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Annual Report

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Annual Report

Andrews

Round: 0
Dec. 31, 2015

C59559

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
Accounts Receivable
Inventory

$31,675
$13,438
$14,954
$60,067

$52,415
$123,376

78.5%
-36.0%
42.5%
100.0%

$93,304
($37,954)
$55,350
$115,416

$52,442

7.7%
12.7%
22.1%
42.5%

$8,781
$5,725
$34,742
$49,248

$70,933
$123,376

9.8%
47.7%
57.5%
100.0%

$12,443
$53,724
$66,167
$115,416

$31,115
$13,404
$26,442

Total Current Assets

Plant & Equipment

Accumulated Depreciation

$96,824
($44,409)

Total Fixed Assets

Total Assets
LIABILITIES & OWNERS' EQUITY

Accounts Payable
Current Debt
Long Term Debt

$9,516
$15,717
$27,209

Common Stock
Retained Earnings

$12,079
$58,854

Total Liabilities

Total Equity
Total Liab. & O. Equity

$70,961

2015
Common
Size
25.2%
10.9%
21.4%
57.5%

2014

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.

Annual Report

Cash Flows from Operating Activities:

Net Income (Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable
Inventory
Accounts Receivable
Net cash from operations
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)
Net cash from financing activities
Net change in cash position
Closing cash position

2015
$20,035
$6,455
$0
$735
($11,489)
$34

2014
$21,758
$6,220
$0
$2,083
($4,100)
($2,886)

$15,770

$23,075

($3,520)

($1,820)

($13,335)
$0
($1,935)
$0
($7,533)
$9,992

($7,949)
$0
($541)
$0
$0
($2,070)

($12,811)
($560)
$31,115

($10,560)
$10,695
$31,675

Page 1

Top

Annual Report

Andrews

Round: 0
Dec. 31, 2015

C59559

2015 Income Statement

Art

Ant

Ace

Axe

Na

Na

Na

Na

Sales

$32,386

$35,508

$58,381

$36,810

$0

$0

$0

$0

2015
Total
$163,085

Common
Size
100.0%

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$7,608
$12,545
$693
$20,846

$10,785
$11,516
$1,495
$23,796

$16,254
$21,833
$152
$38,239

$9,417
$14,336
$833
$24,587

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$44,065
$60,230
$3,173
$107,467

27.0%
36.9%
1.9%
65.9%

Contribution Margin

$11,541

$11,712

$20,142

$12,224

$0

$0

$0

$0

$55,618

34.1%

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

$1,047
$881
$1,200
$1,000
$255
$4,382

$2,260
$0
$1,200
$2,000
$279
$5,739

$2,080
$0
$1,200
$1,000
$459
$4,739

$1,068
$869
$1,200
$1,000
$289
$4,426

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

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

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

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

$6,455
$1,750
$4,800
$5,000
$1,282
$19,287

4.0%
1.1%
2.9%
3.1%
0.8%
11.8%

Net Margin

$7,158

$5,973

$15,403

$7,798

$0

$0

$0

$0

$36,331

22.3%

$29
$36,302
$1,493
$3,357
$11,008
$409
$20,035

0.0%
22.3%
0.9%
2.1%
6.7%
0.3%
12.3%

(Product Name:)

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry 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: Charges 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
EBIT
Short Term Interest
LongTerm Interest
Taxes
Profit Sharing
Net Profit

Page 2

Annual Report

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Annual Report

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Annual Report

Baldwin

Round: 0
Dec. 31, 2015

C59559

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
Accounts Receivable
Inventory

$10,324
$8,042
$14,219
$32,585

$49,357
$93,516

90.2%
-37.5%
52.8%
100.0%

$77,880
($29,397)
$48,483
$81,068

$44,254

6.8%
19.6%
20.9%
47.3%

$5,407
$10,840
$20,009
$36,256

$49,263
$93,516

9.7%
43.0%
52.7%
100.0%

$9,499
$35,313
$44,812
$81,068

$20,132
$9,816
$14,211

Total Current Assets

Plant & Equipment

Accumulated Depreciation

$84,380
($35,023)

Total Fixed Assets

Total Assets
LIABILITIES & OWNERS' EQUITY

Accounts Payable
Current Debt
Long Term Debt

$6,396
$18,344
$19,514

Common Stock
Retained Earnings

$9,094
$40,169

Total Liabilities

Total Equity
Total Liab. & O. Equity

$44,159

2015
Common
Size
21.5%
10.5%
15.2%
47.2%

2014

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.

Annual Report

Cash Flows from Operating Activities:

Net Income (Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable
Inventory
Accounts Receivable
Net cash from operations
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)
Net cash from financing activities
Net change in cash position
Closing cash position

2015
$11,095
$5,625
$0
$989
$8
($1,774)

2014
$7,984
$5,192
$0
($330)
($3,381)
$469

$15,943

$9,934

($6,500)

($12,220)

($4,733)
$0
($1,911)
$5,849
($6,344)
$7,504

($4,175)
$0
($1,142)
$2,365
$0
$898

$365
$9,808
$20,132

($2,054)
($4,340)
$10,324

Page 1

Top

Annual Report

Baldwin

Round: 0
Dec. 31, 2015

C59559

2015 Income Statement

Bam

Bell

Bit

Bolt

Na

Na

Na

Na

Sales

$33,761

$16,526

$35,466

$33,674

$0

$0

$0

$0

2015
Total
$119,427

Common
Size
100.0%

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$10,413
$14,508
$252
$25,174

$3,348
$6,009
$267
$9,624

$8,345
$14,536
$624
$23,505

$6,995
$13,669
$563
$21,227

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$29,102
$48,722
$1,705
$79,529

24.4%
40.8%
1.4%
66.6%

Contribution Margin

$8,587

$6,902

$11,962

$12,447

$0

$0

$0

$0

$39,897

33.4%

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

$1,292
$876
$1,100
$400
$262
$3,930

$1,213
$963
$1,100
$400
$128
$3,804

$1,473
$988
$1,100
$1,200
$275
$5,037

$1,647
$939
$1,100
$1,200
$262
$5,147

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

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

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

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

$5,625
$3,765
$4,400
$3,200
$928
$17,918

4.7%
3.2%
3.7%
2.7%
0.8%
15.0%

Net Margin

$4,657

$3,098

$6,925

$7,299

$0

$0

$0

$0

$21,979

18.4%

$321
$21,658
$1,798
$2,443
$6,096
$226
$11,095

0.3%
18.1%
1.5%
2.0%
5.1%
0.2%
9.3%

(Product Name:)

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry 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: Charges 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
EBIT
Short Term Interest
LongTerm Interest
Taxes
Profit Sharing
Net Profit

Page 2

Annual Report

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Annual Report

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Annual Report

Chester

Round: 0
Dec. 31, 2015

C59559

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
Accounts Receivable
Inventory

$36,527
$9,769
$8,008
$54,304

$91,635
$144,974

98.6%
-35.4%
63.2%
100.0%

$127,100
($41,738)
$85,362
$139,666

$90,305

5.0%
20.2%
37.1%
62.3%

$5,826
$22,142
$51,916
$79,884

$54,668
$144,974

17.0%
20.7%
37.7%
100.0%

$24,700
$35,082
$59,782
$139,666

$32,230
$10,790
$10,319

Total Current Assets

Plant & Equipment

Accumulated Depreciation

$142,900
($51,265)

Total Fixed Assets

Total Assets
LIABILITIES & OWNERS' EQUITY

Accounts Payable
Current Debt
Long Term Debt

$7,231
$29,217
$53,857

Common Stock
Retained Earnings

$24,700
$29,968

Total Liabilities

Total Equity
Total Liab. & O. Equity

$53,339

2015
Common
Size
22.2%
7.4%
7.1%
36.8%

2014

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.

Annual Report

Cash Flows from Operating Activities:

Net Income (Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable
Inventory
Accounts Receivable
Net cash from operations
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)
Net cash from financing activities
Net change in cash position
Closing cash position

2015
$7,462
$9,527
$0
$1,405
($2,311)
($1,021)

2014
$10,382
$8,473
$0
($794)
$733
($553)

$15,062

$18,242

($15,800)

($18,592)

($12,576)
$0
$0
$9,475
($7,533)
$7,075

($8,862)
$0
$0
$7,999
$0
($5,287)

($3,559)
($4,297)
$32,230

($6,149)
($6,500)
$36,527

Page 1

Top

Annual Report

Chester

Round: 0
Dec. 31, 2015

C59559

2015 Income Statement

Cat

Cell

Clack

Cozy

Na

Na

Na

Na

Sales

$25,375

$31,690

$34,686

$39,529

$0

$0

$0

$0

2015
Total
$131,279

Common
Size
100.0%

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$5,401
$9,361
$325
$15,087

$7,034
$12,492
$348
$19,875

$9,469
$14,409
$350
$24,228

$10,557
$16,947
$214
$27,718

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$32,460
$53,210
$1,238
$86,908

24.7%
40.5%
0.9%
66.2%

Contribution Margin

$10,288

$11,815

$10,457

$11,811

$0

$0

$0

$0

$44,371

33.8%

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

$2,660
$958
$1,050
$1,000
$333
$6,001

$3,167
$979
$1,050
$800
$416
$6,412

$1,800
$936
$1,050
$600
$456
$4,842

$1,900
$896
$1,050
$600
$519
$4,966

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

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

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

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

$9,527
$3,768
$4,200
$3,000
$1,725
$22,220

7.3%
2.9%
3.2%
2.3%
1.3%
16.9%

Net Margin

$4,287

$5,404

$5,616

$6,845

$0

$0

$0

$0

$22,152

16.9%

$474
$21,678
$3,243
$6,720
$4,100
$152
$7,462

0.4%
16.5%
2.5%
5.1%
3.1%
0.1%
5.7%

(Product Name:)

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry 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: Charges 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
EBIT
Short Term Interest
LongTerm Interest
Taxes
Profit Sharing
Net Profit

Page 2

Annual Report

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Annual Report

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Annual Report

Digby

Round: 0
Dec. 31, 2015

C59559

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
Accounts Receivable
Inventory

$26,066
$8,805
$8,086
$42,957

$77,111
$125,998

98.7%
-37.5%
61.2%
100.0%

$97,758
($38,996)
$58,762
$101,720

$72,697

4.6%
20.2%
32.9%
57.7%

$5,255
$15,810
$31,572
$52,637

$53,301
$125,998

11.4%
30.9%
42.3%
100.0%

$14,335
$34,746
$49,081
$101,720

$32,585
$9,783
$6,518

Total Current Assets

Plant & Equipment

Accumulated Depreciation

$124,400
($47,289)

Total Fixed Assets

Total Assets
LIABILITIES & OWNERS' EQUITY

Accounts Payable
Current Debt
Long Term Debt

$5,797
$25,504
$41,396

Common Stock
Retained Earnings

$14,335
$38,966

Total Liabilities

Total Equity
Total Liab. & O. Equity

$48,886

2015
Common
Size
25.9%
7.8%
5.2%
38.8%

2014

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.

Annual Report

Cash Flows from Operating Activities:

Net Income (Loss)
Depreciation
Extraordinary gains/losses/writeoffs
Accounts Payable
Inventory
Accounts Receivable
Net cash from operations
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)
Net cash from financing activities
Net change in cash position
Closing cash position

2015
$10,215
$8,293
$0
$542
$1,568
($978)

2014
$10,484
$6,517
($3)
$930
$935
($1,878)

$19,640

$16,985

($26,642)

($2,800)

($5,996)
$0
$0
$15,725
($5,901)
$9,693

($4,324)
$0
$0
$0
($1,629)
($6,025)

$13,521
$6,520
$32,585

($11,978)
$2,207
$26,066

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Top

Annual Report

Digby

Round: 0
Dec. 31, 2015

C59559

2015 Income Statement

Daft

Deal

Dim

Dome

Na

Na

Na

Na

Sales

$34,668

$41,571

$21,670

$21,122

$0

$0

$0

$0

2015
Total
$119,031

Common
Size
100.0%

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$4,885
$12,128
$26
$17,039

$10,639
$18,137
$26
$28,802

$4,399
$9,169
$380
$13,947

$4,324
$8,418
$351
$13,093

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$0
$0
$0
$0

$24,247
$47,852
$782
$72,881

20.4%
40.2%
0.7%
61.2%

Contribution Margin

$17,628

$12,769

$7,723

$8,029

$0

$0

$0

$0

$46,150

38.8%

$2,800
$1,000
$950
$1,000
$515
$6,265

$2,607
$928
$950
$1,000
$617
$6,101

$1,500
$988
$950
$600
$322
$4,359

$1,387
$857
$950
$1,300
$314
$4,807

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

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

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

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

$8,293
$3,772
$3,800
$3,900
$1,767
$21,532

7.0%
3.2%
3.2%
3.3%
1.5%
18.1%

$11,364

$6,668

$3,364

$3,222

$0

$0

$0

$0

$24,618

20.7%

$786
$23,831
$2,703
$5,091
$5,613
$208
$10,215

0.7%
20.0%
2.3%
4.3%
4.7%
0.2%
8.6%

(Product Name:)

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

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold.
Inventory Carry Cost: the cost to carry 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: Charges 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
LongTerm Interest
Taxes
Profit Sharing
Net Profit

Page 2