Please see question in attached file, use data from "data" file.

Top " Round: 2 Rui Hou Dec. 31, 2016 Student: Rui Hou Andrews Rui Hou Baldwin Chester Digby Selected Financial Statistics Andrews -19.4% 0.61 -11.8% 4.2 -49.7% $81,779,717 $124,360,059 ($16,232,569) ($24,093,198) ($24,233,283) 19.1% 27.1% ROS Asset Turnover ROA Leverage (Assets/Equity) ROE Emergency Loan Sales EBIT Profits Cumulative Profit SG&A / Sales Contrib. Margin % Baldwin 1.9% 0.74 1.4% 2.5 3.5% $0 $156,542,989 $19,284,956 $2,937,157 $8,662,006 11.2% 33.9% Chester 9.6% 1.29 12.4% 1.9 23.7% $0 $181,026,589 $33,457,000 $17,337,097 $29,247,965 6.8% 33.8% Digby 0.1% 0.75 0.0% 2.8 0.1% $0 $167,201,650 $17,220,148 $108,218 $7,264,289 8.3% 32.6% COMP-XM INQUIRER Page 1 Top Round: 2 Stocks & Bonds Rui Hou December 31 , 2016 Stock Market Summary Company Close Change Shares MarketCap Book Value ($M) EPS Dividend Yield P/E Andrews Baldwin Chester Digby $1.00 $40.43 $81.27 $32.08 ($44.65) ($7.52) $16.58 ($9.39) 2,164,892 2,615,772 1,927,781 2,968,542 $2 $106 $157 $95 $22.37 $31.97 $37.87 $26.53 ($11.13) $1.12 $8.99 $0.04 $0.00 $0.00 $0.00 $0.00 0.0% 0.0% 0.0% 0.0% -0.1 36.0 9.0 856.4 Bond Market Summary Company Series# Face Yield Close$ S&P 11.2S2021 11.9S2022 12.7S2026 $8,837,000 $7,072,000 $10,000,000 12.7% 13.3% 14.1% 88.49 89.67 90.32 DDD DDD DDD 11.2S2021 12.4S2022 11.9S2024 12.5S2025 13.1S2026 $8,607,404 $5,756,951 $15,689,911 $17,785,485 $36,737,194 12.3% 13.1% 13.1% 13.4% 13.6% 91.03 94.53 91.13 93.52 96.32 CC CC CC CC CC 11.1S2023 11.2S2024 11.5S2025 11.7S2026 $2,425,572 $5,785,949 $1,278,536 $18,542,272 11.8% 12.0% 12.1% 12.2% 93.71 93.65 94.77 95.57 B B B B 11.3S2021 12.5S2022 12.5S2023 12.5S2024 12.9S2025 13.4S2026 $10,417,600 $14,665,611 $7,987,653 $9,474,381 $14,417,355 $34,603,544 12.5% 13.3% 13.4% 13.5% 13.7% 13.9% 90.41 93.80 93.16 92.60 94.09 96.36 C C C C C C Andrews Baldwin Chester Digby Next Year's Prime Rate 8.50% COMP-XM INQUIRER Page 2 Top Financial Summary Cash Flow Statement Survey Round: 2 December 31, 2016 Rui Hou Andrews Baldwin Chester Digby ($24,093) $2,937 $17,337 $108 $9,405 $0 $13,477 $0 $8,117 $0 $15,595 $0 $3,953 ($58,171) ($6,867) ($75,773) $1,520 $1,060 ($2,506) $16,488 $1,911 ($4,813) ($2,533) $20,019 ($871) $7,400 $7 $22,239 $0 ($57,260) ($27,800) ($56,362) $0 $4,707 $0 $10,000 $0 ($45,097) $24,383 $81,780 $0 $17,505 $0 $36,737 $0 ($21,757) $23,685 $0 $0 $3,014 $0 $18,542 $0 ($14,271) $17,889 $0 $0 $13,872 $0 $34,604 $0 ($25,182) $33,370 $0 $75,773 $56,171 $25,174 $56,664 $0 $15,399 $17,394 $22,540 Andrews $0 $17,036 Baldwin $38,208 $12,867 Chester $34,162 $14,879 Digby $52,522 $13,743 Cash flows from operating activities Net Income (Loss) Adjustment for non-cash items: Depreciation Extraordinary gains/losses/writeoffs Changes in current assets and liabilities: Accounts payable Inventory Accounts receivable Net cash from operations 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 Net change in cash position Balance Sheet Survey Cash Accounts Receivable Inventory Total Current Assets $109,923 $126,958 $8,549 $59,623 $18,894 $67,934 $2,141 $68,406 Plant and equipment Accumulated Depreciation Total Fixed Assets $141,080 ($63,220) $77,860 $222,560 ($70,653) $151,907 $121,760 ($49,404) $72,356 $233,922 ($78,697) $155,225 Total Assets $204,818 $211,531 $140,290 $223,631 Accounts Payable Current Debt Long Term Debt Total Liabilities $13,012 $117,463 $25,909 $156,384 $8,338 $34,985 $84,577 $127,900 $10,058 $29,189 $28,032 $67,279 $8,629 $44,670 $91,566 $144,865 Common Stock Retained Earnings Total Equity $17,787 $30,648 $48,434 $36,054 $47,577 $83,630 $11,818 $61,193 $73,011 $41,544 $37,222 $78,767 Total Liabilities & Owners' Equity $204,818 $211,531 $140,290 $223,631 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 $124,360 $90,717 $9,405 $23,734 $16,735 ($16,233) $20,834 ($12,973) $0 ($24,093) Baldwin $156,543 $103,530 $13,477 $17,538 $2,712 $19,285 $14,674 $1,614 $60 $2,937 Chester $181,027 $119,822 $8,117 $12,302 $7,328 $33,457 $6,240 $9,526 $354 $17,337 Digby $167,202 $112,641 $15,595 $13,822 $7,924 $17,220 $17,050 $59 $2 $108 COMP-XM INQUIRER Page 3 Top Production Analysis Rui Hou Round: 2 December 31, 2016 Production Information Name Primary Segme nt Units Sold Apple Core 654 Agape Nano 1,160 Abby Elite 1,121 Unit Inven Revisio Age tory n Date Dec.31 12/21/2 016 10/27/2 875 016 4/8/201 1,249 6 1,872 MTBF Pfmn Coord 1.4 16000 9.7 1.6 17000 1.9 23000 Size Coord 2nd Auto Shift & mation Capacit Contr. OverNext y Next Marg. time Round Round Price Material Cost Labor Cost Plant Utiliz. 10.3 $31.00 $8.53 $8.69 21% 0% 4.5 1,500 98% 8.8 6.3 $35.00 $10.52 $10.71 26% 95% 4.5 1,028 192% 11.6 8.4 $40.00 $12.13 $10.97 31% 57% 4.0 1,214 154% Alan Thrift 746 1,729 Buddy Thrift 1,679 121 Bat Core 2,517 21 Beetle Nano 1,037 168 Bill Elite 860 186 Boat Core 743 0 0 0 Best Cure Nano 1,584 Camp Elite 917 Cent Nano 1,267 Clack Elite 1,317 Dune Thrift 2,079 Dart Thrift 2,580 Dell Core 1,656 Dim Core 1,864 10/21/2 017 12/20/2 017 12/7/20 15 12/16/2 016 12/17/2 016 3/31/20 16 2/10/20 17 12/2/20 16 1/4/201 244 6 9/18/20 273 16 8/16/20 287 16 0 4/10/20 16 4/10/20 0 16 12/15/2 79 016 12/17/2 53 016 0 7.1 20000 6.0 14.0 $25.00 $6.53 $6.68 27% 0% 6.0 1,630 91% 3.5 14000 7.3 12.7 $18.00 $6.26 $2.53 49% 20% 9.5 1,250 119% 2.1 16000 9.7 10.3 $20.00 $9.01 $5.61 25% 70% 8.0 1,600 168% 1.0 18000 12.4 5.2 $30.00 $13.17 $6.53 35% 31% 6.0 850 130% 1.0 20000 15.2 7.4 $34.00 $14.05 $7.41 37% 13% 6.0 850 111% 0.8 16000 10.3 9.7 $21.00 $9.54 $5.81 26% 100% 7.0 1,040 149% 0.0 0 0.0 0.0 $0.00 $0.00 0% 0% 7.0 600 0% 1.3 23000 12.3 5.7 $32.00 $13.96 $9.33 30% 100% 6.0 900 198% 2.4 25000 15.5 7.2 $35.00 $15.32 $8.73 28% 50% 6.5 850 149% 1.2 23000 13.4 4.5 $37.00 $14.96 $8.05 37% 53% 6.0 1,000 151% 1.2 25000 15.3 6.7 $39.00 $15.41 $7.97 39% 47% 6.0 1,100 146% 2.7 17000 8.1 11.9 $17.00 $7.76 $3.95 31% 100% 8.7 1,646 198% 2.6 17000 8.3 11.7 $17.00 $7.94 $3.95 30% 100% 8.5 1,846 198% 1.1 18000 11.2 8.2 $25.00 $11.07 $4.71 36% 48% 7.8 1,149 146% 1.1 20000 11.9 8.7 $25.00 $11.75 $4.60 34% 36% 7.8 1,349 135% $0.00 COMP-XM INQUIRER Page 4 Top Thrift Market Segment Analysis Thrift Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 6,285 6,285 26.4% Next Year's Segment Growth Rate 11.0% Thrift Customer Buying Criteria Expectations 1. 2. 3. 4. Price Reliability Ideal Position Age $14.00 - 26.00 MTBF 14000-20000 Pfmn 7.8 Size 12.2 Ideal Age = 3.0 Importanc e 55% 20% 15% 10% Rui Hou Round: 2 December 31, 2016 Perceptual Map for Thrift Segment Top Products in Thrift Segment Name Dart Dune Buddy Alan Bat Apple Boat Market Share 30% 25% 23% 12% 8% 2% 0% Units Sold to Seg 1,869 1,569 1,439 746 524 108 30 Revision Stock Date Out 4/10/2016 YES 4/10/2016 YES 12/20/2017 10/21/2017 12/7/2015 12/21/2016 3/31/2016 YES Pfmn Coord 8.3 8.1 7.3 6.0 9.7 9.7 10.3 Size Coord 11.7 11.9 12.7 14.0 10.3 10.3 9.7 List Price $17.00 $17.00 $18.00 $25.00 $20.00 $31.00 $21.00 MTBF 17000 17000 14000 20000 16000 16000 16000 Age Dec.31 2.64 2.74 3.48 7.11 2.11 1.37 0.75 Promo Budget $1,200 $1,200 $1,050 $2,500 $1,050 $1,500 $1,050 Cust. Awareness 74% 73% 61% 99% 61% 86% 48% Cust. Sales AccessBudget ibility $1,100 67% $1,100 67% $1,000 66% $3,500 84% $1,000 66% $2,500 84% $900 66% COMP-XM INQUIRER Dec. Cust. Survey 42 44 26 13 14 1 3 Page 5 Top Core Market Segment Analysis Core Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 8,078 8,078 34.0% Next Year's Segment Growth Rate 10.0% Core Customer Buying Criteria Expectations 1. 2. 3. 4. Price Age Reliability Ideal Position $20.00 - 32.00 Ideal Age = 2.0 MTBF 16000-22000 Pfmn 10.5 Size 9.5 Importanc e 46% 20% 18% 16% Rui Hou Round: 2 December 31, 2016 Perceptual Map for Core Segment Top Products in Core Segment Name Bat Dim Dell Boat Dart Apple Dune Buddy Cure Agape Market Share 25% 20% 18% 9% 9% 7% 6% 3% 3% 0% Units Sold to Seg 1,994 1,647 1,458 713 710 546 510 241 240 21 Revision Stock Date Out 12/7/2015 12/17/2016 12/15/2016 3/31/2016 YES 4/10/2016 YES 12/21/2016 4/10/2016 YES 12/20/2017 12/2/2016 YES 10/27/2016 Pfmn Coord 9.7 11.9 11.2 10.3 8.3 9.7 8.1 7.3 12.3 8.8 Size Coord 10.3 8.7 8.2 9.7 11.7 10.3 11.9 12.7 5.7 6.3 List Price $20.00 $25.00 $25.00 $21.00 $17.00 $31.00 $17.00 $18.00 $32.00 $35.00 MTBF 16000 20000 18000 16000 17000 16000 17000 14000 23000 17000 Age Dec.31 2.11 1.10 1.09 0.75 2.64 1.37 2.74 3.48 1.35 1.64 Promo Budget $1,050 $1,200 $1,200 $1,050 $1,200 $1,500 $1,200 $1,050 $1,300 $1,500 Cust. Awareness 61% 73% 73% 48% 74% 86% 73% 61% 82% 85% Cust. Sales AccessBudget ibility $1,000 65% $900 70% $900 70% $900 65% $1,100 70% $2,500 71% $1,100 70% $1,000 65% $900 17% $100 71% COMP-XM INQUIRER Dec. Cust. Survey 38 30 26 33 18 13 14 0 0 0 Page 6 Top Nano Market Segment Analysis Nano Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 4,741 4,741 19.9% Next Year's Segment Growth Rate 14.0% Nano Customer Buying Criteria Expectations 1. 2. 3. 4. Ideal Position Price Age Reliability Pfmn 12.4 Size 5.0 $28.00 - 40.00 Ideal Age = 1.0 MTBF 18000-24000 Importanc e 35% 27% 20% 18% Rui Hou Round: 2 December 31, 2016 Perceptual Map for Nano Segment Top Products in Nano Segment Name Cent Cure Beetle Agape Abby Dell Bill Dim Clack Market Share 23% 19% 18% 17% 9% 4% 3% 3% 3% Units Sold to Seg 1,092 922 839 823 434 169 164 158 140 Revision Stock Date Out 9/18/2016 12/2/2016 YES 12/16/2016 10/27/2016 4/8/2016 12/15/2016 12/17/2016 12/17/2016 8/16/2016 Pfmn Size Coord Coord 13.4 4.5 12.3 5.7 12.4 5.2 8.8 6.3 11.6 8.4 11.2 8.2 15.2 7.4 11.9 8.7 15.3 6.7 List Price $37.00 $32.00 $30.00 $35.00 $40.00 $25.00 $34.00 $25.00 $39.00 MTBF 23000 23000 18000 17000 23000 18000 20000 20000 25000 Age Dec.31 1.20 1.35 1.04 1.64 1.91 1.09 1.05 1.10 1.24 Promo Budget $1,300 $1,300 $1,050 $1,500 $1,500 $1,200 $1,050 $1,200 $1,300 Cust. Awareness 82% 82% 61% 85% 85% 73% 61% 73% 81% Cust. Sales AccessBudget ibility $800 85% $900 85% $900 65% $100 73% $3,500 73% $900 24% $1,500 65% $900 24% $800 85% COMP-XM INQUIRER Dec. Cust. Survey 45 64 41 9 17 8 2 9 4 Page 7 Top Elite Market Segment Analysis Elite Statistics Total Industry Unit Demand Actual Industry Unit Sales Segment % of Total Industry 4,678 4,678 19.7% Next Year's Segment Growth Rate 16.0% Elite Customer Buying Criteria Expectations 1. 2. 3. 4. Age Price Ideal Position Reliability Ideal Age = 0.0 $30.00 - 42.00 Pfmn 15.0 Size 7.6 MTBF 20000-26000 Importanc e 34% 24% 22% 20% Rui Hou Round: 2 December 31, 2016 Perceptual Map for Elite Segment Top Products in Elite Segment Name Clack Camp Bill Abby Cure Agape Beetle Cent Dim Dell Market Share 25% 20% 15% 15% 9% 7% 4% 4% 1% 1% Units Sold to Seg 1,177 917 696 687 423 316 198 175 59 30 Revision Stock Date Out 8/16/2016 1/4/2016 12/17/2016 4/8/2016 12/2/2016 YES 10/27/2016 12/16/2016 9/18/2016 12/17/2016 12/15/2016 Pfmn Size Coord Coord 15.3 6.7 15.5 7.2 15.2 7.4 11.6 8.4 12.3 5.7 8.8 6.3 12.4 5.2 13.4 4.5 11.9 8.7 11.2 8.2 List Price $39.00 $35.00 $34.00 $40.00 $32.00 $35.00 $30.00 $37.00 $25.00 $25.00 MTBF 25000 25000 20000 23000 23000 17000 18000 23000 20000 18000 Age Dec.31 1.24 2.45 1.05 1.91 1.35 1.64 1.04 1.20 1.10 1.09 Promo Budget $1,300 $1,300 $1,050 $1,500 $1,300 $1,500 $1,050 $1,300 $1,200 $1,200 Cust. Awareness 81% 82% 61% 85% 82% 85% 61% 82% 73% 73% Cust. Sales AccessBudget ibility $800 87% $900 87% $1,500 60% $3,500 85% $900 87% $100 85% $900 60% $800 87% $900 11% $900 11% COMP-XM INQUIRER Dec. Cust. Survey 41 36 30 15 18 0 4 1 3 1 Page 8 Top Market Share Report Actual Market Share in Units Potential Market Share in Units Thrift Industry Unit Sales % of Market Apple Core Nano Elite Total 6,285 8,078 4,741 4,678 23,782 26.4% 34.0% 19.9% 19.7% 100.0% 1.7% 6.8% Round: 2 December 31, 2016 Rui Hou 2.8% Thrift Units Demanded % of Market Core Nano Elite Total 6,285 8,078 4,741 4,678 23,782 26.4% 34.0% 19.9% 19.7% 100.0% Agape Abby Alan Total Buddy Bat 0.3% 17.4% 6.8% 9.2% 14.7% 11.9% 13.6% 22.9% 4.9% 4.7% 7.0% 26.5% 21.4% 3.1% 15.5% 3.0% 10.6% Beetle 17.7% 6.2% 0.2% Alan Total 10.3% 11.8% Buddy 19.9% 17.3% 9.1% 6.7% 14.6% 2.5% 4.8% 4.7% 26.4% 21.4% 2.7% 14.8% 2.8% 7.2% 23.1% 4.2% 4.4% Bat 3.5% 14.9% 3.6% 6.4% Beetle 0.5% 8.8% 31.7% 36.5% 21.2% 19.1% 3.1% 28.8% Bill Boat Total 1.5% 7.1% 8.3% 24.7% Apple Agape Abby Cure Camp 3.0% 19.4% 9.0% 19.6% 6.7% 3.9% Cent 23.0% 3.7% 5.3% Clack Total 3.0% 25.2% 3.0% 45.4% 57.5% 5.5% 21.4% Dune 25.0% Dart Dell Dim Total 29.7% 6.3% 10.8% 7.0% 7.8% 34.4% 4.2% 4.3% 3.4% 14.8% 3.6% 13.3% 39.1% 20.9% 19.0% 4.7% 28.6% 2.7% 0.8% 27.8% Cure Camp 20.1% 9.3% 19.5% 6.8% 3.8% Cent 22.8% 3.7% 5.3% Clack Total 2.9% 45.9% 25.1% 57.7% 5.5% 21.4% 2.8% 8.7% 8.8% 18.0% 20.4% 54.7% 53.5% 9.7% 17.5% Bill Boat Total 6.2% 3.6% 3.3% 6.9% 0.6% 1.3% 1.9% Dune 30.5% 7.9% Dart Dell Dim Total 29.8% 8.9% 16.4% 18.6% 51.8% 60.3% 10.7% 3.5% 3.3% 6.8% COMP-XM INQUIRER 0.6% 1.3% 1.9% 10.9% 6.4% 7.2% 35.3% Page 9 Top Perceptual Map Rui Hou Round: 2 December 31, 2016 Perceptual Map for All Segments Andrews Name Apple Agape Abby Alan Pfmn 9.7 8.8 11.6 6.0 Name Dune Dart Dell Dim Pfmn 8.1 8.3 11.2 11.9 Size 10.3 6.3 8.4 14.0 Baldwin Revised 12/21/2016 10/27/2016 4/8/2016 10/21/2017 Name Buddy Bat Beetle Bill Boat Pfmn 7.3 9.7 12.4 15.2 10.3 Size 12.7 10.3 5.2 7.4 9.7 Chester Revised 12/20/2017 12/7/2015 12/16/2016 12/17/2016 3/31/2016 Name Cure Camp Cent Clack Pfmn 12.3 15.5 13.4 15.3 Size 5.7 7.2 4.5 6.7 Revised 12/2/2016 1/4/2016 9/18/2016 8/16/2016 Digby Size 11.9 11.7 8.2 8.7 Revised 4/10/2016 4/10/2016 12/15/2016 12/17/2016 COMP-XM INQUIRER Page 10 Top HR/TQM Report HUMAN RESOURCES SUMMARY Rui Hou Round: 2 December 31, 2016 Andrews Baldwin Chester Digby Needed Complement 1,021 555 656 484 Complement 1,021 555 656 484 1st Shift Complement 760 389 403 290 2nd Shift Complement 261 167 253 194 Overtime% 0.0% 0.0% 0.0% 0.0% Turnover Rate 6.9% 6.3% 10.0% 8.0% 321 134 131 39 0 0 0 172 $5,000 $5,000 $0 $2,500 New Employees Separated Employees Recruiting Spend Training Hours 80 80 0 40 106.2% 122.9% 100.0% 113.4% $1,925 $804 $131 $135 $0 $0 $0 $862 Training Cost $1,634 $889 $0 $387 Total HR Admin Cost $3,558 $1,693 $131 $1,385 Wages $28.15 $28.15 $28.15 $28.15 Benefits 2,500 2,500 2,500 2,500 Profit Sharing 2.0% 2.0% 2.0% 2.0% Annual Raise 5.0% 5.0% 5.0% 5.0% Productivity Index Recruiting Cost Separation Cost Labor Contract Next Year 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 Process Mgt Budgets Last Year CPI Systems $1,500 $0 $0 $1,250 Vendor/JIT $2,000 $0 $0 $1,250 Quality Initiative Training $1,500 $0 $1,250 $0 Channel Support Systems $1,500 $0 $1,250 $1,500 Concurrent Engineering $1,500 $0 $1,250 $0 UNEP Green Programs $2,000 $0 $0 $0 TQM Budgets Last Year Benchmarking $1,500 $0 $0 $0 Quality Function Deployment Effort $1,500 $0 $0 $0 CCE/6 Sigma Training $1,500 $0 $1,250 $750 GEMI TQEM Sustainability Initiatives $1,500 $0 $1,250 $750 $16,000 $0 $6,250 $5,500 Cumulative Impacts Material Cost Reduction 5.27% 0.00% 2.92% 1.40% Labor Cost Reduction 6.21% 0.00% 11.25% 0.33% Reduction R&D Cycle Time 27.25% 0.00% 32.13% 0.00% Reduction Admin Costs 44.67% 0.00% 0.00% 3.25% 6.95% 0.00% 4.56% 1.16% Total Expenditures Demand Increase COMP-XM INQUIRER Page 11 PRINT Annual Report Top Annual Report Andrews Round: 6 Dec. 31, 2016 C59559 Balance Sheet ASSETS 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 Cash Receivable: Reflects the lag between delivery Accounts and payment of your products.Inventories: The Receivable current value of your inventory across all Inventory products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current value of your plant. Accum Deprec: The total Assets accumulated depreciation from your plant. Accts Payable: What the company currently owes Plant & suppliers for materials and services. Current Equipment Accumulated Debt: The debt the company is obligated to pay during the next year of operations. It includes Depreciation emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets 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:Total Assets The amount of capital invested by shareholders in the company.Retained Earnings: The profits LIABILITIES & that the company chose to keep instead of OWNERS' paying to shareholders as dividends. EQUITY Accounts Payable Current Debt Long Term Debt 2015 $0 2016 Common Size 0.0% $17,036 8.3% $10,169 $109,923 53.7% $51,752 62.0% $61,921 $141,080 68.9% $141,080 ($63,220) -30.9% ($53,815) $77,860 38.0% $87,265 $204,818 100.0% $149,186 6.4% 57.3% 12.6% $9,059 $45,097 $27,209 76.4% $81,365 $17,787 8.7% $13,080 $30,648 15.0% $54,741 $48,435 23.6% $67,821 $204,818 100.0% $149,186 $126,959 $13,012 $117,463 $25,909 Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. $156,384 $0 Equity Cash Flow Statement Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2016 2015 ($24,093) $9,405 ($140) $9,405 $0 $0 $3,953 ($58,171) ($6,867) ($457) ($25,603) $3,253 ($75,773) ($13,542) $0 ($44,256) $0 $4,707 $0 $10,000 ($11,300) $72,366 ($4,124) $1,000 $0 $0 $0 $29,379 $75,773 $26,256 $0 $0 ($31,543) $0 Page 1 Annual Report Top Annual Report Andrews Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventor y Carry Total Variable Contribu tion Margin Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period $0 2016 Total $124,360 Common Size 100.0% $0 $0 $35,823 28.8% $0 $0 $0 $41,704 33.5% $0 $0 $0 $0 $13,191 10.6% $13,540 $0 $0 $0 $0 $90,717 72.9% $13,688 $5,112 $0 $0 $0 $0 $33,643 27.1% $1,645 $1,781 $3,260 $0 $0 $0 $0 $9,405 7.6% $986 $833 $275 $1,000 $0 $0 $0 $0 $3,094 2.5% $1,500 $1,500 $1,500 $2,500 $0 $0 $0 $0 $7,000 5.6% $2,500 $100 $3,500 $3,500 $0 $0 $0 $0 $9,600 7.7% $658 $1,319 $1,457 $606 $0 $0 $0 $0 $4,040 3.2% $8,365 $5,397 $8,512 $10,866 $0 $0 $0 $0 $33,140 26.6% Apple Agape Abby Alan Na Na Na Na $20,264 $40,595 $44,848 $18,653 $0 $0 $0 $5,936 $12,413 $12,308 $5,166 $0 $0 $5,912 $15,186 $15,176 $5,429 $0 $4,071 $2,499 $3,675 $2,946 $15,919 $30,098 $31,160 $4,345 $10,497 $2,720 Net Margin ($4,020) $5,100 $5,176 ($5,754) $0 $0 $0 $0 $503 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest 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 LongTerm Interest Taxes 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 Profit Sharing issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the Net Profit 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. 0.4% $16,735 ($16,233) $17,733 $3,101 ($12,973) $0 ($24,093) Annual Report 13.5% -13.1% 14.3% 2.5% -10.4% 0.0% -19.4% Page 2 PRINT Annual Report Top Annual Report Baldwin Round: 6 Dec. 31, 2016 C59559 Balance Sheet ASSETS 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 Cash Receivable: Reflects the lag between delivery Accounts and payment of your products.Inventories: The Receivable current value of your inventory across all Inventory products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current value of your plant. Accum Deprec: The total Assets accumulated depreciation from your plant. Accts Payable: What the company currently owes Plant & suppliers for materials and services. Current Equipment Accumulated Debt: The debt the company is obligated to pay during the next year of operations. It includes Depreciation emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets 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:Total Assets The amount of capital invested by shareholders in the company.Retained Earnings: The profits LIABILITIES & that the company chose to keep instead of OWNERS' paying to shareholders as dividends. EQUITY Accounts Payable Current Debt Long Term Debt $38,208 2016 Common Size 18.1% $22,810 $12,867 6.1% $10,360 $8,549 4.0% $9,609 28.2% $42,779 $222,560 105.2% $165,300 ($70,653) -33.4% ($57,176) $151,907 71.8% $108,124 $211,531 100.0% $150,903 3.9% 16.5% 40.0% $6,818 $21,757 $59,140 60.5% $87,715 $36,054 17.0% $18,548 $47,577 22.5% $44,640 $83,631 39.5% $63,188 $211,531 100.0% $150,903 $59,624 $8,338 $34,985 $84,577 Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $127,900 2015 Cash Flow Statement Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2016 2015 $2,937 $13,477 $5,725 $9,887 $0 $0 $1,520 $1,060 ($2,506) $1,022 ($3,172) ($588) $16,488 $12,874 ($57,260) ($40,900) $0 $17,505 $0 $36,737 ($11,300) $13,228 $0 $4,220 $0 $17,785 $0 ($3,801) $56,171 $18,204 $15,399 $38,208 ($9,822) $22,810 Page 1 Annual Report Top Annual Report Baldwin Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventor y Carry Total Variable Contribu tion Margin Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period $0 2016 Total $156,543 Common Size 100.0% $0 $0 $35,802 22.9% $0 $0 $0 $66,702 42.6% $0 $0 $0 $0 $1,026 0.7% $18,460 $11,596 $0 $0 $0 $103,530 66.1% $10,760 $10,790 $4,000 $0 $0 $0 $53,013 33.9% $4,053 $1,700 $1,700 $2,357 $0 $0 $0 $13,477 8.6% $1,000 $0 $973 $977 $250 $1,000 $0 $0 $4,200 2.7% $1,050 $1,050 $1,050 $1,050 $1,050 $0 $0 $0 $5,250 3.4% $1,000 $1,000 $900 $1,500 $900 $0 $0 $0 $5,300 3.4% $538 $897 $554 $521 $278 $0 $0 $0 $2,788 1.8% $7,255 $7,000 $5,178 $5,748 $4,835 $1,000 $0 $0 $31,016 19.8% Buddy Bat Beetle Bill Boat Best Na Na $30,229 $50,347 $31,121 $29,250 $15,596 $0 $0 $4,336 $14,127 $6,712 $6,313 $4,314 $0 $11,030 $23,451 $13,260 $11,680 $7,281 $133 $37 $389 $467 $15,499 $37,615 $20,361 $14,730 $12,732 $3,667 Net Margin $7,475 $5,732 $5,582 $5,043 ($835) ($1,000) $0 $0 $21,997 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest 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 LongTerm Interest Taxes 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 Profit Sharing issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the Net Profit 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. 14.1% $2,712 $19,285 $4,093 $10,581 $1,614 $60 $2,937 Annual Report 1.7% 12.3% 2.6% 6.8% 1.0% 0.0% 1.9% Page 2 PRINT Annual Report Top Annual Report Chester Round: 6 Dec. 31, 2016 C59559 Balance Sheet ASSETS 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 Cash Receivable: Reflects the lag between delivery Accounts and payment of your products.Inventories: The Receivable current value of your inventory across all Inventory products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current value of your plant. Accum Deprec: The total Assets accumulated depreciation from your plant. Accts Payable: What the company currently owes Plant & suppliers for materials and services. Current Equipment Accumulated Debt: The debt the company is obligated to pay during the next year of operations. It includes Depreciation emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets 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:Total Assets The amount of capital invested by shareholders in the company.Retained Earnings: The profits LIABILITIES & that the company chose to keep instead of OWNERS' paying to shareholders as dividends. EQUITY Accounts Payable Current Debt Long Term Debt $34,162 2016 Common Size 24.4% $16,768 $14,879 10.6% $12,346 $18,894 13.5% $14,081 48.4% $43,195 $121,760 86.8% $93,960 ($49,404) -35.2% ($41,287) $72,356 51.6% $52,673 $140,290 100.0% $95,868 7.2% 20.8% 20.0% $8,147 $14,271 $20,790 48.0% $43,208 $11,818 8.4% $8,804 $61,193 43.6% $43,856 $73,011 52.0% $52,660 $140,290 100.0% $95,868 $67,935 $10,058 $29,189 $28,032 Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $67,279 2015 Cash Flow Statement Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2016 2015 $17,337 $8,117 $11,911 $6,264 $0 $0 $1,911 ($4,813) ($2,533) $1,765 $916 ($2,522) $20,019 $18,334 ($27,800) ($9,580) $0 $3,014 $0 $18,542 ($11,300) $14,918 ($7,057) $0 ($1,553) $1,279 $0 ($4,032) $25,174 ($11,364) $17,394 $34,162 ($2,610) $16,768 Page 1 Annual Report Top Annual Report Chester Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Sales Variable Costs: Direct Labor Direct Material Inventor y Carry Total Variable Contribu tion Margin Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period Net Margin $0 2016 Total $181,027 Common Size 100.0% $0 $0 $43,641 24.1% $0 $0 $0 $73,914 40.8% $0 $0 $0 $0 $2,267 1.3% $31,529 $0 $0 $0 $0 $119,822 66.2% $17,120 $19,821 $0 $0 $0 $0 $61,204 33.8% $1,813 $2,000 $2,200 $0 $0 $0 $0 $8,117 4.5% $934 $9 $727 $634 $0 $0 $0 $0 $2,304 1.3% $1,300 $1,300 $1,300 $1,300 $0 $0 $0 $0 $5,200 2.9% $900 $900 $800 $800 $0 $0 $0 $0 $3,400 1.9% $392 $248 $362 $397 $0 $0 $0 $0 $1,399 0.8% $5,630 $4,270 $5,189 $5,330 $0 $0 $0 $0 $20,419 11.3% $9,568 $4,794 $11,931 $14,491 $0 $0 $0 $0 $40,785 22.5% Cure Camp Cent Clack Na Na Na Na $50,696 $32,107 $46,873 $51,350 $0 $0 $0 $14,789 $8,004 $10,323 $10,525 $0 $0 $20,709 $14,326 $18,679 $20,199 $0 $0 $712 $750 $804 $35,498 $23,043 $29,753 $15,198 $9,064 $2,104 Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest 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 LongTerm Interest Taxes 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 Profit Sharing issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the Net Profit 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. $7,328 $33,457 $3,006 $3,234 $9,526 $354 $17,337 Annual Report 4.0% 18.5% 1.7% 1.8% 5.3% 0.2% 9.6% Page 2 PRINT Annual Report Top Annual Report Digby Round: 6 Dec. 31, 2016 C59559 Balance Sheet ASSETS 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 Cash Receivable: Reflects the lag between delivery Accounts and payment of your products.Inventories: The Receivable current value of your inventory across all Inventory products. A zero indicates your company stocked out. Unmet demand would, of course, fall to your competitors. Plant & Equipment: The current Total Current value of your plant. Accum Deprec: The total Assets accumulated depreciation from your plant. Accts Payable: What the company currently owes Plant & suppliers for materials and services. Current Equipment Accumulated Debt: The debt the company is obligated to pay during the next year of operations. It includes Depreciation emergency loans used to keep your company solvent should you run out of cash during the Total Fixed Assets 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:Total Assets The amount of capital invested by shareholders in the company.Retained Earnings: The profits LIABILITIES & that the company chose to keep instead of OWNERS' paying to shareholders as dividends. EQUITY Accounts Payable Current Debt Long Term Debt $52,522 2016 Common Size 23.5% $29,982 $13,743 6.1% $13,749 $2,141 1.0% $9,541 30.6% $53,272 $233,922 104.6% $177,560 ($78,697) -35.2% ($63,102) $155,225 69.4% $114,458 $223,631 100.0% $167,730 3.9% 20.0% 40.9% $9,500 $25,182 $68,263 64.8% $102,945 $41,544 18.6% $27,672 $37,222 16.6% $37,114 $78,766 35.2% $64,786 $223,631 100.0% $167,730 $68,406 $8,629 $44,670 $91,566 Total Liabilities Common Stock Retained Earnings Total Equity Total Liab. & O. Equity $144,865 2015 Cash Flow Statement Cash Flows from Operating The Cash Flow Statement examines what happened in the Cash Account during the year. Cash injections appear as positive numbers and Activities: cash withdrawals as negative numbers. The Cash Flow Statement is an Net Income (Loss) excellent tool for diagnosing emergency loans. When negative cash flows Depreciation Extraordinary exceed positives, you are forced to seek emergency funding. For example, if sales are bad and you find yourself carrying an abundance of gains/losses/writeoffs Accounts Payable excess inventory, the report would show the increase in inventory as a huge negative cash flow. Too much unexpected inventory could outstrip Inventory your inflows, exhaust your starting cash and force you to beg for money to Accounts Receivable keep your company afloat. 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 2016 2015 $108 $15,595 $7,156 $11,837 $0 $0 ($871) $7,400 $7 $2,217 $1,062 ($2,940) $22,239 $19,331 ($56,362) ($34,660) $0 $13,872 $0 $34,604 ($11,300) $19,488 $0 $2,982 $0 $14,417 $0 ($4,049) $56,664 $13,351 $22,540 $52,522 ($1,978) $29,982 Page 1 Annual Report Top Annual Report Digby Round: 6 Dec. 31, 2016 C59559 2016 Income Statement (Product Name:) Sales $0 2016 Total $167,202 Common Size 100.0% Dune Dart Dell Dim Na Na Na Na $35,349 $43,852 $41,406 $46,595 $0 $0 $0 Variable Costs: Direct Labor Direct Material Inventor y Carry Total Variable $8,220 $10,260 $8,292 $9,228 $0 $0 $0 $0 $36,001 21.5% $16,231 $20,609 $17,999 $21,544 $0 $0 $0 $0 $76,383 45.7% $0 $0 $151 $106 $0 $0 $0 $0 $257 0.2% $24,452 $30,869 $26,442 $30,878 $0 $0 $0 $0 $112,641 67.4% Contribu tion Margin $10,897 $12,983 $14,964 $15,717 $0 $0 $0 $0 $54,561 32.6% $4,477 $4,923 $2,850 $3,346 $0 $0 $0 $0 $15,595 9.3% $279 $279 $970 $976 $0 $0 $0 $0 $2,505 1.5% $1,200 $1,200 $1,200 $1,200 $0 $0 $0 $0 $4,800 2.9% $1,100 $1,100 $900 $900 $0 $0 $0 $0 $4,000 2.4% $532 $660 $623 $701 $0 $0 $0 $0 $2,517 1.5% $7,588 $8,162 $6,543 $7,123 $0 $0 $0 $0 $29,417 17.6% $3,309 $4,821 $8,421 $8,594 $0 $0 $0 $0 $25,144 15.0% Period Costs: Depreci ation SG&A: R&D Prom otions Sales Admi n Total Period Net Margin Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the Other product that was sold. Inventory Carry Cost: the cost to carry unsold goods in EBIT inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Short Term Interest 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 LongTerm Interest Taxes 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 Profit Sharing issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the Net Profit 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 $7,924 $17,220 $5,360 $11,690 $59 $2 $108 4.7% 10.3% 3.2% 7.0% 0.0% 0.0% 0.1% Page 2 1. On the Income Statement, which of the following would be classified as a variable cost? Select: 1 Depreciation Expense Direct Labor Expense Promotion Expense R&D Expense 2. It is January 2nd. Senior management of Baldwin meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (=assets/equity) to a new target of 2.7. Assume the stock can be issued at yesterday's stock price ($40.43). Which of the following statements are true? Check all that apply. Select: 3 Baldwin will issue stock totaling $2,021,500 Total Assets will rise to $231,260,000 Total investment for Baldwin will be $5,458,050 Long term debt will increase from $84,576,945 to $86,598,445 The Baldwin Working Capital will be unchanged at $16,300 The Baldwin bond issue will be $3,436,550 3. The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summary of the sources and uses of cash (sources of cash are added, uses of cash are subtracted). Please answer which of the following is true if Baldwin's inventory goes up: Select: 1 It is a source of cash, and will be shown in the investing section as an addition. It is a use of cash, and will be shown in the investing section as a subtraction. It is a use of cash, and will be shown in the operating section as a subtraction. It is a source of cash and will be shown in the operating section as an addition. 4. This year Baldwin achieved an ROE of 3.5%. Suppose management takes measures that increase Asset turnover (Sales/Total Assets) next year. Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Baldwin's ROE? Select: 1 Baldwin ROE will increase. Baldwin ROE will remain the same. Baldwin ROE will decrease. 5. The Baldwin's workforce complement will grow by 20% (rounded to the nearest person) next year. Ignoring downsizing from automating, what would their total recruiting cost be? Assume Baldwin spends the same amount extra above the $1,000 recruiting base as they did last year. Select: 1 $3,330,000 $555,000 $666,000 $3,996,000 6. This year, Baldwin paid their workers $26.81 per hour. How much will they be paying them 3 rounds from now? Select: 1 $31.04 $29.56 $28.36 $28.15 7. Suppose the Chester company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing? Select: 1 Niche differentiation Broad differentiation Niche cost leader Broad cost leader