Round: 4
Perceptual Map C155860 Dec. 31, 2029

Andrews Baldwin Chester

Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 7.8 12.5 8/13/2029 Baker 7.5 12.5 8/11/2029 Cake 7.6 12.5 10/26/2029
Acre 4.2 16.0 10/26/2029 Bead 3.0 17.0 7/19/2030 Cedar 3.0 17.0 1/19/2029
Adam 11.4 9.3 1/2/2029 Bid 11.9 8.1 8/25/2029 Cid 11.3 8.4 11/13/2029
Aft 13.0 13.0 5/6/2029 Bold 13.1 13.4 8/8/2029 Coat 12.6 13.8 8/25/2029
Agape 6.8 7.0 4/5/2029 Buddy 6.6 6.9 8/8/2029 Cure 6.1 7.6 7/20/2029
Ace 12.0 8.0 8/8/2029 Bling 12.5 7.5 8/9/2029

Digby Erie Ferris

Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Daze 7.6 12.4 11/3/2029 Eat 8.0 11.5 9/27/2029 Fast 8.0 12.2 9/4/2029
Dell 3.3 16.7 10/23/2029 Ebb 4.5 15.3 10/31/2029 Feat 3.7 16.8 10/19/2029
Duck 12.0 8.0 11/27/2029 Echo 11.0 9.2 9/14/2029 Fist 12.1 7.9 10/16/2029
Dot 13.4 13.1 9/9/2029 Edge 11.8 13.0 10/14/2029 Foam 13.4 13.2 7/27/2029
Dune 6.8 6.5 8/27/2029 Egg 6.7 8.5 9/15/2029 Fume 6.8 6.6 8/19/2029
Drum 6.8 6.6 9/9/2029
Dawn 12.0 8.0 8/7/2029

CAPSTONE ® COURIER Page 11

 Round: 4
HR/TQM Report C155860 Dec. 31, 2029
HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris
Needed Complement 668 800 895 703 356 588
Complement 669 800 896 703 356 588
1st Shift Complement 470 563 736 538 230 522
2nd Shift Complement 199 237 160 165 126 66
Overtime Percent 0.0% 0.1% 0.0% 0.0% 0.0% 0.0%
Turnover Rate 6.6% 6.5% 6.9% 6.8% 6.1% 6.4%
New Employees 44 52 61 48 22 38
Separated Employees 91 31 209 82 316 231
Recruiting Spend $5,000 $5,000 $3,000 $5,000 $2,000 $5,000
Training Hours 80 80 80 80 80 80
Productivity Index 113.9% 113.6% 108.0% 112.4% 114.5% 115.0%
Recruiting Cost $265 $313 $246 $287 $65 $228
Separation Cost $455 $155 $1,045 $410 $1,580 $1,155
Training Cost $1,070 $1,280 $1,434 $1,125 $570 $941
Total HR Admin Cost $1,790 $1,748 $2,724 $1,822 $2,215 $2,323
Labor Contract Next Year
Wages $25.53 $25.53 $25.53 $25.53 $25.53 $25.53
Benefits 2,500 2,500 2,500 2,500 2,500 2,500
Profit Sharing 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Annual Raise 5.0% 5.0% 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 Erie Ferris
Process Mgt Budgets Last Year
CPI Systems $2,000 $1,500 $1,000 $1,000 $300 $2,000
VendorJIT $2,000 $1,500 $1,000 $1,000 $300 $2,000
Quality Initiative Training $2,000 $0 $1,000 $1,000 $300 $2,000
Channel Support Systems $2,000 $0 $1,000 $1,000 $300 $2,000
Concurrent Engineering $2,000 $2,000 $1,000 $1,000 $300 $2,000
UNEP Green Programs $2,000 $1,500 $1,000 $1,000 $300 $2,000

TQM Budgets Last Year

Benchmarking $2,000 $0 $1,000 $1,000 $300 $2,000
Quality Function Deployment Effort $2,000 $2,000 $1,000 $1,000 $1,000 $2,000
CCE/6 Sigma Training $2,000 $1,500 $1,000 $1,000 $1,000 $2,000
GEMI TQEM Sustainability Initiatives $2,000 $1,500 $1,000 $1,000 $100 $2,000
Total Expenditures $20,000 $11,500 $10,000 $10,000 $4,200 $20,000

Cumulative Impacts
Material Cost Reduction 5.86% 5.03% 1.98% 1.98% 0.05% 5.86%
Labor Cost Reduction 7.22% 1.84% 2.47% 2.47% 0.19% 7.22%
Reduction R&D Cycle Time 30.30% 30.30% 12.58% 12.58% 1.34% 30.30%
Reduction Admin Costs 47.54% 4.66% 20.50% 20.50% 0.04% 47.54%
Demand Increase 7.69% 2.14% 2.66% 2.66% 0.16% 7.69%

CAPSTONE ® COURIER Page 12

 Round: 4
Ethics Report C155860 Dec. 31, 2029
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

Greening the Message
Other (Fees, Writeoffs, etc.) $0 $0 $0 $0 $0 $0 $0
Demand Factor 100% 102% 101% 98% 98% 98% 98%
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% 110% 108% 100% 100% 100% 100%
Accessibility Impact 100% 100% 100% 100% 100% 100% 100%
Total
Other (Fees, Writeoffs, etc.) $0 $0 $0 $0 $0 $0 $0
Demand Factor 100% 102% 101% 98% 98% 98% 98%
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% 110% 108% 100% 100% 100% 100%
Accessibility Impact 100% 100% 100% 100% 100% 100% 100%

CAPSTONE ® COURIER Page 13

 Annual Report
Round: 4
Annual Report Andrews C155860
Dec. 31, 2029
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2029 2028
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 $6,946 5.2% $4,808
current value of your inventory across all products. A zero
Account Receivable $14,186 10.7% $11,831
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $5,766 4.4% $13,732
Equipment: The current value of your plant. Accum Total Current Assets $26,898 20.3% $30,371
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $172,400 130.0% $154,600
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($66,893) -50.5% ($62,160)
of operations. It includes emergency loans used to keep Total Fixed Assets $105,507 79.7% $92,440
your company solvent should you run out of cash during Total Assets $132,405 100.0% $122,811
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 $8,241 6.2% $7,979
instead of paying to shareholders as dividends.
Current Debt $4,852 3.7% $0
Long Term Debt $71,952 54.3% $61,128
Total Liabilities $85,045 64.2% $69,107

Common Stock $27,839 21.0% $27,839

Retained Earnings $19,521 14.7% $25,865
Total Equity $47,360 35.8% $53,704
Total Liab. & O. Equity $132,405 100.0% $122,811

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2029 2028
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($6,345) ($598)
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $11,493 $10,307
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs ($1,526) ($712)
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable $262 ($767)
are bad and you find yourself carrying an abundance of excess inventory,
Inventory $7,966 ($1,427)
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($2,355) $213
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 $9,496 $7,015
afloat. Cash Flows from Investing Activities
Plant Improvements ($23,050) ($12,890)
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $0 $0
Purchase of common stock $0 ($2,616)
Cash from long term debt $17,692 $0
Retirement of long term debt ($6,852) ($6,950)
Change in current debt(net) $4,852 ($6,950)
Net cash from financing activities $15,692 ($16,516)
Net change in cash position $2,138 ($22,390)
Closing cash position $6,946 $4,808

Annual Report Page 14

 Round: 4
Annual Report Andrews C155860
Dec. 31, 2029
2029 Income Statement
2029 Common
(Product Name) Able Acre Adam Aft Agape Ace
Total Size
Sales $47,026 $39,886 $20,432 $24,567 $18,583 $22,102 $0 $0 $172,596 100.0%
Variable Costs:
Direct Labor $12,308 $8,758 $5,089 $6,658 $4,636 $5,080 $0 $0 $42,528 24.6%
Direct Material $17,790 $14,186 $8,007 $10,757 $6,876 $8,088 $0 $0 $65,704 38.1%
Inventory Carry $0 $637 $0 $0 $0 $55 $0 $0 $692 0.4%
Total Variable $30,098 $23,580 $13,095 $17,415 $11,513 $13,223 $0 $0 $108,924 63.1%
Contribution Margin $16,928 $16,306 $7,337 $7,152 $7,070 $8,879 $0 $0 $63,672 36.9%
Period Costs:
Depreciation $3,000 $6,133 $440 $720 $720 $480 $0 $0 $11,493 6.7%
SG&A: R&D $623 $830 $5 $348 $261 $610 $0 $0 $2,677 1.6%
Promotions $1,400 $1,400 $1,400 $1,700 $1,700 $2,000 $0 $0 $9,600 5.6%
Sales $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $0 $0 $18,000 10.4%
Admin $660 $560 $287 $345 $261 $310 $0 $0 $2,424 1.4%
Total Period $8,684 $11,924 $5,132 $6,113 $5,942 $6,400 $0 $0 $44,195 25.6%
Net Margin $8,244 $4,382 $2,205 $1,039 $1,128 $2,479 $0 $0 $19,477 11.3%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $19,389 11.2%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $88 0.1%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $582 0.3%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $9,267 5.4%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($3,416) -2.0%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($6,345) -3.7%
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 15

 Annual Report
Round: 4
Annual Report Baldwin C155860
Dec. 31, 2029
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2029 2028
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 $0 0.0% $0
current value of your inventory across all products. A zero
Account Receivable $16,497 6.8% $15,838
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $33,341 13.8% $24,237
Equipment: The current value of your plant. Accum Total Current Assets $49,838 20.6% $40,075
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $270,748 112.0% $216,058
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($78,876) -32.6% ($61,511)
of operations. It includes emergency loans used to keep Total Fixed Assets $191,872 79.4% $154,547
your company solvent should you run out of cash during Total Assets $241,710 100.0% $194,623
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 $10,468 4.3% $11,215
instead of paying to shareholders as dividends.
Current Debt $24,464 10.1% $1,507
Long Term Debt $117,218 48.5% $101,118
Total Liabilities $152,150 62.9% $113,840

Common Stock $57,480 23.8% $47,060

Retained Earnings $32,080 13.3% $33,723
Total Equity $89,560 37.1% $80,783
Total Liab. & O. Equity $241,710 100.0% $194,623

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2029 2028
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($1,643) $5,455
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $17,365 $14,404
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs $0 $0
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable ($747) $3,246
are bad and you find yourself carrying an abundance of excess inventory,
Inventory ($9,103) ($19,618)
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($659) ($2,875)
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 $5,213 $612
afloat. Cash Flows from Investing Activities
Plant Improvements ($54,690) ($42,552)
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $10,420 $8,000
Purchase of common stock $0 $0
Cash from long term debt $30,000 $29,374
Retirement of long term debt ($13,900) $0
Change in current debt(net) $22,957 ($5,443)
Net cash from financing activities $49,477 $31,931
Net change in cash position $0 ($10,008)
Closing cash position $0 $0

Annual Report Page 16

 Round: 4
Annual Report Baldwin C155860
Dec. 31, 2029
2029 Income Statement
2029 Common
(Product Name) Baker Bead Bid Bold Buddy Bling Byte
Total Size
Sales $47,323 $44,462 $25,737 $27,100 $19,746 $36,348 $0 $0 $200,716 100.0%
Variable Costs:
Direct Labor $10,505 $3,990 $5,661 $8,098 $5,870 $8,341 $0 $0 $42,464 21.2%
Direct Material $17,229 $14,605 $10,074 $11,914 $7,310 $14,661 $0 $0 $75,794 37.8%
Inventory Carry $714 $462 $232 $854 $754 $985 $0 $0 $4,001 2.0%
Total Variable $28,448 $19,057 $15,967 $20,865 $13,934 $23,987 $0 $0 $122,258 60.9%
Contribution Margin $18,875 $25,405 $9,769 $6,234 $5,812 $12,362 $0 $0 $78,458 39.1%
Period Costs:
Depreciation $3,900 $7,664 $1,094 $1,422 $1,115 $2,170 $0 $0 $17,365 8.7%
SG&A: R&D $619 $1,000 $656 $610 $610 $612 $1,000 $0 $5,107 2.5%
Promotions $1,400 $1,400 $1,400 $1,400 $1,400 $1,400 $0 $0 $8,400 4.2%
Sales $3,000 $3,000 $2,000 $2,500 $2,500 $2,000 $0 $0 $15,000 7.5%
Admin $728 $684 $396 $417 $304 $559 $0 $0 $3,087 1.5%
Total Period $9,647 $13,747 $5,546 $6,349 $5,929 $6,741 $1,000 $0 $48,959 24.4%
Net Margin $9,229 $11,658 $4,224 ($115) ($117) $5,620 ($1,000) $0 $29,499 14.7%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $13,521 6.7%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $15,978 8.0%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $3,356 1.7%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $15,149 7.5%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($885) -0.4%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($1,643) -0.8%
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 17

 Annual Report
Round: 4
Annual Report Chester C155860
Dec. 31, 2029
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2029 2028
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 $0 0.0% $0
current value of your inventory across all products. A zero
Account Receivable $9,749 6.3% $9,760
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $85,365 55.4% $66,966
Equipment: The current value of your plant. Accum Total Current Assets $95,114 61.7% $76,726
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $119,400 77.5% $124,200
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($60,447) -39.2% ($59,013)
of operations. It includes emergency loans used to keep Total Fixed Assets $58,953 38.3% $65,187
your company solvent should you run out of cash during Total Assets $154,067 100.0% $141,913
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 $8,639 5.6% $10,287
instead of paying to shareholders as dividends.
Current Debt $82,613 53.6% $57,251
Long Term Debt $52,150 33.8% $34,750
Total Liabilities $143,402 93.1% $102,288

Common Stock $18,760 12.2% $18,360

Retained Earnings ($8,095) -5.3% $21,265
Total Equity $10,665 6.9% $39,625
Total Liab. & O. Equity $154,067 100.0% $141,913

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2029 2028
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($29,360) ($9,857)
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $7,840 $8,280
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs ($1,647) $0
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable ($1,648) $3,932
are bad and you find yourself carrying an abundance of excess inventory,
Inventory ($18,399) ($46,652)
the report would show the increase in inventory as a huge negative cash
Accounts Receivable $11 ($428)
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 ($43,202) ($44,726)
afloat. Cash Flows from Investing Activities
Plant Improvements $40 ($3,200)
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $400 $0
Purchase of common stock $0 $0
Cash from long term debt $31,300 $0
Retirement of long term debt ($13,900) $0
Change in current debt(net) $25,362 $44,301
Net cash from financing activities $43,162 $44,301
Net change in cash position $0 ($3,625)
Closing cash position $0 $0

Annual Report Page 18

 Round: 4
Annual Report Chester C155860
Dec. 31, 2029
2029 Income Statement
2029 Common
(Product Name) Cake Cedar Cid Coat Cure Car
Total Size
Sales $36,008 $37,681 $11,331 $20,443 $13,146 $0 $0 $0 $118,608 100.0%
Variable Costs:
Direct Labor $10,603 $17,981 $3,200 $6,072 $4,658 $0 $0 $0 $42,513 35.8%
Direct Material $12,968 $12,427 $4,518 $9,225 $5,064 $0 $0 $0 $44,201 37.3%
Inventory Carry $0 $1,839 $2,378 $2,509 $3,518 $0 $0 $0 $10,244 8.6%
Total Variable $23,571 $32,246 $10,095 $17,805 $13,240 $0 $0 $0 $96,957 81.7%
Contribution Margin $12,437 $5,435 $1,236 $2,638 ($94) $0 $0 $0 $21,651 18.3%
Period Costs:
Depreciation $2,253 $2,947 $880 $1,027 $733 $0 $0 $0 $7,840 6.6%
SG&A: R&D $829 $52 $880 $656 $557 $1,000 $0 $0 $3,974 3.4%
Promotions $1,400 $1,400 $1,500 $1,500 $1,500 $0 $0 $0 $7,300 6.2%
Sales $2,500 $2,500 $2,300 $3,000 $2,500 $0 $0 $0 $12,800 10.8%
Admin $1,027 $1,075 $323 $583 $375 $0 $0 $0 $3,384 2.9%
Total Period $8,010 $7,974 $5,883 $6,766 $5,665 $1,000 $0 $0 $35,298 29.8%
Net Margin $4,427 ($2,539) ($4,647) ($4,128) ($5,760) ($1,000) $0 $0 ($13,647) -11.5%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $9,938 8.4%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT ($23,585) -19.9%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $14,127 11.9%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $7,458 6.3%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($15,809) -13.3%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($29,360) -24.8%
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 19

 Annual Report
Round: 4
Annual Report Digby C155860
Dec. 31, 2029
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2029 2028
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 $9,982 5.7% $3,638
current value of your inventory across all products. A zero
Account Receivable $15,317 8.7% $14,156
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $22,535 12.8% $22,535
Equipment: The current value of your plant. Accum Total Current Assets $47,834 27.1% $40,329
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $210,600 119.0% $189,200
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($81,973) -46.5% ($68,293)
of operations. It includes emergency loans used to keep Total Fixed Assets $128,627 72.9% $120,907
your company solvent should you run out of cash during Total Assets $176,461 100.0% $161,235
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 $9,364 5.3% $9,452
instead of paying to shareholders as dividends.
Current Debt $23,900 13.5% $8,000
Long Term Debt $82,844 46.9% $81,744
Total Liabilities $116,108 65.8% $99,196

Common Stock $31,360 17.8% $31,360

Retained Earnings $28,994 16.4% $30,680
Total Equity $60,354 34.2% $62,040
Total Liab. & O. Equity $176,461 100.0% $161,235

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2029 2028
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($1,686) $4,190
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $13,680 $12,253
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs $0 $0
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable ($88) $163
are bad and you find yourself carrying an abundance of excess inventory,
Inventory $0 ($7,611)
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($1,161) $144
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 $10,745 $9,140
afloat. Cash Flows from Investing Activities
Plant Improvements ($21,400) ($20,800)
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 $15,000 $10,000
Retirement of long term debt ($13,900) $0
Change in current debt(net) $15,900 ($9,950)
Net cash from financing activities $17,000 $50
Net change in cash position $6,345 ($11,610)
Closing cash position $9,982 $3,638

Annual Report Page 20

 Round: 4
Annual Report Digby C155860
Dec. 31, 2029
2029 Income Statement
2029 Common
(Product Name) Daze Dell Duck Dot Dune Drum Dawn Dram
Total Size
Sales $47,739 $33,469 $19,865 $24,453 $25,990 $26,000 $8,840 $0 $186,355 100.0%
Variable Costs:
Direct Labor $7,245 $5,259 $4,510 $5,800 $7,260 $7,645 $2,702 $0 $40,421 21.7%
Direct Material $18,465 $11,078 $8,070 $11,310 $10,418 $10,486 $3,676 $0 $73,503 39.4%
Inventory Carry $536 $557 $978 $442 $158 $33 $0 $0 $2,704 1.5%
Total Variable $26,246 $16,894 $13,557 $17,553 $17,836 $18,165 $6,378 $0 $116,628 62.6%
Contribution Margin $21,493 $16,574 $6,308 $6,901 $8,154 $7,835 $2,462 $0 $69,727 37.4%
Period Costs:
Depreciation $4,200 $4,907 $1,320 $1,040 $880 $733 $600 $0 $13,680 7.3%
SG&A: R&D $852 $822 $919 $698 $662 $697 $607 $1,000 $6,258 3.4%
Promotions $1,400 $1,400 $1,400 $1,400 $1,400 $2,000 $2,000 $0 $11,000 5.9%
Sales $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $0 $14,000 7.5%
Admin $732 $513 $305 $375 $399 $399 $136 $0 $2,859 1.5%
Total Period $9,185 $9,642 $5,944 $5,513 $5,341 $5,830 $5,343 $1,000 $47,797 25.6%
Net Margin $12,308 $6,933 $364 $1,388 $2,814 $2,005 ($2,881) ($1,000) $21,930 11.8%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $10,750 5.8%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $11,180 6.0%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $2,988 1.6%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $10,786 5.8%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($908) -0.5%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($1,686) -0.9%
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 21

 Annual Report
Round: 4
Annual Report Erie C155860
Dec. 31, 2029
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2029 2028
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 $0 0.0% $0
current value of your inventory across all products. A zero
Account Receivable $6,369 6.2% $6,261
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $62,266 60.6% $73,040
Equipment: The current value of your plant. Accum Total Current Assets $68,635 66.8% $79,301
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $57,300 55.8% $103,200
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($23,247) -22.6% ($48,080)
of operations. It includes emergency loans used to keep Total Fixed Assets $34,053 33.2% $55,120
your company solvent should you run out of cash during Total Assets $102,688 100.0% $134,421
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 $4,002 3.9% $6,842
instead of paying to shareholders as dividends.
Current Debt $78,962 76.9% $92,761
Long Term Debt $44,096 42.9% $41,664
Total Liabilities $127,060 124.0% $141,267

Common Stock $18,760 18.3% $18,360

Retained Earnings ($43,131) -42.0% ($25,206)
Total Equity ($24,371) -23.7% ($6,846)
Total Liab. & O. Equity $102,688 100.0% $134,421

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2029 2028
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($17,925) ($28,807)
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $3,820 $6,880
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs ($7,303) ($86)
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable ($2,840) $3,903
are bad and you find yourself carrying an abundance of excess inventory,
Inventory $10,775 ($31,408)
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($108) ($2,256)
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 ($13,583) ($51,775)
afloat. Cash Flows from Investing Activities
Plant Improvements $24,550 $0
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $400 $0
Purchase of common stock $0 $0
Cash from long term debt $13,246 $0
Retirement of long term debt ($10,814) ($3,000)
Change in current debt(net) ($13,800) $54,775
Net cash from financing activities ($10,967) $51,775
Net change in cash position $0 $0
Closing cash position $0 $0

Annual Report Page 22

 Round: 4
Annual Report Erie C155860
Dec. 31, 2029
2029 Income Statement
2029 Common
(Product Name) Eat Ebb Echo Edge Egg
Total Size
Sales $35,999 $19,822 $9,244 $6,760 $5,663 $0 $0 $0 $77,489 100.0%
Variable Costs:
Direct Labor $12,041 $7,829 $2,783 $2,140 $1,659 $0 $0 $0 $26,452 34.1%
Direct Material $14,919 $8,188 $4,481 $3,128 $2,297 $0 $0 $0 $33,013 42.6%
Inventory Carry $219 $689 $2,042 $2,253 $2,269 $0 $0 $0 $7,472 9.6%
Total Variable $27,180 $16,706 $9,306 $7,521 $6,225 $0 $0 $0 $66,937 86.4%
Contribution Margin $8,819 $3,116 ($61) ($760) ($563) $0 $0 $0 $10,551 13.6%
Period Costs:
Depreciation $800 $1,280 $500 $600 $640 $0 $0 $0 $3,820 4.9%
SG&A: R&D $748 $842 $711 $797 $716 $0 $0 $0 $3,815 4.9%
Promotions $1,000 $1,000 $1,000 $1,000 $1,000 $0 $0 $0 $5,000 6.5%
Sales $1,000 $1,000 $1,000 $1,000 $1,000 $0 $0 $0 $5,000 6.5%
Admin $1,281 $705 $329 $241 $201 $0 $0 $0 $2,757 3.6%
Total Period $4,829 $4,827 $3,540 $3,637 $3,558 $0 $0 $0 $20,392 26.3%
Net Margin $3,990 ($1,711) ($3,601) ($4,398) ($4,121) $0 $0 $0 ($9,841) -12.7%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other ($2,421) -3.1%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT ($7,420) -9.6%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $13,988 18.1%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $6,169 8.0%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($9,652) -12.5%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($17,925) -23.1%
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 23

 Annual Report
Round: 4
Annual Report Ferris C155860
Dec. 31, 2029
Balance Sheet
DEFINITIONS: Common Size: The common size column
simply represents each item as a percentage of total ASSETS 2029 2028
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 $8,432 5.6% $0
current value of your inventory across all products. A zero
Account Receivable $13,130 8.7% $12,000
indicates your company stocked out. Unmet demand
would, of course, fall to your competitors. Plant & Inventory $11,875 7.9% $24,690
Equipment: The current value of your plant. Accum Total Current Assets $33,437 22.3% $36,690
Deprec: The total accumulated depreciation from your
plant. Accts Payable: What the company currently owes
Plant & Equipment $191,300 127.0% $158,500
suppliers for materials and services. Current Debt: The
debt the company is obligated to pay during the next year Accumulated Depreciation ($74,493) -49.6% ($61,740)
of operations. It includes emergency loans used to keep Total Fixed Assets $116,807 77.7% $96,760
your company solvent should you run out of cash during Total Assets $150,244 100.0% $133,451
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 $7,001 4.7% $8,788
instead of paying to shareholders as dividends.
Current Debt $13,900 9.3% $5,778
Long Term Debt $76,844 51.1% $67,744
Total Liabilities $97,745 65.1% $82,310

Common Stock $35,360 23.5% $26,360

Retained Earnings $17,139 11.4% $24,781
Total Equity $52,499 34.9% $51,141
Total Liab. & O. Equity $150,244 100.0% $133,451

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account Cash Flows from Operating Activities 2029 2028
during the year. Cash injections appear as positive numbers and cash Net Income(Loss) ($7,642) ($792)
withdrawals as negative numbers. The Cash Flow Statement is an excellent Depreciation $12,753 $10,567
tool for diagnosing emergency loans. When negative cash flows exceed Extraordinary gains/losses/writeoffs $0 $0
positives, you are forced to seek emergency funding. For example, if sales Accounts Payable ($1,787) $88
are bad and you find yourself carrying an abundance of excess inventory,
Inventory $12,815 ($12,866)
the report would show the increase in inventory as a huge negative cash
Accounts Receivable ($1,130) ($397)
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 $15,009 ($3,400)
afloat. Cash Flows from Investing Activities
Plant Improvements ($32,800) ($16,400)
Cash Flows from Financing Activities
Dividends paid $0 $0
Sales of common stock $9,000 $6,000
Purchase of common stock $0 $0
Cash from long term debt $23,000 $4,000
Retirement of long term debt ($13,900) $0
Change in current debt(net) $8,122 ($1,172)
Net cash from financing activities $26,222 $8,828
Net change in cash position $8,432 ($10,973)
Closing cash position $8,432 $0

Annual Report Page 24

 Round: 4
Annual Report Ferris C155860
Dec. 31, 2029
2029 Income Statement
2029 Common
(Product Name) Fast Feat Fist Foam Fume
Total Size
Sales $48,397 $43,001 $21,864 $27,484 $19,004 $0 $0 $0 $159,750 100.0%
Variable Costs:
Direct Labor $13,237 $7,679 $4,038 $7,884 $5,269 $0 $0 $0 $38,107 23.9%
Direct Material $17,962 $13,967 $8,493 $12,227 $7,232 $0 $0 $0 $59,881 37.5%
Inventory Carry $0 $396 $1,029 $0 $0 $0 $0 $0 $1,425 0.9%
Total Variable $31,200 $22,042 $13,559 $20,111 $12,501 $0 $0 $0 $99,413 62.2%
Contribution Margin $17,198 $20,959 $8,304 $7,374 $6,503 $0 $0 $0 $60,337 37.8%
Period Costs:
Depreciation $3,627 $6,409 $1,265 $816 $636 $0 $0 $0 $12,753 8.0%
SG&A: R&D $685 $809 $800 $575 $641 $0 $0 $0 $3,511 2.2%
Promotions $1,400 $1,400 $1,400 $1,400 $1,400 $0 $0 $0 $7,000 4.4%
Sales $2,500 $2,500 $2,500 $2,500 $2,500 $0 $0 $0 $12,500 7.8%
Admin $882 $783 $398 $501 $346 $0 $0 $0 $2,910 1.8%
Total Period $9,094 $11,901 $6,364 $5,792 $5,523 $0 $0 $0 $38,674 24.2%
Net Margin $8,104 $9,058 $1,941 $1,582 $979 $0 $0 $0 $21,663 13.6%
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product Other $21,600 13.5%
that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on EBIT $63 0.0%
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each Short Term Interest $1,738 1.1%
product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget Long Term Interest $10,082 6.3%
for each product. Sales: The sales force budget for each product. Other: Chargs not included in other Taxes ($4,115) -2.6%
categories such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and Profit Sharing $0 0.0%
brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs Net Profit ($7,642) -4.8%
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 25