Round: 3

Dec. 31, 2018

C72512

Andrews
Team A1

Baldwin

Chester
Team A2

Digby
Team A3

Erie
Team A4

Ferris
Team A5

Selected Financial Statistics

ROS
Asset Turnover
ROA
Leverage
(Assets/Equity)
ROE
Emergency Loan
Sales
EBIT
Profits
Cumulative Profit
SG&A / Sales
Contrib. Margin %

CAPSTONE COURIER

Andrews
-5.5%
1.10
-6.1%

Baldwin
-4.9%
1.05
-5.2%

Chester
-10.0%
1.27
-12.7%

Digby
-3.5%
1.26
-4.4%

Erie
-9.8%
0.68
-6.6%

Ferris
-12.1%
0.87
-10.5%

3.9

2.7

7.3

2.7

6.4

3.5

-23.9%
$39,468,116
$185,698,118
$290,273
($10,276,797)
($6,661,099)
15.1%
30.1%

-13.8%
$0
$150,498,745
($1,418,695)
($7,427,334)
$11,542,613
15.0%
24.7%

-93.5%
$13,235,324
$166,301,305
($11,949,616)
($16,689,007)
($25,903,219)
15.8%
20.4%

-11.9%
$28,392,532
$167,703,197
$1,412,338
($5,853,220)
$6,513,640
13.3%
29.1%

-42.4%
$40,376,603
$100,287,953
$2,279,139
($9,788,324)
($30,681,640)
12.7%
27.9%

-36.7%
$0
$94,411,728
($7,995,631)
($11,419,474)
($18,558,713)
21.2%
19.8%

Page 1

Stock & Bonds

Round: 3
Dec. 31, 2018

C72512
Stock Market Summary

Company
Andrews
Baldwin
Chester
Digby
Erie
Ferris

Close

Change

Shares

$1.00
$24.14
$1.00
$7.38
$1.00
$1.00

($21.76)
($26.42)
$0.00
($31.07)
$0.00
$0.00

2,279,959
2,043,001
2,000,000
2,130,055
2,291,939
2,473,317

MarketCap
($M)
$2
$49
$2
$16
$2
$2

Book Value

EPS

Dividend

Yield

P/E

$18.89
$26.32
$8.93
$23.04
$10.07
$12.59

($4.51)
($3.64)
($8.34)
($2.75)
($4.27)
($4.62)

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

100.0%
0.0%
0.0%
20.3%
0.0%
0.0%

-0.2
-6.6
-0.1
-2.7
-0.2
-0.2

Bond Market Summary

Company
Andrews

Series#

Face

Yield

Close$

12.5S2019
14.0S2021
11.3S2026
12.8S2028

$10,811,424
$20,850,000
$18,994,000
$23,755,000

12.7%
14.2%
13.3%
14.1%

98.17
98.62
85.00
90.83

12.5S2019
14.0S2021
12.5S2027
13.0S2028

$13,900,000
$20,850,000
$6,763,680
$6,999,977

12.7%
14.0%
13.4%
13.6%

98.77
100.23
93.05
95.29

12.5S2019
14.0S2021
12.0S2027
13.8S2028

$13,900,000
$20,850,000
$19,874,000
$13,770,000

12.8%
14.3%
13.9%
14.5%

98.00
98.17
86.54
94.94

Baldwin

Chester

S&P Company
Digby
DDD
DDD
DDD
DDD
Erie
CC
CC
CC
CC
Ferris
DDD
DDD
DDD
DDD

Series#

Face

Yield

Close$

S&P

12.5S2019
14.0S2021
11.3S2026
12.4S2028

$13,900,000
$20,850,000
$4,000,000
$5,000,000

12.7%
14.0%
12.9%
13.5%

98.68
100.00
87.47
91.65

C
C
C
C

12.5S2019
14.0S2021
11.3S2026
13.1S2027

$12,872,976
$20,850,000
$10,000,000
$34,126,000

12.8%
14.3%
13.4%
14.3%

98.00
98.17
84.19
91.83

DDD
DDD
DDD
DDD

12.5S2019
14.0S2021
11.3S2026
12.3S2027

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

12.7%
14.2%
13.2%
13.8%

98.25
98.85
85.40
89.31

DDD
DDD
DDD
DDD

Next Year's Prime Rate 8.50%

CAPSTONE COURIER

Page 2

Financial Summary
Cash Flow Statement Survey
CashFlows from operating activities
Net Income(Loss)
Adjustment for non-cash items:
Depreciation
Extraordinary gains/losses/writeoffs
Changes in current assets and liablilities
Acounts payable
Inventory
Accounts Receivable
Net cash from operations

C72512

Round: 3
Dec. 31, 2018

Andrews

Baldwin

Chester

Digby

Erie

Ferris

($10,277)

($7,427)

($16,689)

($5,853)

($9,788)

($11,419)

$11,453
$0

$10,241
$0

$9,905
$0

$9,487
$0

$11,038
($27)

$6,507
$0

$1,585
($21,739)
($2,237)
($21,215)

$689
($8,917)
$594
($4,820)

$6,809
($15,701)
($6,147)
($21,822)

$1,402
($24,459)
$1,769
($17,654)

$1,905
($15,739)
($1,600)
($14,211)

($9,969)
$55,152
$3,820
$44,089

($31,800)

($24,560)

($13,780)

($29,400)

$0

$0

($2,280)
$0
$0
$23,755
$0
($7,928)
$0
$39,468

$0
$794
$0
$7,000
$0
($29,710)
$31,000
$0

$0
$0
$0
$13,770
$0
($16,950)
$19,774
$13,235

($3,195)
$5,000
$0
$5,000
$0
($6,950)
$0
$28,393

$0
$0
$0
$0
($1,000)
($25,166)
$0
$40,377

$0
$0
$0
$0
$0
($29,883)
$22,000
$0

$53,015

$9,084

$29,829

$28,247

$14,211

($7,883)

Net change in cash position

Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

$0
Andrews
$0
$15,263
$40,378
$55,641

($20,296)
Baldwin
$19,642
$12,370
$17,756
$49,768

($5,773)
Chester
$0
$13,669
$28,110
$41,779

($18,807)
Digby
$0
$11,487
$30,898
$42,385

$0
Erie
$0
$8,518
$39,501
$48,019

$36,207
Ferris
$36,207
$5,173
$21,614
$62,993

Plant and equipment

Accumulated Depreciation
Total Fixed Assets

$180,800
($67,440)
$113,360

$153,620
($60,232)
$93,388

$148,580
($59,212)
$89,368

$153,600
($63,287)
$90,313

$165,570
($65,441)
$100,129

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

Total Assets

$169,001

$143,156

$131,147

$132,698

$148,148

$108,540

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$12,055
$39,468
$74,410
$125,934

$9,869
$31,000
$48,514
$89,383

$11,894
$33,009
$68,394
$113,297

$11,484
$28,393
$43,750
$83,626

$6,850
$40,377
$77,849
$125,076

$1,475
$22,000
$53,917
$77,392

$30,320
$12,746
$43,067

$20,301
$33,471
$53,773

$18,360
($510)
$17,850

$23,360
$25,712
$49,072

$28,360
($5,288)
$23,072

$34,060
($2,912)
$31,148

Total Liabilities & Owners'' Equity

$169,001

$143,156

$131,147

$132,698

$148,148

$108,540

Income Statement Survey

Sales
Variable Costs(Labor,Material,Carry)
Depreciation
SGA(R&D,Promo,Sales,Admin)
Other(Fees,Writeoffs,TQM,Bonuses)
EBIT
Interest(Short term,Long term)
Taxes
Profit Sharing
Net Profit

Andrews
$185,698
$129,781
$11,453
$27,986
$16,188
$290
$16,101
($5,534)
$0
($10,277)

Baldwin
$150,499
$113,292
$10,241
$22,595
$5,790
($1,419)
$10,008
($3,999)
$0
($7,427)

Chester
$166,301
$132,379
$9,905
$26,278
$9,689
($11,950)
$13,726
($8,986)
$0
($16,689)

Digby
$167,703
$118,970
$9,487
$22,335
$15,500
$1,412
$10,417
($3,152)
$0
($5,853)

Erie
$100,288
$72,347
$11,038
$12,735
$1,888
$2,279
$17,338
($5,271)
$0
($9,788)

Ferris
$94,412
$75,697
$6,507
$20,004
$200
($7,996)
$9,573
($6,149)
$0
($11,419)

Cash flows from investing activities

Plant improvements(net)
Cash flows from financing activities
Dividends paid
Sales of common stock
Purchase of common stock
Cash from long term debt issued
Early retirement of long term debt
Retirement of current debt
Cash from current debt borrowing
Cash from emergency loan
Net cash from financing activities

Common Stock
Retained Earnings
Total Equity

CAPSTONE COURIER

Page 3

Primary
Segment
Trad
Low
High
Pfmn
Size
High
Pfmn

Units
Sold
1,565
1,521
422
688
926
594
521
0

Unit
Inven
tory
587
350
716
154
65
0
123
0

Baker
Bead
Bid
Bold
Buddy
Brass

Trad
Low
High
Trad
Trad
High

1,542
2,094
269
861
1,184
168

Cake
Cedar
Cid
Coat
Cure
Cup

Low
Low
Trad
Pfmn
Size
High

Daze
Dell
Dixie
Dot
Dune
Dix2
Dna
D2

Revision Date
12/3/2017
5/5/2019
5/9/2019
8/18/2017
9/9/2017
4/5/2018
8/18/2018
6/10/2019

Age
Dec.31
2.7
3.1
3.2
2.6
2.6
0.9
0.9
0.0

208
177
245
179
103
0

1/11/2018
4/13/2019
11/21/2018
11/21/2018
11/17/2018
10/11/2018

1,519
2,691
1,433
371
496
456

0
577
226
275
3
312

Trad
Low
High
Pfmn
Size
High

1,291
2,212
171
727
703
792
0
0

Eat
Ebb
Echo
Edge

Trad
Low
High
Pfmn

Fast
Feat
Foam
Fume

Trad
Low
Pfmn
Size

Name
Able
Acre
Adam
Aft
Agape
Adam2
Aft2
Agape2

Labor
Cost
$7.03
$5.86
$10.34
$10.68
$9.76
$13.57
$11.70
$0.00

Contr.
Marg.
35%
30%
23%
26%
37%
27%
22%
0%

2nd
Shift
&
Overtime
0%
0%
28%
42%
67%
50%
30%
0%

$22.00
$20.80
$37.00
$28.50
$28.50
$28.50

$8.34 $7.25
$5.79 $7.41
$11.27
$8.86
$11.43 $10.66
$11.33 $10.96
$16.08 $12.18

25%
34%
33%
15%
20%
1%

4%
50%
0%
75%
100%
100%

5.8
6.2
4.4
4.4
4.4
4.4

1,400
1,400
950
750
850
400

14.5
17.0
12.0
14.2
9.8
10.2

$21.00
$19.00
$26.00
$32.50
$34.00
$37.50

$8.93 $8.13
$5.71 $8.27
$11.76 $10.78
$13.96
$9.29
$12.21
$9.29
$14.60 $11.49

17%
23%
10%
21%
36%
24%

0%
65%
100%
0%
0%
100%

4.0
5.0
3.5
3.0
3.0
3.0

1,400 99%
2,000 163%
1,300 198%
600 66%
600 66%
1,010 96%

7.1
3.0
9.0
12.1
5.7
11.4
0.0
3.7

12.9
17.0
11.0
14.1
8.1
8.5
0.0
16.3

$29.00
$20.00
$38.00
$34.00
$34.00
$39.00
$0.00
$0.00

$9.94 $7.84
$5.50 $7.86
$13.11
$9.24
$14.75 $10.73
$12.31
$9.92
$15.74 $14.29
$0.00 $0.00
$0.00 $0.00

32%
30%
39%
23%
34%
23%
0%
0%

11%
100%
0%
52%
18%
100%
0%
0%

4.5
5.5
3.0
3.0
3.0
1.0
1.0
1.0

1,800
1,850
900
600
600
400
1,130
550

18000
15000
23000
27000

7.8
4.7
10.6
10.6

11.5
15.3
9.3
15.0

$24.50
$19.25
$37.50
$33.00

$11.56
$7.60
$15.26
$14.44

$4.92
$3.69
$9.03
$8.37

28%
25%
33%
24%

0%
0%
11%
39%

7.0
8.0
4.0
5.0

1,800 73%
1,815 87%
900 110%
600 137%

18000
14000
25000
20000

7.5
3.0
11.6
4.7

12.5
17.0
14.5
8.2

$27.00
$17.50
$33.00
$34.00

$10.97
$0.00
$14.54
$12.98

$8.62
$0.00
$9.86
$9.86

19%
13%
18%
29%

0%
0%
0%
0%

4.0
5.0
3.0
3.0

1,800
1,400
600
600

MTBF
17500
14000
23000
27000
19000
23000
27000
0

Pfmn
Coord
7.0
2.7
9.5
11.4
5.5
11.6
12.4
0.0

Size
Coord
13.2
17.5
10.7
14.6
9.0
8.4
13.5
0.0

Price
$27.99
$18.00
$37.99
$35.00
$35.00
$40.00
$35.00
$0.00

3.0
7.6
1.4
1.4
1.4
0.2

16000
14000
18000
18000
18000
23000

5.5
3.0
7.9
8.6
7.4
11.6

15.1
17.0
12.2
12.6
11.6
8.4

11/20/2012
1/28/2019
3/2/2018
2/23/2018
6/3/2019
7/5/2018

6.1
7.6
2.0
3.2
3.3
0.5

17500
14000
20000
25000
21000
24000

5.5
3.0
7.8
10.8
4.9
9.8

1,011
560
27
174
0
0
0
0

6/16/2018
5/25/2011
7/22/2019
6/27/2018
6/16/2018
6/6/2018
3/26/2019
2/24/2018

1.7
7.6
3.4
1.6
1.6
0.9
0.0
0.8

17500
14000
23000
27000
19000
25000
0
17000

1,122
1,274
820
531

465
1,510
170
360

8/26/2018
7/12/2017
3/3/2018
1/15/2018

2.0
4.5
1.8
2.9

1,260
1,400
377
690

654
54
296
0

11/29/2018
9/10/2018
2/26/2018
4/2/2018

1.5
2.6
1.7
1.7

CAPSTONE COURIER

Round: 3
Dec. 31, 2018

C72512

Production Analysis

Material
Cost
$9.82
$5.19
$13.51
$14.32
$11.83
$15.37
$15.13
$0.00

Auto
mation
Next
Round
6.0
7.0
3.0
3.0
4.0
3.0
3.0
3.0

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

Plant
Utiliz.
99%
58%
127%
140%
165%
149%
129%
0%
103%
149%
62%
173%
198%
42%

109%
198%
22%
150%
117%
198%
0%
0%

11%
0%
50%
50%

Page 4

Traditional Segment Analysis

C72512

Round: 3
Dec. 31, 2018

Traditional Statistics
Total Industry Unit Demand

9,619

Actual Industry Unit Sales

9,619

Segment % of Total Industry

29.4%

Next Year's Segment Growth Rate

9.2%

Traditional Customer Buying Criteria

Expectations

Importance

1. Age

Ideal Age = 2.0

47%

2. Price

$18.50 - 28.50

23%

3. Ideal Position

Pfmn 7.1 Size 12.9

21%

4. Reliability

MTBF 14000-19000

9%

Top Products in Traditional Segment

Units
Market

Cust.

Sold to Revision

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Able

16%

1,555

12/3/2017

7.0

Cid

14%

1,315

3/2/2018

7.8

Daze

13%

1,286

6/16/2018

Fast

13%

1,250

Baker

12%

Eat

11%

Buddy

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

13.2

$27.99

17500

2.72

$2,000

100%

$2,000

64%

38

12.0

$26.00

20000

2.02

$1,800

78%

$1,800

73%

50

7.1

12.9

$29.00

17500

1.73

$1,500

99%

$2,000

61%

43

11/29/2018

7.5

12.5

$27.00

18000

1.52

$2,200

100%

$1,500

56%

40

1,131

1/11/2018

5.5

15.1

$22.00

16000

3.04

$1,575

91%

$2,037

72%

19

1,024

8/26/2018

7.8

11.5

$24.50

18000

1.98

$1,500

83%

$1,500

64%

44

8%

775

11/17/2018

7.4

11.6

$28.50

18000

1.39

$1,200

65%

$582

72%

26

Bold

7%

639

11/21/2018

8.6

12.6

$28.50

18000

1.38

$1,275

69%

$582

72%

25

Cake

4%

400

11/20/2012

5.5

14.5

$21.00

17500

6.10

$1,600

93%

$2,000

73%

11

Ebb

3%

241

7/12/2017

4.7

15.3

$19.25

15000

4.53

$1,500

92%

$1,500

64%

Feat

0%

9/10/2018

3.0

17.0

$17.50

14000

2.62

$1,500

72%

$1,500

56%

CAPSTONE COURIER

Date

Stock

YES

Page 5

Low End Segment Analysis

C72512

Round: 3
Dec. 31, 2018

Low End Statistics

Total Industry Unit Demand

12,488

Actual Industry Unit Sales

12,488

Segment % of Total Industry

38.2%

Next Year's Segment Growth Rate

11.7%

Low End Customer Buying Criteria

Expectations

Importance

1. Price

$13.50 - 23.50

53%

2. Age

Ideal Age = 7.0

24%

3. Ideal Position

Pfmn 3.2 Size 16.8

16%

4. Reliability

MTBF 12000-17000

7%

Top Products in Low End Segment

Units
Market

Cust.

Sold to Revision

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Cedar

22%

2,691

1/28/2019

3.0

Dell

18%

2,212

5/25/2011

3.0

Bead

17%

2,094

4/13/2019

Acre

12%

1,521

5/5/2019

Feat

11%

1,398

9/10/2018

Cake

9%

1,119

11/20/2012

Ebb

8%

1,032

Baker

3%

Fast

0%

CAPSTONE COURIER

Date

Stock

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

17.0

$19.00

14000

7.60

$1,600

90%

$1,700

68%

39

17.0

$20.00

14000

7.60

$1,600

97%

$1,800

52%

32

3.0

17.0

$20.80

14000

7.60

$1,575

90%

$2,037

70%

31

2.7

17.5

$18.00

14000

3.14

$1,000

79%

$1,500

53%

22

3.0

17.0

$17.50

14000

2.62

$1,500

72%

$1,500

45%

21

5.5

14.5

$21.00

17500

6.10

$1,600

93%

$2,000

68%

20

7/12/2017

4.7

15.3

$19.25

15000

4.53

$1,500

92%

$1,500

53%

18

411

1/11/2018

5.5

15.1

$22.00

16000

3.04

$1,575

91%

$2,037

70%

11/29/2018

7.5

12.5

$27.00

18000

1.52

$2,200

100%

$1,500

45%

YES

Page 6

High End Segment Analysis

C72512

Round: 3
Dec. 31, 2018

High End Statistics

Total Industry Unit Demand

4,007

Actual Industry Unit Sales

4,007

Segment % of Total Industry

12.3%

Next Year's Segment Growth Rate

16.2%

High End Customer Buying Criteria

Expectations
1. Ideal Position

43%

Ideal Age = 0.0

29%

MTBF 20000-25000

19%

2. Age
3. Reliability

Importance

Pfmn 11.6 Size 8.4

4. Price

$28.50 - 38.50

9%

Top Products in High End Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Echo

20%

820

3/3/2018

10.6

Dix2

20%

792

6/6/2018

YES

11.4

Adam2

15%

594

4/5/2018

YES

Cup

11%

456

Adam

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

9.3

$37.50

23000

1.85

$1,000

56%

$1,000

32%

18

8.5

$39.00

25000

0.87

$1,000

43%

$1,000

56%

38

11.6

8.4

$40.00

23000

0.88

$2,000

62%

$2,500

74%

35

7/5/2018

9.8

10.2

$37.50

24000

0.49

$2,000

70%

$2,000

53%

26

11%

422

5/9/2019

9.5

10.7

$37.99

23000

3.21

$1,000

76%

$1,500

74%

Bid

7%

269

11/21/2018

7.9

12.2

$37.00

18000

1.37

$1,550

87%

$2,037

63%

Dixie

4%

171

7/22/2019

9.0

11.0

$38.00

23000

3.44

$500

61%

$800

56%

Brass

4%

168

10/11/2018

11.6

8.4

$28.50

23000

0.21

$1,550

62%

$0

63%

54

Bold

3%

140

11/21/2018

8.6

12.6

$28.50

18000

1.38

$1,275

69%

$582

63%

Cid

3%

105

3/2/2018

7.8

12.0

$26.00

20000

2.02

$1,800

78%

$1,800

53%

Buddy

1%

36

11/17/2018

7.4

11.6

$28.50

18000

1.39

$1,200

65%

$582

63%

Eat

0%

14

8/26/2018

7.8

11.5

$24.50

18000

1.98

$1,500

83%

$1,500

32%

CAPSTONE COURIER

YES

Page 7

Performance Segment Analysis

C72512

Round: 3
Dec. 31, 2018

Performance Statistics
Total Industry Unit Demand

3,293

Actual Industry Unit Sales

3,293

Segment % of Total Industry

10.1%

Next Year's Segment Growth Rate

19.8%

Performance Customer Buying Criteria

Expectations

Importance

1. Reliability

MTBF 22000-27000

43%

2. Ideal Position

Pfmn 12.4 Size 13.9

29%

3. Price

$23.50 - 33.50

19%

4. Age

Ideal Age = 1.0

9%

Top Products in Performance Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Dot

22%

727

6/27/2018

12.1

Aft

21%

688

8/18/2017

11.4

Edge

16%

531

1/15/2018

Aft2

16%

521

Foam

11%

Coat

11%

Bold

3%

CAPSTONE COURIER

List

Age

Cust.

Dec.

Sales

Access-

Cust.

ness

Budget

ibility

Survey

Promo Aware-

Price

MTBF

Dec.31

Budget

14.1

$34.00

27000

1.60

$1,350

80%

$1,600

39%

39

14.6

$35.00

27000

2.62

$2,000

100%

$2,000

62%

32

10.6

15.0

$33.00

27000

2.87

$1,500

70%

$1,500

34%

23

8/18/2018

12.4

13.5

$35.00

27000

0.92

$1,000

38%

$1,500

62%

28

377

2/26/2018

11.6

14.5

$33.00

25000

1.71

$1,500

59%

$1,000

24%

18

366

2/23/2018

10.8

14.2

$32.50

25000

3.18

$1,500

74%

$1,500

35%

17

82

11/21/2018

8.6

12.6

$28.50

18000

1.38

$1,275

69%

$582

17%

Page 8

Size Segment Analysis

C72512

Round: 3
Dec. 31, 2018

Size Statistics
Total Industry Unit Demand

3,284

Actual Industry Unit Sales

3,284

Segment % of Total Industry

10.1%

Next Year's Segment Growth Rate

18.3%

Size Customer Buying Criteria

Expectations
1. Ideal Position

43%

Ideal Age = 1.5

29%

MTBF 16000-21000

19%

2. Age
3. Reliability

Importance

Pfmn 6.1 Size 7.6

4. Price

$23.50 - 33.50

9%

Top Products in Size Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Agape

28%

926

9/9/2017

5.5

Dune

21%

703

6/16/2018

YES

5.7

Fume

21%

690

4/2/2018

YES

Cure

15%

496

Buddy

List

Age

Promo Aware-

Cust.

Dec.

Sales

Access-

Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

9.0

$35.00

19000

2.58

$1,600

98%

$1,500

38%

12

8.1

$34.00

19000

1.60

$1,500

84%

$1,500

41%

37

4.7

8.2

$34.00

20000

1.68

$1,800

88%

$1,200

34%

20

6/3/2019

4.9

9.8

$34.00

21000

3.32

$1,500

74%

$1,500

35%

11%

373

11/17/2018

7.4

11.6

$28.50

18000

1.39

$1,200

65%

$582

20%

Eat

3%

83

8/26/2018

7.8

11.5

$24.50

18000

1.98

$1,500

83%

$1,500

17%

Cid

0%

14

3/2/2018

7.8

12.0

$26.00

20000

2.02

$1,800

78%

$1,800

35%

CAPSTONE COURIER

Page 9

Market Share

C72512

Actual Market Share in Units

Industry Unit Sales
% of Market

Trad
9,619
29.4%

Low
12,488
38.2%

Able
Acre
Adam
Aft
Agape
Adam2
Aft2
Total

16.2%

16.2%

12.2%

Baker
Bead
Bid
Bold
Buddy
Brass
Total

11.8%

3.3%
16.8%

26.5%

20.1%

Cake
Cedar
Cid
Coat
Cure
Cup
Total

4.2%

9.0%
21.5%

High
4,007
12.3%

Pfmn
3,293
10.1%

Size
3,284
10.1%

0.2%

16.1%

12.1%

4.7%
6.4%
0.8%
2.6%
3.6%
0.5%
18.7%

Baker
Bead
Bid
Bold
Buddy
Brass
Total

11.7%

3.3%
16.7%

26.4%

19.9%

4.6%
8.2%
4.4%
1.1%
1.5%
1.4%
21.3%

Cake
Cedar
Cid
Coat
Cure
Cup
Total

4.4%

9.6%
21.4%

4.0%
6.8%
0.5%
2.2%
2.1%
2.4%
18.0%

Daze
Dell
Dixie
Dot
Dune
Dix2
Total

13.3%

13.3%

17.6%

Eat
Ebb
Echo
Edge
Total

10.6%
2.5%

8.2%

2.5%

3.4%
3.9%
2.5%
1.6%
11.5%

Fast
Feat
Foam
Fume
Total

13.0%

21.0%
21.0%

3.8%
4.3%
1.1%
2.1%
11.4%

28.2%
14.8%

6.6%
8.1%

13.7%

6.7%
3.5%
0.9%
4.2%
15.3%

28.2%

2.5%
11.3%
2.5%

2.6%

11.3%

0.4%
11.1%
15.1%

17.8%

30.5%

Daze
Dell
Dixie
Dot
Dune
Dix2
Total

13.4%

13.4%

17.7%

Eat
Ebb
Echo
Edge
Total

10.6%
2.5%

8.3%

Fast
Feat
Foam
Fume
Total

13.0%

11.4%
14.1%

11.1%

15.5%

0.1%
17.7%
4.3%
22.1%
21.4%
19.8%
24.2%

22.1%

0.4%

21.4%
2.5%

20.5%
13.2%

8.3%

20.8%

16.1%
16.1%

11.2%
11.4%
13.0%

CAPSTONE COURIER

11.3%

11.4%

Low
12,488
38.2%

16.1%

20.9%
15.8%
36.7%

Trad
9,619
29.4%

Able
Acre
Adam
Aft
Agape
Adam2
Aft2
Total

10.5%

25.6%

Potential Market Share in Units

Total
32,691 Units Demanded
100.0% % of Market
4.8%
4.6%
1.3%
2.1%
2.8%
1.8%
1.6%
19.1%

12.2%

Round: 3
Dec. 31, 2018

High
4,007
12.3%

Pfmn
3,293
10.1%

Size
3,284
10.1%

0.2%
12.1%
7.3%
20.9%
20.3%
22.2%

6.6%
8.0%

13.6%

29.7%

4.7%
2.4%
0.6%
6.9%
14.6%

15.8%
36.7%

20.3%

2.5%
8.2%
2.5%

1.8%

8.2%

0.4%
11.1%
10.9%

18.0%

31.0%

8.6%
10.4%

11.1%

11.2%

17.6%
3.9%
22.1%
35.1%
25.6%
29.6%

22.1%

0.2%

35.1%
1.3%

8.2%

15.6%

16.1%
16.1%

11.4%

4.9%
8.2%
4.3%
1.1%
1.1%
1.0%
20.7%
3.9%
6.7%
0.5%
2.2%
3.5%
3.1%
20.0%

23.9%
23.9%

3.8%
4.3%
1.2%
2.4%
11.7%

11.4%
11.2%

4.7%
6.4%
0.6%
2.5%
3.3%
0.8%
18.2%

1.3%

11.1%
13.0%

4.8%
4.6%
0.9%
2.1%
2.0%
2.7%
1.6%
18.8%

3.3%
3.9%
1.9%
1.6%
10.7%

15.4%
13.1%

Total
32,691
100.0%

Page 10

Perceptual Map

C72512

Andrews
Name
Able
Acre
Adam
Aft
Agape
Adam2
Aft2

Pfmn
7.0
2.7
9.5
11.4
5.5
11.6
12.4

Name
Daze
Dell
Dixie
Dot
Dune
Dix2
D2

Pfmn
7.1
3.0
9.0
12.1
5.7
11.4
3.7

Size
13.2
17.5
10.7
14.6
9.0
8.4
13.5

Digby

CAPSTONE COURIER

Size
12.9
17.0
11.0
14.1
8.1
8.5
16.3

Baldwin
Revised
12/3/2017
5/5/2019
5/9/2019
8/18/2017
9/9/2017
4/5/2018
8/18/2018

Name
Baker
Bead
Bid
Bold
Buddy
Brass

Pfmn
5.5
3.0
7.9
8.6
7.4
11.6

Revised
6/16/2018
5/25/2011
7/22/2019
6/27/2018
6/16/2018
6/6/2018
2/24/2018

Name
Eat
Ebb
Echo
Edge

Pfmn
7.8
4.7
10.6
10.6

Size
15.1
17.0
12.2
12.6
11.6
8.4

Erie

Size
11.5
15.3
9.3
15.0

Round: 3
Dec. 31, 2018

Chester
Revised
1/11/2018
4/13/2019
11/21/2018
11/21/2018
11/17/2018
10/11/2018

Name
Cake
Cedar
Cid
Coat
Cure
Cup

Pfmn
5.5
3.0
7.8
10.8
4.9
9.8

Revised
8/26/2018
7/12/2017
3/3/2018
1/15/2018

Name
Fast
Feat
Foam
Fume

Pfmn
7.5
3.0
11.6
4.7

Size
14.5
17.0
12.0
14.2
9.8
10.2

Ferris

Size
12.5
17.0
14.5
8.2

Revised
11/20/2012
1/28/2019
3/2/2018
2/23/2018
6/3/2019
7/5/2018

Revised
11/29/2018
9/10/2018
2/26/2018
4/2/2018

Page 11

HR/TQM Report

C72512

Round: 3
Dec. 31, 2018

HUMAN RESOURCES SUMMARY

Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
1,160
1,160
928
232

Baldwin
1,007
1,007
701
306

Chester
1,230
1,230
847
383

Digby
1,170
1,170
795
375

Erie
533
533
482
51

Ferris
150
150
150
0

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

0.0%
10.0%
203
0
$0
0
100.0%

0.0%
8.5%
119
0
$2,200
35
102.9%

0.0%
10.0%
782
0
$0
0
100.0%

0.0%
8.3%
192
0
$2,000
40
101.2%

0.0%
9.6%
105
0
$100
10
100.0%

0.0%
9.6%
14
1013
$0
10
100.0%

$203
$0
$0
$203

$382
$0
$705
$1,087

$782
$0
$0
$782

$575
$0
$936
$1,511

$116
$0
$107
$222

$14
$5,065
$30
$5,109

$24.31
2,500
2.0%
5.0%

$24.31
2,500
2.0%
5.0%

$24.31
2,500
2.0%
5.0%

$24.31
2,500
2.0%
5.0%

$24.31
2,500
2.0%
5.0%

$24.31
2,500
2.0%
5.0%

Recruiting Cost
Separation Cost
Training Cost
Total HR Admin Cost
Labor Contract Next Year
Wages
Benefits
Profit Sharing
Annual Raise
Starting Negotiation Position
Wages
Benefits
Profit Sharing
Annual Raise
Ceiling Negotiation Position
Wages
Benefits
Profit Sharing
Annual Raise
Adjusted Labor Demands
Wages
Benefits
Profit Sharing
Annual Raise
Strike Days

TQM SUMMARY
Andrews

Baldwin

Chester

Digby

Erie

Ferris

$1,500
$1,000
$1,000
$1,500
$2,000
$1,500

$0
$0
$0
$900
$900
$900

$2,000
$0
$2,000
$2,000
$0
$1,000

$1,500
$1,500
$1,500
$1,500
$1,500
$1,500

$100
$100
$100
$100
$100
$100

$100
$0
$0
$0
$0
$0

TQM Budgets Last Year

Benchmarking
Quality Function Deployment Effort
CCE/6 Sigma Training
GEMI TQEM Sustainability Initiatives
Total Expenditures

$2,000
$1,000
$2,000
$1,500
$15,000

$900
$900
$0
$900
$5,400

$0
$0
$2,000
$0
$9,000

$1,500
$1,500
$1,500
$1,500
$15,000

$1,000
$100
$100
$100
$1,900

$0
$100
$0
$0
$200

Cumulative Impacts
Material Cost Reduction
Labor Cost Reduction
Reduction R&D Cycle Time
Reduction Admin Costs
Demand Increase

4.56%
4.76%
24.97%
39.72%
5.74%

0.12%
0.01%
8.66%
5.60%
1.60%

1.41%
5.60%
0.00%
0.00%
3.38%

5.03%
6.21%
27.25%
43.11%
6.63%

0.00%
0.00%
0.00%
8.49%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

Process Mgt Budgets Last Year

CPI Systems
Vendor/JIT
Quality Initiative Training
Channel Support Systems
Concurrent Engineering
UNEP Green Programs

CAPSTONE COURIER

Page 12

Ethics Report

Round: 3
Dec. 31, 2018

C72512
ETHICS SUMMARY

Other (Fees, Writeoffs, etc.)

Demand Factor
Material Cost Impact
Admin Cost Impact
Productivity Impact
Awareness Impact
Accessibility Impact

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

CAPSTONE COURIER

The actual dollar impact. Example, $120 means Other increased by $120.
The % of normal. 98% means demand fell 2%.
The % of normal. 104% means matieral costs rose 4%.
The % of normal. 103% means admin costs rose 3%.
The % of normal. 104% means productivity increased by 4%.
The % of normal. 105% means normal awareness was multiplied by 1.05.
The % of normal. 98% means normal accessiblity was multiplied by 0.98.
Normal means the value that would have been produced if the problem had not been presented.
No Impact

Andrews

Baldwin

Chester

Digby

Erie

Ferris

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

$0
100%
100%
100%
100%
100%
100%

Page 13

Annual Report
Annual Report

Digby

C72512

Balance Sheet
DEFINITIONS: Common Size: The common
size column simply represents each item as a
percentage of total assets for that year. Cash:
Your end-of-year cash position. Accounts
Receivable: Reflects the lag between delivery
and payment of your products. Inventories:
The current value of your inventory across all
products. A zero indicates your company
stocked out. Unmet demand would, of course,
fall to your competitors. Plant & Equipment:
The current value of your plant. Accum
Deprec: The total accumulated depreciation
from your plant. Accts Payable: What the
company currently owes suppliers for
materials and services. Current Debt: The
debt the company is obligated to pay during
the next year of operations. It includes
emergency loans used to keep your company
solvent should you run out of cash during the
year. Long Term Debt: The company's long
term debt is in the form of bonds, and this
represents the total value of your bonds.
Common Stock: The amount of capital
invested by shareholders in the company.
Retained Earnings: The profits that the
company chose to keep instead of paying to
shareholders as dividends.

ASSETS

Cash
Account Receivable
Inventory
Total Current Assets

$42,385

2018
Common
Size
0.0%
8.7%
23.3%
31.9%

$18,807
$13,256
$6,440
$38,503

$90,313
$132,698

116.0%
-47.7%
68.1%
100.0%

$124,200
($53,800)
$70,400
$108,902

$83,627

8.7%
21.4%
33.0%
63.0%

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

$49,072
$132,698

17.6%
19.4%
37.0%
100.0%

$18,360
$34,760
$53,120
$108,902

$0
$11,487
$30,898

Plant & Equipment

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

$153,600
($63,287)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$11,484
$28,393
$43,750

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

$23,360
$25,712

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account
during the year. Cash injections appear as positive numbers and cash
withdrawals as negative numbers. The Cash Flow Statement is an excellent
tool for diagnosing emergency loans. When negative cash flows exceed
positives, you are forced to seek emergency funding. For example, if sales
are bad and you find yourself carrying an abundance of excess inventory,
the report would show the increase in inventory as a huge negative cash
flow. Too much unexpected inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money to keep your company
afloat.

Round: 3
Dec. 31, 2018

Cash Flows from Operating Activities

NetIncome(Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable
Inventory
Accounts Receivable
Net cash from operation

2017

2018

2017

($5,853)

$4,413

$9,487

$8,280

$0

$0

$1,402

$2,616

($24,459)

($6,209)

$1,769

($1,902)

($17,654)

$7,199

($29,400)

($6,400)

($3,195)

($3,000)

$5,000

$0

$0

$0

$5,000

$0

$0

($6,950)

Cash Flows from Investing Activities

Plant Improvements
Cash Flows from Financing Activities
Dividends Paid
Sales of Common Stock
Purchase of Common Stock
Cash from long term debt
Retirement of long term debt
Change in current debt(net)

$21,443

$6,950

Net Cash from financing activities

$28,247

($3,000)

($18,807)

($2,201)

$0

$18,807

Net Change in cash position

Closing cash position

Annual Report

Page 15

Annual Report

Digby

Round: 3
Dec. 31, 2018

C72512

2018 Income Statement

(Product Name)

$0

2018
Total
$167,703

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$55,367
$59,895
$3,708
$118,970

33.0%
35.7%
2.2%
70.9%

$7,051

$0

$0

$48,734

29.1%

$720
$463
$1,500
$1,500
$311
$4,494

$267
$435
$1,000
$1,000
$401
$3,103

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

$367
$152
$0
$0
$0
$518

$9,487
$4,006
$7,450
$8,700
$2,179
$31,821

5.7%
2.4%
4.4%
5.2%
1.3%
19.0%

$3,761

$3,949

($1,000)

($518)

$16,912

10.1%

$15,500
$1,412
$4,689
$5,729
($3,152)
$0
($5,853)

9.2%
0.8%
2.8%
3.4%
-1.9%
0.0%
-3.5%

Daze

Dell

Dixie

Dot

Dune

Dix2

Dna

D2

Sales

$37,439

$44,248

$6,490

$24,730

$23,902

$30,893

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$10,315
$12,991
$2,189
$25,496

$17,383
$12,666
$913
$30,962

$1,577
$2,292
$74
$3,943

$7,805
$10,744
$531
$19,080

$6,971
$8,677
$0
$15,648

$11,316
$12,526
$0
$23,842

Contribution Margin

$11,944

$13,286

$2,547

$5,651

$8,255

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

$2,880
$463
$1,500
$2,000
$486
$7,329

$3,453
$0
$1,600
$1,800
$575
$7,428

$1,080
$1,000
$500
$800
$84
$3,464

$720
$493
$1,350
$1,600
$321
$4,485

Net Margin

$4,615

$5,858

($918)

$1,166

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product that
was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation: Calculated on
straight-line. 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product.
Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each
product. Sales: The sales force budget for each product. Other: Chargs not included in other categories
such as Fees, Write offs, and TQM. The fees include money paid to investment bankers and brokerage
firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the
loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a
production line. If the amount appears as a negative amount, then you actually made money on the
liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest
expense based on last year''s current debt, including short term debt, long term notes that have become
due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax
based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract.
Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

Page 16