Please see the attach file titled ‘homework round 2’ for the questions.
Also see the attached file titled ‘capstone courier’ for the financial information for the Baldwin company
PERFORMANCE MEASURES (
Please view the attached ‘Capstone Carrier’ for the data of the ‘
Baldwin Company
’ in question
)
1. Between the below 8 performance measures, what performance measures should be used by the Baldwin Company stakeholders to assess the company’s performance?
2. What are their relative importance’s to each other?
3.
Prioritize these measures by applying a weight between 0% and 40%. The percentages across all measures must add up to 100%. For example, you might set Profit to 30%, Market share to 20%, ROS to 10%, ROE to 10%, Stock price to 10%, and Market Capitalization to 20%.
The simulation offers 8 performance measures:
1. Cumulative Profit
2. Ending Market Share
3. Average ROS
4. Average Asset Turnover
5. Average ROA
6. Average ROE
7. Ending Stock Price
8. Ending Market Capitalization
Write an explanation for your choices for each performance measure:
1. Is this measure appropriate for evaluating your strategy? For example, if you in every segment, market share is appropriate. If you are in only two segments, it is not appropriate, even if you have highest overall market share at the moment.
2. Why did you prioritize it with the value you gave it? In particular, if you think it is an appropriate measure, why? Likewise, if you think it is marginally appropriate, why?
Round: 2
Dec. 31, 2015
Andrews
Tracy Calhoun
Victoria Carey
Florian Heithier
Keisha High
Baldwin
Joy Atkins
Michal Grygo
Deric Sims
Sean Smith
MILTON WARE
Chester
ARAYA AMDETSYON
Kevin Darrell
Judy-Ann Davis
DELANO MCVAY
Digby Erie
Selected Financial Statistics
Andrews Baldwin Chester Digby Erie
ROS -40.4% -1.3% -13.5% 8.2% 4.6%
Asset Turnover 0.37 0.96 0.66 1.30 0.91
ROA -14.9% -1.2% -8.9% 10.7% 4.2%
Leverage
(Assets/Equity)
-10.2 1.9 7.4 2.0 2.1
ROE -152.4% -2.4% -65.5% 21.1% 8.7%
Emergency Loan $343,049,599 $0 $94,241,651 $0 $0
Sales $135,241,406 $96,058,934 $115,326,373 $192,677,677 $118,689,159
EBIT ($18,090,603) $3,635,841 ($2,138,470) $32,178,555 $16,026,603
Profits ($54,636,942) ($1,246,277) ($15,612,972) $15,735,574 $5,462,417
Cumulative Profit ($80,606,603) $1,746,029 ($19,910,190) $30,484,786 $17,761,077
SG&A / Sales 7.0% 17.2% 14.1% 10.5% 10.4%
Contrib. Margin % 0.7% 29.2% 18.8% 31.4% 31.0%
CAPSTONE® COURIER Page 1
Stock & Bonds C57912 Round: 2Dec. 31, 2015
Stock Market Summary
Company Close Change Shares
MarketCap
($M)
Book Value EPS Dividend Yield P/E
Andrews $1.00 $0.00 2,029,194 $2 ($17.67) ($26.93) $0.00 0.0% 0.0
Baldwin $20.47 ($4.02) 2,269,039 $46 $23.27 ($0.55) $0.00 0.0% -37.3
Chester $1.00 $0.00 2,000,000 $2 $11.92 ($7.81) $0.00 0.0% -0.1
Digby $71.00 $19.80 2,015,280 $143 $37.06 $7.81 $0.04 0.1% 9.1
Erie $46.29 $0.27 2,128,085 $99 $29.53 $2.57 $1.44 3.1% 18.0
Bond Market Summary
Company Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&P
Andrews Chester
12.5S2017 $13,900,000 12.9% 97.05 DDD 12.5S2017 $13,900,000 12.9% 97.05 DDD
14.0S2019 $20,850,000 14.1% 99.13 DDD 14.0S2019 $20,850,000 14.1% 99.13 DDD
Baldwin Digby
12.5S2017 $13,900,000 12.4% 101.02 BB 12.5S2017 $13,828,905 12.4% 100.51 B
14.0S2019 $20,850,000 13.2% 106.39 BB 14.0S2019 $20,850,000 13.3% 105.44 B
11.3S2024 $2,500,000 11.7% 96.79 BB 11.5S2025 $4,651,752 12.0% 96.08 B
Erie
12.5S2017 $13,900,000 12.5% 100.00 CCC
14.0S2019 $20,850,000 13.4% 104.51 CCC
Next Year’s Prime Rate 8.00%
CAPSTONE® COURIER Page 2
Financial Summary C57912 Round: 2Dec. 31, 2015
Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie
CashFlows from operating activities
Net Income(Loss) ($54,637) ($1,246) ($15,613) $15,736 $5,462
Adjustment for non-cash items:
Depreciation $9,547 $7,587 $7,587 $7,833 $8,755
Extraordinary gains/losses/writeoffs $0 ($15) $0 $7 ($539)
Changes in current assets and liablilities
Acounts payable $394 ($3,212) $708 $3,404 ($1,264)
Inventory ($122,974) $16,324 ($44,237) ($957) $9
Accounts Receivable ($2,092) ($50) ($1,123) ($4,327) $1,409
Net cash from operations ($169,763) $19,388 ($52,678) $21,695 $13,832
Cash flows from investing activities
Plant improvements(net) $0 $0 $0 ($25,320) ($15,292)
Cash flows from financing activities
Dividends paid $0 $0 $0 ($80) ($3,055)
Sales of common stock $0 $4,800 $0 $0 $0
Purchase of common stock $0 $0 $0 $0 $0
Cash from long term debt issued $0 $0 $0 $4,652 $5,492
Early retirement of long term debt $0 ($1,300) $0 $0 $0
Retirement of current debt ($173,287) ($7,733) ($41,564) ($11,359) ($11,359)
Cash from current debt borrowing $0 $0 $0 $22,707 $17,345
Cash from emergency loan $343,050 $0 $94,242 $0 $0
Net cash from financing activities $169,763 ($4,233) $52,678 $15,920 $8,424
Net change in cash position $0 $15,155 $0 $12,295 $6,964
Balance Sheet Survey Andrews Baldwin Chester Digby Erie
Cash $0 $15,155 $0 $37,582 $28,643
Accounts Receivable $11,116 $7,895 $14,218 $15,837 $9,755
Inventory $270,086 $16,033 $100,390 $7,560 $8,600
Total Current Assets $281,202 $39,083 $114,608 $60,979 $46,998
Plant and equipment $143,200 $113,800 $113,800 $132,500 $131,318
Accumulated Depreciation ($57,027) ($53,107) ($53,107) ($45,887) ($47,428)
Total Fixed Assets $86,173 $60,693 $60,693 $86,613 $83,890
Total Assets $367,375 $99,777 $175,301 $147,592 $130,888
Account Payable $18,479 $4,093 $15,517 $10,873 $6,644
CurrentDebt $350,000 $5,635 $101,192 $22,707 $21,155
Long Term Debt $34,750 $37,250 $34,750 $39,331 $40,242
Total Liabilities $403,229 $46,977 $151,458 $72,910 $68,041
Common Stock $19,360 $25,660 $18,360 $18,883 $22,747
Retained Earnings ($55,213) $27,140 $5,483 $55,799 $40,100
Total Equity ($35,853) $52,799 $23,843 $74,682 $62,847
Total Liabilities & Owners” Equity $367,375 $99,777 $175,301 $147,592 $130,888
Income Statement Survey Andrews Baldwin Chester Digby Erie
Sales $135,241 $96,059 $115,326 $192,678 $118,689
Variable Costs(Labor,Material,Carry) $134,264 $68,042 $93,667 $132,242 $81,872
Depreciation $9,547 $7,587 $7,587 $7,833 $8,755
SGA(R&D,Promo,Sales,Admin) $9,521 $16,550 $16,211 $20,184 $12,300
Other(Fees,Writeoffs,TQM,Bonuses) $0 $244 $0 $239 ($264)
EBIT ($18,091) $3,636 ($2,138) $32,179 $16,027
Interest(Short term,Long term) $65,966 $5,553 $21,881 $7,476 $7,451
Taxes ($29,420) ($671) ($8,407) $8,646 $3,001
Profit Sharing $0 $0 $0 $321 $111
Net Profit ($54,637) ($1,246) ($15,613) $15,736 $5,462
CAPSTONE® COURIER Page 3
Production Analysis C57912 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 979 5,566 3/12/2015 3.0 19500 7.0 13.5 $28.00 $11.60 $9.63 -26% 57% 4.0 2,300 155%
Acre Low 1,568 2,114 12/26/2014 3.8 16000 4.0 16.0 $21.00 $7.93 $8.12 10% 47% 5.0 1,900 146%
Adam High 741 2,371 11/6/2014 2.4 24000 9.0 11.0 $38.00 $15.08 $11.37 3% 80% 3.0 1,000 178%
Aft Pfmn 771 1,212 11/21/2014 2.8 27000 10.4 14.5 $33.00 $15.36 $11.25 4% 71% 3.0 700 170%
Agape Size 645 975 11/21/2014 2.8 21000 5.0 10.0 $33.00 $13.18 $10.73 14% 43% 3.0 700 141%
Baker Trad 899 138 6/24/2015 1.8 15000 6.5 14.9 $28.00 $9.39 $8.23 33% 0% 4.0 1,800 33%
Bead Low 1,458 41 12/20/2015 1.9 12700 5.5 18.0 $20.00 $7.15 $7.28 28% 7% 5.0 1,400 106%
Bid High 451 64 9/14/2016 2.4 24000 7.0 11.0 $38.00 $14.19 $9.41 36% 0% 3.0 900 46%
Bold Pfmn 442 81 1/15/2015 2.8 24000 10.4 14.5 $33.50 $14.46 $9.41 26% 0% 3.0 600 53%
Buddy Size 297 399 7/28/2016 2.9 20000 3.0 12.0 $33.00 $0.00 $0.00 17% 0% 3.0 600 0%
Cake Trad 1,767 4,308 1/26/2015 3.0 20000 7.0 14.0 $29.00 $11.52 $10.41 4% 100% 4.0 1,800 193%
Cedar Low 1,231 454 11/27/2014 3.8 14000 4.0 16.0 $22.00 $7.33 $7.87 27% 24% 5.0 1,400 119%
Cid High 345 0 5/7/2015 2.2 23000 10.0 11.0 $39.00 $15.27 $9.62 36% 0% 3.0 900 37%
Coat Pfmn 298 2 7/16/2014 3.0 25000 10.4 15.5 $35.00 $14.49 $9.62 30% 0% 3.0 600 50%
Cure Size 374 1 1/29/2015 2.8 19000 5.5 10.0 $35.00 $12.72 $9.62 35% 0% 3.0 600 52%
Daze Trad 1,180 279 8/22/2015 1.8 18100 6.8 13.3 $29.00 $11.17 $7.42 34% 13% 5.0 1,200 111%
Dell Low 2,806 0 5/25/2009 6.6 14000 3.0 17.0 $21.50 $6.38 $7.27 35% 100% 7.0 1,400 198%
Dixie High 1,042 24 12/3/2015 1.2 24000 10.2 9.8 $39.00 $16.22 $11.63 31% 100% 3.0 700 198%
Dot Pfmn 811 16 11/13/2015 1.5 27000 11.8 13.9 $34.00 $16.38 $10.51 23% 33% 3.0 700 132%
Dune Size 881 55 11/13/2015 1.5 19000 5.8 8.6 $34.00 $13.65 $10.88 29% 50% 3.0 750 149%
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 1,201 296 4/8/2015 2.1 15500 5.5 14.5 $27.00 $9.21 $7.05 35% 0% 7.0 1,400 95%
Ebb Low 2,840 0 1/15/2015 6.6 12000 3.0 17.0 $19.50 $5.78 $7.27 32% 100% 6.0 1,650 198%
Echo Trad 971 131 7/20/2015 1.4 16000 6.4 13.6 $27.00 $10.21 $8.78 25% 17% 5.0 900 116%
Edge Pfmn 44 0 6/30/2011 4.5 25000 9.4 15.5 $34.00 $13.87 $11.63 28% 99% 3.0 1 198%
Egg Size 93 44 12/24/2015 2.3 19000 6.9 13.4 $34.00 $11.44 $9.40 32% 0% 3.0 600 8%
CAPSTONE® COURIER Page 4
Traditional Segment Analysis C57912 Round: 2Dec. 31, 2015
Traditional Statistics
Total Industry Unit Demand 7,341
Actual Industry Unit Sales 7,341
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
Cake 23% 1,661 1/26/2015 7.0 14.0 $29.00 20000 3.01 $4,000 100% $4,000 83% 33
Eat 15% 1,138 4/8/2015 5.5 14.5 $27.00 15500 2.09 $1,050 63% $1,085 54% 31
Daze 15% 1,126 8/22/2015 6.8 13.3 $29.00 18100 1.84 $1,100 66% $1,440 53% 36
Echo 13% 927 7/20/2015 6.4 13.6 $27.00 16000 1.40 $1,050 57% $775 54% 29
Able 12% 911 3/12/2015 7.0 13.5 $28.00 19500 2.95 $1,000 61% $1,000 51% 22
Baker 12% 875 6/24/2015 6.5 14.9 $28.00 15000 1.81 $1,000 61% $1,000 42% 25
Cedar 5% 335 11/27/2014 4.0 16.0 $22.00 14000 3.84 $1,000 59% $1,000 83% 3
Acre 5% 335 12/26/2014 4.0 16.0 $21.00 16000 3.80 $900 54% $900 51% 3
Buddy 0% 29 7/28/2016 3.0 12.0 $33.00 20000 2.87 $1,000 50% $1,000 42% 0
Agape 0% 2 11/21/2014 5.0 10.0 $33.00 21000 2.85 $700 40% $700 51% 0
CAPSTONE® COURIER Page 5
Low End Segment Analysis C57912 Round: 2Dec. 31, 2015
Low End Statistics
Total Industry Unit Demand 9,316
Actual Industry Unit Sales 9,316
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
Ebb 30% 2,839 1/15/2015 YES 3.0 17.0 $19.50 12000 6.60 $1,050 62% $1,085 36% 23
Dell 30% 2,805 5/25/2009 YES 3.0 17.0 $21.50 14000 6.60 $1,100 64% $1,512 42% 20
Bead 16% 1,458 12/20/2015 5.5 18.0 $20.00 12700 1.91 $1,000 57% $1,000 31% 5
Acre 13% 1,233 12/26/2014 4.0 16.0 $21.00 16000 3.80 $900 54% $900 30% 8
Cedar 10% 896 11/27/2014 4.0 16.0 $22.00 14000 3.84 $1,000 59% $1,000 31% 6
Eat 1% 63 4/8/2015 5.5 14.5 $27.00 15500 2.09 $1,050 63% $1,085 36% 0
Baker 0% 15 6/24/2015 6.5 14.9 $28.00 15000 1.81 $1,000 61% $1,000 31% 0
Able 0% 9 3/12/2015 7.0 13.5 $28.00 19500 2.95 $1,000 61% $1,000 30% 0
CAPSTONE® COURIER Page 6
High End Segment Analysis C57912 Round: 2Dec. 31, 2015
High End Statistics
Total Industry Unit Demand 2,873
Actual Industry Unit Sales 2,873
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
Dixie 36% 1,042 12/3/2015 10.2 9.8 $39.00 24000 1.23 $1,100 63% $1,512 51% 36
Adam 26% 741 11/6/2014 9.0 11.0 $38.00 24000 2.42 $800 47% $800 34% 9
Bid 14% 395 9/14/2016 7.0 11.0 $38.00 24000 2.42 $1,100 57% $1,100 39% 5
Cid 12% 345 5/7/2015 YES 10.0 11.0 $39.00 23000 2.17 $1,000 58% $1,000 42% 13
Cake 3% 73 1/26/2015 7.0 14.0 $29.00 20000 3.01 $4,000 100% $4,000 42% 0
Aft 2% 60 11/21/2014 10.4 14.5 $33.00 27000 2.80 $700 40% $700 34% 0
Bold 2% 55 1/15/2015 10.4 14.5 $33.50 24000 2.80 $1,000 50% $1,000 39% 0
Able 2% 49 3/12/2015 7.0 13.5 $28.00 19500 2.95 $1,000 61% $1,000 34% 0
Daze 2% 47 8/22/2015 6.8 13.3 $29.00 18100 1.84 $1,100 66% $1,440 51% 0
Echo 1% 26 7/20/2015 6.4 13.6 $27.00 16000 1.40 $1,050 57% $775 26% 0
Cure 1% 19 1/29/2015 5.5 10.0 $35.00 19000 2.76 $700 40% $700 42% 0
Dot 1% 15 11/13/2015 11.8 13.9 $34.00 27000 1.47 $1,100 62% $1,368 51% 0
CAPSTONE® COURIER Page 7
Performance Segment Analysis C57912 Round: 2Dec. 31, 2015
Performance Statistics
Total Industry Unit Demand 2,291
Actual Industry Unit Sales 2,291
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 35% 796 11/13/2015 11.8 13.9 $34.00 27000 1.47 $1,100 62% $1,368 38% 35
Aft 31% 711 11/21/2014 10.4 14.5 $33.00 27000 2.80 $700 40% $700 24% 23
Bold 17% 387 1/15/2015 10.4 14.5 $33.50 24000 2.80 $1,000 50% $1,000 30% 12
Coat 13% 298 7/16/2014 10.4 15.5 $35.00 25000 2.98 $700 40% $700 22% 10
Edge 2% 44 6/30/2011 YES 9.4 15.5 $34.00 25000 4.50 $300 25% $155 17% 7
Cake 1% 33 1/26/2015 7.0 14.0 $29.00 20000 3.01 $4,000 100% $4,000 22% 0
Able 0% 11 3/12/2015 7.0 13.5 $28.00 19500 2.95 $1,000 61% $1,000 24% 0
Baker 0% 8 6/24/2015 6.5 14.9 $28.00 15000 1.81 $1,000 61% $1,000 30% 0
Daze 0% 2 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 C57912 Round: 2Dec. 31, 2015
Size Statistics
Total Industry Unit Demand 2,313
Actual Industry Unit Sales 2,313
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
Dune 38% 881 11/13/2015 5.8 8.6 $34.00 19000 1.50 $1,100 62% $1,368 42% 39
Agape 28% 639 11/21/2014 5.0 10.0 $33.00 21000 2.85 $700 40% $700 27% 12
Cure 15% 356 1/29/2015 5.5 10.0 $35.00 19000 2.76 $700 40% $700 31% 9
Buddy 12% 269 7/28/2016 3.0 12.0 $33.00 20000 2.87 $1,000 50% $1,000 33% 7
Egg 4% 91 12/24/2015 6.9 13.4 $34.00 19000 2.30 $1,050 56% $775 29% 0
Bid 2% 56 9/14/2016 7.0 11.0 $38.00 24000 2.42 $1,100 57% $1,100 33% 2
Echo 1% 18 7/20/2015 6.4 13.6 $27.00 16000 1.40 $1,050 57% $775 29% 0
Daze 0% 4 8/22/2015 6.8 13.3 $29.00 18100 1.84 $1,100 66% $1,440 42% 0
CAPSTONE® COURIER Page 9
Market Share C57912 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 7,341 9,316 2,873 2,291 2,313 24,135 Units Demanded 7,341 9,316 2,873 2,291 2,313 24,135
% 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 12.4% 1.7% 0.5% 4.1% Able 12.4% 1.5% 0.4% 4.0%
Acre 4.6% 13.2% 6.5% Acre 4.6% 11.8% 5.9%
Adam 25.8% 3.1% Adam 22.6% 2.7%
Aft 2.1% 31.0% 3.2% Aft 1.9% 28.1% 2.9%
Agape 0.1% 27.6% 2.7% Agape 26.8% 2.6%
Total 17.0% 13.3% 29.7% 31.5% 27.6% 19.5% Total 17.0% 11.8% 26.1% 28.5% 26.8% 18.1%
Baker 11.9% 0.2% 0.4% 3.7% Baker 11.9% 0.3% 3.7%
Bead 15.7% 6.0% Bead 14.7% 5.7%
Bid 13.8% 2.4% 1.9% Bid 12.0% 2.3% 1.7%
Bold 1.9% 16.9% 1.8% Bold 1.7% 15.3% 1.7%
Buddy 0.4% 11.6% 1.2% Buddy 0.4% 11.3% 1.2%
Total 12.3% 15.8% 15.7% 17.2% 14.0% 14.7% Total 12.3% 14.8% 13.7% 15.6% 13.6% 13.9%
Cake 22.6% 2.5% 1.5% 7.3% Cake 22.6% 2.3% 1.3% 7.3%
Cedar 4.6% 9.6% 5.1% Cedar 4.6% 8.5% 4.7%
Cid 12.0% 1.4% Cid 22.5% 2.7%
Coat 13.0% 1.2% Coat 13.6% 1.3%
Cure 0.6% 15.4% 1.5% Cure 0.7% 17.7% 1.8%
Total 27.2% 9.6% 15.2% 14.5% 15.4% 16.6% Total 27.2% 8.5% 25.6% 14.9% 17.7% 17.7%
Daze 15.3% 1.6% 0.2% 4.9% Daze 15.3% 1.3% 0.2% 4.8%
Dell 30.1% 11.6% Dell 29.6% 11.4%
Dixie 36.2% 4.3% Dixie 31.8% 3.8%
Dot 0.5% 34.8% 3.4% Dot 0.5% 31.5% 3.1%
Dune 38.1% 3.6% Dune 37.1% 3.6%
Total 15.4% 30.1% 38.4% 34.8% 38.3% 27.8% Total 15.4% 29.6% 33.7% 31.6% 37.3% 26.7%
Eat 15.5% 0.7% 5.0% Eat 15.5% 0.6% 4.9%
Ebb 30.5% 11.8% Ebb 34.6% 13.4%
Echo 12.6% 0.9% 0.8% 4.0% Echo 12.6% 0.9% 0.8% 4.0%
Edge 1.9% 0.2% Edge 9.4% 0.9%
Egg 3.9% 0.4% Egg 3.8% 0.4%
Total 28.1% 31.1% 1.0% 1.9% 4.7% 21.3% Total 28.1% 35.2% 0.9% 9.4% 4.6% 23.6%
CAPSTONE® COURIER Page 10
Perceptual Map C57912 Round: 2Dec. 31, 2015
Andrews Baldwin Chester
Name Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size Revised
Able 7.0 13.5 3/12/2015 Baker 6.5 14.9 6/24/2015 Cake 7.0 14.0 1/26/2015
Acre 4.0 16.0 12/26/2014 Bead 5.5 18.0 12/20/2015 Cedar 4.0 16.0 11/27/
2014
Adam 9.0 11.0 11/6/2014 Bid 7.0 11.0 9/14/2016 Cid 10.0 11.0 5/7/2015
Aft 10.4 14.5 11/21/2014 Bold 10.4 14.5 1/15/2015 Coat 10.4 15.5 7/16/2014
Agape 5.0 10.0 11/21/2014 Buddy 3.0 12.0 7/28/2016 Cure 5.5 10.0 1/29/2015
Digby Erie
Name Pfmn Size Revised Name Pfmn Size Revised
Daze 6.8 13.3 8/22/2015 Eat 5.5 14.5 4/8/2015
Dell 3.0 17.0 5/25/2009 Ebb 3.0 17.0 1/15/2015
Dixie 10.2 9.8 12/3/2015 Echo 6.4 13.6 7/20/2015
Dot 11.8 13.9 11/13/2015 Edge 9.4 15.5 6/30/2011
Dune 5.8 8.6 11/13/2015 Egg 6.9 13.4 12/24/2015
CAPSTONE® COURIER Page 11
HR/TQM Report C57912 Round: 2Dec. 31, 2015
HUMAN RESOURCES SUMMARY
Andrews Baldwin Chester Digby Erie
Needed Complement 1,779 473 1,042 1,066 727
Complement 1,779 473 1,042 1,066 727
1st Shift Complement 1,123 458 692 678 531
2nd Shift Complement 656 15 350 388 196
Overtime Percent 0.0% 0.1% 0.0% 0.0% 0.0%
Turnover Rate 10.0% 7.8% 10.0% 8.9% 9.1%
New Employees 178 37 104 360 66
Separated Employees 0 309 0 0 134
Recruiting Spend $0 $600 $0 $2,200 $2,000
Training Hours 0 60 0 30 25
Productivity Index 100.0% 100.5% 100.0% 100.0% 100.0%
Recruiting Cost $178 $59 $104 $1,153 $198
Separation Cost $0 $1,545 $0 $0 $672
Training Cost $0 $568 $0 $640 $363
Total HR Admin Cost $178 $2,171 $104 $1,793 $1,233
Labor Contract Next Year
Wages $23.15 $23.15 $23.15 $23.15 $23.15
Benefits 2,500 2,500 2,500 2,500 2,500
Profit Sharing 2.0% 2.0% 2.0% 2.0% 2.0%
Annual Raise 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
Process Mgt Budgets Last Year
CPI Systems $0 $0 $0 $0 $0
Vendor/JIT $0 $0 $0 $0 $0
Quality Initiative Training $0 $0 $0 $0 $0
Channel Support Systems $0 $0 $0 $0 $0
Concurrent Engineering $0 $0 $0 $0 $0
UNEP Green Programs $0 $0 $0 $0 $0
TQM Budgets Last Year
Benchmarking $0 $0 $0 $0 $0
Quality Function Deployment Effort $0 $0 $0 $0 $0
CCE/6 Sigma Training $0 $0 $0 $0 $0
GEMI TQEM Sustainability Initiatives $0 $0 $0 $0 $0
Total Expenditures $0 $0 $0 $0 $0
Cumulative Impacts
Material Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00%
Labor Cost Reduction 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%
Reduction Admin Costs 0.00% 0.00% 0.00% 0.00% 0.00%
Demand Increase 0.00% 0.00% 0.00% 0.00% 0.00%
CAPSTONE® COURIER Page 12
Annual Report
Annual Report Baldwin C57912 Round: 2Dec. 31, 2015
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 2015
Common
Size
2014
Cash $15,155 15.2% $0
Account Receivable $7,895 7.9% $7,846
Inventory $16,033 16.1% $32,357
Total Current Assets $39,083 39.2% $40,203
Plant & Equipment $113,800 114.0% $113,800
Accumulated Depreciation ($53,107) -53.2% ($45,520)
Total Fixed Assets $60,693 60.8% $68,280
Total Assets $99,777 100.0% $108,483
LIABILITIES & OWNER’S
EQUITY
Accounts Payable $4,093 4.1% $7,304
Current Debt $5,635 5.6% $7,733
Long Term Debt $37,250 37.3% $44,200
Total Liabilities $46,978 47.1% $59,237
Common Stock $25,660 25.7% $20,860
Retained Earnings $27,140 27.2% $28,386
Total Equity $52,800 52.9% $49,246
Total Liab. & O. Equity $99,777 100.0% $108,483
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 2015 2014
NetIncome(Loss) ($1,246) ($1,196)
Depreciation $7,587 $7,587
Extraordinary gains/losses/writeoffs ($15) $0
Accounts Payable ($3,212) $721
Inventory $16,324 ($23,740)
Accounts Receivable ($50) $462
Net cash from operation $19,388 ($16,166)
Cash Flows from Investing Activities
Plant Improvements $0 $0
Cash Flows from Financing Activities
Dividends Paid $0 $0
Sales of Common Stock $4,800 $2,500
Purchase of Common Stock $0 $0
Cash from long term debt $0 $2,500
Retirement of long term debt ($6,935) $0
Change in current debt(net) ($2,098) $7,733
Net Cash from financing activities ($4,233) $12,733
Net Change in cash position $15,155 ($3,434)
Closing cash position $15,155 $0
Annual Report Page 13
Annual Report Baldwin C57912 Round: 2Dec. 31, 2015
2015 Income Statement
(Product Name) Baker Bead Bid Bold Buddy NA NA NA 2015
Total
Common
Size
Sales $25,159 $29,157 $17,141 $14,796 $9,805 $0 $0 $0 $96,059 100.0%
Variable Costs:
Direct Labor $7,232 $10,603 $4,203 $4,071 $3,133 $0 $0 $0 $29,241 30.4%
Direct Material $9,454 $10,315 $6,632 $6,638 $3,839 $0 $0 $0 $36,877 38.4%
Inventory Carry $308 $71 $185 $236 $1,124 $0 $0 $0 $1,924 2.0%
Total Variable $16,994 $20,989 $11,020 $10,944 $8,095 $0 $0 $0 $68,042 70.8%
Contribution Margin $8,165 $8,168 $6,121 $3,852 $1,710 $0 $0 $0 $28,017 29.2%
Period Costs:
Depreciation $2,640 $2,427 $1,080 $720 $720 $0 $0 $0 $7,587 7.9%
SG&A: R&D $485 $981 $1,000 $40 $1,000 $0 $0 $0 $3,507 3.7%
Promotions $1,000 $1,000 $1,100 $1,000 $1,000 $0 $0 $0 $5,100 5.3%
Sales $1,000 $1,000 $1,100 $1,000 $1,000 $0 $0 $0 $5,100 5.3%
Admin $745 $863 $507 $438 $290 $0 $0 $0 $2,844 3.0%
Total Period $5,870 $6,271 $4,787 $3,198 $4,010 $0 $0 $0 $24,137 25.1%
Net Margin $2,295 $1,897 $1,333 $654 ($2,300) $0 $0 $0 $3,880 4.0%
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 $244 0.3%
EBIT $3,636 3.8%
Short Term Interest $614 0.6%
Long Term Interest $4,939 5.1%
Taxes ($671) -0.7%
Profit Sharing $0 0.0%
Net Profit ($1,246) -1.3%
Annual Report Page 14
