Round: 1

Dec. 31, 2013

C52065

Andrews
Maneesh Bagla
Joshua Harrison
Xin Lu
zahra Rouhollahi
Lauren Thomson

Baldwin
Kiel Miller
Ramya Narayanan
Holly Nichols
Shan Zhu

Chester
Mihir Ghael
Glyn Gracias
Jainab Khatun
Pavel Komolov
Michael Rudzki

Digby
Pawanjot Bajwa
Noelle Harvey
Jon Mains
Ralph Kurt McFee
Haley Shoemaker

Erie
Alfonso Maria III Cuyegkeng
Marko Gasic
Evguenia Hart
Damanpreet Singh
Marty Stanowich

Ferris

Selected Financial Statistics

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

CAPSTONE COURIER

Andrews
2.9%
1.13
3.3%

Baldwin
2.3%
1.09
2.5%

Chester
-1.5%
1.07
-1.6%

Digby
-0.6%
1.02
-0.6%

Erie
-3.6%
0.76
-2.7%

Ferris
1.3%
1.07
1.4%

1.9

2.0

2.4

2.1

2.6

2.0

6.3%
$0
$117,054,712
$10,770,829
$3,437,697
$7,626,205
14.8%
30.5%

5.2%
$0
$129,185,920
$11,309,332
$2,996,660
$7,185,167
16.0%
30.9%

-3.8%
$13,037,740
$130,166,948
$5,306,154
($1,939,756)
$2,248,751
18.2%
29.3%

-1.2%
$0
$132,929,914
$6,332,193
($741,104)
$3,447,404
14.0%
26.1%

-7.1%
$7,823,205
$96,036,427
$2,885,619
($3,475,318)
$713,190
17.4%
30.4%

2.8%
$0
$99,549,048
$7,215,583
$1,280,683
$5,469,191
20.2%
34.7%

Page 1

Stock & Bonds

Round: 1
Dec. 31, 2013

C52065
Stock Market Summary

Company
Andrews
Baldwin
Chester
Digby
Erie
Ferris

Close

Change

Shares

$37.18
$36.55
$21.01
$30.64
$20.60
$31.44

$2.92
$2.30
($13.24)
($3.62)
($13.65)
($2.81)

2,087,582
2,204,358
2,128,453
2,399,957
2,131,373
2,000,000

MarketCap
($M)
$78
$81
$45
$74
$44
$63

Book Value

EPS

Dividend

Yield

P/E

$26.05
$26.28
$23.68
$25.38
$22.97
$22.69

$1.65
$1.36
($0.91)
($0.31)
($1.63)
$0.64

$0.00
$0.00
$0.00
$0.00
$0.00
$1.92

0.0%
0.0%
0.0%
0.0%
0.0%
6.1%

22.6
26.9
-23.1
-99.5
-12.6
49.0

Bond Market Summary

Company
Andrews

Series#

Face

Yield

Close$

S&P Company
Digby
B
B
B

11.0S2014
12.5S2016
14.0S2018

$3,960,267
$13,900,000
$20,850,000

11.0%
12.1%
12.6%

100.00
103.67
111.09

11.0S2014
12.5S2016
14.0S2018
10.8S2023

$6,950,000
$13,900,000
$20,850,000
$4,000,000

11.0%
12.2%
12.8%
11.2%

99.64
102.67
109.51
96.53

B Erie
B
B
B

11.0S2014
12.5S2016
14.0S2018
10.8S2023

$6,950,000
$13,900,000
$20,850,000
$4,400,000

11.1%
12.4%
13.1%
11.7%

99.02
100.96
106.83
92.69

CC Ferris
CC
CC
CC

Baldwin

Chester

Series#

Face

Yield

Close$

S&P

11.0S2014
12.5S2016
14.0S2018
10.8S2023

$6,950,000
$13,900,000
$20,850,000
$18,994,000

11.1%
12.2%
12.9%
11.3%

99.46
102.18
108.74
95.41

CCC
CCC
CCC
CCC

11.0S2014
12.5S2016
14.0S2018
10.8S2023

$6,950,000
$13,900,000
$20,850,000
$15,000,000

11.1%
12.5%
13.2%
11.9%

98.75
100.24
105.71
91.11

CC
CC
CC
CC

12.5S2016
14.0S2018

$9,747,013
$20,850,000

12.2%
12.8%

102.67
109.51

B
B

Next Year's Prime Rate 7.50%

CAPSTONE COURIER

Page 2

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

C52065

Round: 1
Dec. 31, 2013

Andrews

Baldwin

Chester

Digby

Erie

Ferris

$3,438

$2,997

($1,940)

($741)

($3,475)

$1,281

$7,347
$70

$7,101
$316

$8,760
$0

$7,673
$365

$8,620
$30

$6,387
$637

$531
($7,061)
($1,314)
$3,011

$527
$1,996
($12,929)
$9

$1,408
($7,160)
($13,090)
($12,021)

$1,702
($4,070)
($2,618)
$2,311

$7,036
($19,358)
($7,479)
($14,627)

($1,270)
($729)
$125
$6,431

$2,340

$644

($17,600)

($14,365)

($16,130)

$9,740

$0
$3,000
$0
$0
($3,000)
$0
$3,000
$0

$0
$7,000
$0
$4,000
$0
$0
$8,000
$0

$0
$4,400
$0
$4,400
$0
$0
$4,350
$13,038

$0
$13,700
$0
$18,994
$0
$0
$0
$0

$0
$4,500
$0
$15,000
$0
$0
$0
$7,823

($3,835)
$0
$0
$0
($11,347)
$0
$11,359
$0

$3,000

$19,000

$26,188

$32,694

$27,323

($3,823)

Net change in cash position

Balance Sheet Survey
Cash
Accounts Receivable
Inventory
Total Current Assets

$8,351
Andrews
$11,785
$9,621
$15,678
$37,084

$19,653
Baldwin
$23,087
$21,236
$6,621
$50,944

($3,434)
Chester
$0
$21,397
$15,777
$37,175

$20,640
Digby
$24,073
$10,926
$12,688
$47,687

($3,434)
Erie
$0
$15,787
$27,975
$43,762

$12,347
Ferris
$15,781
$8,182
$9,347
$33,310

Plant and equipment

Accumulated Depreciation
Total Fixed Assets

$110,200
($44,080)
$66,120

$106,520
($38,715)
$67,805

$131,400
($46,693)
$84,707

$120,500
($38,307)
$82,193

$129,300
($45,953)
$83,347

$95,800
($36,453)
$59,347

Total Assets

$103,204

$118,749

$121,881

$129,880

$127,109

$92,656

Account Payable
CurrentDebt
Long Term Debt
Total Liabilities

$7,114
$3,000
$38,710
$48,825

$7,111
$8,000
$45,700
$60,811

$7,992
$17,388
$46,100
$71,479

$8,285
$0
$60,694
$68,979

$13,619
$7,823
$56,700
$78,142

$5,313
$11,359
$30,597
$47,269

Common Stock
Retained Earnings
Total Equity

$21,360
$33,020
$54,380

$25,360
$32,579
$57,939

$22,760
$27,642
$50,402

$32,060
$28,841
$60,901

$22,860
$26,107
$48,967

$18,360
$27,028
$45,387

Total Liabilities & Owners'' Equity

$103,204

$118,749

$121,881

$129,880

$127,109

$92,656

Income Statement Survey

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

Andrews
$117,055
$81,380
$7,347
$17,292
$265
$10,771
$5,374
$1,889
$70
$3,438

Baldwin
$129,186
$89,304
$7,101
$20,605
$866
$11,309
$6,605
$1,647
$61
$2,997

Chester
$130,167
$91,964
$8,760
$23,697
$440
$5,306
$8,290
($1,044)
$0
($1,940)

Digby
$132,930
$98,258
$7,673
$18,667
$2,000
$6,332
$7,472
($399)
$0
($741)

Erie
$96,036
$66,848
$8,620
$16,677
$1,005
$2,886
$8,232
($1,871)
$0
($3,475)

Ferris
$99,549
$65,038
$6,387
$20,101
$807
$7,216
$5,205
$704
$26
$1,281

Cash flows from investing activities

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

CAPSTONE COURIER

Page 3

Name
Able
Acre
Adam
Aft
Agape

Primary
Segment
Trad
Low
High
Pfmn
Size

Units
Sold
1,200
1,645
521
431
398

Unit
Inven
tory
376
176
163
23
60

Baker
Bead
Bid
Bold
Buddy

Trad
Low
High
Pfmn
Size

1,517
1,831
492
427
420

Cake
Cedar
Cid
Coat
Cure

Trad
Low
High
Pfmn
Size

Daze
Dell
Dixie
Dot
Dune
Doobie

Price
$29.00
$20.50
$39.50
$33.50
$34.00

Material
Cost
$10.85
$7.05
$15.76
$15.41
$12.94

Labor
Cost
$7.85
$7.43
$8.97
$8.97
$8.97

Contr.
Marg.
32%
27%
35%
26%
33%

2nd
Shift
&
Overtime
0%
29%
0%
0%
0%

14.4
17.0
11.7
15.5
10.5

$27.00
$21.40
$39.75
$34.85
$34.75

$11.05
$7.05
$15.75
$15.44
$13.02

$7.85
$7.45
$8.97
$9.13
$9.15

27%
31%
37%
28%
35%

0%
29%
0%
4%
4%

5.2
5.5
3.5
3.0
3.0

1,650 96%
1,400 128%
480 95%
400 103%
350 103%

5.8
3.0
9.2
10.2
4.3

14.2
17.0
10.9
15.5
10.1

$27.00
$21.50
$39.00
$34.00
$34.00

$10.95
$7.05
$16.02
$15.64
$13.28

$7.85
$7.85
$8.97
$8.97
$8.97

28%
28%
34%
27%
34%

0%
54%
0%
0%
0%

5.0
6.0
3.0
4.0
4.0

1,800 87%
1,400 153%
900 67%
600 70%
600 74%

17500
14000
23000
27000
21000
0

5.4
3.0
8.1
9.9
4.4
0.0

14.5
17.0
12.0
15.5
10.1
0.0

$26.50
$20.00
$38.00
$34.00
$34.00
$0.00

$10.60
$7.05
$14.90
$15.74
$13.91
$0.00

$8.06
$8.13
$9.35
$9.44
$9.12
$0.00

27%
23%
34%
23%
31%
0%

6%
79%
10%
13%
4%
0%

6.0
7.0
3.0
3.0
3.0
3.0

1,500
1,400
450
400
400
300

105%
177%
109%
111%
103%
0%

2.4
5.6
1.5
1.9
1.9

14000
12000
22000
27000
19000

5.6
3.0
8.9
10.4
4.8

14.4
17.0
11.1
15.3
9.8

$28.00
$22.50
$39.50
$34.50
$34.50

$9.70
$6.45
$15.46
$16.13
$13.63

$8.43
$7.46
$9.64
$9.64
$9.64

29%
35%
35%
22%
24%

0%
7%
0%
0%
0%

5.0
6.0
3.0
3.0
3.0

1,800
1,550
800
600
600

74%
99%
69%
84%
84%

2.5
5.6
1.4
1.8
1.8

17500
12000
25000
26000
19000

5.6
3.0
9.1
10.7
5.1

14.5
17.0
11.0
14.8
9.8

$29.50
$22.00
$39.50
$34.50
$34.50

$10.70
$6.45
$16.51
$16.18
$13.72

$7.85
$6.94
$9.44
$8.97
$8.97

35%
37%
35%
28%
34%

0%
7%
12%
0%
0%

4.0
5.0
4.0
4.0
4.0

1,300 84%
1,400 106%
400 111%
500 59%
500 50%

Revision Date
3/17/2013
5/24/2008
9/19/2013
1/29/2013
4/4/2013

Age
Dec.31
2.4
5.6
1.5
3.5
2.2

MTBF
17500
14000
23000
27000
19000

Pfmn
Coord
5.7
3.0
8.9
9.4
4.0

Size
Coord
14.3
17.0
11.1
15.5
10.5

256
0
4
62
4

3/19/2013
5/24/2008
4/19/2013
4/16/2013
4/16/2013

2.4
5.6
1.7
2.1
2.2

18500
14000
25000
26000
19000

5.6
3.0
8.3
9.9
4.3

1,455
1,918
440
455
500

299
260
204
41
6

4/4/2013
5/24/2008
12/2/2013
6/11/2013
6/29/2013

2.4
5.6
1.4
2.0
2.1

17500
14000
23000
26000
19000

Trad
Low
High
Pfmn
Size

1,520
2,495
436
396
374
0

243
20
93
127
100
0

3/3/2013
5/24/2008
2/18/2013
5/3/2013
8/10/2013
3/5/2014

2.5
5.6
1.8
2.1
2.0
0.0

Eat
Ebb
Echo
Edge
Egg

Trad
Low
High
Pfmn
Size

1,046
1,160
467
386
257

479
261
126
198
312

4/24/2013
1/29/2013
10/3/2013
8/18/2013
10/30/2013

Fast
Feat
Fist
Foam
Fume

Trad
Low
High
Pfmn
Size

1,156
1,382
399
315
244

122
142
87
59
66

3/3/2013
1/29/2013
12/8/2013
11/21/2013
12/14/2013

CAPSTONE COURIER

Round: 1
Dec. 31, 2013

C52065

Production Analysis

Auto
mation
Next
Round
4.0
5.0
3.0
3.0
3.0

Capacity
Next Plant
Round Utiliz.
1,800 77%
1,400 127%
900 72%
400 94%
600 66%

Page 4

Traditional Segment Analysis

C52065

Round: 1
Dec. 31, 2013

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

Units
Market

Cust.

Sold to Revision

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Daze

18%

1,456

3/3/2013

5.4

Baker

18%

1,455

3/19/2013

5.6

Cake

17%

1,403

4/4/2013

Able

14%

1,147

Fast

14%

Eat

13%

Dell

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

14.5

$26.50

17500

2.46

$1,700

77%

$2,500

70%

47

14.4

$27.00

18500

2.44

$1,500

73%

$1,900

67%

49

5.8

14.2

$27.00

17500

2.42

$1,500

73%

$3,000

71%

51

3/17/2013

5.7

14.3

$29.00

17500

2.44

$1,500

73%

$2,050

64%

39

1,118

3/3/2013

5.6

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

63%

37

1,027

4/24/2013

5.6

14.4

$28.00

14000

2.39

$1,200

65%

$1,700

62%

36

1%

111

5/24/2008

3.0

17.0

$20.00

14000

5.60

$1,700

75%

$2,500

70%

Cedar

1%

93

5/24/2008

3.0

17.0

$21.50

14000

5.60

$1,500

71%

$2,000

71%

Bead

1%

87

5/24/2008

3.0

17.0

$21.40

14000

5.60

$1,500

71%

$2,300

67%

Acre

1%

82

5/24/2008

3.0

17.0

$20.50

14000

5.60

$900

53%

$900

64%

Feat

1%

46

1/29/2013

3.0

17.0

$22.00

12000

5.60

$1,600

73%

$1,732

63%

Ebb

1%

41

1/29/2013

3.0

17.0

$22.50

12000

5.60

$1,100

59%

$1,400

62%

CAPSTONE COURIER

Date

Stock

YES

Page 5

Low End Segment Analysis

C52065

Round: 1
Dec. 31, 2013

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

Units
Market

Cust.

Sold to Revision

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Dell

24%

2,384

5/24/2008

3.0

Cedar

18%

1,826

5/24/2008

3.0

Bead

17%

1,744

5/24/2008

Acre

16%

1,563

Feat

13%

Ebb

11%

Daze

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

17.0

$20.00

14000

5.60

$1,700

75%

$2,500

55%

26

17.0

$21.50

14000

5.60

$1,500

71%

$2,000

50%

20

3.0

17.0

$21.40

14000

5.60

$1,500

71%

$2,300

53%

21

5/24/2008

3.0

17.0

$20.50

14000

5.60

$900

53%

$900

33%

17

1,335

1/29/2013

3.0

17.0

$22.00

12000

5.60

$1,600

73%

$1,732

45%

15

1,119

1/29/2013

3.0

17.0

$22.50

12000

5.60

$1,100

59%

$1,400

41%

12

0%

26

3/3/2013

5.4

14.5

$26.50

17500

2.46

$1,700

77%

$2,500

55%

Baker

0%

3/19/2013

5.6

14.4

$27.00

18500

2.44

$1,500

73%

$1,900

53%

Eat

0%

4/24/2013

5.6

14.4

$28.00

14000

2.39

$1,200

65%

$1,700

41%

CAPSTONE COURIER

Date

Stock

YES

Page 6

High End Segment Analysis

C52065

Round: 1
Dec. 31, 2013

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
1. Ideal Position

43%

Ideal Age = 0.0

29%

MTBF 20000-25000

19%

2. Age
3. Reliability

Importance

Pfmn 9.8 Size 10.2

4. Price

$29.50 - 39.50

9%

Top Products in High End Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Adam

18%

521

9/19/2013

8.9

Bid

17%

492

4/19/2013

8.3

Echo

16%

467

10/3/2013

Cid

15%

440

Dixie

15%

Fist

13%

Foam

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

11.1

$39.50

23000

1.49

$1,500

68%

$1,650

57%

27

11.7

$39.75

25000

1.70

$1,500

68%

$1,950

60%

22

8.9

11.1

$39.50

22000

1.47

$1,400

66%

$1,600

55%

25

12/2/2013

9.2

10.9

$39.00

23000

1.38

$1,250

62%

$2,500

65%

35

436

2/18/2013

8.1

12.0

$38.00

23000

1.78

$1,000

54%

$1,000

46%

11

399

12/8/2013

9.1

11.0

$39.50

25000

1.38

$1,500

68%

$1,732

58%

37

1%

28

11/21/2013

10.7

14.8

$34.50

26000

1.80

$1,400

64%

$1,567

58%

Aft

1%

26

1/29/2013

9.4

15.5

$33.50

27000

3.50

$1,000

52%

$1,500

57%

Able

1%

24

3/17/2013

5.7

14.3

$29.00

17500

2.44

$1,500

73%

$2,050

57%

Edge

1%

22

8/18/2013

10.4

15.3

$34.50

27000

1.93

$1,400

64%

$1,300

55%

Coat

1%

19

6/11/2013

10.2

15.5

$34.00

26000

2.03

$1,250

60%

$3,150

65%

Fast

1%

19

3/3/2013

5.6

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

58%

CAPSTONE COURIER

Page 7

Performance Segment Analysis

C52065

Round: 1
Dec. 31, 2013

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

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Coat

19%

436

6/11/2013

10.2

Bold

18%

412

4/16/2013

9.9

Aft

18%

405

1/29/2013

Dot

17%

382

Edge

16%

Foam

13%

Baker

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

15.5

$34.00

26000

2.03

$1,250

60%

$3,150

57%

38

15.5

$34.85

26000

2.10

$1,400

64%

$2,650

53%

33

9.4

15.5

$33.50

27000

3.50

$1,000

52%

$1,500

41%

28

5/3/2013

9.9

15.5

$34.00

27000

2.08

$1,200

58%

$1,200

36%

34

364

8/18/2013

10.4

15.3

$34.50

27000

1.93

$1,400

64%

$1,300

37%

39

287

11/21/2013

10.7

14.8

$34.50

26000

1.80

$1,400

64%

$1,567

41%

30

0%

3/19/2013

5.6

14.4

$27.00

18500

2.44

$1,500

73%

$1,900

53%

Cake

0%

4/4/2013

5.8

14.2

$27.00

17500

2.42

$1,500

73%

$3,000

57%

Fast

0%

3/3/2013

5.6

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

41%

Able

0%

3/17/2013

5.7

14.3

$29.00

17500

2.44

$1,500

73%

$2,050

41%

Daze

0%

3/3/2013

5.4

14.5

$26.50

17500

2.46

$1,700

77%

$2,500

36%

CAPSTONE COURIER

Page 8

Size Segment Analysis

C52065

Round: 1
Dec. 31, 2013

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
1. Ideal Position

43%

Ideal Age = 1.5

29%

MTBF 16000-21000

19%

2. Age
3. Reliability

Importance

Pfmn 4.7 Size 9.6

4. Price

$24.50 - 34.50

9%

Top Products in Size Segment

Units
Market

Cust.

Sold to Revision

Stock

Pfmn

Size

Out

Coord

Coord

Name

Share

Seg

Date

Cure

21%

499

6/29/2013

4.3

Buddy

18%

419

4/16/2013

4.3

Agape

17%

398

4/4/2013

Dune

16%

373

Egg

11%

Fume

10%

Baker

List

Age

Promo Aware-

Cust.
Sales Access-

Dec.
Cust.

Price

MTBF

Dec.31

Budget

ness

Budget

ibility

Survey

10.1

$34.00

19000

2.05

$1,250

60%

$3,000

62%

42

10.5

$34.75

19000

2.15

$1,500

66%

$2,250

56%

30

4.0

10.5

$34.00

19000

2.17

$1,250

60%

$1,800

53%

24

8/10/2013

4.4

10.1

$34.00

21000

1.99

$1,200

58%

$1,200

46%

40

257

10/30/2013

4.8

9.8

$34.50

19000

1.88

$1,000

52%

$1,100

42%

39

243

12/14/2013

5.1

9.8

$34.50

19000

1.82

$1,400

64%

$1,567

49%

40

1%

35

3/19/2013

5.6

14.4

$27.00

18500

2.44

$1,500

73%

$1,900

56%

Cake

1%

33

4/4/2013

5.8

14.2

$27.00

17500

2.42

$1,500

73%

$3,000

62%

Daze

1%

31

3/3/2013

5.4

14.5

$26.50

17500

2.46

$1,700

77%

$2,500

46%

Able

1%

28

3/17/2013

5.7

14.3

$29.00

17500

2.44

$1,500

73%

$2,050

53%

Fast

1%

18

3/3/2013

5.6

14.5

$29.50

17500

2.46

$1,600

75%

$1,650

49%

Eat

1%

13

4/24/2013

5.6

14.4

$28.00

14000

2.39

$1,200

65%

$1,700

42%

CAPSTONE COURIER

Page 9

Market Share

C52065

Actual Market Share in Units

Trad
8,067
31.4%

Low
10,009
39.0%

Able
Acre
Adam
Aft
Agape
Total

14.2%
1.0%

15.6%

15.2%

15.6%

Baker
Bead
Bid
Bold
Buddy
Total

18.0%
1.1%

17.4%

19.1%

17.5%

Cake
Cedar
Cid
Coat
Cure
Total

17.4%
1.1%

18.2%

18.5%

18.2%

16.1%

Daze
Dell
Dixie
Dot
Dune
Total

18.0%
1.4%

0.3%
23.8%

0.2%

19.4%

24.1%

Eat
Ebb
Echo
Edge
Egg
Total

12.7%
0.5%

11.2%

13.2%

11.2%

Fast
Feat
Fist
Foam
Fume
Total

13.9%
0.6%

13.3%

Industry Unit Sales

% of Market

High
2,967
11.6%
0.8%
17.5%
0.9%

1.2%

17.6%

19.2%

17.7%

0.5%

0.2%

1.5%

17.7%

17.9%
18.1%

0.6%
14.8%
0.6%

14.7%
0.5%
15.4%

17.8%
19.3%
1.4%

19.0%
19.1%

21.3%
22.7%
1.3%

16.7%
16.7%

15.9%
17.2%
0.6%

15.7%
0.7%
16.6%

15.9%
15.9%

0.6%
13.4%
1.0%

CAPSTONE COURIER

Size
2,347
9.1%

17.0%
18.1%

16.6%
0.5%

14.4%

Pfmn
2,294
8.9%

13.3%

15.1%

10.9%
11.5%
0.8%

12.5%
12.6%

10.4%
11.1%

Round: 1
Dec. 31, 2013

Potential Market Share in Units

Total
25,684 Units Demanded
100.0% % of Market

Trad
8,067
31.4%

Low
10,009
39.0%

15.2%

4.7%
6.4%
2.0%
1.7%
1.5%
16.3%

Able
Acre
Adam
Aft
Agape
Total

14.2%
1.0%

15.2%

15.2%

5.9%
7.1%
1.9%
1.7%
1.6%
18.2%

Baker
Bead
Bid
Bold
Buddy
Total

18.0%
1.2%

18.8%

19.2%

18.8%

5.7%
7.5%
1.7%
1.8%
2.0%
18.6%

Cake
Cedar
Cid
Coat
Cure
Total

17.4%
1.1%

17.8%

18.5%

5.9%
9.7%
1.7%
1.5%
1.5%
20.3%

Daze
Dell
Dixie
Dot
Dune
Total

18.0%
1.4%

19.4%

24.1%

4.1%
4.5%
1.8%
1.5%
1.0%
12.9%

Eat
Ebb
Echo
Edge
Egg
Total

12.7%
0.5%

10.9%

13.2%

10.9%

4.5%
5.4%
1.5%
1.2%
0.9%
13.6%

Fast
Feat
Fist
Foam
Fume
Total

13.8%
0.6%

13.0%

14.4%

High
2,967
11.6%

Pfmn
2,294
8.9%

0.7%

Size
2,347
9.1%

Total
25,684
100.0%

1.2%

4.7%
6.3%
1.9%
1.7%
1.5%
16.0%

16.4%
0.8%

17.6%

17.9%

17.7%

16.7%
17.8%

0.5%

0.2%

1.5%

21.8%
0.5%

17.9%

22.9%

18.1%

0.5%

19.2%
20.6%
1.4%

13.9%
0.6%

19.0%

17.8%

15.1%

19.1%

0.3%
23.9%

0.2%

20.8%
22.2%
1.3%

13.7%
0.5%

16.7%

14.3%

16.7%

15.6%
16.9%
0.6%

14.7%
0.7%

15.9%

15.6%

15.9%

0.6%

13.0%

10.8%
11.4%
0.8%

12.6%
0.9%

12.5%

14.2%

12.6%

10.2%
11.0%

5.9%
7.7%
2.5%
1.7%
1.8%
19.5%
5.7%
7.3%
1.6%
1.8%
1.9%
18.2%
5.9%
9.7%
1.6%
1.5%
1.4%
20.2%
4.1%
4.4%
1.7%
1.5%
1.0%
12.7%
4.5%
5.3%
1.5%
1.2%
0.9%
13.4%

Page 10

Perceptual Map

C52065

Andrews
Name
Able
Acre
Adam
Aft
Agape

Pfmn
5.7
3.0
8.9
9.4
4.0

Name
Daze
Dell
Dixie
Dot
Dune

Pfmn
5.4
3.0
8.1
9.9
4.4

Size
14.3
17.0
11.1
15.5
10.5

Baldwin
Revised
3/17/2013
5/24/2008
9/19/2013
1/29/2013
4/4/2013

Name
Baker
Bead
Bid
Bold
Buddy

Pfmn
5.6
3.0
8.3
9.9
4.3

Revised
3/3/2013
5/24/2008
2/18/2013
5/3/2013
8/10/2013

Name
Eat
Ebb
Echo
Edge
Egg

Pfmn
5.6
3.0
8.9
10.4
4.8

Digby

CAPSTONE COURIER

Size
14.5
17.0
12.0
15.5
10.1

Size
14.4
17.0
11.7
15.5
10.5

Chester
Revised
3/19/2013
5/24/2008
4/19/2013
4/16/2013
4/16/2013

Name
Cake
Cedar
Cid
Coat
Cure

Pfmn
5.8
3.0
9.2
10.2
4.3

Revised
4/24/2013
1/29/2013
10/3/2013
8/18/2013
10/30/2013

Name
Fast
Feat
Fist
Foam
Fume

Pfmn
5.6
3.0
9.1
10.7
5.1

Erie
Size
14.4
17.0
11.1
15.3
9.8

Round: 1
Dec. 31, 2013

Size
14.2
17.0
10.9
15.5
10.1

Revised
4/4/2013
5/24/2008
12/2/2013
6/11/2013
6/29/2013

Ferris
Size
14.5
17.0
11.0
14.8
9.8

Revised
3/3/2013
1/29/2013
12/8/2013
11/21/2013
12/14/2013

Page 11

HR/TQM Report

C52065

Round: 1
Dec. 31, 2013

HUMAN RESOURCES SUMMARY

Needed Complement
Complement
1st Shift Complement
2nd Shift Complement

Andrews
770
770
712
57

Baldwin
769
769
704
65

Chester
862
862
753
109

Digby
889
889
695
194

Erie
787
787
773
14

Ferris
594
594
570
24

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

0.0%
10.0%
147
0
$0
0
100.0%

0.0%
10.0%
146
0
$0
0
100.0%

0.0%
10.0%
248
0
$0
0
100.0%

0.1%
10.0%
278
0
$0
0
100.0%

0.0%
10.0%
166
0
$0
0
100.0%

0.0%
10.0%
59
106
$0
0
100.0%

$147
$0
$0
$147

$146
$0
$0
$146

$248
$0
$0
$248

$278
$0
$0
$278

$166
$0
$0
$166

$59
$530
$0
$589

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

$22.05
2,500
2.0%
5.0%

Baldwin

Chester

Digby

Erie

Ferris

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

TQM SUMMARY
Andrews
Process Mgt Budgets Last Year
CPI Systems
Vendor/JIT
Quality Initiative Training
Channel Support Systems
Concurrent Engineering
UNEP Green Programs

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

TQM Budgets Last Year

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

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

$0
$0
$0
$0
$0

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

0.00%
0.00%
0.00%
0.00%
0.00%

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

CAPSTONE COURIER

Page 12

Ethics Report

Round: 1
Dec. 31, 2013

C52065
ETHICS SUMMARY

Other (Fees, Writeoffs, etc.)

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

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

CAPSTONE COURIER

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

Andrews

Baldwin

Chester

Digby

Erie

Ferris

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

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

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

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

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

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

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

Page 13

Annual Report
Annual Report

Erie

C52065

Round: 1
Dec. 31, 2013

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

ASSETS

Cash
Account Receivable
Inventory
Total Current Assets

$43,762

2013
Common
Size
0.0%
12.4%
22.0%
34.4%

$3,434
$8,307
$8,617
$20,358

$83,347
$127,109

102.0%
-36.2%
65.6%
100.0%

$113,800
($37,933)
$75,867
$96,225

$78,142

10.7%
6.2%
44.6%
61.5%

$6,583
$0
$41,700
$48,283

$48,967
$127,109

18.0%
20.5%
38.5%
100.0%

$18,360
$29,582
$47,942
$96,225

$0
$15,787
$27,975

Plant & Equipment

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

$129,300
($45,953)

Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$13,619
$7,823
$56,700

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

$22,860
$26,107

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

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

2012

2013

2012

($3,475)

$4,189

$8,620

$7,587

$30

$0

$7,036

$3,583

($19,358)

($8,617)

($7,479)

($307)

($14,627)

$6,434

($16,130)

$0

Cash Flows from Investing Activities

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

($4,000)
$0

$0

$0

$15,000

$0

$0

$0

$7,823

$0

Net Cash from financing activities

$27,323

($4,000)

Net Change in cash position

($3,434)

$2,434

$0

$3,434

Closing cash position

Annual Report

$0
$4,500

Page 14

Annual Report

Erie

Round: 1
Dec. 31, 2013

C52065

2013 Income Statement

(Product Name)

$0

2013
Total
$96,036

Common
Size
100.0%

$0
$0
$0
$0

$0
$0
$0
$0

$27,926
$35,565
$3,357
$66,848

29.1%
37.0%
3.5%
69.6%

$0

$0

$0

$29,188

30.4%

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0

$8,620
$2,639
$6,100
$7,100
$838
$25,297

9.0%
2.7%
6.4%
7.4%
0.9%
26.3%

$0

$0

$0

$3,891

4.1%

$1,005
$2,886
$1,191
$7,041
($1,871)
$0
($3,475)

1.0%
3.0%
1.2%
7.3%
-1.9%
0.0%
-3.6%

Eat

Ebb

Echo

Edge

Egg

NA

NA

NA

Sales

$29,284

$26,102

$18,436

$13,334

$8,880

$0

$0

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$8,700
$10,970
$1,081
$20,751

$8,640
$7,869
$445
$16,954

$4,465
$7,215
$379
$12,059

$3,670
$6,107
$600
$10,378

$2,451
$3,404
$851
$6,706

$0
$0
$0
$0

Contribution Margin

$8,533

$9,147

$6,377

$2,956

$2,174

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

$3,120
$317
$1,200
$1,700
$256
$6,592

$3,100
$80
$1,100
$1,400
$228
$5,908

$960
$765
$1,400
$1,600
$161
$4,886

$720
$638
$1,400
$1,300
$116
$4,174

$720
$840
$1,000
$1,100
$77
$3,737

Net Margin

$1,941

$3,240

$1,491

($1,218)

($1,563)

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

Annual Report

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

Page 15