fill out the excel

Variance Analysis

Round 2

Actual Forecast

								Analyst:
Company:	Andrews
Product:	Able
Segment:	Traditional
Round 1		Round 2	Variance to
Measure		Actual		Forecast	Forecast Explanation	Variance Explanation	Actions
Market Share
Inventory (units)
Contribution Margin (%)
Customer Survey Score
Other 1
Other 2

Describe the reasons for the difference between the Round 1 Actual value and what you are forecasting for Round 2.

Adjust
variance
formula so
+ is good
– is bad

Describe the reasons for the difference between the Round 2 Forecasted value and your actual results for Round 2.

Describe actions to be taken in response to a negative variance.

Sheet2

Sheet3

Round: 1
Dec. 31, 2014

C59351

Andrews
Youseef Alyousef
Tyler Bilbruck
Leann Lohman
Demi Maniaci
Alison Werner

Baldwin
Lacy Emrick
Kristin Fomon
Sarah Graham
Kayli Heimericks

Chester
Nicole Cramer-Guajardo
Kenny Evischi
Richard Kilian
Victoria Wiseman

Digby Erie Ferris

Selected Financial Statistics
Andrews Baldwin Chester Digby Erie Ferris

ROS 4.3% 0.1% -5.3% 5.1% 5.1% 6.3%
Asset Turnover 1.16 1.07 0.91 1.05 0.99 1.27
ROA 4.9% 0.1% -4.8% 5.3% 5.0% 8.0%
Leverage
(Assets/Equity)

2.0 2.3 2.1 2.5 2.0 1.9

ROE 10.1% 0.2% -10.3% 13.2% 9.9% 15.5%
Emergency Loan $0 $0 $0 $0 $0 $0
Sales $127,286,465 $120,457,619 $84,710,617 $121,768,347 $113,150,427 $117,119,828
EBIT $14,749,530 $7,106,326 ($1,076,134) $17,118,087 $15,123,013 $16,377,369
Profits $5,448,599 $89,388 ($4,468,837) $6,160,818 $5,718,209 $7,408,935
Cumulative Profit $9,637,106 $4,277,895 ($280,330) $10,349,326 $9,906,716 $11,597,443
SG&A / Sales 7.8% 11.1% 16.8% 13.3% 9.7% 13.8%
Contrib. Margin % 26.4% 25.4% 25.7% 33.6% 30.5% 33.8%

CAPSTONE® COURIER Page 1

Stock & Bonds C59351 Round: 1Dec. 31, 2014

Stock Market Summary

Company Close Change Shares
MarketCap

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

Andrews $41.05 $6.80 2,014,597 $83 $26.75 $2.70 $0.00 0.0% 15.2

Baldwin $30.50 ($3.76) 2,043,791 $62 $24.13 $0.04 $0.10 0.3%

681.7
Chester $21.22 ($13.03) 2,000,000 $42 $21.74 ($2.23) $0.00 0.0% -9.5
Digby $41.80 $7.55 2,000,000 $84 $23.29 $3.08 $3.76 9.0% 13.6
Erie $41.53 $7.27 2,128,085 $88 $27.28 $2.69 $0.00 0.0% 15.4
Ferris $44.83 $10.58 2,000,000 $90 $23.83 $3.70 $3.85 8.6% 12.1

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

11.0S2015 $6,950,000 11.0% 99.64 B 11.0S2015 $6,950,000 11.1% 98.93 CC
12.5S2017 $13,900,000 12.2% 102.67 B 12.5S2017 $13,900,000 12.4% 100.72 CC
14.0S2019 $20,850,000 12.8% 109.51 B 14.0S2019 $20,850,000 13.2% 106.46 CC
10.8S2024 $5,000,000 11.2% 96.53 B 10.8S2024 $1,048,582 11.7% 92.15 CC

Baldwin Erie
11.0S2015 $6,950,000 11.1% 99.20 CCC 11.0S2015 $3,836,531 11.0% 99.82 B
12.5S2017 $13,900,000 12.3% 101.44 CCC 12.5S2017 $13,900,000 12.1% 103.17 B
14.0S2019 $20,850,000 13.0% 107.59 CCC 14.0S2019 $20,850,000 12.7% 110.30 B
10.8S2024 $13,000,000 11.5% 93.76 CCC Ferris

Chester 12.5S2017 $6,077,384 12.1% 103.42 B
11.0S2015 $6,950,000 11.1% 99.46 CCC 14.0S2019 $20,850,000 12.6% 110.69 B
12.5S2017 $13,900,000 12.2% 102.18 CCC
14.0S2019 $20,850,000 12.9% 108.74 CCC
10.8S2024 $3,500,000 11.3% 95.41 CCC

Next Year’s Prime Rate 7.50%

CAPSTONE® COURIER Page 2

Financial Summary C59351 Round: 1Dec. 31, 2014
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie Ferris
CashFlows from operating activities
Net Income(Loss) $5,449 $89 ($4,469) $6,161 $5,718 $7,409
Adjustment for non-cash items:
Depreciation $8,573 $9,473 $8,440 $7,267 $7,987 $5,853
Extraordinary gains/losses/writeoffs $60 $0 $0 $267 $157 $952
Changes in current assets and liablilities
Acounts payable $479 $589 ($1,770) ($201) ($484) ($472)
Inventory $7,615 $1,712 $3,764 $2,482 $3,817 $2,429
Accounts Receivable ($2,154) ($1,593) $1,345 ($1,701) ($993) ($1,319)
Net cash from operations $20,021 $10,271 $7,309 $14,274 $16,202 $14,853

Cash flows from investing activities
Plant improvements(net) ($16,060) ($28,300) ($12,800) ($800) ($9,080) $15,220
Cash flows from financing activities
Dividends paid $0 ($204) $0 ($7,513) $0 ($7,699)
Sales of common stock $500 $1,500 $0 $0 $4,387 $0
Purchase of common stock $0 $0 $0 $0 $0 $0
Cash from long term debt issued $5,000 $13,000 $3,500 $1,049 $0 $0
Early retirement of long term debt $0 $0 $0 $0 ($3,124) ($15,211)
Retirement of current debt $0 $0 $0 $0 $0 $0
Cash from current debt borrowing $2,500 $1,500 $0 $20,343 $11,359 $11,359
Cash from emergency loan $0 $0 $0 $0 $0 $0

Net cash from financing activities $8,000 $15,796 $3,500 $13,878 $12,622 ($11,551)

Net change in cash position $11,961 ($2,233) ($1,991) $27,352 $19,744 $18,521
Balance Sheet Survey Andrews Baldwin Chester Digby Erie Ferris
Cash $15,395 $1,200 $1,443 $30,786 $23,178 $21,955
Accounts Receivable $10,462 $9,901 $6,963 $10,008 $9,300 $9,626
Inventory $1,003 $6,905 $4,854 $6,136 $4,801 $6,188
Total Current Assets $26,859 $18,006 $13,259 $46,930 $37,278 $37,769

Plant and equipment $128,600 $142,100 $126,600 $109,000 $119,800 $87,800
Accumulated Depreciation ($45,307) ($47,407) ($46,373) ($39,867) ($42,987) ($33,520)
Total Fixed Assets $83,293 $94,693 $80,227 $69,133 $76,813 $54,280

Total Assets $110,153 $112,699 $93,486 $116,063 $114,092 $92,049

Account Payable $7,062 $7,173 $4,813 $6,382 $6,099 $6,112
CurrentDebt $2,500 $1,500 $0 $20,343 $11,359 $11,359
Long Term Debt $46,700 $54,700 $45,200 $42,749 $38,587 $26,927
Total Liabilities $56,262 $63,373 $50,013 $69,474 $56,044 $44,398

Common Stock $18,860 $19,860 $18,360 $18,360 $22,747 $18,360
Retained Earnings $35,031 $29,467 $25,113 $28,230 $35,300 $29,292
Total Equity $53,890 $49,327 $43,473 $46,589 $58,047 $47,651

Total Liabilities & Owners” Equity $110,153 $112,699 $93,486 $116,063 $114,092 $92,049

Income Statement Survey Andrews Baldwin Chester Digby Erie Ferris
Sales $127,286 $120,458 $84,711 $121,768 $113,150 $117,120
Variable Costs(Labor,Material,Carry) $93,660 $89,807 $62,905 $80,871 $78,597 $77,530
Depreciation $8,573 $9,473 $8,440 $7,267 $7,987 $5,853
SGA(R&D,Promo,Sales,Admin) $9,968 $13,346 $14,267 $16,194 $11,020 $16,179
Other(Fees,Writeoffs,TQM,Bonuses) $335 $725 $175 $319 $424 $1,180
EBIT $14,750 $7,106 ($1,076) $17,118 $15,123 $16,377
Interest(Short term,Long term) $6,196 $6,966 $5,799 $7,446 $6,146 $4,746
Taxes $2,994 $49 ($2,406) $3,385 $3,142 $4,071
Profit Sharing $111 $2 $0 $126 $117 $151
Net Profit $5,449 $89 ($4,469) $6,161 $5,718 $7,409

CAPSTONE® COURIER Page 3

Production Analysis C59351 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 1,561 39 4/17/2014 2.4 19000 5.7 14.2 $24.50 $11.35 $7.85 21% 0% 5.0 1,800 78%
Acre Low 1,846 0 5/25/2009 5.6 14000 3.0 17.0 $20.00 $7.05 $7.47 26% 30% 7.0 1,400 129%
Adam High 500 1 3/18/2014 1.7 25000 8.1 12.0 $38.00 $15.50 $8.97 35% 0% 3.0 700 66%
Aft Pfmn 498 0 3/18/2014 2.1 27000 9.5 15.5 $33.50 $15.48 $8.97 26% 0% 3.0 600 70%
Agape Size 498 10 3/20/2014 2.2 21000 4.1 10.9 $33.00 $13.30 $8.97 32% 0% 3.0 600 74%

Baker Trad 1,766 304 3/17/2014 2.4 17500 5.7 14.3 $25.50 $10.85 $8.04 23% 6% 4.0 2,150 105%
Bead Low 1,796 0 5/25/2009 5.6 14000 3.0 17.0 $19.00 $7.05 $7.40 22% 27% 6.0 1,900 126%
Bid High 404 17 5/11/2015 2.7 23000 8.0 12.0 $38.00 $14.84 $8.97 36% 0% 3.0 900 42%
Bold Pfmn 434 0 5/3/2014 2.1 26000 10.0 15.5 $31.50 $15.51 $8.97 22% 0% 3.0 600 59%
Buddy Size 360 29 11/18/2014 1.9 19000 4.7 9.6 $34.00 $13.73 $8.97 34% 0% 3.0 600 54%

Cake Trad 730 3 7/1/2015 4.1 17500 5.5 14.5 $26.50 $10.65 $7.85 28% 0% 5.0 1,800 30%
Cedar Low 1,841 0 5/25/2009 5.6 14000 3.0 17.0 $20.00 $7.05 $7.46 26% 30% 6.0 1,400 129%
Cid High 323 4 4/26/2015 2.7 23000 8.0 12.0 $38.00 $14.84 $8.97 36% 0% 3.0 900 32%
Coat Pfmn 325 0 8/10/2015 3.5 25000 9.4 15.5 $33.00 $14.81 $8.97 26% 0% 3.0 600 41%
Cure Size 245 213 7/17/2015 3.6 19000 4.0 11.0 $22.50 $12.60 $8.97 -8% 0% 3.0 600 66%

Daze Trad 1,095 134 6/11/2014 2.3 17800 6.1 14.0 $29.50 $11.30 $7.85 34% 0% 5.0 1,400 74%
Dell Low 1,610 13 5/25/2009 5.6 14000 3.0 17.0 $22.00 $7.05 $7.12 34% 14% 6.0 1,400 113%
Dixie High 626 58 11/23/2014 1.4 23500 9.1 10.9 $39.50 $16.11 $9.95 35% 30% 3.0 500 129%
Dot Pfmn 440 34 11/3/2014 1.8 26000 10.6 14.7 $34.50 $16.14 $8.97 28% 0% 3.0 600 66%
Dune Size 410 49 11/2/2014 1.9 19000 4.9 9.8 $34.50 $13.66 $8.97 35% 0% 3.0 600 66%

Eat Trad 1,355 71 3/17/2014 2.4 16500 5.6 14.5 $27.50 $10.40 $7.85 31% 0% 5.0 1,400 88%
Ebb Low 2,011 8 1/15/2014 5.6 13000 3.0 17.0 $20.00 $6.75 $7.68 26% 43% 6.0 1,400 141%
Echo High 399 38 12/23/2014 1.4 17000 7.0 12.9 $39.50 $12.08 $8.97 38% 0% 4.0 900 44%
Edge Pfmn 296 29 6/30/2011 3.5 25000 9.4 15.5 $34.50 $14.81 $8.97 29% 0% 3.0 600 41%
Egg Size 281 78 12/24/2015 3.6 19000 4.0 11.0 $34.50 $12.60 $8.97 34% 0% 3.0 600 50%

Fast Trad 1,269 108 3/3/2014 2.5 17500 5.6 14.5 $29.50 $10.70 $7.85 35% 0% 4.0 1,200 99%
Feat Low 1,467 8 1/15/2014 5.6 13000 3.0 17.0 $22.00 $6.75 $7.71 33% 45% 5.0 1,000 144%
Fist High 527 58 12/22/2014 1.4 24000 9.1 10.9 $39.50 $16.26 $9.35 37% 10% 3.0 500 109%
Foam Pfmn 422 52 11/10/2014 1.8 26000 10.6 14.8 $34.50 $16.11 $8.97 28% 0% 4.0 600 66%
Fume Size 350 59 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 C59351 Round: 1Dec. 31, 2014

Traditional Statistics
Total Industry Unit Demand 7,882
Actual Industry Unit Sales 7,882
Segment % of Total Industry 30.7%

Next Year’s Segment Growth Rate 9.8%

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 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
Agape 21% 485 3/20/2014 4.1 10.9 $33.00 21000 2.19 $700 42% $700 34% 19
Dune 18% 408 11/2/2014 4.9 9.8 $34.50 19000 1.88 $1,100 55% $1,263 44% 37
Buddy 16% 358 11/18/2014 4.7 9.6 $34.00 19000 1.85 $750 44% $750 36% 34
Fume 15% 349 12/10/2014 4.7 9.6 $34.50 19000 1.82 $1,000 52% $1,175 42% 37
Egg 12% 280 12/24/2015 4.0 11.0 $34.50 19000 3.60 $900 49% $725 35% 6
Cure 9% 210 7/17/2015 4.0 11.0 $22.50 19000 3.60 $700 42% $700 32% 5
Able 3% 63 4/17/2014 5.7 14.2 $24.50 19000 2.40 $1,000 58% $1,000 34% 2
Baker 2% 50 3/17/2014 5.7 14.3 $25.50 17500 2.45 $2,000 82% $1,300 36% 0
Daze 1% 31 6/11/2014 6.1 14.0 $29.50 17800 2.33 $1,100 61% $1,330 44% 1
Fast 1% 26 3/3/2014 5.6 14.5 $29.50 17500 2.46 $1,100 61% $1,175 42% 0
Eat 1% 23 3/17/2014 5.6 14.5 $27.50 16500 2.44 $1,050 60% $1,015 35% 0
Cake 1% 14 7/1/2015 5.5 14.5 $26.50 17500 4.10 $1,200 65% $1,200 32% 0

CAPSTONE® COURIER Page 9

Market Share C59351 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 7,882 10,197 3,069 2,239 2,299 25,686 Units Demanded 7,882 10,197 3,069 2,239 2,299 25,686
% of Market 30.7% 39.7% 11.9% 8.7% 8.9% 100.0% % of Market 30.7% 39.7% 11.9% 8.7% 8.9% 100.0%

Able 18.9% 0.2% 2.7% 6.1% Able 18.8% 0.2% 2.6% 6.0%
Acre 1.2% 17.2% 7.2% Acre 1.3% 17.5% 7.3%
Adam 16.3% 2.0% Adam 20.8% 2.5%
Aft 1.1% 20.7% 1.9% Aft 1.1% 22.2% 2.1%
Agape 0.1% 21.1% 1.9% Agape 0.2% 23.7% 2.2%
Total 20.3% 17.2% 17.5% 20.9% 23.8% 19.1% Total 20.3% 17.5% 21.9% 22.4% 26.3% 20.1%

Baker 21.6% 0.2% 2.2% 6.9% Baker 21.5% 0.2% 2.1% 6.8%
Bead 1.0% 16.8% 7.0% Bead 1.3% 21.0% 8.7%
Bid 13.2% 1.6% Bid 12.9% 1.5%
Bold 0.5% 18.7% 1.7% Bold 0.5% 20.2% 1.8%
Buddy 15.6% 1.4% Buddy 15.1% 1.4%
Total 22.6% 16.9% 13.9% 18.8% 17.8% 18.5% Total 22.8% 21.1% 13.6% 20.3% 17.2% 20.3%

Cake 8.2% 0.7% 0.1% 0.6% 2.8% Cake 8.1% 0.3% 0.6% 2.7%
Cedar 1.2% 17.1% 7.2% Cedar 1.3% 18.1% 7.6%
Cid 10.5% 1.3% Cid 12.5% 1.5%
Coat 0.9% 13.2% 1.3% Coat 0.9% 13.8% 1.3%
Cure 0.4% 9.1% 1.0% Cure 0.5% 8.8% 0.9%
Total 9.9% 17.8% 11.6% 13.3% 9.7% 13.5% Total 9.9% 18.4% 13.6% 13.9% 9.4% 14.0%

Daze 12.8% 1.7% 1.4% 4.3% Daze 12.8% 1.4% 1.3% 4.2%
Dell 1.1% 15.0% 6.3% Dell 1.1% 13.4% 5.6%
Dixie 20.4% 2.4% Dixie 18.4% 2.2%
Dot 1.4% 17.7% 1.7% Dot 1.3% 16.3% 1.6%
Dune 17.7% 1.6% Dune 17.2% 1.5%
Total 13.9% 15.0% 23.6% 17.7% 19.1% 16.3% Total 13.8% 13.4% 21.2% 16.4% 18.5% 15.2%

Eat 16.1% 0.5% 0.3% 1.0% 5.3% Eat 16.0% 0.3% 1.0% 5.1%
Ebb 1.1% 18.9% 7.8% Ebb 1.0% 17.4% 7.2%
Echo 13.0% 1.5% Echo 11.5% 1.4%
Edge 0.9% 12.1% 1.1% Edge 0.8% 11.2% 1.1%
Egg 12.2% 1.1% Egg 11.8% 1.1%
Total 17.1% 19.5% 14.1% 12.1% 13.2% 16.9% Total 17.1% 17.5% 12.5% 11.2% 12.7% 15.8%

Fast 15.4% 0.8% 1.1% 4.9% Fast 15.4% 0.7% 1.1% 4.9%
Feat 0.8% 13.8% 5.7% Feat 0.8% 12.2% 5.1%
Fist 17.2% 2.1% Fist 15.4% 1.8%
Foam 1.3% 17.1% 1.6% Foam 1.1% 15.8% 1.5%
Fume 15.2% 1.4% Fume 14.7% 1.3%
Total 16.3% 13.8% 19.2% 17.2% 16.3% 15.7% Total 16.2% 12.2% 17.2% 15.9% 15.8% 14.7%

CAPSTONE® COURIER Page 10

Perceptual Map C59351 Round: 1Dec. 31, 2014

Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 5.7 14.2 4/17/2014 Baker 5.7 14.3 3/17/2014 Cake 5.5 14.5 7/1/2015
Acre 3.0 17.0 5/25/2009 Bead 3.0 17.0 5/25/2009 Cedar 3.0 17.0 5/25/2009
Adam 8.1 12.0 3/18/2014 Bid 8.0 12.0 5/11/2015 Cid 8.0 12.0 4/26/2015
Aft 9.5 15.5 3/18/2014 Bold 10.0 15.5 5/3/2014 Coat 9.4 15.5 8/10/2015
Agape 4.1 10.9 3/20/2014 Buddy 4.7 9.6 11/18/2014 Cure 4.0 11.0 7/17/2015

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 C59351 Round: 1Dec. 31, 2014

HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie Ferris

Needed Complement 761 782 536 686 681 661
Complement 761 782 536 686 681 661
1st Shift Complement 700 712 475 629 595 587
2nd Shift Complement 61 70 61 57 86 74

Overtime Percent 0.0% 0.1% 0.0% 0.0% 0.1% 0.0%
Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
New Employees 137 160 54 69 68 66
Separated Employees 0 0 164 14 19 39
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 $137 $160 $54 $69 $68 $66
Separation Cost $0 $0 $820 $70 $95 $195
Training Cost $0 $0 $0 $0 $0 $0
Total HR Admin Cost $137 $160 $874 $139 $163 $261

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 C59351 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 C59351 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 $15,395 14.0% $3,434
Account Receivable $10,462 9.5% $8,307
Inventory $1,003 0.9% $8,617
Total Current Assets $26,860 24.4% $20,358

Plant & Equipment $128,600 117.0% $113,800
Accumulated Depreciation ($45,307) -41.1% ($37,933)
Total Fixed Assets $83,293 75.6% $75,867
Total Assets $110,153 100.0% $96,225
LIABILITIES & OWNER’S
EQUITY

Accounts Payable $7,062 6.4% $6,583
Current Debt $2,500 2.3% $0
Long Term Debt $46,700 42.4% $41,700
Total Liabilities $56,262 51.1% $48,283

Common Stock $18,860 17.1% $18,360
Retained Earnings $35,031 31.8% $29,582
Total Equity $53,891 48.9% $47,942
Total Liab. & O. Equity $110,153 100.0% $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) $5,449 $4,189
Depreciation $8,573 $7,587
Extraordinary gains/losses/writeoffs $60 $0
Accounts Payable $479 $3,583
Inventory $7,615 ($8,617)
Accounts Receivable ($2,154) ($307)

Net cash from operation $20,021 $6,434
Cash Flows from Investing Activities
Plant Improvements ($16,060) $0
Cash Flows from Financing Activities
Dividends Paid $0 ($4,000)
Sales of Common Stock $500 $0
Purchase of Common Stock $0 $0
Cash from long term debt $5,000 $0
Retirement of long term debt $0 $0
Change in current debt(net) $2,500 $0

Net Cash from financing activities $8,000 ($4,000)
Net Change in cash position $11,961 $2,434
Closing cash position $15,395 $3,434

Annual Report Page 14

Annual Report Andrews C59351 Round: 1Dec. 31, 2014

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

Total
Common

Size
Sales $38,250 $36,919 $19,000 $16,697 $16,421 $0 $0 $0 $127,286 100.0%

Variable Costs:
Direct Labor $12,192 $13,775 $4,470 $4,441 $4,440 $0 $0 $0 $39,318 30.9%
Direct Material $18,070 $13,589 $7,914 $7,883 $6,766 $0 $0 $0 $54,222 42.6%
Inventory Carry $90 $0 $2 $0 $28 $0 $0 $0 $120 0.1%
Total Variable $30,352 $27,365 $12,386 $12,324 $11,234 $0 $0 $0 $93,660 73.6%

Contribution Margin $7,898 $9,554 $6,614 $4,373 $5,187 $0 $0 $0 $33,626 26.4%

Period Costs:
Depreciation $3,120 $3,173 $840 $720 $720 $0 $0 $0 $8,573 6.7%
SG&A: R&D $295 $0 $213 $213 $219 $0 $0 $0 $940 0.7%
Promotions $1,000 $900 $700 $700 $700 $0 $0 $0 $4,000 3.1%
Sales $1,000 $900 $700 $700 $700 $0 $0 $0 $4,000 3.1%
Admin $309 $298 $153 $135 $133 $0 $0 $0 $1,028 0.8%
Total Period $5,724 $5,272 $2,607 $2,468 $2,472 $0 $0 $0 $18,542 14.6%

Net Margin $2,175 $4,283 $4,007 $1,905 $2,715 $0 $0 $0 $15,085 11.9%

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 $335 0.3%
EBIT $14,750 11.6%
Short Term Interest $235 0.2%
Long Term Interest $5,961 4.7%
Taxes $2,994 2.4%
Profit Sharing $111 0.1%
Net Profit $5,449 4.3%

Annual Report Page 15

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