Question 1

Using the formulas in each question and the data in your company's financial statements for the most recent year available, calculate the following measures of financial performance for your company

QUESTION	FORMULA	ANSWER
Price-earnings ratio	Current market price per share Earnings per share
Operating profit margin	Sales revenues - Operating expenses Sales revenues OR Operating income Sales revenues
Return on total assets	Profits after taxes + Interest Total assets
Working capital	Current assets - Current liabilities
Long-term debt-to-capital ratio	Long-term debt Long-term debt +Total stockholders' equity
Current ratio	Current assets Current liabilities

Question 2

Based on your company's latest financial statements and all of the other available data regarding its performance that appear in the most recent Footwear Industry Report, list the three measures of financial performance on which your company did "best" and the three measures on which your company's financial performance was "worst."

Question 3

What hard evidence can you cite that indicates your company's strategy is working fairly well (or perhaps not working so well, if your company's performance is lagging behind that of rival companies)?

Company's Financial Data Below

Workforce Compensation & Training Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 NORTH AMERICA FACILITY Consolation- Base Wage @ chatt +1% incentive Pay Chips 10.00 10.00 Bost Proc $7 500 $7,500 $7 500 40 to 1 40 to 1 40 60 1 +1% +1%% +1% EUROPE AFRICA FACILITY Wage (x chat Love Pay (Upd ROTOO Production Fringe Benches (Pye Best Practices (A Supervisory at Ofo of workers to supent one) 0to 1 0fo1 ST sory Comp ation (of change) ASIA PACIFIC FACILITY +1% +1% Incentive Pay top $0.00 $0.00 $0.00 Fringe Benehis (#your) $7 500 $7 500 $7 500 10 to 1 40 to 1 40 to 1 serveory Compareddon ( ching's 41% +1% LATIN AMERICA FACILITY Connection Base Wage (X ching 0% +1% $0.00 Fringe Benefits Best Practices AMlooking $7,500 $7.500 10 1 40 to 1 40 to 1 supervisory Compe son to change) Branded Footwear Production Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 NORTH AMERICA FACILITY Branded = Superlor Ma laterla 0.00% 0.00%% 0.00%% Number of Models / Style 500 500 500 Styling features goodmood TOM/G Stoma (4 0 $0.00 $0.00 $0.00 Pairs to be M 5 500 $8.00 $8.52 $6.33 Pness (@ parpair) atpanor $12:00 $11.74 $1249 E AFRICA FACILITY 0.00% 0.00% 0.00% M/8 6loma (PM) $0 00 $0100 0 00 anded Poire to be M 0 Standant 48.00 $6.52 $6.33 Prices ( parp p suptnor 12.00 $1174 $1249 ASTA Proclile FACILITY 0.00% 0.00% 0.00% $0 $0.00 $0.00 $0.00 Branded Pairs to be 8 200 12 203 12 203 78.00 $8.52 $8.33 Prices @ parpatty superior 12:00 $11.74 LATIN AMERICA FACILITY 0100% 0:00% 0.00% BOO 3 Stoma (PM) 40.00 30.00 30.00 handed Pure to be l 4,755 9 359 48:00 18 33 Priest @ par ped $12 00 $11.74 $12 40Production Facilities Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 NORTH AMERICA FACILITY Production- Purchase of - New (DoDe of paire) 1,000 Equipment Equipment Refurb (p00a of pre) Sale of Equipment (000# of pra) 5.000 D "oduction -Option A (reject rate reduction) No No No Option B (setup cost reduction) No No No apdons Option C (8/0 rating increase) Yes No No Option D (productivity increase) No No ND construction of Additional Space (Ooosodpale) D EUROPE AFRICA FACILITY Production - Purchase of - New (000s of palms) Equipment Equipment Ralurb pixbadpe) le of Equipment (030a of pm] D D Production -Option A (reject rate reduction) No No No Option B (astup cost reduction) No No No Options Option C (8/Q rating Increase) No No No Option D (productivity Increase) No No No construction of Additional Space (0badpals) ASIA PACIFIC FACILITY Production - Purchase of - New (000s of pelrs) 2,000 5,000 Equipment Equipment Refurb (pactpe) D Sale of Equipment (000s of prs) Producton - Option A (reject rate reduction) No Yes ND Option B (setup cost reducion) No No Spoons Option C (8/@ rating Increase) Yes No ND Option D (productivity Increase) No No Construction of Additional Space (Ousofpairs) 5,000 4.000 LATIN AMERICA FACILITY Production - Purchase of - New (000s of palms) 5 000 4 000 Oo Equipment Equipment Refurb (podacipA) Sale of Equipment (000a of pro] D Production-Option A (reject rate reduction) No No Yes Option B (astup coat reduction) No No No Spoons Option C (8/@ rating Increase) No Yes No Option D (productivity Increase) No ND Construction of Additional Space (000actpes) 5,000 4.000 Branded Distribution Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 NORTH AMERICA FACILITY Palrs Shipped - North America Warehouse 2,814 for Facility Europe-Anica Warehouse oooo to (DOOs) Asla Pale Warehouse atin America Warehouse 1,850 EUROPE AFRICA FACILITY Palrs Shipped - North America Warehouse from Facility Europe Amica Warehouse to (Doos) Acla Panic Warehouse Latin America Warehouse ASIA PACIFIC FACILITY Pairs Shipped - North America Warehouse 3,300 BOO from Facility Europe-Africa Warehouse 2,850 4,200 700 Asia Painc Warehouse 1.950 2.824 1,800 Latin America Warehouse 377 LATIN AMERICA FACILITY Pairs Shipped - North America Warehouse 3,465 from Facility Europe-Africa Warehouse to (boos) Asia Paific Warehouse Latin America Warehouse 4,027 4,5DDInventory Clearance Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Percentage of Pairs -North America 3% 0% 0% Cleared Europe Africa 0% 0% 0% (from prior-year Inventory) Asia Pacific 0% 0% 0% Latin America 0% 0% 0% Internet Marketing Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 NORTH AMERICA MARKET Internet - Retail Price (* parpair) $91.00 $91.00 $91.00 marketing Search Engine Ads ($0com) SO SO $10,000 Free Shipping No No No Competitive - Retail Price (* parpair) $67.00 $77.30 $83.13 Assump tons Search Engine Ads ($00da) $5,000 $4,300 $2,775 Free Shipping None Few Few EUROPE AFRICA MARKET Internet- Retail Price ( parpair) $91.00 $91.00 $91.00 Marksung Search Engine Ads (30003) $10,000 Dacisions Free Shipping No No No Competitive Retail Price ( parpair) $72.00 $80.33 $87.65 Assumptions Search Engine Ads (1000%) $4,500 $3,528 $1,575 Free Shipping None Few Few ASIA PACIFIC MARKET Internet - Retall Price ( parpair) $91.00 $91.00 $91.00 Marketing Decisions Search Engine Ada (1000%) SO $10,000 Free Shipping No No No Competitive Retail Price ( parpair) $87.00 $77.90 $84.80 Assumptions Search Engine Ads (8000a) $4,000 $3,250 $1,900 Free Shipping None Few Few LATIN AMERICA MARKET Internet Retail Price ( parpair) $91.00 $91.00 $91.00 Marketing Decisions Search Engine Ada ($0008) $O Free Shipping No No No Competitive Retail Price (* parpair) $72.00 $81.56 $90.48 Assumptions Search Engine Ada (&co0) $4,000 $3 306 $1,850 Free Shipping None Few FewWholesale Marketing Year11 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 NORTH AMERICA MARKET Wholesale Wholesale Price {$ per pair} $65.00 $65.00 $65.00 Marketing Brand Advertising {$0005} $21,000 $21,000 $30,000 Dec's'ms Rebate after {e per pair) $5.00 $5.00 $5.00 Delivery Time {weeks} 3 3 3 Retailer Support {$perculie'l] $10,000 $10,000 $10,000 Competitive 510 Rating 4.0* 4.?* 5.3* Assumptions Model Availability 200 304 401 Wholesale Price (Eli per pair} $40.00 $54.75 $59.05 Brand Advertising {some} $10,000 $14,000 $16,550 Rebate Offer {5 per pair} $5.00 $5.00 $4.50 Delivery Time {weeks} 30 2.4 2.3 Retailer Support {Eli per outlet] $4,000 $5,425 $5,100 EUROPE-AFRICA MARKET Wholesale Wholesale Price {$ per pair} $65.00 $65.00 $65.00 ESE-\"\"9 Brand Advertising {some} $21,500 $21,500 $22,000 5"\" Rebate Offer is per pair) $5.00 $5.00 $5.00 Delivery Time {weeks} 3 3 3 Retailer Support is per millet} $10,000 $10,000 $10,000 Competitive SlQ Rating 40* 47* 5.3a ASSUFHWOIB Model Availability 200 302 401 Wholesale Price {$ per pair} $53.00 $58.44 $62.18 Brand Advertising {$0003} $9,000 $13,111 $13,850 Rebate Offer {$ per pair} $5.00 $5.00 $4.40 Delivery Time {weeks} 3.0 2.5 2.3 Retailer Support {$ per ouet} $4,000 $5,111 $4,850 ASIA-PACIFIC MARKET Wholesale Wholesale Price {$ per pair} $65.00 $65.00 $65.00 gamma Brand Advertising {30005} $21,000 $21,000 $25,500 'S'ms Rebate Offer is per pair} $5.00 $5.00 $5.00 Delivery Time {weeks} 3 3 3 Retailer Support ($peroue't] $10,000 $10,000 $10,000 Competitive SIG Rating 40* 45* 5.0* Assumptions Model Availability 200 299 390 Wholesale Price {$ per pair} $48.00 $55.30 $60.50 Brand Advertising {$0005} $8,000 $12,050 $14,600 Rebate Offer {$ per pair} $5.00 $5.00 $4.40 Delivery Time {weeks} 3.0 2.4 2.3 Retailer Support {$ per ouliet] $2,?50 $3,050 $4,150 LATIN AMERICA MARKET Wholesale Wholesale Price {$ per pair} $65.00 $65.00 $65.00 Marketing Brand Advertising {$0005} $10,500 $21,000 $25,000 Dee's'ms Rebate Offer {is perpair) $5.00 $5.00 $5.00 Delivery Time {weeks} 3 3 3 Retailer Support {e peroutlet] $10,000 $10,000 $10,000 Competitive 510 Rating 40* 46* 51* Assumptions Model Availability 200 299 402 Wholesale Price {$ per pair} $53.00 $59.33 $64.33 Brand Advertising {$0009} $7,500 $10,944 $12,100 Rebate Offer {5 per pair} $5.00 $5.00 $4.40 Delivery Time {weeks} 3.0 2.6 2.5 Retailer Support is per outlet} $2,750 $3,944 $3,650 Private-Label Production Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 WORTHAM ERICA FACILITY ate Lobd - Superto 52.00 52:00 52.00 wins to be 9060 da Painc'W in America Warchouto EUROPE AFRICA FACILITY Private Label = Superlor Mat D.OO 0.00 0.00 Space iber of Me 0 $O SO cal to be North America Whyokra sin America W ASIA PACIFIC FACILITY Private Label - Superior Not 64.00 52:00 58:00 specs mber of Models Palre to be North America Warehouse 494 426 392 508 571 805 LATIN AMERICA FACILITY D.OO 86.00 54.00 mber of Me (5507 608 125 183 570 840 Private-Label Contract Offers Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 NORTH AME RICA MARKET Pale Offered for Sale (000 ) 442 483 547 Price Offer ( purp ) $31.65 $31.65 $31.65 Incorporate Protected Outcomes You You EUROPE AFRICA MARKET Pals Offered for Sale (080 ) 443 483 1546 Price Onor ( parp !) $38.78 $38.76 ed Outcomes You You ASIA PACIFIC MARKET Pairs Offered for Sale 447 611 575 Price Offer @ purp !) $31.85 $31.85 $30.84 Incorpo ed Outcomes LATIN AMERICA MARKET Pairs Offered for sale (poo.! 511 576 Price Offer ( perpet) $37.00 $36.75 $96.75 Incorporate Projected Outcomes YosCelebrity Endorsements Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Contract Offer Judy Judge $3 832 $7,323 ($0Doa) Kimmie Jimmel $3.832 $7,323 Bud Birkenstock $3,832 7,323 Jose Montana $3.832 $0 $7,323 Samuelle Jackson $3,832 $0 Bronko Mars $3,832 $0 $0 Staff Caraway $3,832 $0 $0 Jay XYZ $3.832 $0 $0 Nunchuck Norris $0 $5 556 Roger Federation $5 556 Nick Shavan $0 $5.556 Anderson Blooper $5,556 Mic Jagermeister $0 $5,556 Jim Hardball $5,556 LaBron Game $5,558 Flint Westwood Offer Priority Judy Judge Kimmie Jimmel Bud Birkenstock Jose Montana 8 Gagaoooooooooooo 88388898 Samuelle Jackson Bronko Mars Steff Caraway Jay XYZ Nunchuck Norris Roger Federation Nick Shavan Anderson Blooper Mic Jagermeister JIm Hardball LaBron Game Flint Westwood Spending Cap on Contracts (JOC0B) CSRC Initiatives Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Recycled Boxing/Packaging Yes Yes Yes Energy Efficiency Initiatives $500 3500 $500 Charitable - -Total $ (before taxes) $0 Contributions % of Pretax Profit 0% 0% Ethics Training/Enforcement Yes Yes Yes Improved Working - Cafeteria/Child Care Yes Yes Yes Conditions Vent/Lighting Safety Yes Yes Yes Supplier Code of Conduct Yea Yes Yes Finance and Cash Flow Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Sources of - 1-Year Loan $0 $75,000 $50,000 Additional $100,000 Cash 5 Year Loan $250 000 $250 000 10-Year Loan $250,000 $250 000 $250 000 Stock logue (oops of shares) D Uses for - Early Repayment of Long Term Loans None cash Dividend (# per share) 50.00 60 00 $0 00 Stock Repurchase (000s str8) 200 728