1. Write the Performance Target Forecasting

2. Give the review of the financial performance:

• Annual Total Revenue
• Earnings Per Share (EPS)
• Return On Equity (ROE)
• Annual Credit Rating
• Annual Image Rating
• Year End Stock Price

PROJECTED Y12 PERFORMANCE Scoring Measures Earnings Per Share Return On Equity Credit Rating Image Rating Investor Year 12 Expect. $5.08 $8.50 11.9% 42.5% A+ A 78 77 Change Other Measures Year 12 from 911 Net Revenues (5000s) 836,287 -5.8% Net Profit ($000s) 121,801 -6.5 Ending Cash (5000s) 922,743 +124,711 North America Europe-Africa Asia-Pacific Latin America Average Wholesale Price $ 375 $ 400 $ 400 $ 400 to Retailers ($/unit) Buyer P/Q Rating 5.3 5.3 * 5.3 * 5.3 Appeal Variables Generated from No. of Models 5 models 5 models 5 models 5 models Product Design Decisions Retailer Support Budget $ 2500 $ 6000 $ 2600 $ 2000 (5000s) Projected Support $7.44 per unit $18.50 per unit $10.35 per unit $10.81 per unit Expenditures Per Unit Sold Advertising Budget $ 7000 $ 7000 $ 1600 $ 1500 (5000) Website Displays/Info $ 4000 5000 $ 1800 $ 1350 (5000s) Sales Promotions (number 2 wkt 14% 16 wl 14% 16 I 14% 13 wlo 14% of weeks 1 % discount) Warranty Period (60 days, 90 days, 120 days, 180 days, 1 1 year 1 year 180 day: 180 day: year) Expected Claim Rate 37.6% $6,320 37.6% $6,095 17.6% $2,215 17.6% $1,630 (%) Repair Cost (5000s) Market Segment Statistics AC Unit Demand (000) Camera Demand Market Share (%) Year Year Year Year 11 Year 12 11 Year 12 11 Year 12 11 Year 12 Actual Projected Actual Projected Actual Projected Actual Projected 350.1 336.1 332.0 324.3 242.7 251.1 174.5 185.0 15.6% 14.5% 18.0% 17.3% 14.7% 14.5% 13.6% 13.6% and Market Share Year 11 Year 11 Year 11 Year 11 66 67 Multi-Store Chains Online Retailers Local Retail Shops Year 12 59 156 5,490 Year 12 73 183 7,358 62 137 Year 12 66 160 6,650 61 130 Year 12 64 152 5,430 177 168 6,470 6,611 6,050 4.691 Retail Outlets (number Willing to carry the company's product line) S Per Unit $ Per Unit Price-Cost-Profit Breakdown Revenue Wholesale Price Projections - Promotional Discounts + Exchange Rate Adjustment Net Revenues $ Per Unit 375.00 -2.02 S Per Unit 400.00 -17.23 400.00 -17.23 400.00 - 14.00 -77.20 6.02 21.13 394.11 12.04 394.80 388.79 308.80 234.89 234.87 224.90 30.00 224.89 30.00 6.00 22.00 Operating cost of Units Assembled Cost Projections Delivery Cost (shipping/import duties) Marketing Costs Administrative Expenses Total Operating costs 40.17 23.89 7.66 55.50 7.66 320.04 7.66 286.46 26.22 7.66 288.77 288.71 68.75 Operating Profit Operating Profit Margin (operating profit.net revenues) 105.40 26.7% 108.35 27.4% 20.03 6.5% 17.7% North America Europe- Africa Asia-Pacific Latin America 376 unit 372 unt Competitive Assumptions Anticipated Price to Retailers Industry Average P/Q Rating Marketing Efforts in Number of Models Year 12 Retailer Support Advertising Budget Website Displays Sales Promotions Warranty Period unit 370 brunit 386 or unit 5.4 5.4 5.4 5.40 4.0 hodels 4.0 fodels 4.0 chodels 4.0 podiel 10.50 for unit 13.10 for unit 11.20 er 11.20 5,157 000 $4,629 000 3,471 2000 3,300 000) 3,114 000 3,314 000 2,543 000) 2,379000W 6 wks 15.3% 8 wks - 15.3% 8 wks 15.1% 8 wka days ACTION-CAPTURE CAMERA DESIGN Image Sensor Size 8mm diagonal LCD Display Screen 10401 pixels Image Quality (maximum resolution) 2704x152 pix. 8/3 modes Number of Photo Modes (video / still) Product Camera Housing Enhancements Editing/ Sharing Capabilities $ 16 per camera $ 10 per camera Included Accessories $ 19 per camera Extra Performance Features 8 8 features Number of AC Camera Models 5 LO models Product R&D Expenditures (Y11 was $3,000) $ 3000 ($000s) Cumulative R&D Expenditures (all years) $ 118,000 $000s) Performance / Quality Rating (P/Q Rating ranges from 1-10 stars) 5.3 * Projected AC Camera Production Costs $/unit 1.84 13.80 4.60 Image Sensor LCD Display Screen Image Quality Photo Modes Camera Housing Editing / Sharing Capabilities Included Accessories Extra Performance Features Total Cost of Components and Features $000s 2,018 15,132 5,044 9,079 17,544 10,965 20,834 92,808 173,424 8.28 16.00 10.00 19.00 84.64 158.16 Assembly Labor Costs Product R&D Expenditures Allowance for Warranty Repairs Maintenance of Plant and Equipment Depreciation of plant and Equipment Total Camera Production/Assembly Cost 37,547 3,000 16,260 14,966 7,994 253,191 34.24 2.74 14.83 13.65 7.29 230.91 Projected Unit Assembly Overtime Total Regular 1,084.0 AC Camera Unit Assembly (000s) 12.5 1,096.5 UAV DRONE DESIGN Built-In Camera Significant Upgrade GPS / WiFi / Bluetooth Best Available Battery Pack (maximum flight time) 30 minutes Number of Rotors 8 rotors ( Rotor Performance / Flight Controller Best Available Body Frame Construction Carbon Fiber (> Obstacle Sensors 360 Advanced Camera Stabilization Device Best Available > Extra Performance Features 13 features 7 models Number of UAV Drone Models Product R&D Expenditures (Y11 was $21,000) Cumulative R&D Expenditures (all years) $ 21001 (5000s) $ 135,000 ($000s) Performance / Quality Rating (P/Q Rating ranges from 1-10 stars) 5.1 % Projected UAV Drone Production Costs Built-In Camera GPS / WiFi / Bluetooth Battery Pack Rotors / Performance / Controller Body Frame Construction Obstacle Sensors Camera Stabilization Device Extra Performance Features Total Cost of Components and Features $000s 45,425 16,764 36,719 19,637 7,184 19,477 10,058 54,408 209,671 $/unit 273.15 100.80 220.80 118.08 43.20 117.12 60.48 327.17 1,260.80 Assembly Labor Costs Product R&D Expenditures Allowance for Warranty Repairs Maintenance of Plant and Equipment Depreciation of Plant and Equipment Total Drone Production/Assembly Cost 11,094 21,000 22,170 10,516 5,213 279,664 66.71 126.28 133.31 63.24 31.35 1,681.68 Projected Unit Assembly Regular Overtime Total UAV Drone Unit Assembly (000s) 166.3 0.0 166.3 Shares of stock outstanding at the beginning of Year 12 24,000 K $ 798,032 841,871 0 0 Projected Cash Available in Year 12 Beginning Cash Balance (carried over from Year 11) Cash Inflows Receipts from Sales Bank Loans 1-Year 5-Year 10-Year Stock Issue (0 shares @ $98.40) Loan to Cover Overdraft (1-year loan) Interest on Year 11 Cash Balance Cash Refund (awarded by instructor) Cash Available from All Sources 0 0 0 5,586 0 1,645,489 $ 0 0 0 0 Projected Cash Outlays in Year 12 Cash Outlays Payments to Component Suppliers $ 388,475 Production and Assembly Expenses 136,553 Delivery/Marketing/Admin Expenses 130,740 Capital Outlays New Workstations Robotics Upgrade Facilities Expansion 0 Facilities Improvement 500 Loan Principal Repayment 1-Year Loans 5-Year Loans 0 10-Year Loans 10,000 Interest Payments Bank Loans 2,550 Y11 Overdraft Stock Repurchases (O shares @ $98.40) Income Tax Payments 52,201 Dividend Payments Charitable Contributions 1,727 Cash Fine (assessed by instructor) 0 Total Cash Outlays $ 722,746 Projected Cash Balance at the $ +922,743 Could generate interest income End of Year 12 ($000s) of $6,459k in Year 13. Other Important Financial Statistics Last Year Year 12 (projected) Interest Rate Paid on Overdraft Loans 5.3% 5.2% Interest Rate Received on Cash Balances 0.8% 0.7% Shareholder Equity (mandated minimum = $100 mil.) 962.9 mil. 1,084.7 mil. Performance on Credit Rating Measures Debt/Equity Percentage (D:E) Interest Coverage Ratio (operating profit + interest exp.) Current Ratio (current assets + current liabilities) Last Year Year 12 (projected) 13:87 10:90 n.m. 1,000.00 7.83 9.41 PROJECTED Y12 PERFORMANCE Scoring Measures Earnings Per Share Return On Equity Credit Rating Image Rating Investor Year 12 Expect. $5.08 $8.50 11.9% 42.5% A+ A 78 77 Change Other Measures Year 12 from 911 Net Revenues (5000s) 836,287 -5.8% Net Profit ($000s) 121,801 -6.5 Ending Cash (5000s) 922,743 +124,711 North America Europe-Africa Asia-Pacific Latin America Average Wholesale Price $ 375 $ 400 $ 400 $ 400 to Retailers ($/unit) Buyer P/Q Rating 5.3 5.3 * 5.3 * 5.3 Appeal Variables Generated from No. of Models 5 models 5 models 5 models 5 models Product Design Decisions Retailer Support Budget $ 2500 $ 6000 $ 2600 $ 2000 (5000s) Projected Support $7.44 per unit $18.50 per unit $10.35 per unit $10.81 per unit Expenditures Per Unit Sold Advertising Budget $ 7000 $ 7000 $ 1600 $ 1500 (5000) Website Displays/Info $ 4000 5000 $ 1800 $ 1350 (5000s) Sales Promotions (number 2 wkt 14% 16 wl 14% 16 I 14% 13 wlo 14% of weeks 1 % discount) Warranty Period (60 days, 90 days, 120 days, 180 days, 1 1 year 1 year 180 day: 180 day: year) Expected Claim Rate 37.6% $6,320 37.6% $6,095 17.6% $2,215 17.6% $1,630 (%) Repair Cost (5000s) Market Segment Statistics AC Unit Demand (000) Camera Demand Market Share (%) Year Year Year Year 11 Year 12 11 Year 12 11 Year 12 11 Year 12 Actual Projected Actual Projected Actual Projected Actual Projected 350.1 336.1 332.0 324.3 242.7 251.1 174.5 185.0 15.6% 14.5% 18.0% 17.3% 14.7% 14.5% 13.6% 13.6% and Market Share Year 11 Year 11 Year 11 Year 11 66 67 Multi-Store Chains Online Retailers Local Retail Shops Year 12 59 156 5,490 Year 12 73 183 7,358 62 137 Year 12 66 160 6,650 61 130 Year 12 64 152 5,430 177 168 6,470 6,611 6,050 4.691 Retail Outlets (number Willing to carry the company's product line) S Per Unit $ Per Unit Price-Cost-Profit Breakdown Revenue Wholesale Price Projections - Promotional Discounts + Exchange Rate Adjustment Net Revenues $ Per Unit 375.00 -2.02 S Per Unit 400.00 -17.23 400.00 -17.23 400.00 - 14.00 -77.20 6.02 21.13 394.11 12.04 394.80 388.79 308.80 234.89 234.87 224.90 30.00 224.89 30.00 6.00 22.00 Operating cost of Units Assembled Cost Projections Delivery Cost (shipping/import duties) Marketing Costs Administrative Expenses Total Operating costs 40.17 23.89 7.66 55.50 7.66 320.04 7.66 286.46 26.22 7.66 288.77 288.71 68.75 Operating Profit Operating Profit Margin (operating profit.net revenues) 105.40 26.7% 108.35 27.4% 20.03 6.5% 17.7% North America Europe- Africa Asia-Pacific Latin America 376 unit 372 unt Competitive Assumptions Anticipated Price to Retailers Industry Average P/Q Rating Marketing Efforts in Number of Models Year 12 Retailer Support Advertising Budget Website Displays Sales Promotions Warranty Period unit 370 brunit 386 or unit 5.4 5.4 5.4 5.40 4.0 hodels 4.0 fodels 4.0 chodels 4.0 podiel 10.50 for unit 13.10 for unit 11.20 er 11.20 5,157 000 $4,629 000 3,471 2000 3,300 000) 3,114 000 3,314 000 2,543 000) 2,379000W 6 wks 15.3% 8 wks - 15.3% 8 wks 15.1% 8 wka days ACTION-CAPTURE CAMERA DESIGN Image Sensor Size 8mm diagonal LCD Display Screen 10401 pixels Image Quality (maximum resolution) 2704x152 pix. 8/3 modes Number of Photo Modes (video / still) Product Camera Housing Enhancements Editing/ Sharing Capabilities $ 16 per camera $ 10 per camera Included Accessories $ 19 per camera Extra Performance Features 8 8 features Number of AC Camera Models 5 LO models Product R&D Expenditures (Y11 was $3,000) $ 3000 ($000s) Cumulative R&D Expenditures (all years) $ 118,000 $000s) Performance / Quality Rating (P/Q Rating ranges from 1-10 stars) 5.3 * Projected AC Camera Production Costs $/unit 1.84 13.80 4.60 Image Sensor LCD Display Screen Image Quality Photo Modes Camera Housing Editing / Sharing Capabilities Included Accessories Extra Performance Features Total Cost of Components and Features $000s 2,018 15,132 5,044 9,079 17,544 10,965 20,834 92,808 173,424 8.28 16.00 10.00 19.00 84.64 158.16 Assembly Labor Costs Product R&D Expenditures Allowance for Warranty Repairs Maintenance of Plant and Equipment Depreciation of plant and Equipment Total Camera Production/Assembly Cost 37,547 3,000 16,260 14,966 7,994 253,191 34.24 2.74 14.83 13.65 7.29 230.91 Projected Unit Assembly Overtime Total Regular 1,084.0 AC Camera Unit Assembly (000s) 12.5 1,096.5 UAV DRONE DESIGN Built-In Camera Significant Upgrade GPS / WiFi / Bluetooth Best Available Battery Pack (maximum flight time) 30 minutes Number of Rotors 8 rotors ( Rotor Performance / Flight Controller Best Available Body Frame Construction Carbon Fiber (> Obstacle Sensors 360 Advanced Camera Stabilization Device Best Available > Extra Performance Features 13 features 7 models Number of UAV Drone Models Product R&D Expenditures (Y11 was $21,000) Cumulative R&D Expenditures (all years) $ 21001 (5000s) $ 135,000 ($000s) Performance / Quality Rating (P/Q Rating ranges from 1-10 stars) 5.1 % Projected UAV Drone Production Costs Built-In Camera GPS / WiFi / Bluetooth Battery Pack Rotors / Performance / Controller Body Frame Construction Obstacle Sensors Camera Stabilization Device Extra Performance Features Total Cost of Components and Features $000s 45,425 16,764 36,719 19,637 7,184 19,477 10,058 54,408 209,671 $/unit 273.15 100.80 220.80 118.08 43.20 117.12 60.48 327.17 1,260.80 Assembly Labor Costs Product R&D Expenditures Allowance for Warranty Repairs Maintenance of Plant and Equipment Depreciation of Plant and Equipment Total Drone Production/Assembly Cost 11,094 21,000 22,170 10,516 5,213 279,664 66.71 126.28 133.31 63.24 31.35 1,681.68 Projected Unit Assembly Regular Overtime Total UAV Drone Unit Assembly (000s) 166.3 0.0 166.3 Shares of stock outstanding at the beginning of Year 12 24,000 K $ 798,032 841,871 0 0 Projected Cash Available in Year 12 Beginning Cash Balance (carried over from Year 11) Cash Inflows Receipts from Sales Bank Loans 1-Year 5-Year 10-Year Stock Issue (0 shares @ $98.40) Loan to Cover Overdraft (1-year loan) Interest on Year 11 Cash Balance Cash Refund (awarded by instructor) Cash Available from All Sources 0 0 0 5,586 0 1,645,489 $ 0 0 0 0 Projected Cash Outlays in Year 12 Cash Outlays Payments to Component Suppliers $ 388,475 Production and Assembly Expenses 136,553 Delivery/Marketing/Admin Expenses 130,740 Capital Outlays New Workstations Robotics Upgrade Facilities Expansion 0 Facilities Improvement 500 Loan Principal Repayment 1-Year Loans 5-Year Loans 0 10-Year Loans 10,000 Interest Payments Bank Loans 2,550 Y11 Overdraft Stock Repurchases (O shares @ $98.40) Income Tax Payments 52,201 Dividend Payments Charitable Contributions 1,727 Cash Fine (assessed by instructor) 0 Total Cash Outlays $ 722,746 Projected Cash Balance at the $ +922,743 Could generate interest income End of Year 12 ($000s) of $6,459k in Year 13. Other Important Financial Statistics Last Year Year 12 (projected) Interest Rate Paid on Overdraft Loans 5.3% 5.2% Interest Rate Received on Cash Balances 0.8% 0.7% Shareholder Equity (mandated minimum = $100 mil.) 962.9 mil. 1,084.7 mil. Performance on Credit Rating Measures Debt/Equity Percentage (D:E) Interest Coverage Ratio (operating profit + interest exp.) Current Ratio (current assets + current liabilities) Last Year Year 12 (projected) 13:87 10:90 n.m. 1,000.00 7.83 9.41