Need 8-10 page Business Paper Assignment by 09/01/13

Please review info before responding. Evaluate your team’s success in managing your company over the 5 rounds of the simulation; I have attached all five rounds my company is Listed as “Andrews
“. My company did very poorly through all five rounds make sure you include how things could have been improved. No cut and Paste school uses plagarism detection. Paper should be at least 7-9 pages in length and in APA format.

Your assessment should include some discussion in the areas associated with “Round Analysis” to include Profit, Margin, Emergency Loan, Inventory, and Stock Price. Please reflect on where and how your team might have been more effective in addressing each area. Be sure to provide your rationale for your conclusions with specific examples taken from your company during 5 rounds of the simulation and evaluate your abilities to successfully do so. Remember that your work is reflective in nature and should focus on showcasing learning that has taken place as a result of the activity.

Attachments:

Round: 1
Dec. 31, 2014

C58538

Andrews
Eugene Ellis
Philip Mull

Baldwin
Lisa Chastain
Monica Dalke
matt rix

Chester

Digby Erie Ferris

Selected Financial Statistics
Andrews Baldwin Chester Digby Erie Ferris

ROS -5.8% 3.4% 4.2% 6.2% 5.2% 6.4%
Asset Turnover 0.86 1.16 1.11 1.12 1.00 1.28
ROA -5.0% 4.0% 4.6% 6.9% 5.2% 8.2%
Leverage
(Assets/Equity)

2.0 2.1 2.0 1.9 2.0 1.9

ROE -9.8% 8.3% 9.2% 13.4% 10.1% 15.9%
Emergency Loan $11,128,054 $0 $0 $0 $0 $0
Sales $88,190,464 $125,334,509 $122,141,540 $121,805,385 $114,407,018 $118,465,329
EBIT ($1,783,484) $12,201,664 $13,985,161 $17,564,769 $15,460,731 $16,683,558
Profits ($5,074,931) $4,319,283 $5,100,754 $7,511,917 $5,899,034 $7,581,960
Cumulative Profit ($886,424) $8,507,790 $9,289,261 $11,700,425 $10,087,541 $11,770,467
SG&A / Sales 15.4% 8.1% 12.0% 13.3% 9.6% 13.6%
Contrib. Margin % 22.5% 23.8% 30.0% 34.0% 30.4% 33.5%

CAPSTONE® COURIER Page 1

Stock & Bonds C58538 Round: 1Dec. 31, 2014

Stock Market Summary

Company Close Change Shares
MarketCap

($M)
Book Value EPS Dividend Yield P/E

Andrews $17.30 ($16.96) 2,291,939 $40 $22.61 ($2.21) $0.46 2.7% -7.8
Baldwin $38.80 $4.54 2,000,000 $78 $26.13 $2.16 $0.00 0.0% 18.0
Chester $40.36 $6.11 2,069,366 $84 $26.78 $2.46 $0.00 0.0% 16.4
Digby $45.15 $10.89 2,015,280 $91 $27.78 $3.73 $0.00 0.0% 12.1
Erie $41.87 $7.61 2,128,085 $89 $27.36 $2.77 $0.00 0.0% 15.1
Ferris $45.26 $11.01 2,000,000 $91 $23.91 $3.79 $3.85 8.5% 11.9

Bond Market Summary
Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Digby

12.5S2017 $10,924,506 12.3% 101.93 B 12.5S2017 $13,828,904 12.2% 102.18 B
14.0S2019 $20,850,000 12.9% 108.35 B 14.0S2019 $20,850,000 12.9% 108.74 B

Baldwin Erie
11.0S2015 $6,950,000 11.1% 99.11 CCC 11.0S2015 $3,809,769 11.1% 99.37 B
12.5S2017 $13,900,000 12.4% 101.20 CCC 12.5S2017 $13,900,000 12.3% 101.93 B
14.0S2019 $20,850,000 13.1% 107.21 CCC 14.0S2019 $20,850,000 12.9% 108.35 B

Chester Ferris
11.0S2015 $1,788,091 11.1% 99.37 B 12.5S2017 $5,899,561 12.2% 102.18 B
12.5S2017 $13,900,000 12.3% 101.93 B 14.0S2019 $20,850,000 12.9% 108.74 B
14.0S2019 $20,850,000 12.9% 108.35 B

Next Year’s Prime Rate 7.50%

CAPSTONE® COURIER Page 2

Financial Summary C58538 Round: 1Dec. 31, 2014
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) ($5,075) $4,319 $5,101 $7,512 $5,899 $7,582
Adjustment for non-cash items:
Depreciation $7,227 $7,587 $7,573 $7,267 $7,987 $5,853
Extraordinary gains/losses/writeoffs $165 $0 $210 $234 $131 $774
Changes in current assets and liablilities
Acounts payable $739 $7,747 $190 ($258) ($227) ($311)
Inventory ($24,755) $8,227 $2,330 $2,753 $1,426 $1,668
Accounts Receivable $4,683 ($12,296) ($1,732) ($1,704) ($1,096) ($1,429)
Net cash from operations ($17,017) $15,584 $13,672 $15,803 $14,119 $14,137

Cash flows from investing activities
Plant improvements(net) $3,510 $0 ($4,770) ($800) ($9,080) $15,220
Cash flows from financing activities
Dividends paid ($1,054) $0 $0 $0 $0 ($7,699)
Sales of common stock $10,000 $0 $2,376 $523 $4,387 $0
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $0 $0 $0 $0 $0 $0
Early retirement of long term debt ($10,000) $0 ($5,135) ($6,988) ($3,124) ($15,211)
Retirement of current debt $0 $0 $0 $0 $0 $0
Cash from current debt borrowing $0 $0 $11,359 $11,359 $11,359 $11,359
Cash from emergency loan $11,128 $0 $0 $0 $0 $0

Net cash from financing activities $10,074 $0 $8,599 $4,894 $12,622 ($11,551)

Net change in cash position ($3,434) $15,584 $17,501 $19,897 $17,661 $17,805
Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $0 $19,018 $20,935 $23,331 $21,094 $21,239
Accounts Receivable $3,624 $20,603 $10,039 $10,011 $9,403 $9,737
Inventory $33,373 $390 $6,288 $5,864 $7,191 $6,950
Total Current Assets $36,997 $40,011 $37,262 $39,207 $37,689 $37,925

Plant and equipment $108,400 $113,800 $113,600 $109,000 $119,800 $87,800
Accumulated Depreciation ($43,360) ($45,520) ($40,773) ($39,867) ($42,987) ($33,520)
Total Fixed Assets $65,040 $68,280 $72,827 $69,133 $76,813 $54,280

Total Assets $102,037 $108,291 $110,088 $108,340 $114,502 $92,205

Account Payable $7,322 $14,330 $6,773 $6,325 $6,356 $6,272
CurrentDebt $11,128 $0 $11,359 $11,359 $11,359 $11,359
Long Term Debt $31,775 $41,700 $36,538 $34,679 $38,560 $26,750
Total Liabilities $50,224 $56,030 $54,670 $52,363 $56,274 $44,381

Common Stock $28,360 $18,360 $20,736 $18,883 $22,747 $18,360
Retained Earnings $23,453 $33,901 $34,683 $37,094 $35,481 $29,465
Total Equity $51,813 $52,261 $55,419 $55,977 $58,228 $47,825

Total Liabilities & Owners” Equity $102,037 $108,291 $110,088 $108,340 $114,502 $92,205

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris
Sales $88,190 $125,335 $122,142 $121,805 $114,407 $118,465
Variable Costs(Labor,Material,Carry) $68,331 $95,449 $85,487 $80,415 $79,617 $78,816
Depreciation $7,227 $7,587 $7,573 $7,267 $7,987 $5,853
SGA(R&D,Promo,Sales,Admin) $13,602 $10,097 $14,690 $16,194 $10,945 $16,110
Other(Fees,Writeoffs,TQM,Bonuses) $815 $0 $406 $365 $397 $1,002
EBIT ($1,783) $12,202 $13,985 $17,565 $15,461 $16,684
Interest(Short term,Long term) $6,024 $5,421 $5,978 $5,772 $6,200 $4,781
Taxes ($2,733) $2,373 $2,803 $4,127 $3,241 $4,166
Profit Sharing $0 $88 $104 $153 $120 $155
Net Profit ($5,075) $4,319 $5,101 $7,512 $5,899 $7,582

CAPSTONE® COURIER Page 3

Production Analysis C58538 Round: 1Dec. 31, 2014

Name
Primary

Segment
Units
Sold

Unit
Inven

tory Revision Date
Age

Dec.31 MTBF
Pfmn

Coord

Size

Coord Price
Material

Cost
Labor
Cost

Contr.
Marg.

2nd
Shift

&
Over-

time

Auto
mation

Next
Round

Capacity
Next

Round
Plant

Utiliz.
Able Trad 738 1,431 5/3/2015 4.1 17500 5.5 14.5 $25.00 $10.65 $8.22 5% 11% 4.0 1,800 110%
Acre Low 1,673 0 4/3/2015 5.6 14000 3.0 17.0 $19.50 $7.05 $7.21 25% 18% 5.0 1,400 117%
Adam High 338 78 5/12/2015 2.7 23000 8.0 12.0 $39.00 $14.84 $8.97 36% 0% 3.0 900 42%
Aft Pfmn 453 11 6/11/2014 2.0 26000 10.0 15.0 $33.00 $15.66 $9.95 23% 30% 3.0 300 129%
Agape Size 272 167 1/29/2015 3.6 19000 4.0 11.0 $33.00 $12.60 $8.97 28% 0% 3.0 600 63%

Baker Trad 1,571 0 4/4/2014 2.4 17500 5.8 14.2 $26.00 $10.95 $8.43 24% 0% 4.0 1,800 77%
Bead Low 2,084 0 5/25/2009 5.6 14000 3.0 17.0 $19.00 $7.05 $8.49 17% 59% 5.0 1,400 146%
Bid High 415 3 4/2/2014 1.7 23000 8.0 11.5 $38.00 $15.10 $9.64 34% 0% 3.0 900 42%
Bold Pfmn 475 8 1/15/2014 3.5 26000 9.4 15.5 $33.00 $15.11 $9.64 24% 0% 3.0 600 68%
Buddy Size 408 5 3/5/2014 2.2 19000 4.0 10.7 $33.00 $12.80 $9.64 31% 0% 3.0 600 58%

Cake Trad 1,358 118 4/22/2014 2.4 15000 5.7 14.3 $27.50 $10.10 $7.85 32% 0% 5.0 1,400 92%
Cedar Low 1,893 27 1/29/2014 5.6 12000 3.0 17.0 $20.00 $6.45 $7.56 28% 36% 6.5 1,400 134%
Cid High 527 58 11/26/2014 1.4 23000 9.1 10.9 $37.50 $15.96 $8.97 34% 0% 3.0 600 91%
Coat Pfmn 451 72 11/13/2014 1.8 26000 10.6 14.7 $32.50 $16.14 $8.97 23% 0% 3.0 600 74%
Cure Size 384 25 12/17/2014 1.8 18000 4.9 9.7 $32.50 $13.42 $8.97 32% 0% 3.0 600 58%

Daze Trad 1,232 95 6/11/2014 2.3 17800 6.1 14.0 $29.50 $11.30 $7.85 34% 0% 5.0 1,400 81%
Dell Low 1,528 46 5/25/2009 5.6 14000 3.0 17.0 $22.00 $7.05 $7.03 34% 11% 6.0 1,400 110%
Dixie High 541 44 11/23/2014 1.4 23500 9.1 10.9 $39.50 $16.11 $9.35 37% 10% 3.0 500 109%
Dot Pfmn 431 43 11/3/2014 1.8 26000 10.6 14.7 $34.50 $16.14 $8.97 28% 0% 3.0 600 66%
Dune Size 452 56 11/2/2014 1.9 19000 4.9 9.8 $34.50 $13.66 $8.97 35% 0% 3.0 600 74%

Eat Trad 1,490 85 3/17/2014 2.4 16500 5.6 14.5 $27.50 $10.40 $7.85 31% 0% 5.0 1,400 99%
Ebb Low 1,940 30 1/15/2014 5.6 13000 3.0 17.0 $20.00 $6.75 $7.62 27% 39% 6.0 1,400 138%
Echo High 359 77 12/23/2014 1.4 17000 7.0 12.9 $39.50 $12.08 $8.97 38% 0% 4.0 900 44%
Edge Pfmn 294 81 6/30/2011 3.5 25000 9.4 15.5 $34.50 $14.81 $8.97 27% 0% 3.0 600 50%
Egg Size 299 61 12/24/2015 3.6 19000 4.0 11.0 $34.50 $12.60 $8.97 35% 0% 3.0 600 50%

Fast Trad 1,445 80 3/3/2014 2.5 17500 5.6 14.5 $29.50 $10.70 $8.26 34% 12% 4.0 1,200 111%
Feat Low 1,383 92 1/15/2014 5.6 13000 3.0 17.0 $22.00 $6.75 $7.72 32% 45% 5.0 1,000 144%
Fist High 464 71 12/22/2014 1.4 24000 9.1 10.9 $39.50 $16.26 $8.97 37% 0% 3.0 500 99%
Foam Pfmn 414 60 11/10/2014 1.8 26000 10.6 14.8 $34.50 $16.11 $8.97 28% 0% 4.0 600 66%
Fume Size 371 38 12/10/2014 1.8 19000 4.7 9.6 $34.50 $13.73 $8.97 35% 0% 4.0 600 58%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C58538 Round: 1Dec. 31, 2014

Traditional Statistics
Total Industry Unit Demand 8,067
Actual Industry Unit Sales 8,067
Segment % of Total Industry 31.4%

Next Year’s Segment Growth Rate 9.2%

Traditional Customer Buying Criteria
Expectations Importance

1. Age Ideal Age = 2.0 47%
2. Price $19.50 – 29.50 23%
3. Ideal Position Pfmn 5.7 Size 14.3 21%
4. Reliability MTBF 14000-19000 9%

Top Products in Traditional Segment

Name
Market
Share

Units
Sold to

Seg
Revision
Date

Stock
Out

Pfmn
Coord

Size
Coord

List
Price MTBF

Age
Dec.31

Promo
Budget

Cust.
Aware-
ness

Sales
Budget

Cust.
Access-

ibility

Dec.
Cust.

Survey
Baker 19% 1,512 4/4/2014 YES 5.8 14.2 $26.00 17500 2.42 $1,000 58% $1,000 50% 39
Eat 18% 1,450 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 51% 33
Fast 17% 1,394 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 54% 31
Cake 16% 1,325 4/22/2014 5.7 14.3 $27.50 15000 2.39 $1,100 61% $1,070 53% 32
Daze 14% 1,150 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 58% 34
Able 9% 686 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 50% 11
Bead 1% 102 5/25/2009 YES 3.0 17.0 $19.00 14000 5.60 $1,000 56% $900 50% 0
Acre 1% 98 4/3/2015 YES 3.0 17.0 $19.50 14000 5.60 $900 53% $900 50% 0
Dell 1% 95 5/25/2009 3.0 17.0 $22.00 14000 5.60 $1,100 59% $1,396 58% 0
Ebb 1% 94 1/15/2014 3.0 17.0 $20.00 13000 5.60 $1,050 58% $1,015 51% 0
Feat 1% 74 1/15/2014 3.0 17.0 $22.00 13000 5.60 $1,100 59% $1,175 54% 0
Cedar 1% 73 1/29/2014 3.0 17.0 $20.00 12000 5.60 $1,100 59% $1,123 53% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C58538 Round: 1Dec. 31, 2014

Low End Statistics
Total Industry Unit Demand 10,009
Actual Industry Unit Sales 10,009
Segment % of Total Industry 39.0%

Next Year’s Segment Growth Rate 11.7%

Low End Customer Buying Criteria
Expectations Importance

1. Price $14.50 – 24.50 53%
2. Age Ideal Age = 7.0 24%
3. Ideal Position Pfmn 2.2 Size 17.8 16%
4. Reliability MTBF 12000-17000 7%

Top Products in Low End Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Bead 20% 1,982 5/25/2009 YES 3.0 17.0 $19.00 14000 5.60 $1,000 56% $900 34% 23
Ebb 18% 1,845 1/15/2014 3.0 17.0 $20.00 13000 5.60 $1,050 58% $1,015 35% 18
Cedar 18% 1,820 1/29/2014 3.0 17.0 $20.00 12000 5.60 $1,100 59% $1,123 37% 18
Acre 16% 1,574 4/3/2015 YES 3.0 17.0 $19.50 14000 5.60 $900 53% $900 34% 17
Dell 14% 1,433 5/25/2009 3.0 17.0 $22.00 14000 5.60 $1,100 59% $1,396 40% 14
Feat 13% 1,309 1/15/2014 3.0 17.0 $22.00 13000 5.60 $1,100 59% $1,175 37% 13
Able 0% 36 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 34% 1
Eat 0% 7 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 35% 0
Cake 0% 1 4/22/2014 5.7 14.3 $27.50 15000 2.39 $1,100 61% $1,070 37% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C58538 Round: 1Dec. 31, 2014

High End Statistics
Total Industry Unit Demand 2,967
Actual Industry Unit Sales 2,967
Segment % of Total Industry 11.6%

Next Year’s Segment Growth Rate 16.2%

High End Customer Buying Criteria
Expectations Importance

1. Ideal Position Pfmn 9.8 Size 10.2 43%
2. Age Ideal Age = 0.0 29%
3. Reliability MTBF 20000-25000 19%
4. Price $29.50 – 39.50 9%

Top Products in High End Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Dixie 18% 541 11/23/2014 9.1 10.9 $39.50 23500 1.40 $1,100 57% $1,396 53% 29
Cid 18% 527 11/26/2014 9.1 10.9 $37.50 23000 1.39 $1,000 54% $1,123 46% 27
Fist 16% 464 12/22/2014 9.1 10.9 $39.50 24000 1.36 $1,000 54% $1,175 49% 29
Bid 14% 415 4/2/2014 8.0 11.5 $38.00 23000 1.72 $800 48% $800 40% 13
Echo 12% 359 12/23/2014 7.0 12.9 $39.50 17000 1.36 $900 51% $725 38% 2
Adam 11% 338 5/12/2015 8.0 12.0 $39.00 23000 2.70 $900 51% $760 39% 6
Aft 2% 60 6/11/2014 10.0 15.0 $33.00 26000 2.03 $800 46% $700 39% 1
Daze 2% 45 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 53% 0
Coat 1% 40 11/13/2014 10.6 14.7 $32.50 26000 1.81 $1,000 52% $1,016 46% 1
Dot 1% 39 11/3/2014 10.6 14.7 $34.50 26000 1.82 $1,100 55% $1,263 53% 1
Foam 1% 35 11/10/2014 10.6 14.8 $34.50 26000 1.81 $1,000 52% $1,175 49% 0
Bold 1% 30 1/15/2014 9.4 15.5 $33.00 26000 3.50 $700 42% $700 40% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C58538 Round: 1Dec. 31, 2014

Performance Statistics
Total Industry Unit Demand 2,294
Actual Industry Unit Sales 2,294
Segment % of Total Industry 8.9%

Next Year’s Segment Growth Rate 19.8%

Performance Customer Buying Criteria
Expectations Importance

1. Reliability MTBF 22000-27000 43%
2. Ideal Position Pfmn 10.4 Size 15.3 29%
3. Price $24.50 – 34.50 19%
4. Age Ideal Age = 1.0 9%

Top Products in Performance Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Bold 19% 444 1/15/2014 9.4 15.5 $33.00 26000 3.50 $700 42% $700 29% 21
Coat 18% 411 11/13/2014 10.6 14.7 $32.50 26000 1.81 $1,000 52% $1,016 33% 28
Aft 17% 392 6/11/2014 10.0 15.0 $33.00 26000 2.03 $800 46% $700 29% 22
Dot 17% 391 11/3/2014 10.6 14.7 $34.50 26000 1.82 $1,100 55% $1,263 37% 27
Foam 17% 379 11/10/2014 10.6 14.8 $34.50 26000 1.81 $1,000 52% $1,175 35% 26
Edge 12% 269 6/30/2011 9.4 15.5 $34.50 25000 3.50 $300 33% $145 25% 12
Daze 0% 2 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 37% 0
Baker 0% 2 4/4/2014 YES 5.8 14.2 $26.00 17500 2.42 $1,000 58% $1,000 29% 0
Fast 0% 1 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 35% 0
Able 0% 1 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 29% 0

CAPSTONE® COURIER Page 8

Size Segment Analysis C58538 Round: 1Dec. 31, 2014

Size Statistics
Total Industry Unit Demand 2,347
Actual Industry Unit Sales 2,347
Segment % of Total Industry 9.1%

Next Year’s Segment Growth Rate 18.3%

Size Customer Buying Criteria
Expectations Importance

1. Ideal Position Pfmn 4.7 Size 9.6 43%
2. Age Ideal Age = 1.5 29%
3. Reliability MTBF 16000-21000 19%
4. Price $24.50 – 34.50 9%

Top Products in Size Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Dune 19% 451 11/2/2014 4.9 9.8 $34.50 19000 1.88 $1,100 55% $1,263 44% 37
Buddy 17% 407 3/5/2014 4.0 10.7 $33.00 19000 2.21 $700 42% $700 34% 17
Cure 16% 377 12/17/2014 4.9 9.7 $32.50 18000 1.81 $1,000 52% $1,016 39% 34
Fume 16% 370 12/10/2014 4.7 9.6 $34.50 19000 1.82 $1,000 52% $1,175 42% 37
Egg 13% 298 12/24/2015 4.0 11.0 $34.50 19000 3.60 $900 49% $725 35% 6
Agape 11% 267 1/29/2015 4.0 11.0 $33.00 19000 3.60 $700 42% $700 34% 6
Baker 2% 47 4/4/2014 YES 5.8 14.2 $26.00 17500 2.42 $1,000 58% $1,000 34% 1
Daze 1% 35 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 44% 1
Cake 1% 29 4/22/2014 5.7 14.3 $27.50 15000 2.39 $1,100 61% $1,070 39% 0
Fast 1% 28 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 42% 0
Eat 1% 25 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 35% 0
Able 1% 14 5/3/2015 5.5 14.5 $25.00 17500 4.10 $1,000 58% $1,000 34% 0

CAPSTONE® COURIER Page 9

Market Share C58538 Round: 1Dec. 31, 2014

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 8,067 10,009 2,967 2,294 2,347 25,684 Units Demanded 8,067 10,009 2,967 2,294 2,347 25,684
% of Market 31.4% 39.0% 11.6% 8.9% 9.1% 100.0% % of Market 31.4% 39.0% 11.6% 8.9% 9.1% 100.0%

Able 8.5% 0.4% 0.6% 2.9% Able 8.4% 0.3% 0.6% 2.8%
Acre 1.2% 15.7% 6.5% Acre 1.3% 17.0% 7.0%
Adam 11.4% 1.3% Adam 10.6% 1.2%
Aft 2.0% 17.1% 1.8% Aft 1.9% 17.0% 1.7%
Agape 11.4% 1.1% Agape 10.5% 1.0%
Total 9.8% 16.1% 13.5% 17.2% 12.0% 13.5% Total 9.8% 17.3% 12.5% 17.1% 11.1% 13.8%

Baker 18.8% 0.3% 2.0% 6.1% Baker 19.3% 0.3% 1.8% 6.3%
Bead 1.3% 19.8% 8.1% Bead 1.5% 22.4% 9.2%
Bid 14.0% 1.6% Bid 19.5% 2.3%
Bold 1.0% 19.3% 1.8% Bold 1.0% 19.6% 1.9%
Buddy 17.3% 1.6% Buddy 23.3% 2.1%
Total 20.0% 19.8% 15.4% 19.4% 19.3% 19.3% Total 20.8% 22.4% 20.8% 19.7% 25.1% 21.7%

Cake 16.4% 1.2% 5.3% Cake 16.2% 1.1% 5.2%
Cedar 0.9% 18.2% 7.4% Cedar 0.9% 17.1% 6.9%
Cid 17.8% 2.1% Cid 16.7% 1.9%
Coat 1.3% 17.9% 1.8% Coat 1.3% 17.9% 1.7%
Cure 16.1% 1.5% Cure 14.9% 1.4%
Total 17.4% 18.2% 19.2% 17.9% 17.3% 18.0% Total 17.2% 17.1% 18.1% 17.9% 16.1% 17.2%

Daze 14.3% 1.5% 1.5% 4.8% Daze 14.1% 1.4% 1.3% 4.7%
Dell 1.2% 14.3% 5.9% Dell 1.2% 13.4% 5.6%
Dixie 18.2% 2.1% Dixie 17.2% 2.0%
Dot 1.3% 17.1% 1.7% Dot 1.3% 17.0% 1.7%
Dune 19.2% 1.8% Dune 17.9% 1.6%
Total 15.4% 14.3% 21.1% 17.2% 20.7% 16.3% Total 15.2% 13.4% 19.9% 17.1% 19.2% 15.6%

Eat 18.0% 0.3% 1.1% 5.8% Eat 17.8% 0.3% 1.0% 5.7%
Ebb 1.2% 18.4% 7.5% Ebb 1.2% 17.5% 7.2%
Echo 12.1% 1.4% Echo 11.2% 1.3%
Edge 0.8% 11.7% 1.1% Edge 0.8% 11.7% 1.1%
Egg 12.7% 1.2% Egg 11.8% 1.1%
Total 19.1% 18.5% 13.2% 11.7% 13.8% 17.1% Total 18.9% 17.5% 12.3% 11.7% 12.7% 16.4%

Fast 17.3% 0.7% 1.2% 5.6% Fast 17.1% 0.7% 1.1% 5.6%
Feat 0.9% 13.1% 5.4% Feat 0.9% 12.2% 5.0%
Fist 15.6% 1.8% Fist 14.6% 1.7%
Foam 1.2% 16.5% 1.6% Foam 1.1% 16.5% 1.6%
Fume 15.8% 1.4% Fume 14.7% 1.3%
Total 18.2% 13.1% 17.6% 16.6% 17.0% 15.9% Total 18.0% 12.2% 16.5% 16.5% 15.8% 15.2%

CAPSTONE® COURIER Page 10

Perceptual Map C58538 Round: 1Dec. 31, 2014

Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 5.5 14.5 5/3/2015 Baker 5.8 14.2 4/4/2014 Cake 5.7 14.3 4/22/2014
Acre 3.0 17.0 4/3/2015 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 1/29/2014
Adam 8.0 12.0 5/12/2015 Bid 8.0 11.5 4/2/2014 Cid 9.1 10.9 11/26/2014
Aft 10.0 15.0 6/11/2014 Bold 9.4 15.5 1/15/2014 Coat 10.6 14.7 11/13/2014
Agape 4.0 11.0 1/29/2015 Buddy 4.0 10.7 3/5/2014 Cure 4.9 9.7 12/17/2014

Digby Erie Ferris
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Daze 6.1 14.0 6/11/2014 Eat 5.6 14.5 3/17/2014 Fast 5.6 14.5 3/3/2014
Dell 3.0 17.0 5/25/2009 Ebb 3.0 17.0 1/15/2014 Feat 3.0 17.0 1/15/2014
Dixie 9.1 10.9 11/23/2014 Echo 7.0 12.9 12/23/2014 Fist 9.1 10.9 12/22/2014
Dot 10.6 14.7 11/3/2014 Edge 9.4 15.5 6/30/2011 Foam 10.6 14.8 11/10/2014
Dune 4.9 9.8 11/2/2014 Egg 4.0 11.0 12/24/2015 Fume 4.7 9.6 12/10/2014

CAPSTONE® COURIER Page 11

HR/TQM Report C58538 Round: 1Dec. 31, 2014

HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 796 809 752 686 709 677
Complement 796 809 752 686 709 677
1st Shift Complement 709 691 680 655 630 587
2nd Shift Complement 87 118 72 31 79 90

Overtime Percent 0.0% 0.0% 0.1% 0.0% 0.0% 0.0%
Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
New Employees 176 190 127 69 80 68
Separated Employees 0 0 0 14 0 23
Recruiting Spend $0 $0 $0 $0 $0 $0
Training Hours 0 0 0 0 0 0
Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $176 $190 $127 $69 $80 $68
Separation Cost $0 $0 $0 $70 $0 $115
Training Cost $0 $0 $0 $0 $0 $0
Total HR Admin Cost $176 $190 $127 $139 $80 $183

Labor Contract Next Year
Wages $22.05 $22.05 $22.05 $22.05 $22.05 $22.05
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 $0 $0 $0 $0 $0 $0
Vendor/JIT $0 $0 $0 $0 $0 $0
Quality Initiative Training $0 $0 $0 $0 $0 $0
Channel Support Systems $0 $0 $0 $0 $0 $0
Concurrent Engineering $0 $0 $0 $0 $0 $0
UNEP Green Programs $0 $0 $0 $0 $0 $0

TQM Budgets Last Year
Benchmarking $0 $0 $0 $0 $0 $0
Quality Function Deployment Effort $0 $0 $0 $0 $0 $0
CCE/6 Sigma Training $0 $0 $0 $0 $0 $0
GEMI TQEM Sustainability Initiatives $0 $0 $0 $0 $0 $0
Total Expenditures $0 $0 $0 $0 $0 $0

Cumulative Impacts
Material Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Labor Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Reduction R&D Cycle Time 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Reduction Admin Costs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Demand Increase 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

CAPSTONE® COURIER Page 12

Ethics Report C58538 Round: 1Dec. 31, 2014

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%

CAPSTONE® COURIER Page 13

Annual Report

Annual Report Andrews C58538 Round: 1Dec. 31, 2014

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 2014
Common

Size

2013

Cash $0 0.0% $3,434
Account Receivable $3,624 3.6% $8,307
Inventory $33,373 32.7% $8,617
Total Current Assets $36,997 36.3% $20,358

Plant & Equipment $108,400 106.0% $113,800
Accumulated Depreciation ($43,360) -42.5% ($37,933)
Total Fixed Assets $65,040 63.7% $75,867
Total Assets $102,037 100.0% $96,225
LIABILITIES & OWNER’S
EQUITY

Accounts Payable $7,322 7.2% $6,583
Current Debt $11,128 10.9% $0
Long Term Debt $31,775 31.1% $41,700
Total Liabilities $50,225 49.2% $48,283

Common Stock $28,360 27.8% $18,360
Retained Earnings $23,453 23.0% $29,582
Total Equity $51,813 50.8% $47,942
Total Liab. & O. Equity $102,037 100.0% $96,225

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.

Cash Flows from Operating Activities 2014 2013
NetIncome(Loss) ($5,075) $4,189
Depreciation $7,227 $7,587
Extraordinary gains/losses/writeoffs $165 $0
Accounts Payable $739 $3,583
Inventory ($24,755) ($8,617)
Accounts Receivable $4,683 ($307)

Net cash from operation ($17,017) $6,434
Cash Flows from Investing Activities
Plant Improvements $3,510 $0
Cash Flows from Financing Activities
Dividends Paid ($1,054) ($4,000)
Sales of Common Stock $10,000 $0
Purchase of Common Stock $0 $0
Cash from long term debt $0 $0
Retirement of long term debt ($10,000) $0
Change in current debt(net) $11,128 $0

Net Cash from financing activities $10,074 ($4,000)
Net Change in cash position ($3,434) $2,434
Closing cash position $0 $3,434

Annual Report Page 14

Annual Report Andrews C58538 Round: 1Dec. 31, 2014

2014 Income Statement
(Product Name) Able Acre Adam Aft Agape NA NA NA 2014

Total
Common

Size
Sales $18,458 $32,617 $13,200 $14,936 $8,980 $0 $0 $0 $88,190 100.0%

Variable Costs:
Direct Labor $6,024 $12,059 $3,024 $4,399 $2,426 $0 $0 $0 $27,931 31.7%
Direct Material $8,177 $12,316 $5,194 $7,140 $3,567 $0 $0 $0 $36,395 41.3%
Inventory Carry $3,303 $0 $228 $34 $440 $0 $0 $0 $4,005 4.5%
Total Variable $17,504 $24,375 $8,446 $11,573 $6,433 $0 $0 $0 $68,331 77.5%

Contribution Margin $954 $8,242 $4,754 $3,363 $2,547 $0 $0 $0 $19,860 22.5%

Period Costs:
Depreciation $2,640 $2,427 $1,080 $360 $720 $0 $0 $0 $7,227 8.2%
SG&A: R&D $1,000 $1,000 $1,000 $449 $1,000 $0 $0 $0 $4,449 5.0%
Promotions $1,000 $900 $900 $800 $700 $0 $0 $0 $4,300 4.9%
Sales $1,000 $900 $760 $700 $700 $0 $0 $0 $4,060 4.6%
Admin $166 $293 $119 $134 $81 $0 $0 $0 $793 0.9%
Total Period $5,806 $5,520 $3,859 $2,443 $3,201 $0 $0 $0 $20,829 23.6%

Net Margin ($4,851) $2,722 $895 $919 ($654) $0 $0 $0 ($969) -1.1%

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.

Other $815 0.9%
EBIT ($1,783) -2.0%
Short Term Interest $1,740 2.0%
Long Term Interest $4,285 4.9%
Taxes ($2,733) -3.1%
Profit Sharing $0 0.0%
Net Profit ($5,075) -5.8%

Annual Report Page 15

Round: 2
Dec. 31, 2015

C58538

Andrews
Eugene Ellis
Philip Mull

Baldwin
Lisa Chastain
Monica Dalke
matt rix

Chester

Digby Erie Ferris

Selected Financial Statistics
Andrews Baldwin Chester Digby Erie Ferris

ROS -17.5% -3.1% 7.6% 7.5% 6.9% 7.3%
Asset Turnover 0.50 0.97 1.26 1.19 1.02 1.33
ROA -8.7% -3.0% 9.6% 9.0% 7.0% 9.6%
Leverage
(Assets/Equity)

4.6 2.1 2.0 2.0 2.0 2.0

ROE -40.1% -6.4% 18.7% 17.7% 14.3% 19.1%
Emergency Loan $90,856,063 $0 $0 $0 $0 $0
Sales $84,906,613 $101,934,574 $160,473,126 $164,573,195 $126,745,923 $141,932,500
EBIT ($4,019,505) $575,275 $25,536,640 $26,615,239 $20,679,294 $21,642,788
Profits ($14,819,574) ($3,131,651) $12,120,371 $12,397,854 $8,787,171 $10,296,970
Cumulative Profit ($15,705,998) $5,376,139 $21,409,632 $24,098,279 $18,874,712 $22,067,437
SG&A / Sales 13.0% 11.5% 10.0% 11.3% 8.9% 12.5%
Contrib. Margin % 16.7% 19.5% 30.7% 32.2% 31.3% 31.4%

CAPSTONE® COURIER Page 1

Stock & Bonds C58538 Round: 2Dec. 31, 2015

Stock Market Summary

Company Close Change Shares MarketCap($M) Book Value EPS Dividend Yield P/E

Andrews $1.00 ($16.30) 2,291,939 $2 $16.14 ($6.47) $0.00 0.0% -0.1
Baldwin $24.19 ($14.61) 2,000,000 $48 $24.56 ($1.57) $0.00 0.0% -15.5
Chester $55.14 $14.77 2,069,366 $114 $31.29 $5.86 $1.35 2.4% 9.4
Digby $59.71 $14.57 2,050,451 $122 $34.12 $6.05 $0.00 0.0% 9.9
Erie $49.42 $7.56 2,128,085 $105 $28.94 $4.13 $2.55 5.2% 12.0
Ferris $55.88 $10.61 2,000,000 $112 $26.93 $5.15 $2.13 3.8% 10.8

Bond Market Summary
Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Digby

12.5S2017 $10,924,506 12.9% 97.21 DDD 12.5S2017 $13,828,904 12.4% 100.51 B
14.0S2019 $20,850,000 14.1% 99.42 DDD 14.0S2019 $20,850,000 13.3% 105.44 B

Baldwin 11.6S2025 $3,523,690 12.0% 96.64 B
12.5S2017 $13,900,000 12.5% 99.83 CCC Erie
14.0S2019 $20,850,000 13.4% 104.20 CCC 12.5S2017 $13,900,000 12.5% 100.34 B

Chester 14.0S2019 $20,850,000 13.3% 105.13 B
12.5S2017 $13,900,000 12.4% 100.67 B 11.7S2025 $1,722,021 12.1% 96.65 B
14.0S2019 $20,850,000 13.2% 105.76 B Ferris

12.5S2017 $4,616,365 12.4% 100.51 B
14.0S2019 $20,850,000 13.3% 105.44 B

Next Year’s Prime Rate 8.00%

CAPSTONE® COURIER Page 2

Financial Summary C58538 Round: 2Dec. 31, 2015
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) ($14,820) ($3,132) $12,120 $12,398 $8,787 $10,297
Adjustment for non-cash items:
Depreciation $7,227 $7,587 $7,707 $7,653 $8,255 $5,987
Extraordinary gains/losses/writeoffs $0 $0 $8 $7 ($539) ($802)
Changes in current assets and liablilities
Acounts payable $3,651 $12 $2,546 $3,222 $571 $1,977
Inventory ($75,921) ($5,906) ($3,356) ($6,085) $2,160 ($4,336)
Accounts Receivable $135 $3,847 ($3,151) ($3,515) ($1,014) ($1,929)
Net cash from operations ($79,728) $2,408 $15,874 $13,680 $18,219 $11,194

Cash flows from investing activities
Plant improvements(net) $0 $0 ($5,640) ($22,620) ($7,792) ($7,810)
Cash flows from financing activities
Dividends paid $0 $0 ($2,790) $0 ($5,433) ($4,265)
Sales of common stock $0 $0 $0 $1,588 $0 $0
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $0 $0 $0 $3,524 $1,722 $0
Early retirement of long term debt $0 $0 ($858) $0 $0 ($1,311)
Retirement of current debt ($11,128) $0 ($11,359) ($11,359) ($11,359) ($11,359)
Cash from current debt borrowing $0 $0 $17,065 $20,549 $15,867 $19,431
Cash from emergency loan $90,856 $0 $0 $0 $0 $0

Net cash from financing activities $79,728 $0 $2,057 $14,302 $798 $2,496

Net change in cash position $0 $2,408 $12,291 $5,362 $11,225 $5,881
Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $0 $21,426 $33,226 $28,693 $32,320 $27,119
Accounts Receivable $3,489 $16,756 $13,190 $13,527 $10,417 $11,666
Inventory $109,294 $6,296 $9,644 $11,949 $5,031 $11,285
Total Current Assets $112,783 $44,478 $56,060 $54,169 $47,768 $50,070

Plant and equipment $108,400 $113,800 $115,600 $129,800 $123,818 $89,800
Accumulated Depreciation ($50,587) ($53,107) ($44,853) ($45,707) ($46,928) ($32,867)
Total Fixed Assets $57,813 $60,693 $70,747 $84,093 $76,890 $56,933

Total Assets $170,597 $105,172 $126,806 $138,262 $124,658 $107,004

Account Payable $10,973 $14,342 $9,318 $9,548 $6,926 $8,250
CurrentDebt $90,856 $6,950 $17,989 $20,549 $19,677 $19,431
Long Term Debt $31,775 $34,750 $34,750 $38,203 $36,472 $25,466
Total Liabilities $133,604 $56,042 $62,057 $68,299 $63,075 $53,147

Common Stock $28,360 $18,360 $20,736 $20,471 $22,747 $18,360
Retained Earnings $8,633 $30,770 $44,013 $49,492 $38,836 $35,497
Total Equity $36,993 $49,129 $64,749 $69,963 $61,583 $53,857

Total Liabilities & Owners” Equity $170,597 $105,172 $126,806 $138,262 $124,658 $107,004

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris
Sales $84,907 $101,935 $160,473 $164,573 $126,746 $141,933
Variable Costs(Labor,Material,Carry) $70,701 $82,098 $111,175 $111,513 $87,035 $97,389
Depreciation $7,227 $7,587 $7,707 $7,653 $8,255 $5,987
SGA(R&D,Promo,Sales,Admin) $10,999 $11,674 $16,034 $18,529 $11,230 $17,696
Other(Fees,Writeoffs,TQM,Bonuses) $0 $0 $21 $262 ($453) ($782)
EBIT ($4,020) $575 $25,537 $26,615 $20,679 $21,643
Interest(Short term,Long term) $18,780 $5,393 $6,509 $7,152 $6,885 $5,478
Taxes ($7,980) ($1,686) $6,660 $6,812 $4,828 $5,658
Profit Sharing $0 $0 $247 $253 $179 $210
Net Profit ($14,820) ($3,132) $12,120 $12,398 $8,787 $10,297

CAPSTONE® COURIER Page 3

Production Analysis C58538 Round: 2Dec. 31, 2015

Name
Primary

Segment
Units
Sold

Unit
Inven

tory Revision Date
Age

Dec.31 MTBF
Pfmn

Coord

Size

Coord Price
Material

Cost
Labor
Cost

Contr.
Marg.

2nd
Shift

&
Over-

time

Auto
mation

Next
Round

Capacity
Next

Round
Plant

Utiliz.
Able Trad 630 3,376 5/3/2015 2.9 19000 6.0 12.5 $29.50 $11.49 $9.42 -12% 44% 4.0 1,800 143%
Acre Low 822 1,159 4/3/2015 3.7 16000 4.5 16.0 $24.50 $8.18 $8.05 23% 43% 5.0 1,400 141%
Adam High 460 410 5/12/2015 2.2 24000 8.9 10.0 $39.00 $15.52 $9.40 30% 0% 3.0 900 88%
Aft Pfmn 399 8 4/10/2015 1.9 26000 10.4 15.3 $34.00 $14.84 $10.51 24% 33% 3.0 300 132%
Agape Size 432 527 1/29/2015 2.8 19000 5.0 9.5 $34.00 $12.88 $10.51 21% 33% 3.0 600 132%

Baker Trad 1,474 0 3/9/2015 2.1 17500 5.6 14.2 $24.00 $10.00 $8.83 20% 0% 4.0 1,800 82%
Bead Low 1,750 0 5/25/2009 6.6 14000 3.0 17.0 $17.50 $6.38 $8.52 13% 36% 5.0 1,400 125%
Bid High 343 222 6/9/2016 2.7 23000 8.0 11.5 $34.50 $14.07 $10.10 23% 0% 3.0 900 62%
Bold Pfmn 397 34 9/15/2015 2.4 24000 10.5 15.1 $31.50 $14.36 $10.10 21% 0% 3.0 600 71%
Buddy Size 373 0 5/9/2015 1.9 19000 4.7 10.8 $31.00 $12.00 $10.10 28% 0% 3.0 600 61%

Cake Trad 1,381 173 8/26/2015 1.9 14000 6.4 13.6 $26.50 $9.61 $8.08 32% 45% 5.5 1,000 144%
Cedar Low 2,601 0 1/29/2014 6.6 12000 3.0 17.0 $19.50 $5.78 $6.44 36% 86% 7.5 1,400 184%
Cid High 837 161 11/15/2015 1.3 23000 10.2 9.8 $37.50 $15.92 $11.03 28% 58% 3.0 600 157%
Coat Pfmn 643 23 11/3/2015 1.5 27000 11.8 13.9 $32.50 $16.38 $9.39 23% 0% 4.0 600 99%
Cure Size 642 75 9/10/2015 1.6 17000 5.4 8.6 $32.50 $12.94 $10.03 28% 17% 4.0 600 116%

Daze Trad 1,465 165 8/22/2015 1.8 18100 6.8 13.3 $29.00 $11.17 $7.80 34% 29% 5.0 1,200 128%
Dell Low 2,125 0 5/25/2009 6.6 14000 3.0 17.0 $21.50 $6.38 $6.80 37% 50% 7.0 1,400 149%
Dixie High 846 188 12/3/2015 1.2 24000 10.2 9.8 $39.00 $16.22 $11.62 29% 100% 3.0 650 198%
Dot Pfmn 647 39 11/13/2015 1.5 27000 11.8 13.9 $34.00 $16.38 $9.74 25% 8% 3.0 650 107%
Dune Size 629 120 11/13/2015 1.5 19000 5.8 8.6 $34.00 $13.65 $10.03 30% 17% 3.0 700 116%
Doom 0 0 8/8/2016 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 6.0 500 0%

Eat Trad 1,550 119 4/8/2015 2.1 15500 5.5 14.5 $27.00 $9.21 $7.47 36% 14% 7.0 1,400 113%
Ebb Low 2,406 0 1/15/2015 6.6 12000 3.0 17.0 $19.50 $5.78 $7.03 33% 71% 6.0 1,400 170%
Echo Trad 1,216 50 7/20/2015 1.4 16000 6.4 13.6 $27.00 $10.21 $9.20 24% 33% 5.0 900 132%
Edge Pfmn 83 0 6/30/2011 4.5 25000 9.4 15.5 $34.00 $13.87 $11.62 28% 99% 3.0 1 198%
Egg Size 68 91 12/24/2015 2.3 19000 6.9 13.4 $34.00 $11.44 $9.40 26% 0% 3.0 600 17%

Fast Trad 1,146 221 4/22/2015 2.1 14000 5.5 14.5 $29.00 $8.76 $9.72 33% 63% 4.0 800 161%
Feat Low 1,478 0 7/27/2018 6.6 13000 3.0 17.0 $22.00 $6.08 $8.72 32% 100% 6.0 700 198%
Fist High 847 165 12/22/2015 1.2 25000 10.2 9.8 $39.00 $16.52 $11.50 29% 90% 3.0 600 188%
Foam Pfmn 622 31 11/11/2015 1.5 27000 11.8 14.2 $34.00 $16.30 $8.22 29% 0% 4.0 600 99%
Fume Size 647 84 11/9/2015 1.5 19000 5.4 8.4 $34.00 $13.67 $8.78 34% 17% 4.0 600 116%
Fox 0 0 12/12/2015 0.0 25000 11.0 9.0 $39.00 $0.00 $0.00 0% 0% 5.5 500 0%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C58538 Round: 2Dec. 31, 2015

Traditional Statistics
Total Industry Unit Demand 8,809
Actual Industry Unit Sales 8,809
Segment % of Total Industry 30.4%

Next Year’s Segment Growth Rate 9.2%

Traditional Customer Buying Criteria
Expectations Importance

1. Age Ideal Age = 2.0 47%
2. Price $19.00 – 29.00 23%
3. Ideal Position Pfmn 6.4 Size 13.6 21%
4. Reliability MTBF 14000-19000 9%

Top Products in Traditional Segment

Name
Market
Share

Units
Sold to

Seg
Revision
Date

Stock
Out

Pfmn
Coord

Size
Coord

List
Price MTBF

Age
Dec.31

Promo
Budget

Cust.
Aware-
ness

Sales
Budget

Cust.
Access-

ibility

Dec.
Cust.

Survey
Eat 16% 1,443 4/8/2015 5.5 14.5 $27.00 15500 2.09 $1,050 63% $1,085 54% 31
Daze 16% 1,424 8/22/2015 6.8 13.3 $29.00 18100 1.84 $1,100 66% $1,440 53% 36
Baker 16% 1,413 3/9/2015 YES 5.6 14.2 $24.00 17500 2.12 $1,000 61% $1,000 43% 40
Cake 15% 1,343 8/26/2015 6.4 13.6 $26.50 14000 1.87 $1,100 66% $1,270 47% 35
Echo 13% 1,177 7/20/2015 6.4 13.6 $27.00 16000 1.40 $1,050 57% $775 54% 29
Fast 13% 1,146 4/22/2015 5.5 14.5 $29.00 14000 2.08 $900 59% $1,235 48% 24
Able 6% 536 5/3/2015 6.0 12.5 $29.50 19000 2.88 $500 46% $500 35% 12
Acre 2% 198 4/3/2015 4.5 16.0 $24.50 16000 3.67 $500 42% $500 35% 3
Buddy 1% 115 5/9/2015 YES 4.7 10.8 $31.00 19000 1.93 $800 44% $800 43% 6
Bold 0% 8 9/15/2015 10.5 15.1 $31.50 24000 2.39 $800 44% $800 43% 0
Dell 0% 1 5/25/2009 YES 3.0 17.0 $21.50 14000 6.60 $1,100 64% $1,512 53% 0
Ebb 0% 1 1/15/2015 YES 3.0 17.0 $19.50 12000 6.60 $1,050 62% $1,085 54% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C58538 Round: 2Dec. 31, 2015

Low End Statistics
Total Industry Unit Demand 11,180
Actual Industry Unit Sales 11,180
Segment % of Total Industry 38.6%

Next Year’s Segment Growth Rate 11.7%

Low End Customer Buying Criteria
Expectations Importance

1. Price $14.00 – 24.00 53%
2. Age Ideal Age = 7.0 24%
3. Ideal Position Pfmn 2.7 Size 17.3 16%
4. Reliability MTBF 12000-17000 7%

Top Products in Low End Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Cedar 23% 2,600 1/29/2014 YES 3.0 17.0 $19.50 12000 6.60 $1,100 64% $1,333 40% 25
Ebb 22% 2,405 1/15/2015 YES 3.0 17.0 $19.50 12000 6.60 $1,050 62% $1,085 36% 23
Dell 19% 2,124 5/25/2009 YES 3.0 17.0 $21.50 14000 6.60 $1,100 64% $1,512 42% 20
Bead 16% 1,750 5/25/2009 YES 3.0 17.0 $17.50 14000 6.60 $900 56% $800 31% 32
Feat 13% 1,477 7/27/2018 YES 3.0 17.0 $22.00 13000 6.60 $1,100 64% $1,235 36% 17
Acre 6% 624 4/3/2015 4.5 16.0 $24.50 16000 3.67 $500 42% $500 24% 2
Eat 1% 107 4/8/2015 5.5 14.5 $27.00 15500 2.09 $1,050 63% $1,085 36% 0
Baker 1% 56 3/9/2015 YES 5.6 14.2 $24.00 17500 2.12 $1,000 61% $1,000 31% 1
Cake 0% 36 8/26/2015 6.4 13.6 $26.50 14000 1.87 $1,100 66% $1,270 40% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C58538 Round: 2Dec. 31, 2015

High End Statistics
Total Industry Unit Demand 3,448
Actual Industry Unit Sales 3,448
Segment % of Total Industry 11.9%

Next Year’s Segment Growth Rate 16.2%

High End Customer Buying Criteria
Expectations Importance

1. Ideal Position Pfmn 10.7 Size 9.3 43%
2. Age Ideal Age = 0.0 29%
3. Reliability MTBF 20000-25000 19%
4. Price $29.00 – 39.00 9%

Top Products in High End Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Fist 25% 847 12/22/2015 10.2 9.8 $39.00 25000 1.18 $1,100 61% $1,235 44% 36
Dixie 25% 846 12/3/2015 10.2 9.8 $39.00 24000 1.23 $1,100 63% $1,512 51% 36
Cid 24% 837 11/15/2015 10.2 9.8 $37.50 23000 1.25 $1,000 58% $1,333 44% 30
Adam 13% 460 5/12/2015 8.9 10.0 $39.00 24000 2.17 $600 43% $660 30% 10
Bid 10% 340 6/9/2016 8.0 11.5 $34.50 23000 2.72 $1,000 53% $700 31% 5
Daze 1% 36 8/22/2015 6.8 13.3 $29.00 18100 1.84 $1,100 66% $1,440 51% 0
Echo 1% 24 7/20/2015 6.4 13.6 $27.00 16000 1.40 $1,050 57% $775 26% 0
Able 1% 19 5/3/2015 6.0 12.5 $29.50 19000 2.88 $500 46% $500 30% 0
Dot 0% 14 11/13/2015 11.8 13.9 $34.00 27000 1.47 $1,100 62% $1,368 51% 0
Coat 0% 13 11/3/2015 11.8 13.9 $32.50 27000 1.48 $1,000 56% $1,206 44% 0
Aft 0% 6 4/10/2015 10.4 15.3 $34.00 26000 1.87 $600 40% $600 30% 0
Foam 0% 4 11/11/2015 11.8 14.2 $34.00 27000 1.47 $1,100 59% $1,235 44% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C58538 Round: 2Dec. 31, 2015

Performance Statistics
Total Industry Unit Demand 2,749
Actual Industry Unit Sales 2,749
Segment % of Total Industry 9.5%

Next Year’s Segment Growth Rate 19.8%

Performance Customer Buying Criteria
Expectations Importance

1. Reliability MTBF 22000-27000 43%
2. Ideal Position Pfmn 11.4 Size 14.6 29%
3. Price $24.00 – 34.00 19%
4. Age Ideal Age = 1.0 9%

Top Products in Performance Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Dot 23% 634 11/13/2015 11.8 13.9 $34.00 27000 1.47 $1,100 62% $1,368 38% 35
Coat 23% 629 11/3/2015 11.8 13.9 $32.50 27000 1.48 $1,000 56% $1,206 33% 34
Foam 22% 618 11/11/2015 11.8 14.2 $34.00 27000 1.47 $1,100 59% $1,235 35% 35
Aft 14% 393 4/10/2015 10.4 15.3 $34.00 26000 1.87 $600 40% $600 23% 17
Bold 14% 390 9/15/2015 10.5 15.1 $31.50 24000 2.39 $800 44% $800 25% 14
Edge 3% 83 6/30/2011 YES 9.4 15.5 $34.00 25000 4.50 $300 25% $155 17% 7
Daze 0% 1 8/22/2015 6.8 13.3 $29.00 18100 1.84 $1,100 66% $1,440 38% 0

CAPSTONE® COURIER Page 8

Size Segment Analysis C58538 Round: 2Dec. 31, 2015

Size Statistics
Total Industry Unit Demand 2,776
Actual Industry Unit Sales 2,776
Segment % of Total Industry 9.6%

Next Year’s Segment Growth Rate 18.3%

Size Customer Buying Criteria
Expectations Importance

1. Ideal Position Pfmn 5.4 Size 8.6 43%
2. Age Ideal Age = 1.5 29%
3. Reliability MTBF 16000-21000 19%
4. Price $24.00 – 34.00 9%

Top Products in Size Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Fume 23% 647 11/9/2015 5.4 8.4 $34.00 19000 1.48 $1,100 59% $1,235 39% 39
Cure 23% 642 9/10/2015 5.4 8.6 $32.50 17000 1.56 $1,000 56% $1,206 37% 33
Dune 23% 628 11/13/2015 5.8 8.6 $34.00 19000 1.50 $1,100 62% $1,368 42% 39
Agape 16% 432 1/29/2015 5.0 9.5 $34.00 19000 2.76 $600 38% $600 26% 12
Buddy 9% 258 5/9/2015 YES 4.7 10.8 $31.00 19000 1.93 $800 44% $800 28% 12
Able 3% 74 5/3/2015 6.0 12.5 $29.50 19000 2.88 $500 46% $500 26% 4
Egg 2% 67 12/24/2015 6.9 13.4 $34.00 19000 2.30 $1,050 56% $775 29% 0
Echo 1% 14 7/20/2015 6.4 13.6 $27.00 16000 1.40 $1,050 57% $775 29% 0
Baker 0% 5 3/9/2015 YES 5.6 14.2 $24.00 17500 2.12 $1,000 61% $1,000 28% 0
Daze 0% 3 8/22/2015 6.8 13.3 $29.00 18100 1.84 $1,100 66% $1,440 42% 0
Bid 0% 3 6/9/2016 8.0 11.5 $34.50 23000 2.72 $1,000 53% $700 28% 0
Cake 0% 1 8/26/2015 6.4 13.6 $26.50 14000 1.87 $1,100 66% $1,270 37% 0

CAPSTONE® COURIER Page 9

Market Share C58538 Round: 2Dec. 31, 2015

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 8,809 11,180 3,448 2,749 2,776 28,961 Units Demanded 8,809 11,180 3,448 2,749 2,776 28,961
% of Market 30.4% 38.6% 11.9% 9.5% 9.6% 100.0% % of Market 30.4% 38.6% 11.9% 9.5% 9.6% 100.0%

Able 6.1% 0.5% 2.7% 2.2% Able 5.8% 0.6% 2.6% 2.1%
Acre 2.2% 5.6% 2.8% Acre 2.1% 2.6% 1.6%
Adam 13.4% 1.6% Adam 13.3% 1.6%
Aft 0.2% 14.3% 1.4% Aft 0.2% 14.4% 1.4%
Agape 15.6% 1.5% Agape 15.3% 1.5%
Total 8.3% 5.6% 14.1% 14.3% 18.2% 9.5% Total 7.9% 2.6% 14.1% 14.4% 18.0% 8.2%

Baker 16.0% 0.5% 0.2% 5.1% Baker 20.1% 0.6% 0.2% 6.4%
Bead 15.7% 6.0% Bead 26.8% 10.3%
Bid 9.9% 1.2% Bid 9.9% 1.2%
Bold 14.2% 1.4% Bold 13.6% 1.3%
Buddy 1.3% 9.3% 1.3% Buddy 1.5% 10.6% 1.5%
Total 17.4% 16.2% 9.9% 14.2% 9.6% 15.0% Total 21.7% 27.4% 9.9% 13.6% 10.9% 20.7%

Cake 15.2% 0.3% 4.8% Cake 14.5% 0.2% 4.5%
Cedar 23.3% 9.0% Cedar 20.4% 7.9%
Cid 24.3% 2.9% Cid 24.3% 2.9%
Coat 0.4% 22.9% 2.2% Coat 0.4% 21.9% 2.1%
Cure 23.1% 2.2% Cure 22.8% 2.2%
Total 15.3% 23.6% 24.7% 22.9% 23.2% 21.1% Total 14.5% 20.6% 24.7% 21.9% 22.8% 19.6%

Daze 16.2% 1.0% 0.1% 5.1% Daze 15.3% 1.0% 4.8%
Dell 19.0% 7.3% Dell 16.4% 6.3%
Dixie 24.5% 2.9% Dixie 24.5% 2.9%
Dot 0.4% 23.1% 2.2% Dot 0.4% 22.0% 2.1%
Dune 22.6% 2.2% Dune 22.3% 2.1%
Total 16.2% 19.0% 26.0% 23.1% 22.8% 19.7% Total 15.3% 16.4% 26.0% 22.1% 22.5% 18.3%

Eat 16.4% 1.0% 5.3% Eat 15.5% 0.3% 4.9%
Ebb 21.5% 8.3% Ebb 19.2% 7.4%
Echo 13.4% 0.7% 0.5% 4.2% Echo 12.7% 0.7% 0.5% 4.0%
Edge 3.0% 0.3% Edge 6.6% 0.6%
Egg 2.4% 0.2% Egg 2.4% 0.2%
Total 29.8% 22.5% 0.7% 3.0% 2.9% 18.4% Total 28.2% 19.5% 0.7% 6.6% 2.9% 17.1%

Fast 13.0% 4.0% Fast 12.3% 3.8%
Feat 13.2% 5.1% Feat 13.5% 5.2%
Fist 24.5% 2.9% Fist 24.6% 2.9%
Foam 0.1% 22.5% 2.1% Foam 21.5% 2.1%
Fume 23.3% 2.2% Fume 23.0% 2.2%
Total 13.0% 13.2% 24.7% 22.5% 23.3% 16.4% Total 12.3% 13.5% 24.7% 21.5% 23.0% 16.2%

CAPSTONE® COURIER Page 10

Perceptual Map C58538 Round: 2Dec. 31, 2015

Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 6.0 12.5 5/3/2015 Baker 5.6 14.2 3/9/2015 Cake 6.4 13.6 8/26/2015
Acre 4.5 16.0 4/3/2015 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 1/29/

2014

Adam 8.9 10.0 5/12/2015 Bid 8.0 11.5 6/9/2016 Cid 10.2 9.8 11/15/2015
Aft 10.4 15.3 4/10/2015 Bold 10.5 15.1 9/15/2015 Coat 11.8 13.9 11/3/2015
Agape 5.0 9.5 1/29/2015 Buddy 4.7 10.8 5/9/2015 Cure 5.4 8.6 9/10/2015

Digby Erie Ferris
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Daze 6.8 13.3 8/22/2015 Eat 5.5 14.5 4/8/2015 Fast 5.5 14.5 4/22/2015
Dell 3.0 17.0 5/25/2009 Ebb 3.0 17.0 1/15/2015 Feat 3.0 17.0 7/27/2018
Dixie 10.2 9.8 12/3/2015 Echo 6.4 13.6 7/20/2015 Fist 10.2 9.8 12/22/2015
Dot 11.8 13.9 11/13/2015 Edge 9.4 15.5 6/30/2011 Foam 11.8 14.2 11/11/2015
Dune 5.8 8.6 11/13/2015 Egg 6.9 13.4 12/24/2015 Fume 5.4 8.4 11/9/2015

Fox 11.0 9.0 12/12/2015

CAPSTONE® COURIER Page 11

HR/TQM Report C58538 Round: 2Dec. 31, 2015

HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 1,111 826 923 928 741 822
Complement 1,111 826 923 928 741 822
1st Shift Complement 832 754 642 668 541 534
2nd Shift Complement 279 72 281 260 200 288

Overtime Percent 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
New Employees 426 100 263 335 106 227
Separated Employees 0 0 0 0 0 0
Recruiting Spend $0 $0 $0 $0 $0 $0
Training Hours 0 0 0 0 0 0
Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $426 $100 $263 $335 $106 $227
Separation Cost $0 $0 $0 $0 $0 $0
Training Cost $0 $0 $0 $0 $0 $0
Total HR Admin Cost $426 $100 $263 $335 $106 $227

Labor Contract Next Year
Wages $23.15 $23.15 $23.15 $23.15 $23.15 $23.15
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

CAPSTONE® COURIER Page 12

Ethics Report C58538 Round: 2Dec. 31, 2015

Normal means the value that would have been produced if the problem had not been presented.

CAPSTONE® COURIER Page 13

Annual Report

Annual Report Andrews C58538 Round: 2Dec. 31, 2015

ASSETS 2015
Common

Size
2014

Cash $0 0.0% $0
Account Receivable $3,489 2.0% $3,624
Inventory $109,294 64.1% $33,373
Total Current Assets $112,783 66.1% $36,997

Plant & Equipment $108,400 63.5% $108,400
Accumulated Depreciation ($50,587) -29.7% ($43,360)
Total Fixed Assets $57,813 33.9% $65,040
Total Assets $170,597 100.0% $102,037
LIABILITIES & OWNER’S
EQUITY

Accounts Payable $10,973 6.4% $7,322
Current Debt $90,856 53.3% $11,128
Long Term Debt $31,775 18.6% $31,775
Total Liabilities $133,604 78.3% $50,225

Common Stock $28,360 16.6% $28,360
Retained Earnings $8,633 5.1% $23,453
Total Equity $36,993 21.7% $51,813
Total Liab. & O. Equity $170,597 100.0% $102,037

Cash Flows from Operating Activities 2015 2014
NetIncome(Loss) ($14,820) ($5,075)
Depreciation $7,227 $7,227
Extraordinary gains/losses/writeoffs $0 $165
Accounts Payable $3,651 $739
Inventory ($75,921) ($24,755)
Accounts Receivable $135 $4,683

Net cash from operation ($79,728) ($17,017)
Cash Flows from Investing Activities
Plant Improvements $0 $3,510
Cash Flows from Financing Activities
Dividends Paid $0 ($1,054)
Sales of Common Stock $0 $10,000
Purchase of Common Stock $0 $0
Cash from long term debt $0 $0
Retirement of long term debt $0 ($10,000)
Change in current debt(net) $79,728 $11,128

Net Cash from financing activities $79,728 $10,074
Net Change in cash position $0 ($3,434)
Closing cash position $0 $0

Annual Report Page 14

Annual Report Andrews C58538 Round: 2Dec. 31, 2015

2015 Income Statement
(Product Name) Able Acre Adam Aft Agape Abum Ajoy Apps 2015Total

Common
Size

Sales $18,575 $20,128 $17,951 $13,565 $14,687 $0 $0 $0 $84,907 100.0%

Variable Costs:
Direct Labor $5,648 $6,613 $4,307 $4,185 $4,420 $0 $0 $0 $25,173 29.6%
Direct Material $7,040 $6,575 $7,051 $6,045 $5,702 $0 $0 $0 $32,413 38.2%
Inventory Carry $8,163 $2,232 $1,214 $25 $1,481 $0 $0 $0 $13,115 15.4%
Total Variable $20,851 $15,420 $12,571 $10,255 $11,604 $0 $0 $0 $70,701 83.3%

Contribution Margin ($2,276) $4,708 $5,380 $3,310 $3,083 $0 $0 $0 $14,206 16.7%

Period Costs:
Depreciation $2,640 $2,427 $1,080 $360 $720 $0 $0 $0 $7,227 8.5%
SG&A: R&D $341 $258 $364 $276 $80 $1,000 $1,000 $1,000 $4,318 5.1%
Promotions $500 $500 $600 $600 $600 $0 $0 $0 $2,800 3.3%
Sales $500 $500 $660 $600 $600 $0 $0 $0 $2,860 3.4%
Admin $223 $242 $216 $163 $177 $0 $0 $0 $1,020 1.2%
Total Period $4,204 $3,926 $2,920 $1,999 $2,176 $1,000 $1,000 $1,000 $18,225 21.5%

Net Margin ($6,480) $782 $2,460 $1,312 $907 ($1,000) ($1,000) ($1,000) ($4,020) -4.7%

Other $0 0.0%
EBIT ($4,020) -4.7%
Short Term Interest $14,495 17.1%
Long Term Interest $4,285 5.0%
Taxes ($7,980) -9.4%
Profit Sharing $0 0.0%
Net Profit ($14,820) -17.5%

Annual Report Page 15

Round: 3
Dec. 31, 2016

C58538

Andrews
Eugene Ellis
Philip Mull

Baldwin
Lisa Chastain
Monica Dalke
matt rix

Chester

Digby Erie Ferris

Selected Financial Statistics
Andrews Baldwin Chester Digby Erie Ferris

ROS -46.4% -3.3% 5.2% 5.2% 4.1% 5.9%
Asset Turnover 0.42 1.02 1.02 1.13 1.07 1.39
ROA -19.4% -3.4% 5.3% 5.8% 4.4% 8.2%
Leverage
(Assets/Equity)

37.0 2.0 2.1 2.1 2.1 2.0

ROE -718.6% -7.0% 10.9% 12.0% 9.0% 16.7%
Emergency Loan $125,793,089 $4,945,006 $0 $0 $0 $0
Sales $69,961,561 $96,089,579 $159,532,219 $185,644,482 $154,127,338 $185,494,213
EBIT ($23,116,007) $566,964 $21,655,955 $23,974,920 $17,892,517 $24,157,919
Profits ($32,473,914) ($3,194,122) $8,267,684 $9,578,890 $6,247,090 $10,939,194
Cumulative Profit ($48,179,912) $2,182,017 $29,677,316 $33,677,169 $25,121,802 $33,006,630
SG&A / Sales 20.0% 12.1% 10.9% 11.2% 7.5% 10.7%
Contrib. Margin % -2.8% 20.6% 31.6% 29.8% 26.3% 27.8%

CAPSTONE® COURIER Page 1

Stock & Bonds C58538 Round: 3Dec. 31, 2016

Stock Market Summary

Company Close Change Shares
MarketCap

($M)
Book Value EPS Dividend Yield P/E

Andrews $1.00 $0.00 2,291,939 $2 $1.97 ($14.17) $0.00 0.0% -0.0
Baldwin $12.57 ($11.61) 2,000,000 $25 $22.97 ($1.60) $0.00 0.0% -7.9
Chester $60.54 $5.40 2,124,345 $129 $35.80 $3.89 $0.00 0.0% 15.6
Digby $64.91 $5.20 2,053,924 $133 $38.83 $4.66 $0.00 0.0% 13.9
Erie $51.59 $2.17 2,152,363 $111 $32.07 $2.90 $0.00 0.0% 17.8
Ferris $61.28 $5.40 2,013,135 $123 $32.55 $5.43 $0.00 0.0% 11.3

Bond Market Summary
Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Digby

12.5S2017 $10,924,506 12.8% 98.00 DDD 12.5S2017 $13,828,904 12.5% 99.65 B
14.0S2019 $20,850,000 14.3% 98.17 DDD 14.0S2019 $20,850,000 13.6% 102.60 B

Baldwin 11.6S2025 $3,523,690 12.4% 93.30 B
12.5S2017 $13,900,000 12.5% 99.65 B 12.2S2026 $8,623,471 12.7% 96.19 B
14.0S2019 $20,850,000 13.6% 102.60 B Erie

Chester 12.5S2017 $13,900,000 12.6% 99.56 CCC
12.5S2017 $13,900,000 12.5% 99.65 B 14.0S2019 $20,850,000 13.7% 102.36 CCC
14.0S2019 $20,850,000 13.6% 102.60 B 11.7S2025 $1,722,021 12.5% 93.33 CCC
12.1S2026 $13,308,235 12.7% 95.64 B 12.3S2026 $11,199,852 12.8% 96.20 CCC

Ferris
12.5S2017 $4,616,365 12.5% 99.65 B
14.0S2019 $20,850,000 13.6% 102.60 B
12.2S2026 $8,738,656 12.7% 96.19 B

Next Year’s Prime Rate 8.50%

CAPSTONE® COURIER Page 2

Financial Summary C58538 Round: 3Dec. 31, 2016
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) ($32,474) ($3,194) $8,268 $9,579 $6,247 $10,939
Adjustment for non-cash items:
Depreciation $7,227 $7,587 $10,567 $10,560 $10,540 $7,660
Extraordinary gains/losses/writeoffs $0 $0 $0 ($340) ($2) ($513)
Changes in current assets and liablilities
Acounts payable ($6,042) ($6,220) $63 $1,805 $2,966 $2,835
Inventory ($1,387) ($26,452) ($6,969) ($10,581) ($8,415) ($2,646)
Accounts Receivable ($2,261) $8,859 $77 ($1,732) ($2,251) ($3,580)
Net cash from operations ($34,937) ($19,421) $12,006 $9,291 $9,086 $14,695

Cash flows from investing activities
Plant improvements(net) $0 $0 ($42,900) ($30,420) ($34,288) ($26,640)
Cash flows from financing activities
Dividends paid $0 $0 $0 $0 $0 $0
Sales of common stock $0 $0 $3,031 $207 $1,200 $734
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $0 $0 $13,308 $8,623 $11,200 $8,739
Early retirement of long term debt $0 $0 $0 $0 $0 $0
Retirement of current debt ($90,856) ($6,950) ($17,989) ($20,549) ($19,677) ($19,431)
Cash from current debt borrowing $0 $0 $22,524 $26,194 $16,972 $22,433
Cash from emergency loan $125,793 $4,945 $0 $0 $0 $0

Net cash from financing activities $34,937 ($2,005) $20,875 $14,476 $9,695 $12,475

Net change in cash position $0 ($21,426) ($10,020) ($6,653) ($15,508) $530
Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $0 $0 $23,206 $22,040 $16,812 $27,649
Accounts Receivable $5,750 $7,898 $13,112 $15,258 $12,668 $15,246
Inventory $110,681 $32,748 $16,613 $22,531 $13,446 $13,931
Total Current Assets $116,431 $40,646 $52,932 $59,829 $42,926 $56,826

Plant and equipment $108,400 $113,800 $158,500 $158,400 $158,100 $114,900
Accumulated Depreciation ($57,813) ($60,693) ($55,420) ($54,107) ($57,460) ($38,473)
Total Fixed Assets $50,587 $53,107 $103,080 $104,293 $100,640 $76,427

Total Assets $167,018 $93,753 $156,012 $164,123 $143,566 $133,253

Account Payable $4,931 $8,122 $9,382 $11,353 $9,892 $11,085
CurrentDebt $125,793 $4,945 $22,524 $26,194 $16,972 $22,433
Long Term Debt $31,775 $34,750 $48,058 $46,826 $47,672 $34,205
Total Liabilities $162,499 $47,818 $79,964 $84,373 $74,536 $67,723

Common Stock $28,360 $18,360 $23,767 $20,678 $23,947 $19,094
Retained Earnings ($23,841) $27,576 $52,281 $59,071 $45,083 $46,436
Total Equity $4,519 $45,935 $76,048 $79,749 $69,030 $65,530

Total Liabilities & Owners” Equity $167,018 $93,753 $156,012 $164,123 $143,566 $133,253

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris
Sales $69,962 $96,090 $159,532 $185,644 $154,127 $185,494
Variable Costs(Labor,Material,Carry) $71,890 $76,301 $109,170 $130,251 $113,557 $133,891
Depreciation $7,227 $7,587 $10,567 $10,560 $10,540 $7,660
SGA(R&D,Promo,Sales,Admin) $13,961 $11,635 $17,323 $20,757 $11,520 $19,825
Other(Fees,Writeoffs,TQM,Bonuses) $0 $0 $817 $102 $618 ($40)
EBIT ($23,116) $567 $21,656 $23,975 $17,893 $24,158
Interest(Short term,Long term) $26,844 $5,481 $8,677 $8,937 $8,085 $6,985
Taxes ($17,486) ($1,720) $4,543 $5,263 $3,432 $6,011
Profit Sharing $0 $0 $169 $195 $127 $223
Net Profit ($32,474) ($3,194) $8,268 $9,579 $6,247 $10,939

CAPSTONE® COURIER Page 3

Production Analysis C58538 Round: 3Dec. 31, 2016

Name
Primary

Segment
Units
Sold

Unit
Inven

tory Revision Date
Age

Dec.31 MTBF
Pfmn

Coord

Size

Coord Price
Material

Cost
Labor
Cost

Contr.
Marg.

2nd
Shift

&
Over-

time

Auto
mation

Next
Round

Capacity
Next

Round
Plant

Utiliz.
Able Trad 815 3,501 10/4/2016 2.1 17000 6.4 13.5 $23.50 $9.75 $8.61 -29% 0% 4.0 1,800 52%
Acre Low 1,160 1,385 11/5/2016 2.4 16000 3.8 17.0 $17.40 $6.78 $7.38 -2% 0% 5.0 1,400 99%
Adam High 284 374 11/21/2016 1.6 22000 9.6 8.9 $33.00 $14.72 $9.84 13% 0% 3.0 900 28%
Aft Pfmn 355 0 10/15/2016 1.5 27000 11.4 14.6 $29.90 $15.00 $10.51 16% 17% 3.0 300 116%
Agape Size 368 436 7/30/2016 2.1 19000 5.4 8.6 $29.00 $12.60 $9.84 9% 0% 3.0 600 46%

Baker Trad 1,125 657 12/23/2016 1.6 17500 6.5 12.8 $25.00 $10.26 $8.61 22% 0% 4.0 1,800 99%
Bead Low 2,330 195 5/25/2009 7.6 14000 3.0 17.0 $18.50 $5.79 $8.96 18% 82% 5.0 1,400 180%
Bid High 254 513 6/9/2016 2.1 22000 9.9 10.0 $36.50 $14.34 $9.84 18% 0% 3.0 900 61%
Bold Pfmn 266 16 7/16/2016 1.9 26000 11.4 15.1 $33.00 $14.59 $9.84 26% 0% 3.0 600 41%
Buddy Size 207 239 5/4/2017 2.9 19000 4.7 10.8 $33.00 $11.16 $9.84 27% 0% 3.0 600 74%

Cake Trad 1,357 252 8/26/2016 1.6 14000 7.1 12.9 $26.00 $9.42 $7.76 32% 45% 6.0 1,000 144%
Cedar Low 2,378 394 1/29/2014 7.6 12000 3.0 17.0 $19.00 $5.19 $5.33 42% 100% 8.0 1,850 198%
Cid High 700 106 12/17/2016 1.1 23000 11.4 8.6 $37.00 $15.92 $10.20 29% 8% 3.0 900 107%
Coat Pfmn 844 120 5/1/2016 1.6 27000 12.4 13.9 $32.00 $15.75 $10.12 17% 58% 4.5 850 157%
Cure Size 818 99 9/11/2016 1.4 17000 6.1 7.6 $32.00 $12.75 $9.81 29% 42% 4.5 900 140%

Daze Trad 1,514 285 8/21/2016 1.6 18400 7.5 12.6 $28.50 $11.05 $8.76 30% 65% 5.5 1,000 163%
Dell Low 1,984 590 5/25/2009 7.6 14000 3.0 17.0 $21.00 $5.79 $6.00 41% 86% 7.5 1,600 184%
Dixie High 846 134 12/2/2016 1.1 24500 11.3 8.7 $38.50 $16.29 $10.71 30% 23% 3.0 950 122%
Dot Pfmn 834 96 8/2/2016 1.4 27000 12.8 13.5 $33.50 $16.08 $11.14 18% 38% 4.0 900 137%
Dune Size 998 112 10/16/2016 1.3 19000 6.5 7.4 $33.50 $13.56 $11.24 26% 43% 4.0 950 141%
Doom Pfmn 206 42 8/8/2016 0.4 27000 13.0 13.4 $33.50 $16.22 $6.81 29% 29% 6.0 500 50%

Eat Trad 1,752 396 1/15/2016 3.1 14500 5.5 14.5 $21.00 $8.15 $5.66 30% 46% 7.5 1,400 145%
Ebb Low 2,381 391 1/15/2015 7.6 12000 3.0 17.0 $19.00 $5.19 $7.61 30% 100% 7.5 1,750 198%
Echo Trad 1,441 144 8/20/2016 1.4 15000 7.1 12.9 $26.50 $9.72 $8.85 28% 72% 6.0 1,050 171%
Egg Trad 1,280 0 5/18/2016 2.0 16000 7.1 12.9 $26.50 $10.02 $12.18 15% 100% 4.0 600 198%

Fast Trad 1,243 167 4/22/2015 3.1 14000 5.5 14.5 $21.50 $8.00 $10.66 10% 100% 4.0 600 198%
Feat Low 1,386 0 7/27/2018 7.6 13000 3.0 17.0 $21.50 $5.49 $7.61 38% 100% 6.0 1,150 198%
Fist High 927 130 12/13/2016 1.1 25000 11.3 8.6 $38.50 $16.48 $11.40 28% 50% 3.0 850 149%
Foam Pfmn 788 135 9/18/2016 1.4 27000 12.8 13.5 $33.40 $16.08 $9.97 21% 50% 4.5 800 149%
Fume Size 870 155 12/11/2016 1.3 16000 6.1 7.2 $33.50 $12.68 $10.12 30% 58% 4.0 850 157%
Fox High 983 8 12/11/2016 0.5 25000 12.0 8.0 $38.50 $17.05 $8.37 35% 100% 5.5 500 198%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C58538 Round: 3Dec. 31, 2016

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

Name
Market
Share

Units
Sold to

Seg
Revision
Date

Stock
Out

Pfmn
Coord

Size
Coord

List
Price MTBF

Age
Dec.31

Promo
Budget

Cust.
Aware-
ness

Sales
Budget

Cust.
Access-

ibility

Dec.
Cust.

Survey
Daze 16% 1,495 8/21/2016 7.5 12.6 $28.50 18400 1.60 $1,225 73% $1,670 53% 35
Echo 15% 1,437 8/20/2016 7.1 12.9 $26.50 15000 1.38 $1,200 66% $1,056 69% 32
Cake 14% 1,353 8/26/2016 7.1 12.9 $26.00 14000 1.60 $1,025 66% $1,610 48% 33
Eat 13% 1,296 1/15/2016 5.5 14.5 $21.00 14500 3.09 $1,200 70% $1,056 69% 18
Egg 13% 1,277 5/18/2016 YES 7.1 12.9 $26.50 16000 1.96 $1,200 65% $1,056 69% 42
Baker 11% 1,015 12/23/2016 6.5 12.8 $25.00 17500 1.56 $1,000 62% $1,000 37% 33
Fast 9% 910 4/22/2015 5.5 14.5 $21.50 14000 3.08 $900 58% $725 36% 13
Able 8% 753 10/4/2016 6.4 13.5 $23.50 17000 2.05 $500 37% $500 27% 28
Acre 1% 49 11/5/2016 3.8 17.0 $17.40 16000 2.41 $500 35% $500 27% 0
Buddy 0% 32 5/4/2017 4.7 10.8 $33.00 19000 2.93 $800 44% $800 37% 0
Adam 0% 3 11/21/2016 9.6 8.9 $33.00 22000 1.63 $600 38% $660 27% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C58538 Round: 3Dec. 31, 2016

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

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Ebb 19% 2,381 1/15/2015 3.0 17.0 $19.00 12000 7.60 $1,200 69% $1,056 48% 27
Cedar 19% 2,378 1/29/2014 3.0 17.0 $19.00 12000 7.60 $1,025 65% $1,690 47% 27
Bead 19% 2,330 5/25/2009 3.0 17.0 $18.50 14000 7.60 $900 56% $1,000 37% 26
Dell 16% 1,984 5/25/2009 3.0 17.0 $21.00 14000 7.60 $1,225 72% $1,753 47% 22
Feat 11% 1,386 7/27/2018 YES 3.0 17.0 $21.50 13000 7.60 $1,100 68% $1,305 46% 19
Acre 9% 1,111 11/5/2016 3.8 17.0 $17.40 16000 2.41 $500 35% $500 19% 14
Eat 4% 457 1/15/2016 5.5 14.5 $21.00 14500 3.09 $1,200 70% $1,056 48% 6
Fast 3% 333 4/22/2015 5.5 14.5 $21.50 14000 3.08 $900 58% $725 46% 5
Baker 1% 110 12/23/2016 6.5 12.8 $25.00 17500 1.56 $1,000 62% $1,000 37% 0
Able 0% 10 10/4/2016 6.4 13.5 $23.50 17000 2.05 $500 37% $500 19% 0
Cake 0% 4 8/26/2016 7.1 12.9 $26.00 14000 1.60 $1,025 66% $1,610 47% 0
Echo 0% 4 8/20/2016 7.1 12.9 $26.50 15000 1.38 $1,200 66% $1,056 48% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C58538 Round: 3Dec. 31, 2016

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 Importance

1. Ideal Position Pfmn 11.6 Size 8.4 43%
2. Age Ideal Age = 0.0 29%
3. Reliability MTBF 20000-25000 19%
4. Price $28.50 – 38.50 9%

Top Products in High End Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Fox 25% 983 12/11/2016 12.0 8.0 $38.50 25000 0.54 $1,100 41% $1,305 58% 41
Fist 23% 927 12/13/2016 11.3 8.6 $38.50 25000 1.11 $1,100 65% $1,305 58% 45
Dixie 21% 846 12/2/2016 11.3 8.7 $38.50 24500 1.15 $1,250 71% $1,753 53% 43
Cid 17% 700 12/17/2016 11.4 8.6 $37.00 23000 1.14 $1,000 60% $1,690 47% 36
Adam 7% 280 11/21/2016 9.6 8.9 $33.00 22000 1.63 $600 38% $660 23% 11
Bid 6% 251 6/9/2016 9.9 10.0 $36.50 22000 2.14 $1,000 57% $700 25% 8
Daze 0% 19 8/21/2016 7.5 12.6 $28.50 18400 1.60 $1,225 73% $1,670 53% 0
Egg 0% 2 5/18/2016 YES 7.1 12.9 $26.50 16000 1.96 $1,200 65% $1,056 17% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C58538 Round: 3Dec. 31, 2016

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

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Coat 26% 844 5/1/2016 12.4 13.9 $32.00 27000 1.57 $1,000 59% $1,529 37% 39
Dot 25% 834 8/2/2016 12.8 13.5 $33.50 27000 1.44 $1,200 69% $1,586 42% 39
Foam 24% 788 9/18/2016 12.8 13.5 $33.40 27000 1.37 $1,100 64% $1,305 35% 36
Aft 11% 355 10/15/2016 YES 11.4 14.6 $29.90 27000 1.54 $600 36% $600 18% 26
Bold 8% 266 7/16/2016 11.4 15.1 $33.00 26000 1.92 $300 32% $300 17% 15
Doom 6% 206 8/8/2016 13.0 13.4 $33.50 27000 0.39 $1,200 53% $0 42% 32

CAPSTONE® COURIER Page 8

Size Segment Analysis C58538 Round: 3Dec. 31, 2016

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 Importance

1. Ideal Position Pfmn 6.1 Size 7.6 43%
2. Age Ideal Age = 1.5 29%
3. Reliability MTBF 16000-21000 19%
4. Price $23.50 – 33.50 9%

Top Products in Size Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Dune 30% 998 10/16/2016 6.5 7.4 $33.50 19000 1.35 $1,200 69% $1,586 45% 40
Fume 26% 870 12/11/2016 6.1 7.2 $33.50 16000 1.26 $1,100 64% $1,305 38% 29
Cure 25% 818 9/11/2016 6.1 7.6 $32.00 17000 1.43 $1,000 59% $1,529 40% 35
Agape 11% 368 7/30/2016 5.4 8.6 $29.00 19000 2.09 $600 34% $600 23% 17
Buddy 5% 175 5/4/2017 4.7 10.8 $33.00 19000 2.93 $800 44% $800 24% 5
Able 2% 53 10/4/2016 6.4 13.5 $23.50 17000 2.05 $500 37% $500 23% 0
Bid 0% 3 6/9/2016 9.9 10.0 $36.50 22000 2.14 $1,000 57% $700 24% 0

CAPSTONE® COURIER Page 9

Market Share C58538 Round: 3Dec. 31, 2016

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 9,619 12,488 4,007 3,293 3,284 32,691 Units Demanded 9,619 12,488 4,007 3,293 3,284 32,691
% of Market 29.4% 38.2% 12.3% 10.1% 10.1% 100.0% % of Market 29.4% 38.2% 12.3% 10.1% 10.1% 100.0%

Able 7.8% 1.6% 2.5% Able 7.5% 1.6% 2.4%
Acre 0.5% 8.9% 3.5% Acre 0.5% 8.7% 3.5%
Adam 7.0% 0.9% Adam 6.4% 0.8%
Aft 10.8% 1.1% Aft 12.6% 1.3%
Agape 11.2% 1.1% Agape 11.2% 1.1%
Total 8.4% 9.0% 7.0% 10.8% 12.8% 9.1% Total 8.0% 8.8% 6.4% 12.6% 12.8% 9.0%

Baker 10.5% 0.9% 3.4% Baker 10.2% 0.9% 3.3%
Bead 18.7% 7.1% Bead 18.2% 7.0%
Bid 6.3% 0.8% Bid 5.6% 0.7%
Bold 8.1% 0.8% Bold 7.9% 0.8%
Buddy 0.3% 5.3% 0.6% Buddy 0.3% 5.3% 0.6%
Total 10.9% 19.5% 6.3% 8.1% 5.4% 12.8% Total 10.5% 19.1% 5.6% 7.9% 5.4% 12.4%

Cake 14.1% 4.2% Cake 13.5% 4.0%
Cedar 19.0% 7.3% Cedar 18.6% 7.1%
Cid 17.5% 2.1% Cid 16.0% 2.0%
Coat 25.6% 2.6% Coat 25.1% 2.5%
Cure 24.9% 2.5% Cure 24.9% 2.5%
Total 14.1% 19.1% 17.5% 25.6% 24.9% 18.6% Total 13.5% 18.6% 16.0% 25.1% 24.9% 18.1%

Daze 15.5% 0.5% 4.6% Daze 14.9% 0.4% 4.4%
Dell 15.9% 6.1% Dell 15.5% 5.9%
Dixie 21.1% 2.6% Dixie 19.4% 2.4%
Dot 25.3% 2.5% Dot 24.8% 2.5%
Dune 30.4% 3.0% Dune 30.4% 3.1%
Doom 6.3% 0.6% Doom 6.1% 0.6%
Total 15.5% 15.9% 21.6% 31.6% 30.4% 19.5% Total 14.9% 15.5% 19.8% 30.9% 30.4% 18.9%

Eat 13.5% 3.7% 5.4% Eat 13.0% 3.6% 5.2%
Ebb 19.1% 7.3% Ebb 18.6% 7.1%
Echo 14.9% 4.4% Echo 14.4% 4.2%
Egg 13.3% 3.9% Egg 16.5% 4.9%
Total 41.7% 22.8% 21.0% Total 43.9% 22.3% 21.4%

Fast 9.5% 2.7% 3.8% Fast 9.1% 2.6% 3.7%
Feat 11.1% 4.2% Feat 13.1% 5.0%
Fist 23.1% 2.8% Fist 21.2% 2.6%
Foam 23.9% 2.4% Foam 23.4% 2.4%
Fume 26.5% 2.7% Fume 26.5% 2.7%
Fox 24.5% 3.0% Fox 30.9% 3.8%
Total 9.5% 13.8% 47.7% 23.9% 26.5% 19.0% Total 9.1% 15.7% 52.1% 23.4% 26.5% 20.1%

CAPSTONE® COURIER Page 10

Perceptual Map C58538 Round: 3Dec. 31, 2016

Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 6.4 13.5 10/4/2016 Baker 6.5 12.8 12/23/2016 Cake 7.1 12.9 8/26/2016
Acre 3.8 17.0 11/5/2016 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 1/29/2014
Adam 9.6 8.9 11/21/2016 Bid 9.9 10.0 6/9/2016 Cid 11.4 8.6 12/17/2016
Aft 11.4 14.6 10/15/2016 Bold 11.4 15.1 7/16/2016 Coat 12.4 13.9 5/1/2016
Agape 5.4 8.6 7/30/2016 Buddy 4.7 10.8 5/4/2017 Cure 6.1 7.6 9/11/2016
Abum 6.0 15.0 4/17/2016
Ajoy 6.2 15.0 5/1/2016
Apps 5.9 15.0 4/19/2016

Digby Erie Ferris
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Daze 7.5 12.6 8/21/2016 Eat 5.5 14.5 1/15/2016 Fast 5.5 14.5 4/22/

2015

Dell 3.0 17.0 5/25/2009 Ebb 3.0 17.0 1/15/2015 Feat 3.0 17.0 7/27/2018
Dixie 11.3 8.7 12/2/2016 Echo 7.1 12.9 8/20/2016 Fist 11.3 8.6 12/13/2016
Dot 12.8 13.5 8/2/2016 Egg 7.1 12.9 5/18/2016 Foam 12.8 13.5 9/18/2016
Dune 6.5 7.4 10/16/2016 Fume 6.1 7.2 12/11/2016
Doom 13.0 13.4 8/8/2016 Fox 12.0 8.0 12/11/2016

CAPSTONE® COURIER Page 11

HR/TQM Report C58538 Round: 3Dec. 31, 2016

HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 531 911 855 1,037 988 987
Complement 531 911 855 1,037 988 987
1st Shift Complement 521 745 567 687 548 569
2nd Shift Complement 10 166 288 350 440 418

Overtime Percent 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
New Employees 53 176 86 213 346 264
Separated Employees 580 0 68 0 0 0
Recruiting Spend $0 $0 $0 $0 $0 $0
Training Hours 0 0 0 0 0 0
Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $53 $176 $86 $213 $346 $264
Separation Cost $2,900 $0 $340 $0 $0 $0
Training Cost $0 $0 $0 $0 $0 $0
Total HR Admin Cost $2,953 $176 $426 $213 $346 $264

Labor Contract Next Year
Wages $24.31 $24.31 $24.31 $24.31 $24.31 $24.31
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

CAPSTONE® COURIER Page 12

Ethics Report C58538 Round: 3Dec. 31, 2016

Normal means the value that would have been produced if the problem had not been presented.

CAPSTONE® COURIER Page 13

Annual Report

Annual Report Andrews C58538 Round: 3Dec. 31, 2016

ASSETS 2016
Common

Size
2015

Cash $0 0.0% $0
Account Receivable $5,750 3.4% $3,489
Inventory $110,681 66.3% $109,294
Total Current Assets $116,431 69.7% $112,783

Plant & Equipment $108,400 64.9% $108,400
Accumulated Depreciation ($57,813) -34.6% ($50,587)
Total Fixed Assets $50,587 30.3% $57,813
Total Assets $167,018 100.0% $170,597
LIABILITIES & OWNER’S
EQUITY

Accounts Payable $4,931 3.0% $10,973
Current Debt $125,793 75.3% $90,856
Long Term Debt $31,775 19.0% $31,775
Total Liabilities $162,499 97.3% $133,604

Common Stock $28,360 17.0% $28,360
Retained Earnings ($23,841) -14.3% $8,633
Total Equity $4,519 2.7% $36,993
Total Liab. & O. Equity $167,018 100.0% $170,597

Cash Flows from Operating Activities 2016 2015
NetIncome(Loss) ($32,474) ($14,820)
Depreciation $7,227 $7,227
Extraordinary gains/losses/writeoffs $0 $0
Accounts Payable ($6,042) $3,651
Inventory ($1,387) ($75,921)
Accounts Receivable ($2,261) $135

Net cash from operation ($34,937) ($79,728)
Cash Flows from Investing Activities
Plant Improvements $0 $0
Cash Flows from Financing Activities
Dividends Paid $0 $0
Sales of Common Stock $0 $0
Purchase of Common Stock $0 $0
Cash from long term debt $0 $0
Retirement of long term debt $0 $0
Change in current debt(net) $34,937 $79,728

Net Cash from financing activities $34,937 $79,728
Net Change in cash position $0 $0
Closing cash position $0 $0

Annual Report Page 14

Annual Report Andrews C58538 Round: 3Dec. 31, 2016

2016 Income Statement
(Product Name) Able Acre Adam Aft Agape Abum Ajoy Apps 2016

Total
Common

Size
Sales $19,157 $20,181 $9,356 $10,609 $10,659 $0 $0 $0 $69,962 100.0%

Variable Costs:
Direct Labor $7,248 $8,912 $2,704 $3,727 $3,711 $0 $0 $0 $26,302 37.6%
Direct Material $9,032 $9,053 $4,296 $5,156 $4,769 $0 $0 $0 $32,306 46.2%
Inventory Carry $8,391 $2,575 $1,108 $0 $1,208 $0 $0 $0 $13,282 19.0%
Total Variable $24,671 $20,539 $8,109 $8,883 $9,688 $0 $0 $0 $71,890 102.8%

Contribution Margin ($5,514) ($358) $1,247 $1,726 $971 $0 $0 $0 ($1,928) -2.8%

Period Costs:
Depreciation $2,640 $2,427 $1,080 $360 $720 $0 $0 $0 $7,227 10.3%
SG&A: R&D $771 $859 $904 $801 $586 $297 $337 $304 $4,858 6.9%
Promotions $500 $500 $600 $600 $600 $0 $0 $0 $2,800 4.0%
Sales $500 $500 $660 $600 $600 $0 $0 $0 $2,860 4.1%
Admin $943 $993 $460 $522 $525 $0 $0 $0 $3,443 4.9%
Total Period $5,353 $5,279 $3,704 $2,883 $3,031 $297 $337 $304 $21,188 30.3%

Net Margin ($10,868) ($5,636) ($2,457) ($1,157) ($2,060) ($297) ($337) ($304) ($23,116) -33.0%

Other $0 0.0%
EBIT ($23,116) -33.0%
Short Term Interest $22,559 32.2%
Long Term Interest $4,285 6.1%
Taxes ($17,486) -25.0%
Profit Sharing $0 0.0%
Net Profit ($32,474) -46.4%

Annual Report Page 15

Round: 4
Dec. 31, 2017

C58538

Andrews
Eugene Ellis
Philip Mull

Baldwin
Lisa Chastain
Monica Dalke
matt rix

Chester

Digby Erie Ferris

Selected Financial Statistics
Andrews Baldwin Chester Digby Erie Ferris

ROS -39.0% -2.4% 9.1% 7.9% 6.2% 6.1%
Asset Turnover 0.47 1.03 1.11 1.16 0.89 1.18
ROA -18.5% -2.5% 10.1% 9.2% 5.5% 7.2%
Leverage
(Assets/Equity)

-6.4 2.4 2.1 2.1 2.1 2.0

ROE -118.5% -6.1% 20.8% 18.9% 11.6% 14.7%
Emergency Loan $144,387,047 $19,028,216 $0 $0 $0 $0
Sales $74,279,337 $108,140,184 $197,793,741 $226,989,314 $163,657,275 $200,781,475
EBIT ($13,609,560) $3,692,335 $38,518,462 $39,191,926 $27,033,430 $28,824,169
Profits ($28,964,077) ($2,628,021) $18,059,732 $17,922,007 $10,154,948 $12,303,415
Cumulative Profit ($77,143,989) ($446,004) $47,737,048 $51,599,176 $35,276,750 $45,310,045
SG&A / Sales 8.4% 8.3% 9.4% 10.3% 8.7% 10.3%
Contrib. Margin % -0.2% 18.7% 34.7% 32.9% 34.0% 29.7%

CAPSTONE® COURIER Page 1

Stock & Bonds C58538 Round: 4Dec. 31, 2017

Stock Market Summary

Company Close Change Shares
MarketCap

($M)
Book Value EPS Dividend Yield P/E

Andrews $1.00 $0.00 2,291,939 $2 ($10.67) ($12.64) $0.00 0.0% -0.0
Baldwin $5.00 ($7.57) 2,000,000 $10 $21.65 ($1.31) $0.00 0.0% -3.8
Chester $77.59 $17.05 2,124,345 $165 $40.94 $8.50 $3.36 4.3% 9.1
Digby $83.06 $18.15 2,053,924 $171 $46.19 $8.73 $1.36 1.6% 9.5
Erie $56.79 $5.20 2,311,647 $131 $37.81 $4.39 $0.00 0.0% 12.9
Ferris $68.06 $6.77 2,107,251 $143 $39.67 $5.84 $0.00 0.0% 11.7

Bond Market Summary
Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Digby

14.0S2019 $20,850,000 14.3% 97.89 DDD 14.0S2019 $20,850,000 13.9% 101.00 B
Baldwin 11.6S2025 $3,523,690 12.7% 91.48 B

14.0S2019 $20,850,000 14.0% 99.67 CC 12.2S2026 $8,623,471 13.0% 93.93 B
Chester 12.9S2027 $16,806,601 13.3% 97.33 B

14.0S2019 $20,850,000 13.9% 101.00 B Erie
12.1S2026 $13,308,235 13.0% 93.43 B 14.0S2019 $20,850,000 13.9% 100.83 CCC
12.9S2027 $12,249,416 13.3% 97.33 B 11.7S2025 $1,722,021 12.8% 91.51 CCC

12.3S2026 $11,199,852 13.1% 93.95 CCC
13.0S2027 $25,774,968 13.4% 97.34 CCC

Ferris
14.0S2019 $20,850,000 13.9% 101.00 B
12.2S2026 $8,738,656 13.0% 93.93 B
12.9S2027 $15,268,932 13.3% 97.33 B

Next Year’s Prime Rate 9.00%

CAPSTONE® COURIER Page 2

Financial Summary C58538 Round: 4Dec. 31, 2017
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) ($28,964) ($2,628) $18,060 $17,922 $10,155 $12,303
Adjustment for non-cash items:
Depreciation $7,227 $7,587 $10,887 $11,393 $12,687 $9,600
Extraordinary gains/losses/writeoffs $0 $0 $0 $0 $0 ($403)
Changes in current assets and liablilities
Acounts payable ($171) $89 $738 $598 ($1,743) $360
Inventory $3,669 ($18,140) $4,614 $4,676 $8,155 $221
Accounts Receivable ($355) ($990) ($3,145) ($3,398) ($783) ($1,256)
Net cash from operations ($18,594) ($14,083) $31,153 $31,192 $28,470 $20,825

Cash flows from investing activities
Plant improvements(net) $0 $0 ($4,800) ($12,500) ($32,200) ($29,870)
Cash flows from financing activities
Dividends paid $0 $0 ($7,141) ($2,791) $0 $0
Sales of common stock $0 $0 $0 $0 $8,217 $5,768
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $0 $0 $12,249 $16,807 $25,775 $15,269
Early retirement of long term debt $0 $0 $0 $0 $0 $0
Retirement of current debt ($125,793) ($4,945) ($22,524) ($26,194) ($16,972) ($22,433)
Cash from current debt borrowing $0 $0 $21,385 $25,380 $14,055 $26,294
Cash from emergency loan $144,387 $19,028 $0 $0 $0 $0

Net cash from financing activities $18,594 $14,083 $3,969 $13,201 $31,076 $24,898

Net change in cash position $0 $0 $30,322 $31,893 $27,346 $15,853
Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $0 $0 $53,528 $53,933 $44,158 $43,502
Accounts Receivable $6,105 $8,888 $16,257 $18,657 $13,451 $16,503
Inventory $107,012 $50,888 $12,000 $17,854 $5,291 $13,710
Total Current Assets $113,117 $59,777 $81,785 $90,444 $62,900 $73,714

Plant and equipment $108,400 $113,800 $163,300 $170,900 $190,300 $144,000
Accumulated Depreciation ($65,040) ($68,280) ($66,307) ($65,500) ($70,147) ($46,900)
Total Fixed Assets $43,360 $45,520 $96,993 $105,400 $120,153 $97,100

Total Assets $156,477 $105,297 $178,778 $195,844 $183,054 $170,814

Account Payable $4,760 $8,211 $10,119 $11,951 $8,149 $11,445
CurrentDebt $155,312 $32,928 $35,285 $39,209 $27,955 $30,911
Long Term Debt $20,850 $20,850 $46,408 $49,804 $59,547 $44,858
Total Liabilities $180,922 $61,989 $91,812 $100,964 $95,651 $87,213

Common Stock $28,360 $18,360 $23,767 $20,678 $32,164 $24,861
Retained Earnings ($52,805) $24,948 $63,199 $74,202 $55,238 $58,740
Total Equity ($24,445) $43,307 $86,966 $94,880 $87,402 $83,601

Total Liabilities & Owners” Equity $156,477 $105,297 $178,778 $195,844 $183,054 $170,814

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris
Sales $74,279 $108,140 $197,794 $226,989 $163,657 $200,781
Variable Costs(Labor,Material,Carry) $74,429 $87,869 $129,174 $152,226 $107,941 $141,109
Depreciation $7,227 $7,587 $10,887 $11,393 $12,687 $9,600
SGA(R&D,Promo,Sales,Admin) $6,233 $8,992 $18,602 $23,338 $14,297 $20,600
Other(Fees,Writeoffs,TQM,Bonuses) $0 $0 $612 $840 $1,700 $648
EBIT ($13,610) $3,692 $38,518 $39,192 $27,033 $28,824
Interest(Short term,Long term) $30,951 $7,735 $10,167 $11,057 $11,092 $9,510
Taxes ($15,596) ($1,415) $9,923 $9,847 $5,580 $6,760
Profit Sharing $0 $0 $369 $366 $207 $251
Net Profit ($28,964) ($2,628) $18,060 $17,922 $10,155 $12,303

CAPSTONE® COURIER Page 3

Production Analysis C58538 Round: 4Dec. 31, 2017

Name
Primary

Segment
Units
Sold

Unit
Inven

tory Revision Date
Age

Dec.31 MTBF
Pfmn

Coord

Size

Coord Price
Material

Cost
Labor
Cost

Contr.
Marg.

2nd
Shift

&
Over-

time

Auto
mation

Next
Round

Capacity
Next

Round
Plant

Utiliz.
Able Trad 1,085 3,357 10/4/2016 3.1 17000 6.4 13.5 $23.50 $9.02 $9.02 -14% 0% 4.0 1,800 52%
Acre Low 1,355 1,416 11/5/2016 3.4 16000 3.8 17.0 $17.40 $6.24 $7.73 4% 0% 5.0 1,400 99%
Adam High 206 416 11/21/2016 2.6 22000 9.6 8.9 $33.00 $13.76 $10.31 7% 0% 3.0 900 28%
Aft Pfmn 347 0 10/15/2016 2.5 27000 11.4 14.6 $29.90 $14.16 $11.01 15% 17% 3.0 300 116%
Agape Size 278 436 7/30/2016 3.1 19000 5.4 8.6 $29.00 $11.76 $10.31 7% 0% 3.0 600 46%

Baker Trad 1,795 645 12/23/2016 2.6 17500 6.5 12.8 $25.00 $9.51 $9.02 22% 0% 4.0 1,800 99%
Bead Low 2,241 479 5/25/2009 8.6 14000 3.0 17.0 $18.50 $5.27 $9.39 17% 82% 5.0 1,400 180%
Bid High 141 916 6/9/2016 3.1 22000 9.9 10.0 $36.50 $13.41 $10.31 -17% 0% 3.0 900 61%
Bold Pfmn 237 27 7/16/2016 2.9 26000 11.4 15.1 $33.00 $13.76 $10.31 25% 0% 3.0 600 41%
Buddy Size 268 416 5/4/2017 2.3 19000 5.4 8.6 $33.00 $11.76 $10.31 22% 0% 3.0 600 74%

Cake Trad 1,872 14 9/14/2017 1.4 14000 7.8 12.2 $26.00 $9.23 $7.65 35% 65% 6.0 1,000 163%
Cedar Low 2,426 394 1/29/2014 8.6 12000 3.0 17.0 $19.00 $4.67 $4.32 49% 32% 8.0 1,850 131%
Cid High 1,033 112 11/15/2017 1.1 23000 12.5 7.5 $37.00 $15.81 $11.01 28% 17% 3.0 900 116%
Coat Pfmn 907 104 9/21/2017 1.4 27000 13.4 13.2 $32.00 $15.55 $8.60 23% 6% 4.5 950 105%
Cure Size 1,118 119 9/21/2017 1.3 17000 6.8 6.6 $32.00 $12.55 $9.24 31% 28% 4.5 1,000 127%

Daze Trad 1,898 70 9/18/2017 1.4 18700 8.2 11.9 $28.50 $10.93 $8.48 32% 70% 5.5 1,050 168%
Dell Low 1,961 361 6/19/2019 8.6 14000 3.0 17.0 $21.00 $5.27 $4.69 48% 9% 7.5 1,600 108%
Dixie High 967 207 1/1/2018 2.1 24500 11.3 8.7 $38.50 $15.27 $10.78 30% 11% 3.0 950 109%
Dot Pfmn 834 104 10/6/2017 1.3 27000 13.8 12.8 $33.50 $15.85 $9.02 25% 0% 4.0 1,000 94%
Dune Size 1,241 159 10/6/2017 1.3 19000 7.2 6.4 $33.50 $13.35 $10.18 29% 37% 4.0 1,150 135%
Doom Pfmn 746 39 8/31/2017 0.9 27000 13.7 12.9 $33.50 $15.78 $7.47 30% 50% 6.0 650 149%

Eat Low 1,226 210 1/15/2017 4.1 13500 5.5 14.5 $20.50 $7.19 $4.51 37% 0% 8.0 1,400 74%
Ebb Low 2,763 252 6/18/2019 8.6 12000 3.0 17.0 $18.50 $4.67 $5.24 43% 51% 8.0 1,750 150%
Echo Trad 2,174 0 9/14/2017 1.3 15000 7.8 12.2 $26.00 $9.53 $7.94 33% 95% 6.5 1,150 193%
Egg Trad 1,188 0 7/21/2017 1.7 16000 7.8 12.2 $26.00 $9.83 $11.17 19% 100% 5.0 1,300 198%

Fast Low 675 85 1/29/2017 4.1 12000 5.5 14.5 $21.00 $6.74 $9.73 17% 20% 4.0 500 119%
Feat Low 1,796 135 7/27/2018 8.6 13000 3.0 17.0 $21.00 $4.97 $7.70 38% 70% 6.0 1,150 168%
Fist High 1,311 156 12/26/2017 1.1 25000 12.5 7.5 $38.00 $16.41 $12.12 26% 59% 3.0 850 157%
Foam Pfmn 876 101 10/7/2017 1.3 27000 13.8 12.8 $33.00 $15.85 $8.61 25% 6% 5.0 850 105%
Fume Size 977 168 11/23/2017 1.2 17000 6.8 6.0 $33.00 $12.87 $9.66 32% 18% 5.0 950 116%
Fox High 998 0 12/22/2017 0.8 25000 13.0 7.0 $38.00 $16.82 $8.77 34% 100% 5.5 1,300 198%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C58538 Round: 4Dec. 31, 2017

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

Name
Market
Share

Units
Sold to

Seg
Revision
Date

Stock
Out

Pfmn
Coord

Size
Coord

List
Price MTBF

Age
Dec.31

Promo
Budget

Cust.
Aware-
ness

Sales
Budget

Cust.
Access-

ibility

Dec.
Cust.

Survey
Echo 21% 2,173 9/14/2017 YES 7.8 12.2 $26.00 15000 1.33 $1,350 76% $1,056 77% 34
Daze 18% 1,896 9/18/2017 8.2 11.9 $28.50 18700 1.44 $1,225 77% $1,670 51% 30
Cake 18% 1,871 9/14/2017 7.8 12.2 $26.00 14000 1.45 $1,150 71% $1,675 50% 30
Baker 17% 1,765 12/23/2016 6.5 12.8 $25.00 17500 2.56 $1,000 63% $1,000 32% 24
Egg 11% 1,188 7/21/2017 YES 7.8 12.2 $26.00 16000 1.70 $1,350 76% $1,056 77% 44
Able 9% 988 10/4/2016 6.4 13.5 $23.50 17000 3.05 $500 31% $500 20% 10
Eat 4% 447 1/15/2017 5.5 14.5 $20.50 13500 4.09 $1,350 79% $1,056 77% 3
Fast 2% 176 1/29/2017 5.5 14.5 $21.00 12000 4.08 $900 57% $710 27% 1

CAPSTONE® COURIER Page 5

Low End Segment Analysis C58538 Round: 4Dec. 31, 2017

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

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Ebb 20% 2,763 6/18/2019 3.0 17.0 $18.50 12000 8.60 $1,350 78% $1,056 56% 23
Cedar 17% 2,426 1/29/2014 3.0 17.0 $19.00 12000 8.60 $1,150 70% $1,758 50% 20
Bead 16% 2,241 5/25/2009 3.0 17.0 $18.50 14000 8.60 $900 56% $1,000 34% 19
Dell 14% 1,961 6/19/2019 3.0 17.0 $21.00 14000 8.60 $1,225 76% $1,753 50% 16
Feat 13% 1,796 7/27/2018 3.0 17.0 $21.00 13000 8.60 $1,100 70% $1,278 53% 14
Acre 10% 1,355 11/5/2016 3.8 17.0 $17.40 16000 3.41 $500 30% $500 17% 13
Eat 6% 780 1/15/2017 5.5 14.5 $20.50 13500 4.09 $1,350 79% $1,056 56% 9
Fast 4% 499 1/29/2017 5.5 14.5 $21.00 12000 4.08 $900 57% $710 53% 6
Able 1% 97 10/4/2016 6.4 13.5 $23.50 17000 3.05 $500 31% $500 17% 1
Baker 0% 30 12/23/2016 6.5 12.8 $25.00 17500 2.56 $1,000 63% $1,000 34% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C58538 Round: 4Dec. 31, 2017

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

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Fist 28% 1,311 12/26/2017 12.5 7.5 $38.00 25000 1.06 $1,300 74% $1,278 67% 52
Cid 22% 1,033 11/15/2017 12.5 7.5 $37.00 23000 1.13 $1,100 65% $1,758 50% 38
Fox 21% 998 12/22/2017 YES 13.0 7.0 $38.00 25000 0.78 $1,300 58% $1,278 67% 41
Dixie 21% 967 1/1/2018 11.3 8.7 $38.50 24500 2.15 $1,250 77% $1,753 52% 19
Adam 4% 203 11/21/2016 9.6 8.9 $33.00 22000 2.63 $600 35% $660 19% 4
Bid 3% 141 6/9/2016 9.9 10.0 $36.50 22000 3.14 $1,000 60% $700 20% 3
Daze 0% 3 9/18/2017 8.2 11.9 $28.50 18700 1.44 $1,225 77% $1,670 52% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C58538 Round: 4Dec. 31, 2017

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

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Coat 23% 907 9/21/2017 13.4 13.2 $32.00 27000 1.42 $1,100 64% $1,591 41% 41
Foam 22% 876 10/7/2017 13.8 12.8 $33.00 27000 1.30 $1,300 74% $1,278 35% 38
Dot 21% 834 10/6/2017 13.8 12.8 $33.50 27000 1.33 $1,200 74% $1,586 42% 37
Doom 19% 746 8/31/2017 13.7 12.9 $33.50 27000 0.86 $1,200 63% $0 42% 33
Aft 9% 347 10/15/2016 YES 11.4 14.6 $29.90 27000 2.54 $600 33% $600 15% 16
Bold 6% 237 7/16/2016 11.4 15.1 $33.00 26000 2.92 $300 24% $300 12% 8

CAPSTONE® COURIER Page 8

Size Segment Analysis C58538 Round: 4Dec. 31, 2017

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

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Dune 32% 1,241 10/6/2017 7.2 6.4 $33.50 19000 1.29 $1,200 74% $1,586 44% 37
Cure 29% 1,118 9/21/2017 6.8 6.6 $32.00 17000 1.35 $1,150 66% $1,591 43% 37
Fume 25% 977 11/23/2017 6.8 6.0 $33.00 17000 1.18 $1,300 74% $1,278 37% 30
Agape 7% 278 7/30/2016 5.4 8.6 $29.00 19000 3.09 $600 32% $600 19% 5
Buddy 7% 268 5/4/2017 5.4 8.6 $33.00 19000 2.29 $800 45% $800 22% 8
Adam 0% 2 11/21/2016 9.6 8.9 $33.00 22000 2.63 $600 35% $660 19% 0

CAPSTONE® COURIER Page 9

Market Share C58538 Round: 4Dec. 31, 2017

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 9.4% 0.7% 2.9% Able 8.4% 0.7% 2.7%
Acre 9.7% 3.7% Acre 9.7% 3.7%
Adam 4.4% 0.6% Adam 3.9% 0.5%
Aft 8.8% 0.9% Aft 11.2% 1.2%
Agape 7.1% 0.7% Agape 7.1% 0.8%
Total 9.4% 10.4% 4.4% 8.8% 7.2% 8.8% Total 8.4% 10.4% 3.9% 11.2% 7.2% 8.8%

Baker 16.8% 0.2% 4.9% Baker 14.9% 0.2% 4.3%
Bead 16.1% 6.1% Bead 16.1% 6.1%
Bid 3.0% 0.4% Bid 2.7% 0.3%
Bold 6.0% 0.6% Bold 5.8% 0.6%
Buddy 6.9% 0.7% Buddy 6.9% 0.7%
Total 16.8% 16.3% 3.0% 6.0% 6.9% 12.7% Total 14.9% 16.3% 2.7% 5.8% 6.9% 12.1%

Cake 17.8% 5.1% Cake 15.9% 4.5%
Cedar 17.4% 6.6% Cedar 17.4% 6.6%
Cid 22.2% 2.8% Cid 19.7% 2.5%
Coat 23.0% 2.5% Coat 22.4% 2.4%
Cure 28.8% 3.0% Cure 28.8% 3.0%
Total 17.8% 17.4% 22.2% 23.0% 28.8% 19.9% Total 15.9% 17.4% 19.7% 22.4% 28.8% 19.0%

Daze 18.0% 5.1% Daze 16.1% 4.6%
Dell 14.1% 5.3% Dell 14.1% 5.3%
Dixie 20.8% 2.6% Dixie 18.4% 2.3%
Dot 21.1% 2.3% Dot 20.6% 2.2%
Dune 31.9% 3.4% Dune 31.9% 3.4%
Doom 18.9% 2.0% Doom 18.4% 2.0%
Total 18.0% 14.1% 20.8% 40.0% 31.9% 20.7% Total 16.1% 14.1% 18.5% 39.0% 31.9% 19.7%

Eat 4.3% 5.6% 3.3% Eat 3.8% 5.6% 3.2%
Ebb 19.8% 7.5% Ebb 19.8% 7.5%
Echo 20.7% 5.9% Echo 18.6% 5.3%
Egg 11.3% 3.2% Egg 20.8% 5.9%
Total 36.2% 25.4% 19.9% Total 43.2% 25.4% 21.9%

Fast 1.7% 3.6% 1.8% Fast 1.5% 3.6% 1.8%
Feat 12.9% 4.9% Feat 12.9% 4.9%
Fist 28.2% 3.5% Fist 25.0% 3.2%
Foam 22.2% 2.4% Foam 21.6% 2.3%
Fume 25.2% 2.6% Fume 25.2% 2.6%
Fox 21.4% 2.7% Fox 30.2% 3.8%
Total 1.7% 16.5% 49.6% 22.2% 25.2% 18.0% Total 1.5% 16.5% 55.2% 21.6% 25.2% 18.5%

CAPSTONE® COURIER Page 10

Perceptual Map C58538 Round: 4Dec. 31, 2017

Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 6.4 13.5 10/4/2016 Baker 6.5 12.8 12/23/2016 Cake 7.8 12.2 9/14/2017
Acre 3.8 17.0 11/5/2016 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 1/29/2014
Adam 9.6 8.9 11/21/2016 Bid 9.9 10.0 6/9/2016 Cid 12.5 7.5 11/15/2017
Aft 11.4 14.6 10/15/2016 Bold 11.4 15.1 7/16/2016 Coat 13.4 13.2 9/21/2017
Agape 5.4 8.6 7/30/2016 Buddy 5.4 8.6 5/4/2017 Cure 6.8 6.6 9/21/2017
Abum 6.0 15.0 4/17/

2016

Ajoy 6.2 15.0 5/1/2016
Apps 5.9 15.0 4/19/2016

Digby Erie Ferris
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Daze 8.2 11.9 9/18/2017 Eat 5.5 14.5 1/15/2017 Fast 5.5 14.5 1/29/2017
Dell 3.0 17.0 6/19/2019 Ebb 3.0 17.0 6/18/2019 Feat 3.0 17.0 7/27/2018
Dixie 11.3 8.7 1/1/2018 Echo 7.8 12.2 9/14/2017 Fist 12.5 7.5 12/26/2017
Dot 13.8 12.8 10/6/2017 Egg 7.8 12.2 7/21/2017 Foam 13.8 12.8 10/7/2017
Dune 7.2 6.4 10/6/2017 Fume 6.8 6.0 11/23/2017
Doom 13.7 12.9 8/31/2017 Fox 13.0 7.0 12/22/2017

CAPSTONE® COURIER Page 11

HR/TQM Report C58538 Round: 4Dec. 31, 2017

HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 531 911 897 1,026 760 1,028
Complement 531 911 897 1,026 760 1,028
1st Shift Complement 521 745 700 813 463 720
2nd Shift Complement 10 166 197 213 297 308

Overtime Percent 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
New Employees 53 91 132 103 76 144
Separated Employees 0 0 0 11 228 0
Recruiting Spend $0 $0 $0 $0 $0 $0
Training Hours 0 0 0 0 0 0
Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $53 $91 $132 $103 $76 $144
Separation Cost $0 $0 $0 $55 $1,140 $0
Training Cost $0 $0 $0 $0 $0 $0
Total HR Admin Cost $53 $91 $132 $158 $1,216 $144

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

CAPSTONE® COURIER Page 12

Ethics Report C58538 Round: 4Dec. 31, 2017

Normal means the value that would have been produced if the problem had not been presented.

CAPSTONE® COURIER Page 13

Annual Report

Annual Report Andrews C58538 Round: 4Dec. 31, 2017

ASSETS 2017
Common

Size
2016

Cash $0 0.0% $0
Account Receivable $6,105 3.9% $5,750
Inventory $107,012 68.4% $110,681
Total Current Assets $113,117 72.3% $116,431

Plant & Equipment $108,400 69.3% $108,400
Accumulated Depreciation ($65,040) -41.6% ($57,813)
Total Fixed Assets $43,360 27.7% $50,587
Total Assets $156,477 100.0% $167,018
LIABILITIES & OWNER’S
EQUITY

Accounts Payable $4,760 3.0% $4,931
Current Debt $155,312 99.3% $125,793
Long Term Debt $20,850 13.3% $31,775
Total Liabilities $180,922 116.0% $162,499

Common Stock $28,360 18.1% $28,360
Retained Earnings ($52,805) -33.7% ($23,841)
Total Equity ($24,445) -15.6% $4,519
Total Liab. & O. Equity $156,477 100.0% $167,018

Cash Flows from Operating Activities 2017 2016
NetIncome(Loss) ($28,964) ($32,474)
Depreciation $7,227 $7,227
Extraordinary gains/losses/writeoffs $0 $0
Accounts Payable ($171) ($6,042)
Inventory $3,669 ($1,387)
Accounts Receivable ($355) ($2,261)

Net cash from operation ($18,594) ($34,937)
Cash Flows from Investing Activities
Plant Improvements $0 $0
Cash Flows from Financing Activities
Dividends Paid $0 $0
Sales of Common Stock $0 $0
Purchase of Common Stock $0 $0
Cash from long term debt $0 $0
Retirement of long term debt ($10,925) $0
Change in current debt(net) $29,518 $34,937

Net Cash from financing activities $18,594 $34,937
Net Change in cash position $0 $0
Closing cash position $0 $0

Annual Report Page 14

Annual Report Andrews C58538 Round: 4Dec. 31, 2017

2017 Income Statement
(Product Name) Able Acre Adam Aft Agape Abum Ajoy Apps 2017

Total
Common

Size
Sales $25,501 $23,581 $6,782 $10,362 $8,054 $0 $0 $0 $74,279 100.0%

Variable Costs:
Direct Labor $9,677 $10,444 $2,023 $3,815 $2,827 $0 $0 $0 $28,786 38.8%
Direct Material $11,609 $9,662 $3,026 $5,003 $3,502 $0 $0 $0 $32,802 44.2%
Inventory Carry $7,902 $2,521 $1,227 $0 $1,192 $0 $0 $0 $12,841 17.3%
Total Variable $29,188 $22,627 $6,276 $8,817 $7,520 $0 $0 $0 $74,429 100.2%

Contribution Margin ($3,688) $954 $506 $1,545 $533 $0 $0 $0 ($150) -0.2%

Period Costs:
Depreciation $2,640 $2,427 $1,080 $360 $720 $0 $0 $0 $7,227 9.7%
SG&A: R&D $0 $0 $0 $0 $0 $0 $0 $0 $0 0.0%
Promotions $500 $500 $600 $600 $600 $0 $0 $0 $2,800 3.8%
Sales $500 $500 $660 $600 $600 $0 $0 $0 $2,860 3.9%
Admin $197 $182 $52 $80 $62 $0 $0 $0 $573 0.8%
Total Period $3,837 $3,609 $2,392 $1,640 $1,982 $0 $0 $0 $13,460 18.1%

Net Margin ($7,524) ($2,655) ($1,886) ($95) ($1,449) $0 $0 $0 ($13,610) -18.3%

Other $0 0.0%
EBIT ($13,610) -18.3%
Short Term Interest $28,032 37.7%
Long Term Interest $2,919 3.9%
Taxes ($15,596) -21.0%
Profit Sharing $0 0.0%
Net Profit ($28,964) -39.0%

Annual Report Page 15

Round: 5
Dec. 31, 2018

C58538

Andrews
Eugene Ellis
Philip Mull

Baldwin
Lisa Chastain
Monica Dalke
matt rix

Chester

Digby Erie Ferris

Selected Financial Statistics
Andrews Baldwin Chester Digby Erie Ferris

ROS -19.6% -1.2% 6.8% 5.2% 10.2% 4.7%
Asset Turnover 0.75 1.21 1.11 1.03 0.97 1.18
ROA -14.7% -1.5% 7.5% 5.3% 9.9% 5.6%
Leverage
(Assets/Equity)

-2.4 2.1 2.1 2.1 1.9 2.0

ROE -35.0% -3.1% 15.5% 11.1% 19.0% 11.4%
Emergency Loan $105,583,142 $20,325,028 $0 $0 $0 $0
Sales $67,336,667 $108,130,631 $221,330,602 $233,665,953 $220,090,490 $242,146,784
EBIT $2,460,785 $4,571,252 $35,109,568 $32,357,440 $47,748,831 $29,612,346
Profits ($13,191,015) ($1,297,803) $15,037,220 $12,174,914 $22,360,139 $11,495,535
Cumulative Profit ($90,335,004) ($1,743,807) $62,774,268 $63,774,089 $57,636,889 $56,805,581
SG&A / Sales 11.1% 7.3% 9.8% 11.1% 6.7% 9.1%
Contrib. Margin % 6.9% 18.6% 32.1% 31.7% 36.2% 26.2%

CAPSTONE® COURIER Page 1

Stock & Bonds C58538 Round: 5Dec. 31, 2018

Stock Market Summary

Company Close Change Shares
MarketCap

($M)
Book Value EPS Dividend Yield P/E

Andrews $1.00 $0.00 2,291,939 $2 ($16.42) ($5.76) $0.00 0.0% -0.2
Baldwin $6.27 $1.26 2,000,000 $13 $21.00 ($0.65) $0.00 0.0% -9.7
Chester $89.62 $12.03 2,124,345 $190 $45.75 $7.08 $2.27 2.5% 12.7
Digby $88.94 $5.88 2,089,792 $186 $52.65 $5.83 $0.00 0.0% 15.3
Erie $84.15 $27.36 2,452,736 $206 $48.02 $9.12 $0.00 0.0% 9.2
Ferris $73.41 $5.35 2,187,083 $161 $45.97 $5.26 $0.00 0.0% 14.0

Bond Market Summary
Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Digby

14.0S2019 $20,850,000 14.2% 98.45 DDD 14.0S2019 $20,850,000 14.0% 100.09 B
Baldwin 11.6S2025 $3,523,690 12.9% 90.11 B

14.0S2019 $20,850,000 14.0% 99.91 CCC 12.2S2026 $8,623,471 13.2% 92.09 B
Chester 12.9S2027 $16,806,601 13.6% 95.04 B

14.0S2019 $20,850,000 14.0% 100.09 B 13.4S2028 $15,253,268 13.8% 97.38 B
12.1S2026 $13,308,235 13.2% 91.62 B Erie
12.9S2027 $12,249,416 13.6% 95.04 B 14.0S2019 $20,850,000 13.9% 100.44 B
13.4S2028 $10,916,191 13.8% 97.38 B 11.7S2025 $1,722,021 12.7% 92.16 B

12.3S2026 $11,199,852 13.0% 94.34 B
13.0S2027 $25,774,968 13.3% 97.48 B
13.5S2028 $15,359,294 13.5% 100.00 B

Ferris
14.0S2019 $20,850,000 14.0% 100.09 B
12.2S2026 $8,738,656 13.2% 92.09 B
12.9S2027 $15,268,932 13.6% 95.04 B
13.4S2028 $14,780,458 13.8% 97.38 B

Next Year’s Prime Rate 9.50%

CAPSTONE® COURIER Page 2

Financial Summary C58538 Round: 5Dec. 31, 2018
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) ($13,191) ($1,298) $15,037 $12,175 $22,360 $11,496
Adjustment for non-cash items:
Depreciation $4,588 $7,587 $13,793 $15,000 $16,053 $11,400
Extraordinary gains/losses/writeoffs ($9,895) $0 $0 $0 $0 ($550)
Changes in current assets and liablilities
Acounts payable ($3,984) ($2,083) $2,698 $1,775 $3,267 $3,856
Inventory $45,914 $8,396 ($8,052) ($10,962) $904 ($10,284)
Accounts Receivable $571 $1 ($1,935) ($549) ($4,638) ($3,400)
Net cash from operations $24,003 $12,603 $21,541 $17,439 $37,946 $12,518

Cash flows from investing activities
Plant improvements(net) $25,726 $0 ($43,600) ($54,100) ($50,500) ($44,570)
Cash flows from financing activities
Dividends paid $0 $0 ($4,824) $0 $0 $0
Sales of common stock $0 $0 $0 $2,979 $8,013 $5,433
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $0 $0 $10,916 $15,253 $15,359 $14,780
Early retirement of long term debt $0 $0 $0 $0 $0 $0
Retirement of current debt ($155,312) ($32,928) ($35,285) ($39,209) ($27,955) ($30,911)
Cash from current debt borrowing $0 $0 $32,758 $38,773 $22,515 $30,255
Cash from emergency loan $105,583 $20,325 $0 $0 $0 $0

Net cash from financing activities ($49,728) ($12,603) $3,565 $17,796 $17,932 $19,558

Net change in cash position $0 $0 ($18,493) ($18,865) $5,378 ($12,495)
Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $0 $0 $35,035 $35,068 $49,536 $31,007
Accounts Receivable $5,535 $8,887 $18,192 $19,205 $18,090 $19,902
Inventory $61,098 $42,492 $20,052 $28,816 $4,387 $23,994
Total Current Assets $66,633 $51,380 $73,279 $83,090 $72,012 $74,903

Plant and equipment $68,822 $113,800 $206,900 $225,000 $240,800 $187,800
Accumulated Depreciation ($45,881) ($75,867) ($80,100) ($80,500) ($86,200) ($56,980)
Total Fixed Assets $22,941 $37,933 $126,800 $144,500 $154,600 $130,820

Total Assets $89,573 $89,313 $200,079 $227,590 $226,612 $205,723

Account Payable $776 $6,128 $12,817 $13,726 $11,416 $15,301
CurrentDebt $105,583 $20,325 $32,758 $38,773 $22,515 $30,255
Long Term Debt $20,850 $20,850 $57,324 $65,057 $74,906 $59,638
Total Liabilities $127,209 $47,303 $102,899 $117,556 $108,837 $105,194

Common Stock $28,360 $18,360 $23,767 $23,657 $40,177 $30,294
Retained Earnings ($65,996) $23,650 $73,412 $86,377 $77,598 $70,235
Total Equity ($37,636) $42,010 $97,179 $110,034 $117,775 $100,530

Total Liabilities & Owners” Equity $89,573 $89,313 $200,079 $227,590 $226,612 $205,723

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris
Sales $67,337 $108,131 $221,331 $233,666 $220,090 $242,147
Variable Costs(Labor,Material,Carry) $62,690 $88,058 $150,295 $159,498 $140,330 $178,752
Depreciation $4,588 $7,587 $13,793 $15,000 $16,053 $11,400
SGA(R&D,Promo,Sales,Admin) $7,492 $7,914 $21,587 $25,899 $14,790 $21,922
Other(Fees,Writeoffs,TQM,Bonuses) ($9,895) $0 $546 $912 $1,169 $461
EBIT $2,461 $4,571 $35,110 $32,357 $47,749 $29,612
Interest(Short term,Long term) $22,755 $6,568 $11,503 $13,245 $12,647 $11,566
Taxes ($7,103) ($699) $8,262 $6,690 $12,286 $6,316
Profit Sharing $0 $0 $307 $248 $456 $235
Net Profit ($13,191) ($1,298) $15,037 $12,175 $22,360 $11,496

CAPSTONE® COURIER Page 3

Production Analysis C58538 Round: 5Dec. 31, 2018

Name
Primary

Segment
Units
Sold

Unit
Inven

tory Revision Date
Age

Dec.31 MTBF
Pfmn

Coord

Size

Coord Price
Material

Cost
Labor
Cost

Contr.
Marg.

2nd
Shift

&
Over-

time

Auto
mation

Next
Round

Capacity
Next

Round
Plant

Utiliz.
Able Trad 959 2,397 7/4/2018 2.3 20000 6.0 13.0 $23.50 $0.00 $0.00 -9% 0% 4.0 1 0%
Acre Low 1,515 0 7/10/2018 2.4 15000 4.5 17.0 $17.40 $5.82 $8.13 15% 0% 5.0 1,400 7%
Adam Size 244 221 5/23/2018 2.1 22000 8.9 8.8 $33.00 $12.70 $10.83 18% 0% 3.0 900 6%
Aft Pfmn 92 56 6/5/2018 2.1 22000 11.8 14.5 $29.90 $12.12 $10.83 15% 0% 3.0 300 50%
Agape Size 262 322 6/10/2018 2.3 20000 5.8 8.0 $29.00 $11.68 $10.83 10% 0% 3.0 600 25%

Baker Trad 1,949 478 8/16/2018 2.0 17500 7.5 12.2 $25.00 $9.44 $9.46 23% 0% 4.0 1,800 99%
Bead Low 2,609 395 5/25/2009 9.6 14000 3.0 17.0 $18.50 $4.82 $9.85 18% 82% 5.0 1,400 180%
Bid High 49 868 6/9/2016 4.1 22000 9.9 10.0 $36.50 $0.00 $0.00 -107% 0% 3.0 900 0%
Bold Pfmn 137 38 7/16/2016 3.9 26000 11.4 15.1 $33.00 $13.02 $10.81 24% 0% 3.0 600 25%
Buddy Size 146 270 5/4/2017 3.3 19000 5.4 8.6 $33.00 $0.00 $0.00 20% 0% 3.0 600 0%

Cake Trad 1,994 0 9/14/2017 2.4 14000 7.8 12.2 $25.50 $8.51 $8.36 33% 100% 6.5 1,300 198%
Cedar Low 2,806 311 2/5/2020 9.6 12000 3.0 17.0 $18.50 $4.22 $4.68 50% 49% 8.5 1,900 147%
Cid High 1,194 354 11/15/2018 1.1 23000 13.6 6.4 $36.50 $15.67 $12.75 21% 61% 3.5 1,150 160%
Coat Pfmn 1,049 145 12/14/2018 1.2 27000 14.7 12.3 $31.50 $15.53 $9.35 21% 16% 5.0 1,150 115%
Cure Size 1,332 173 12/14/2018 1.2 17000 7.7 5.3 $31.50 $12.53 $9.97 29% 40% 5.0 1,400 139%

Daze Trad 1,957 193 9/18/2018 1.4 19000 8.9 11.2 $28.50 $10.82 $9.20 30% 100% 6.0 1,300 198%
Dell Low 1,783 361 6/19/2019 9.6 14000 3.0 17.0 $21.00 $4.82 $4.98 51% 13% 8.0 1,600 111%
Dixie High 845 352 1/1/2018 2.1 25000 13.5 6.5 $38.50 $16.19 $11.06 25% 5% 3.5 1,100 104%
Dot Pfmn 945 150 10/6/2018 1.3 27000 14.8 12.1 $33.50 $15.62 $9.45 24% 0% 4.5 1,100 99%
Dune Size 1,350 195 1/9/2019 2.3 19000 7.2 6.4 $33.50 $12.47 $10.25 30% 22% 4.5 1,450 121%
Doom Pfmn 928 151 11/30/2018 1.0 27000 14.7 12.2 $33.50 $15.55 $7.98 29% 62% 6.0 1,200 160%
Dust 0 0 5/25/2018 0.6 19000 7.8 5.4 $0.00 $0.00 $0.00 0% 0% 1.0 600 0%

Eat Low 1,973 119 1/15/2018 5.1 12500 5.5 14.5 $20.00 $6.29 $4.56 43% 36% 8.5 1,400 134%
Ebb Low 3,224 246 6/18/2019 9.6 12000 3.0 17.0 $18.00 $4.22 $4.94 47% 86% 8.5 2,000 184%
Echo Trad 2,235 42 10/19/2018 1.3 14000 8.5 11.5 $25.50 $9.05 $7.52 35% 100% 6.5 1,700 198%
Egg Trad 2,573 2 10/30/2018 1.4 15000 8.7 11.3 $25.50 $9.50 $10.03 24% 100% 5.5 1,800 198%

Fast Low 877 0 1/29/2017 5.1 12000 5.5 14.5 $20.50 $6.14 $11.71 12% 100% 4.0 400 198%
Feat Low 1,161 262 7/27/2018 5.0 27000 13.8 12.9 $22.50 $14.95 $7.12 24% 13% 6.0 1,250 112%
Fist High 1,576 263 12/26/2018 1.0 25000 13.7 6.4 $37.50 $16.31 $13.38 21% 100% 4.0 1,150 198%
Foam Pfmn 1,012 128 10/19/2018 1.2 27000 14.8 12.1 $32.50 $15.62 $8.84 24% 24% 5.5 950 122%
Fume Size 1,347 157 11/19/2018 1.1 17000 7.4 4.8 $32.50 $12.72 $9.25 32% 42% 5.5 1,100 141%
Fox High 1,661 221 11/16/2018 0.9 25000 13.9 6.1 $37.50 $16.50 $8.54 33% 46% 5.5 1,500 145%
Fuel 0 0 6/3/2019 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 5.5 600 0%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C58538 Round: 5Dec. 31, 2018

Traditional Statistics
Total Industry Unit Demand 11,471
Actual Industry Unit Sales 11,471
Segment % of Total Industry 27.5%

Next Year’s Segment Growth Rate 9.2%

Traditional Customer Buying Criteria
Expectations Importance

1. Age Ideal Age = 2.0 47%
2. Price $17.50 – 27.50 23%
3. Ideal Position Pfmn 8.5 Size 11.5 21%
4. Reliability MTBF 14000-19000 9%

Top Products in Traditional Segment

Name
Market
Share

Units
Sold to

Seg
Revision
Date

Stock
Out

Pfmn
Coord

Size
Coord

List
Price MTBF

Age
Dec.31

Promo
Budget

Cust.
Aware-
ness

Sales
Budget

Cust.
Access-

ibility

Dec.
Cust.

Survey
Egg 22% 2,573 10/30/2018 8.7 11.3 $25.50 15000 1.43 $1,500 87% $1,056 77% 38
Echo 19% 2,235 10/19/2018 8.5 11.5 $25.50 14000 1.26 $1,500 87% $1,056 77% 33
Cake 17% 1,994 9/14/2017 YES 7.8 12.2 $25.50 14000 2.45 $1,300 78% $1,930 55% 30
Daze 17% 1,957 9/18/2018 8.9 11.2 $28.50 19000 1.36 $1,350 84% $1,556 45% 25
Baker 16% 1,865 8/16/2018 7.5 12.2 $25.00 17500 1.96 $1,350 74% $1,350 35% 33
Able 7% 759 7/4/2018 6.0 13.0 $23.50 20000 2.27 $200 22% $200 14% 11
Eat 1% 64 1/15/2018 5.5 14.5 $20.00 12500 5.09 $1,500 89% $1,056 77% 0
Fast 0% 25 1/29/2017 YES 5.5 14.5 $20.50 12000 5.08 $500 45% $715 18% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C58538 Round: 5Dec. 31, 2018

Low End Statistics
Total Industry Unit Demand 15,581
Actual Industry Unit Sales 15,581
Segment % of Total Industry 37.3%

Next Year’s Segment Growth Rate 11.7%

Low End Customer Buying Criteria
Expectations Importance

1. Price $12.50 – 22.50 53%
2. Age Ideal Age = 7.0 24%
3. Ideal Position Pfmn 4.2 Size 15.8 16%
4. Reliability MTBF 12000-17000 7%

Top Products in Low End Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Ebb 21% 3,224 6/18/2019 3.0 17.0 $18.00 12000 9.60 $1,500 88% $1,056 61% 13
Cedar 18% 2,806 2/5/2020 3.0 17.0 $18.50 12000 9.60 $1,300 78% $2,026 56% 11
Bead 17% 2,609 5/25/2009 3.0 17.0 $18.50 14000 9.60 $1,350 69% $1,350 42% 11
Eat 12% 1,909 1/15/2018 5.5 14.5 $20.00 12500 5.09 $1,500 89% $1,056 61% 13
Dell 11% 1,783 6/19/2019 3.0 17.0 $21.00 14000 9.60 $1,350 83% $1,556 49% 7
Acre 10% 1,515 7/10/2018 YES 4.5 17.0 $17.40 15000 2.44 $200 21% $200 13% 8
Fast 5% 852 1/29/2017 YES 5.5 14.5 $20.50 12000 5.08 $500 45% $715 58% 8
Feat 4% 597 7/27/2018 13.8 12.9 $22.50 27000 5.01 $1,400 80% $1,287 58% 0
Able 1% 201 7/4/2018 6.0 13.0 $23.50 20000 2.27 $200 22% $200 13% 1
Baker 1% 84 8/16/2018 7.5 12.2 $25.00 17500 1.96 $1,350 74% $1,350 42% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C58538 Round: 5Dec. 31, 2018

High End Statistics
Total Industry Unit Demand 5,410
Actual Industry Unit Sales 5,410
Segment % of Total Industry 13.0%

Next Year’s Segment Growth Rate 16.2%

High End Customer Buying Criteria
Expectations Importance

1. Ideal Position Pfmn 13.4 Size 6.6 43%
2. Age Ideal Age = 0.0 29%
3. Reliability MTBF 20000-25000 19%
4. Price $27.50 – 37.50 9%

Top Products in High End Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Fox 31% 1,661 11/16/2018 13.9 6.1 $37.50 25000 0.94 $1,450 74% $1,287 73% 45
Fist 29% 1,576 12/26/2018 13.7 6.4 $37.50 25000 1.03 $1,450 85% $1,287 73% 56
Cid 22% 1,194 11/15/2018 13.6 6.4 $36.50 23000 1.12 $1,250 73% $2,026 56% 41
Dixie 16% 845 1/1/2018 13.5 6.5 $38.50 25000 2.07 $1,375 84% $1,653 47% 29
Adam 2% 86 5/23/2018 8.9 8.8 $33.00 22000 2.12 $200 24% $200 13% 1
Bid 1% 49 6/9/2016 9.9 10.0 $36.50 22000 4.14 $0 40% $0 14% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C58538 Round: 5Dec. 31, 2018

Performance Statistics
Total Industry Unit Demand 4,726
Actual Industry Unit Sales 4,726
Segment % of Total Industry 11.3%

Next Year’s Segment Growth Rate 19.8%

Performance Customer Buying Criteria
Expectations Importance

1. Reliability MTBF 22000-27000 43%
2. Ideal Position Pfmn 14.4 Size 12.5 29%
3. Price $22.50 – 32.50 19%
4. Age Ideal Age = 1.0 9%

Top Products in Performance Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Coat 22% 1,049 12/14/2018 14.7 12.3 $31.50 27000 1.23 $1,200 71% $1,833 48% 45
Foam 21% 1,012 10/19/2018 14.8 12.1 $32.50 27000 1.24 $1,400 83% $1,287 36% 41
Dot 20% 945 10/6/2018 14.8 12.1 $33.50 27000 1.28 $1,350 82% $1,653 57% 38
Doom 20% 928 11/30/2018 14.7 12.2 $33.50 27000 0.97 $1,350 74% $1,653 57% 37
Feat 12% 564 7/27/2018 13.8 12.9 $22.50 27000 5.01 $1,400 80% $1,287 36% 49
Bold 3% 137 7/16/2016 11.4 15.1 $33.00 26000 3.92 $0 16% $0 8% 5
Aft 2% 92 6/5/2018 11.8 14.5 $29.90 22000 2.05 $100 22% $100 10% 2

CAPSTONE® COURIER Page 8

Size Segment Analysis C58538 Round: 5Dec. 31, 2018

Size Statistics
Total Industry Unit Demand 4,596
Actual Industry Unit Sales 4,596
Segment % of Total Industry 11.0%

Next Year’s Segment Growth Rate 18.3%

Size Customer Buying Criteria
Expectations Importance

1. Ideal Position Pfmn 7.5 Size 5.6 43%
2. Age Ideal Age = 1.5 29%
3. Reliability MTBF 16000-21000 19%
4. Price $22.50 – 32.50 9%

Top Products in Size Segment

Name
Market
Share
Units
Sold to
Seg
Revision
Date
Stock
Out
Pfmn
Coord
Size
Coord
List
Price MTBF
Age
Dec.31
Promo
Budget
Cust.
Aware-
ness
Sales
Budget
Cust.
Access-
ibility
Dec.
Cust.

Survey
Dune 29% 1,350 1/9/2019 7.2 6.4 $33.50 19000 2.29 $1,350 82% $1,653 42% 24
Fume 29% 1,347 11/19/2018 7.4 4.8 $32.50 17000 1.14 $1,400 83% $1,287 37% 27
Cure 29% 1,332 12/14/2018 7.7 5.3 $31.50 17000 1.19 $1,200 72% $1,833 49% 37
Agape 6% 262 6/10/2018 5.8 8.0 $29.00 20000 2.32 $200 23% $200 13% 7
Adam 3% 159 5/23/2018 8.9 8.8 $33.00 22000 2.12 $200 24% $200 13% 5
Buddy 3% 146 5/4/2017 5.4 8.6 $33.00 19000 3.29 $0 30% $0 14% 2

CAPSTONE® COURIER Page 9

Market Share C58538 Round: 5Dec. 31, 2018

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 11,471 15,581 5,410 4,726 4,596 41,784 Units Demanded 11,471 15,581 5,410 4,726 4,596 41,784
% of Market 27.5% 37.3% 13.0% 11.3% 11.0% 100.0% % of Market 27.5% 37.3% 13.0% 11.3% 11.0% 100.0%

Able 6.6% 1.3% 2.3% Able 5.3% 1.3% 1.9%
Acre 9.7% 3.6% Acre 9.8% 3.7%
Adam 1.6% 3.5% 0.6% Adam 1.6% 3.5% 0.6%
Aft 2.0% 0.2% Aft 3.5% 0.4%
Agape 5.7% 0.6% Agape 5.7% 0.6%
Total 6.6% 11.0% 1.6% 2.0% 9.2% 7.4% Total 5.3% 11.1% 1.6% 3.5% 9.2% 7.2%

Baker 16.3% 0.5% 4.7% Baker 13.2% 0.5% 3.8%
Bead 16.8% 6.3% Bead 16.3% 6.1%
Bid 0.9% 0.1% Bid 0.9%
Bold 2.9% 0.3% Bold 2.9% 0.3%
Buddy 3.2% 0.4% Buddy 3.2% 0.3%
Total 16.3% 17.3% 0.9% 2.9% 3.2% 11.7% Total 13.2% 16.9% 0.9% 2.9% 3.2% 10.7%

Cake 17.4% 4.8% Cake 19.5% 5.4%
Cedar 18.0% 6.7% Cedar 17.6% 6.6%
Cid 22.1% 2.9% Cid 22.1% 2.9%
Coat 22.2% 2.5% Coat 21.8% 2.5%
Cure 29.0% 3.2% Cure 29.0% 3.2%
Total 17.4% 18.0% 22.1% 22.2% 29.0% 20.0% Total 19.5% 17.6% 22.1% 21.8% 29.0% 20.4%

Daze 17.1% 4.7% Daze 15.4% 4.2%
Dell 11.4% 4.3% Dell 11.2% 4.2%
Dixie 15.6% 2.0% Dixie 15.6% 2.0%
Dot 20.0% 2.3% Dot 19.6% 2.2%
Dune 29.4% 3.2% Dune 29.4% 3.2%
Doom 19.6% 2.2% Doom 19.3% 2.2%
Total 17.1% 11.4% 15.6% 39.6% 29.4% 18.7% Total 15.4% 11.2% 15.6% 38.9% 29.4% 18.0%

Eat 0.6% 12.2% 4.7% Eat 0.4% 11.8% 4.5%
Ebb 20.7% 7.7% Ebb 20.2% 7.5%
Echo 19.5% 5.3% Echo 21.8% 6.0%
Egg 22.4% 6.2% Egg 24.2% 6.6%
Total 42.5% 32.9% 23.9% Total 46.4% 32.0% 24.7%

Fast 0.2% 5.5% 2.1% Fast 0.2% 7.4% 2.8%
Feat 3.8% 11.9% 2.8% Feat 3.8% 11.9% 2.8%
Fist 29.1% 3.8% Fist 29.1% 3.8%
Foam 21.4% 2.4% Foam 21.0% 2.4%
Fume 29.3% 3.2% Fume 29.3% 3.2%
Fox 30.7% 4.0% Fox 30.7% 4.0%
Total 0.2% 9.3% 59.8% 33.3% 29.3% 18.3% Total 0.2% 11.2% 59.8% 33.0% 29.3% 18.9%

CAPSTONE® COURIER Page 10

Perceptual Map C58538 Round: 5Dec. 31, 2018

Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 6.0 13.0 7/4/2018 Baker 7.5 12.2 8/16/2018 Cake 7.8 12.2 9/14/

2017

Acre 4.5 17.0 7/10/2018 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 2/5/2020
Adam 8.9 8.8 5/23/2018 Bid 9.9 10.0 6/9/2016 Cid 13.6 6.4 11/15/2018
Aft 11.8 14.5 6/5/2018 Bold 11.4 15.1 7/16/2016 Coat 14.7 12.3 12/14/2018
Agape 5.8 8.0 6/10/2018 Buddy 5.4 8.6 5/4/2017 Cure 7.7 5.3 12/14/2018
Abum 5.5 14.8 4/7/2018
Ajoy 6.1 14.8 2/18/2018
Apps 5.9 14.5 3/31/2018

Digby Erie Ferris
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Daze 8.9 11.2 9/18/2018 Eat 5.5 14.5 1/15/2018 Fast 5.5 14.5 1/29/2017
Dell 3.0 17.0 6/19/2019 Ebb 3.0 17.0 6/18/2019 Feat 13.8 12.9 7/27/2018
Dixie 13.5 6.5 1/1/2018 Echo 8.5 11.5 10/19/2018 Fist 13.7 6.4 12/26/2018
Dot 14.8 12.1 10/6/2018 Egg 8.7 11.3 10/30/2018 Foam 14.8 12.1 10/19/2018
Dune 7.2 6.4 1/9/2019 Fume 7.4 4.8 11/19/2018
Doom 14.7 12.2 11/30/2018 Fox 13.9 6.1 11/16/2018
Dust 7.8 5.4 5/25/2018

CAPSTONE® COURIER Page 11

HR/TQM Report C58538 Round: 5Dec. 31, 2018

HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 82 700 1,108 1,151 995 1,215
Complement 82 700 1,108 1,151 995 1,215
1st Shift Complement 82 534 731 896 539 800
2nd Shift Complement 0 166 377 255 456 415

Overtime Percent 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
New Employees 8 70 322 240 335 309
Separated Employees 449 211 0 0 0 0
Recruiting Spend $0 $0 $0 $0 $0 $0
Training Hours 0 0 0 0 0 0
Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $8 $70 $322 $240 $335 $309
Separation Cost $2,245 $1,055 $0 $0 $0 $0
Training Cost $0 $0 $0 $0 $0 $0
Total HR Admin Cost $2,253 $1,125 $322 $240 $335 $309

Labor Contract Next Year
Wages $26.81 $26.81 $26.81 $26.81 $26.81 $26.81
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

CAPSTONE® COURIER Page 12

Ethics Report C58538 Round: 5Dec. 31, 2018

Normal means the value that would have been produced if the problem had not been presented.

CAPSTONE® COURIER Page 13

Annual Report

Annual Report Andrews C58538 Round: 5Dec. 31, 2018

ASSETS 2018
Common

Size
2017

Cash $0 0.0% $0
Account Receivable $5,535 6.2% $6,105
Inventory $61,098 68.2% $107,012
Total Current Assets $66,633 74.4% $113,117

Plant & Equipment $68,822 76.8% $108,400
Accumulated Depreciation ($45,881) -51.2% ($65,040)
Total Fixed Assets $22,941 25.6% $43,360
Total Assets $89,573 100.0% $156,477
LIABILITIES & OWNER’S
EQUITY

Accounts Payable $776 0.9% $4,760
Current Debt $105,583 118.0% $155,312
Long Term Debt $20,850 23.3% $20,850
Total Liabilities $127,209 142.0% $180,922

Common Stock $28,360 31.7% $28,360
Retained Earnings ($65,996) -73.7% ($52,805)
Total Equity ($37,636) -42.0% ($24,445)
Total Liab. & O. Equity $89,573 100.0% $156,477

Cash Flows from Operating Activities 2018 2017
NetIncome(Loss) ($13,191) ($28,964)
Depreciation $4,588 $7,227
Extraordinary gains/losses/writeoffs ($9,895) $0
Accounts Payable ($3,984) ($171)
Inventory $45,914 $3,669
Accounts Receivable $571 ($355)

Net cash from operation $24,003 ($18,594)
Cash Flows from Investing Activities
Plant Improvements $25,726 $0
Cash Flows from Financing Activities
Dividends Paid $0 $0
Sales of Common Stock $0 $0
Purchase of Common Stock $0 $0
Cash from long term debt $0 $0
Retirement of long term debt $0 ($10,925)
Change in current debt(net) ($49,728) $29,518

Net Cash from financing activities ($49,728) $18,594
Net Change in cash position $0 $0
Closing cash position $0 $0

Annual Report Page 14

Annual Report Andrews C58538 Round: 5Dec. 31, 2018

2018 Income Statement
(Product Name) Able Acre Adam Aft Agape Abum Ajoy Apps 2018

Total
Common

Size
Sales $22,543 $26,364 $8,064 $2,757 $7,609 $0 $0 $0 $67,337 100.0%

Variable Costs:
Direct Labor $8,555 $11,719 $2,431 $999 $2,714 $0 $0 $0 $26,418 39.2%
Direct Material $10,263 $10,689 $3,555 $1,190 $3,244 $0 $0 $0 $28,941 43.0%
Inventory Carry $5,643 $0 $650 $160 $878 $0 $0 $0 $7,332 10.9%
Total Variable $24,461 $22,408 $6,636 $2,350 $6,836 $0 $0 $0 $62,690 93.1%

Contribution Margin ($1,918) $3,956 $1,428 $408 $773 $0 $0 $0 $4,647 6.9%

Period Costs:
Depreciation $1 $2,427 $1,080 $360 $720 $0 $0 $0 $4,588 6.8%
SG&A: R&D $512 $530 $396 $432 $445 $269 $134 $249 $2,968 4.4%
Promotions $200 $200 $200 $100 $200 $0 $0 $0 $900 1.3%
Sales $200 $200 $200 $100 $200 $0 $0 $0 $900 1.3%
Admin $912 $1,067 $326 $112 $308 $0 $0 $0 $2,725 4.0%
Total Period $1,826 $4,423 $2,203 $1,104 $1,873 $269 $134 $249 $12,080 17.9%

Net Margin ($3,744) ($467) ($775) ($696) ($1,101) ($269) ($134) ($249) ($7,434) -11.0%

Other ($9,895) -14.7%
EBIT $2,461 3.7%
Short Term Interest $19,836 29.5%
Long Term Interest $2,919 4.3%
Taxes ($7,103) -10.5%
Profit Sharing $0 0.0%
Net Profit ($13,191) -19.6%

Annual Report Page 15

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