ETHICS SUMMARYOther (Fees, Writeoffs, etc.) The actual dollar impact. Example, $120 means Other increased by $120.Demand Factor The % of normal. 98% means demand fell 2%.Material Cost Impact The % of normal. 104% means matieral costs rose 4%.Admin Cost Impact The % of normal. 103% means admin costs rose 3%.Productivity Impact The % of normal. 104% means productivity increased by 4%.Awareness Impact The % of normal. 105% means normal awareness was multiplied by 1.05.Accessibility Impact The % of normal. 98% means normal accessiblity was multiplied by 0.98.
Normal means the value that would have been produced if the problem had not been presented.
Balance SheetDEFINITIONS:Common Size: The common sizecolumn simply represents each item as apercentage of total assets for that year.Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lagbetween delivery and payment of yourproducts. Inventories: The currentvalue of your inventory across all products. Azero indicates your company stocked out.Unmet demand would, of course, fall to yourcompetitors. Plant & Equipment: Thecurrent value of your plant. AccumDeprec: The total accumulateddepreciation from your plant. AcctsPayable: What the company currentlyowes suppliers for materials and services.Current Debt: The debt the companyis obligated to pay during the next year ofoperations. It includes emergency loans usedto keep your company solvent should you runout of cash during the year. LongTerm Debt: The company'slong term debt is in the form of bonds, and thisrepresents the total value of your bonds.Common Stock: The amount ofcapital invested by shareholders in thecompany. Retained Earnings:The profits that the company chose to keepinstead of paying to shareholders as dividends.
Common Stock $18,360 16.1% $18,360Retained Earnings $29,149 25.6% $28,465Total Equity $47,509 41.8% $46,825Total Liab. & O. Equity $113,726 100.0% $103,417
Cash Flow StatementThe Cash Flow Statement examines what happened in the CashAccount during the year. Cash injections appear as positive numbers andcash withdrawals as negative numbers. The Cash Flow Statement is anexcellent tool for diagnosing emergency loans. When negative cash flowsexceed positives, you are forced to seek emergency funding. For example,if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a hugenegative cash flow. Too much unexpected inventory could outstrip yourinflows, exhaust your starting cash and force you to beg for money to keepyour company afloat.
Net cash from operation $2,982 $13,679Cash Flows from Investing ActivitiesPlant Improvements ($10,440) ($17,540)Cash Flows from Financing ActivitiesDividends Paid $0 $0Sales of Common Stock $0 $0Purchase of Common Stock $0 $0Cash from long term debt $8,000 $8,000Retirement of long term debt ($6,950) $0Change in current debt(net) $6,950 $0
Net Cash from financing activities $8,000 $8,000Net Change in cash position $542 $4,139Closing cash position $8,115 $7,573
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce theproduct that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D departmentexpenditures 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 eachproduct. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The feesinclude 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 orliquidate 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 Interestand Taxes. Short Term Interest: Interest expense based on last year''s current debt, including short termdebt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid onoutstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits sharedwith employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.
Other $547 0.4%EBIT $8,261 5.7%Short Term Interest $723 0.5%Long Term Interest $6,465 4.5%Taxes $376 0.3%Profit Sharing $14 0.0%Net Profit $684 0.5%
Balance SheetDEFINITIONS:Common Size: The common sizecolumn simply represents each item as apercentage of total assets for that year.Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lagbetween delivery and payment of yourproducts. Inventories: The currentvalue of your inventory across all products. Azero indicates your company stocked out.Unmet demand would, of course, fall to yourcompetitors. Plant & Equipment: Thecurrent value of your plant. AccumDeprec: The total accumulateddepreciation from your plant. AcctsPayable: What the company currentlyowes suppliers for materials and services.Current Debt: The debt the companyis obligated to pay during the next year ofoperations. It includes emergency loans usedto keep your company solvent should you runout of cash during the year. LongTerm Debt: The company'slong term debt is in the form of bonds, and thisrepresents the total value of your bonds.Common Stock: The amount ofcapital invested by shareholders in thecompany. Retained Earnings:The profits that the company chose to keepinstead of paying to shareholders as dividends.
Common Stock $19,945 18.0% $19,945Retained Earnings $32,604 29.3% $36,809Total Equity $52,549 47.3% $56,754Total Liab. & O. Equity $111,097 100.0% $109,953
Cash Flow StatementThe Cash Flow Statement examines what happened in the CashAccount during the year. Cash injections appear as positive numbers andcash withdrawals as negative numbers. The Cash Flow Statement is anexcellent tool for diagnosing emergency loans. When negative cash flowsexceed positives, you are forced to seek emergency funding. For example,if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a hugenegative cash flow. Too much unexpected inventory could outstrip yourinflows, exhaust your starting cash and force you to beg for money to keepyour company afloat.
Net cash from operation ($1,235) $17,178Cash Flows from Investing ActivitiesPlant Improvements ($3,230) ($3,875)Cash Flows from Financing ActivitiesDividends Paid ($7,270) $0Sales of Common Stock $0 $1,585Purchase of Common Stock $0 $0Cash from long term debt $0 $0Retirement of long term debt ($4,221) ($5,926)Change in current debt(net) $8,778 $11,359
Net Cash from financing activities ($2,713) $7,017Net Change in cash position ($7,178) $20,320Closing cash position $16,576 $23,754
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce theproduct that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D departmentexpenditures 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 eachproduct. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The feesinclude 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 orliquidate 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 Interestand Taxes. Short Term Interest: Interest expense based on last year''s current debt, including short termdebt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid onoutstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits sharedwith employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.
Other $177 0.2%EBIT $11,036 10.4%Short Term Interest $1,953 1.8%Long Term Interest $4,272 4.0%Taxes $1,684 1.6%Profit Sharing $63 0.1%Net Profit $3,064 2.9%
Balance SheetDEFINITIONS:Common Size: The common sizecolumn simply represents each item as apercentage of total assets for that year.Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lagbetween delivery and payment of yourproducts. Inventories: The currentvalue of your inventory across all products. Azero indicates your company stocked out.Unmet demand would, of course, fall to yourcompetitors. Plant & Equipment: Thecurrent value of your plant. AccumDeprec: The total accumulateddepreciation from your plant. AcctsPayable: What the company currentlyowes suppliers for materials and services.Current Debt: The debt the companyis obligated to pay during the next year ofoperations. It includes emergency loans usedto keep your company solvent should you runout of cash during the year. LongTerm Debt: The company'slong term debt is in the form of bonds, and thisrepresents the total value of your bonds.Common Stock: The amount ofcapital invested by shareholders in thecompany. Retained Earnings:The profits that the company chose to keepinstead of paying to shareholders as dividends.
Common Stock $20,736 17.0% $20,736Retained Earnings $39,576 32.5% $33,775Total Equity $60,312 49.5% $54,511Total Liab. & O. Equity $121,872 100.0% $108,825
Cash Flow StatementThe Cash Flow Statement examines what happened in the CashAccount during the year. Cash injections appear as positive numbers andcash withdrawals as negative numbers. The Cash Flow Statement is anexcellent tool for diagnosing emergency loans. When negative cash flowsexceed positives, you are forced to seek emergency funding. For example,if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a hugenegative cash flow. Too much unexpected inventory could outstrip yourinflows, exhaust your starting cash and force you to beg for money to keepyour company afloat.
Net cash from operation $5,173 $14,466Cash Flows from Investing ActivitiesPlant Improvements ($5,640) ($4,770)Cash Flows from Financing ActivitiesDividends Paid ($1,746) $0Sales of Common Stock $0 $2,376Purchase of Common Stock $0 $0Cash from long term debt $0 $0Retirement of long term debt ($1,830) ($5,135)Change in current debt(net) $6,305 $11,359
Net Cash from financing activities $2,729 $8,599Net Change in cash position $2,262 $18,295Closing cash position $23,990 $21,728
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce theproduct that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D departmentexpenditures 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 eachproduct. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The feesinclude 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 orliquidate 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 Interestand Taxes. Short Term Interest: Interest expense based on last year''s current debt, including short termdebt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid onoutstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits sharedwith employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.
Other $24 0.0%EBIT $18,253 12.5%Short Term Interest $1,749 1.2%Long Term Interest $4,657 3.2%Taxes $4,147 2.8%Profit Sharing $154 0.1%Net Profit $7,547 5.2%
Annual Report Page 19
Annual ReportAnnual Report Digby C52259 Round: 2
Dec. 31, 2014
Balance SheetDEFINITIONS:Common Size: The common sizecolumn simply represents each item as apercentage of total assets for that year.Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lagbetween delivery and payment of yourproducts. Inventories: The currentvalue of your inventory across all products. Azero indicates your company stocked out.Unmet demand would, of course, fall to yourcompetitors. Plant & Equipment: Thecurrent value of your plant. AccumDeprec: The total accumulateddepreciation from your plant. AcctsPayable: What the company currentlyowes suppliers for materials and services.Current Debt: The debt the companyis obligated to pay during the next year ofoperations. It includes emergency loans usedto keep your company solvent should you runout of cash during the year. LongTerm Debt: The company'slong term debt is in the form of bonds, and thisrepresents the total value of your bonds.Common Stock: The amount ofcapital invested by shareholders in thecompany. Retained Earnings:The profits that the company chose to keepinstead of paying to shareholders as dividends.
Common Stock $21,040 16.2% $18,883Retained Earnings $43,290 33.3% $35,572Total Equity $64,330 49.4% $54,455Total Liab. & O. Equity $130,182 100.0% $106,436
Cash Flow StatementThe Cash Flow Statement examines what happened in the CashAccount during the year. Cash injections appear as positive numbers andcash withdrawals as negative numbers. The Cash Flow Statement is anexcellent tool for diagnosing emergency loans. When negative cash flowsexceed positives, you are forced to seek emergency funding. For example,if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a hugenegative cash flow. Too much unexpected inventory could outstrip yourinflows, exhaust your starting cash and force you to beg for money to keepyour company afloat.
Net cash from operation $3,610 $15,288Cash Flows from Investing ActivitiesPlant Improvements ($19,920) ($800)Cash Flows from Financing ActivitiesDividends Paid $0 $0Sales of Common Stock $2,157 $523Purchase of Common Stock $0 $0Cash from long term debt $2,279 $0Retirement of long term debt $0 ($6,988)Change in current debt(net) $8,344 $11,359
Net Cash from financing activities $12,780 $4,894Net Change in cash position ($3,530) $19,382Closing cash position $19,285 $22,815
Annual Report Page 20
Annual Report Digby C52259 Round: 2Dec. 31, 2014
2014 Income Statement(Product Name) Daze Dell Dixie Dot Dune Doom Na Na 2014
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce theproduct that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D departmentexpenditures 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 eachproduct. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The feesinclude 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 orliquidate 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 Interestand Taxes. Short Term Interest: Interest expense based on last year''s current debt, including short termdebt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid onoutstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits sharedwith employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.
Other $228 0.2%EBIT $18,934 12.8%Short Term Interest $1,911 1.3%Long Term Interest $4,908 3.3%Taxes $4,240 2.9%Profit Sharing $157 0.1%Net Profit $7,717 5.2%
Annual Report Page 21
Annual ReportAnnual Report Erie C52259 Round: 2
Dec. 31, 2014
Balance SheetDEFINITIONS:Common Size: The common sizecolumn simply represents each item as apercentage of total assets for that year.Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lagbetween delivery and payment of yourproducts. Inventories: The currentvalue of your inventory across all products. Azero indicates your company stocked out.Unmet demand would, of course, fall to yourcompetitors. Plant & Equipment: Thecurrent value of your plant. AccumDeprec: The total accumulateddepreciation from your plant. AcctsPayable: What the company currentlyowes suppliers for materials and services.Current Debt: The debt the companyis obligated to pay during the next year ofoperations. It includes emergency loans usedto keep your company solvent should you runout of cash during the year. LongTerm Debt: The company'slong term debt is in the form of bonds, and thisrepresents the total value of your bonds.Common Stock: The amount ofcapital invested by shareholders in thecompany. Retained Earnings:The profits that the company chose to keepinstead of paying to shareholders as dividends.
Common Stock $22,747 18.9% $22,747Retained Earnings $35,238 29.2% $34,493Total Equity $57,985 48.1% $57,240Total Liab. & O. Equity $120,590 100.0% $113,194
Cash Flow StatementThe Cash Flow Statement examines what happened in the CashAccount during the year. Cash injections appear as positive numbers andcash withdrawals as negative numbers. The Cash Flow Statement is anexcellent tool for diagnosing emergency loans. When negative cash flowsexceed positives, you are forced to seek emergency funding. For example,if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a hugenegative cash flow. Too much unexpected inventory could outstrip yourinflows, exhaust your starting cash and force you to beg for money to keepyour company afloat.
Net cash from operation $6,946 $14,772Cash Flows from Investing ActivitiesPlant Improvements ($7,792) ($9,080)Cash Flows from Financing ActivitiesDividends Paid ($4,111) $0Sales of Common Stock $0 $4,387Purchase of Common Stock $0 $0Cash from long term debt $1,662 $0Retirement of long term debt ($3,837) ($3,124)Change in current debt(net) $8,097 $11,359
Net Cash from financing activities $1,811 $12,622Net Change in cash position $965 $18,314Closing cash position $22,713 $21,747
Annual Report Page 22
Annual Report Erie C52259 Round: 2Dec. 31, 2014
2014 Income Statement(Product Name) Eat Ebb Echo Edge Egg Na Na Na 2014
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce theproduct that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D departmentexpenditures 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 eachproduct. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The feesinclude 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 orliquidate 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 Interestand Taxes. Short Term Interest: Interest expense based on last year''s current debt, including short termdebt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid onoutstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits sharedwith employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.
Other ($456) -0.4%EBIT $14,372 12.9%Short Term Interest $1,907 1.7%Long Term Interest $4,843 4.4%Taxes $2,668 2.4%Profit Sharing $99 0.1%Net Profit $4,856 4.4%
Annual Report Page 23
Annual ReportAnnual Report Ferris C52259 Round: 2
Dec. 31, 2014
Balance SheetDEFINITIONS:Common Size: The common sizecolumn simply represents each item as apercentage of total assets for that year.Cash: Your end-of-year cash position.Accounts Receivable: Reflects the lagbetween delivery and payment of yourproducts. Inventories: The currentvalue of your inventory across all products. Azero indicates your company stocked out.Unmet demand would, of course, fall to yourcompetitors. Plant & Equipment: Thecurrent value of your plant. AccumDeprec: The total accumulateddepreciation from your plant. AcctsPayable: What the company currentlyowes suppliers for materials and services.Current Debt: The debt the companyis obligated to pay during the next year ofoperations. It includes emergency loans usedto keep your company solvent should you runout of cash during the year. LongTerm Debt: The company'slong term debt is in the form of bonds, and thisrepresents the total value of your bonds.Common Stock: The amount ofcapital invested by shareholders in thecompany. Retained Earnings:The profits that the company chose to keepinstead of paying to shareholders as dividends.
Common Stock $18,360 17.7% $18,360Retained Earnings $32,951 31.8% $28,202Total Equity $51,311 49.5% $46,562Total Liab. & O. Equity $103,693 100.0% $90,745
Cash Flow StatementThe Cash Flow Statement examines what happened in the CashAccount during the year. Cash injections appear as positive numbers andcash withdrawals as negative numbers. The Cash Flow Statement is anexcellent tool for diagnosing emergency loans. When negative cash flowsexceed positives, you are forced to seek emergency funding. For example,if sales are bad and you find yourself carrying an abundance of excessinventory, the report would show the increase in inventory as a hugenegative cash flow. Too much unexpected inventory could outstrip yourinflows, exhaust your starting cash and force you to beg for money to keepyour company afloat.
Net cash from operation $3,572 $13,419Cash Flows from Investing ActivitiesPlant Improvements ($6,910) $15,220Cash Flows from Financing ActivitiesDividends Paid ($3,112) ($7,699)Sales of Common Stock $0 $0Purchase of Common Stock $0 $0Cash from long term debt $0 $0Retirement of long term debt ($1,967) ($15,211)Change in current debt(net) $7,554 $11,359
Net Cash from financing activities $2,475 ($11,551)Net Change in cash position ($862) $17,087Closing cash position $19,659 $20,521
Annual Report Page 24
Annual Report Ferris C52259 Round: 2Dec. 31, 2014
2014 Income Statement(Product Name) Fast Feat Fist Foam Fume Fox Na Na 2014
Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce theproduct that was sold. Inventory Carry Cost: the cost unsold goods in inventory. Depreciation:Calculated on straight-line. 15-year depreciation of plant value. R&D Costs: R&D departmentexpenditures 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 eachproduct. Other: Chargs not included in other categories such as Fees, Write offs, and TQM. The feesinclude 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 orliquidate 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 Interestand Taxes. Short Term Interest: Interest expense based on last year''s current debt, including short termdebt, long term notes that have become due, and emergency loans, Long Term Interest: Interest paid onoutstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits sharedwith employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.
Other ($736) -0.5%EBIT $17,615 12.9%Short Term Interest $1,835 1.3%Long Term Interest $3,441 2.5%Taxes $4,319 3.2%Profit Sharing $160 0.1%Net Profit $7,860 5.8%
