Round: 6Dec. 31, 2018 C52259

AndrewsAnastasia Martynenko

Baldwin Chester

Digby Erie Ferris

Selected Financial StatisticsAndrews Baldwin Chester Digby Erie Ferris

ROS 13.4% 6.6% -3.5% 6.4% 12.8% 1.0%Asset Turnover 1.42 1.00 0.65 1.07 0.86 0.89ROA 19.0% 6.6% -2.3% 6.9% 11.0% 0.9%Leverage(Assets/Equity)

1.5 2.2 2.4 2.1 2.1 2.3

ROE 27.9% 14.5% -5.5% 14.7% 23.3% 2.1%Emergency Loan $0 $0 $0 $0 $0 $0Sales $210,712,107 $230,513,909 $140,680,255 $275,419,911 $195,916,404 $194,661,424EBIT $48,499,595 $37,730,050 $7,161,132 $42,688,697 $53,034,421 $16,737,642Profits $28,319,067 $15,177,396 ($4,878,239) $17,622,687 $25,104,962 $1,992,688Cumulative Profit $57,771,393 $55,595,650 $44,282,008 $63,059,013 $58,712,671 $43,662,298SG&A / Sales 9.7% 8.5% 16.7% 9.4% 6.6% 11.2%Contrib. Margin % 41.1% 33.8% 36.9% 32.5% 44.4% 29.2%

CAPSTONE® COURIER Page 1

Stock & Bonds C52259 Round: 6Dec. 31, 2018

Stock Market Summary

Company Close Change Shares MarketCap($M) Book Value EPS Dividend Yield P/E

Andrews $113.12 $38.08 2,000,000 $226 $50.76 $14.16 $0.00 0.0% 8.0Baldwin $74.13 $13.92 2,362,743 $175 $44.34 $6.42 $0.02 0.0% 11.5Chester $51.51 ($27.91) 2,116,508 $109 $41.57 ($2.30) $0.00 0.0% -22.4Digby $85.06 $16.03 2,248,824 $191 $53.40 $7.84 $0.00 0.0% 10.8Erie $87.58 $30.75 2,509,863 $220 $43.01 $10.00 $2.87 3.3% 8.8Ferris $47.98 ($6.52) 2,374,812 $114 $40.80 $0.84 $0.00 0.0% 57.1

Bond Market SummaryCompany Series# Face Yield Close$ S&P Company Series# Face Yield Close$ S&PAndrews Digby

10.8S2023 $8,000,000 11.2% 96.03 AA 11.1S2024 $2,279,265 12.6% 88.37 CCC11.8S2024 $8,000,000 11.8% 99.59 AA 11.8S2025 $5,203,166 13.1% 90.17 CCC

Baldwin 12.3S2026 $17,542,431 13.4% 91.68 CCC12.1S2026 $19,531,798 13.4% 90.32 CCC 13.0S2027 $11,147,757 13.7% 94.58 CCC13.2S2027 $10,644,859 13.9% 95.09 CCC 13.4S2028 $28,443,696 13.9% 96.36 CCC13.1S2028 $34,024,534 13.9% 94.31 CCC Erie

Chester 11.2S2024 $1,662,035 12.6% 89.11 CCC11.8S2025 $5,890,885 13.4% 87.83 CC 12.0S2025 $6,336,484 13.1% 91.42 CCC12.3S2026 $15,446,410 13.8% 89.12 CC 12.5S2026 $18,636,220 13.4% 93.04 CCC13.0S2027 $5,981,137 14.2% 91.80 CC 13.1S2027 $7,837,984 13.7% 95.55 CCC13.2S2028 $36,221,545 14.3% 92.39 CC 13.0S2028 $32,094,143 13.7% 94.78 CCC

Ferris11.8S2025 $6,893,144 13.2% 89.38 CCC12.3S2026 $14,989,284 13.5% 90.81 CCC12.9S2027 $10,712,472 13.8% 93.15 CCC13.4S2028 $26,749,368 14.1% 95.36 CCC

Next Year's Prime Rate 10.00%

CAPSTONE® COURIER Page 2

Financial Summary C52259 Round: 6Dec. 31, 2018

Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie FerrisCashFlows from operating activitiesNet Income(Loss) $28,319 $15,177 ($4,878) $17,623 $25,105 $1,993Adjustment for non-cash items: Depreciation $9,900 $15,067 $15,560 $15,667 $15,680 $13,073 Extraordinary gains/losses/writeoffs $0 $0 $0 $0 $0 $0Changes in current assets and liablilities Acounts payable $2,321 $1,735 ($1,929) $3,765 $1,053 $185 Inventory ($1,642) $4,608 ($17,727) ($7,962) $1,060 ($13,518) Accounts Receivable ($3,314) ($3,614) $4,560 ($5,663) ($3,215) ($111)Net cash from operations $35,584 $32,973 ($4,415) $23,429 $39,683 $1,622

Cash flows from investing activitiesPlant improvements(net) ($11,400) ($43,600) ($49,400) ($29,800) ($40,800) ($21,200)Cash flows from financing activitiesDividends paid $0 ($42) $0 $0 ($7,213) $0Sales of common stock $0 $0 $3,232 $1,845 $0 $3,873Purchase of common stock $0 $0 $0 $0 $0 $0Cash from long term debt issued $0 $34,025 $36,222 $28,444 $32,094 $26,749Early retirement of long term debt $0 $0 $0 $0 $0 $0Retirement of current debt $0 ($23,846) ($29,829) ($35,955) ($17,741) ($30,626)Cash from current debt borrowing $0 $27,472 $34,339 $35,066 $23,183 $29,007Cash from emergency loan $0 $0 $0 $0 $0 $0

Net cash from financing activities $0 $37,609 $43,964 $29,400 $30,323 $29,003

Net change in cash position $24,184 $26,982 ($9,851) $23,029 $29,206 $9,425Balance Sheet Survey Andrews Baldwin Chester Digby Erie FerrisCash $50,379 $62,036 $30,713 $58,631 $66,255 $40,415Accounts Receivable $17,319 $18,946 $11,563 $22,637 $16,103 $16,000Inventory $2,855 $11,477 $31,633 $33,140 $5,747 $34,199Total Current Assets $70,553 $92,460 $73,909 $114,409 $88,105 $90,614

Plant and equipment $148,500 $226,000 $233,400 $235,000 $235,200 $196,100Accumulated Depreciation ($70,373) ($89,120) ($92,160) ($93,193) ($95,953) ($68,520)Total Fixed Assets $78,127 $136,880 $141,240 $141,807 $139,247 $127,580

Total Assets $148,679 $229,340 $215,149 $256,216 $227,351 $218,194

Account Payable $10,305 $12,058 $8,438 $15,599 $8,810 $12,102CurrentDebt $20,850 $48,322 $55,189 $55,916 $44,033 $49,857Long Term Debt $16,000 $64,201 $63,540 $64,616 $66,567 $59,344Total Liabilities $47,155 $124,581 $127,167 $136,131 $119,410 $121,303

Common Stock $18,360 $34,488 $24,276 $31,632 $36,353 $38,646Retained Earnings $83,165 $70,271 $63,707 $88,453 $71,588 $58,245Total Equity $101,525 $104,759 $87,982 $120,084 $107,941 $96,891

Total Liabilities & Owners'' Equity $148,679 $229,340 $215,149 $256,216 $227,351 $218,194

Income Statement Survey Andrews Baldwin Chester Digby Erie FerrisSales $210,712 $230,514 $140,680 $275,420 $195,916 $194,661Variable Costs(Labor,Material,Carry) $124,075 $152,685 $88,729 $185,799 $108,938 $137,827Depreciation $9,900 $15,067 $15,560 $15,667 $15,680 $13,073SGA(R&D,Promo,Sales,Admin) $20,437 $19,581 $23,507 $26,001 $12,910 $21,743Other(Fees,Writeoffs,TQM,Bonuses) $7,800 $5,451 $5,723 $5,264 $5,355 $5,281EBIT $48,500 $37,730 $7,161 $42,689 $53,034 $16,738Interest(Short term,Long term) $3,997 $13,879 $14,666 $14,995 $13,583 $13,606Taxes $15,576 $8,348 ($2,627) $9,693 $13,808 $1,096Profit Sharing $607 $326 $0 $378 $539 $43Net Profit $28,319 $15,177 ($4,878) $17,623 $25,105 $1,993

CAPSTONE® COURIER Page 3

Production Analysis C52259 Round: 6Dec. 31, 2018

NamePrimary

SegmentUnitsSold

UnitInven

tory Revision DateAge

Dec.31 MTBFPfmn

CoordSize

Coord PriceMaterial

CostLaborCost

Contr.Marg.

2ndShift

&Over-

time

Automation

NextRound

CapacityNext

RoundPlant

Utiliz.Able Trad 2,101 0 11/13/2017 2.3 17500 9.2 10.8 $26.50 $8.78 $5.86 44% 75% 7.0 1,200 168%Acre Low 2,692 0 4/5/2017 6.2 14000 4.2 15.8 $18.00 $4.67 $1.51 65% 100% 10.0 1,550 192%Aft Pfmn 944 113 5/28/2018 1.6 27000 15.4 11.8 $33.00 $13.39 $10.55 26% 100% 4.0 550 192%Avator High 1,058 0 5/18/2018 1.0 25000 14.3 5.7 $38.00 $14.01 $12.06 31% 100% 3.0 650 192%Angel Size 1,052 6 5/20/2018 1.4 21000 8.2 4.6 $33.50 $11.79 $12.06 29% 100% 3.0 700 192%

Baker Low 1,731 0 3/20/2017 3.3 16000 6.5 13.5 $19.50 $7.51 $6.79 25% 36% 7.0 1,100 135%Bead Low 2,883 87 7/19/2018 5.5 14000 5.2 14.8 $19.50 $5.98 $4.15 51% 100% 9.0 1,800 198%Bid High 900 242 6/23/2018 1.4 24000 14.6 5.4 $37.00 $15.69 $8.70 31% 0% 5.0 1,000 99%Bold Trad 2,022 139 10/12/2018 1.4 19000 10.1 9.9 $27.00 $10.98 $8.86 28% 74% 6.0 1,450 172%Buddy Trad 1,950 105 10/21/2018 1.4 19000 10.1 9.9 $27.00 $10.98 $8.75 29% 65% 6.0 1,450 164%

Cake Trad 818 553 1/25/2019 3.4 14000 7.8 12.2 $25.00 $7.28 $6.47 39% 35% 6.5 1,200 134%Cedar Low 1,337 593 2/5/2019 10.6 12000 3.0 17.0 $18.00 $3.54 $3.39 58% 15% 9.0 2,050 114%Cid High 986 185 10/29/2018 1.1 23000 14.6 5.4 $36.00 $14.31 $9.82 31% 5% 4.5 1,100 104%Coat Pfmn 998 186 10/11/2018 1.2 27000 15.7 11.6 $31.00 $14.18 $7.67 28% 0% 6.0 1,200 86%Cure Size 958 582 10/26/2018 1.2 17000 8.5 4.3 $31.00 $11.42 $7.67 34% 0% 6.0 1,550 99%

Daze Trad 1,656 116 6/26/2017 2.5 19000 8.9 11.2 $28.00 $10.08 $7.61 35% 45% 6.0 1,000 144%Dell Low 2,701 71 1/12/2018 5.8 14000 5.4 14.6 $20.50 $6.12 $4.93 45% 100% 8.5 1,450 198%Dixie High 1,147 222 8/1/2018 1.3 25000 14.6 5.4 $37.00 $15.99 $10.74 26% 20% 4.0 1,000 119%Dot Pfmn 994 180 6/21/2018 1.5 27000 15.8 11.4 $32.00 $15.35 $8.62 23% 0% 5.0 1,050 94%Dune Size 1,019 625 5/7/2018 1.5 19000 8.6 4.4 $32.00 $12.86 $8.62 27% 0% 5.0 1,450 99%Doom Pfmn 1,051 193 7/18/2018 1.3 27000 15.7 11.5 $32.00 $15.28 $6.63 30% 0% 6.0 1,200 87%Dust Size 1,036 102 7/31/2018 1.0 19000 8.5 4.3 $32.00 $12.89 $8.14 34% 92% 6.0 1,200 190%

Eat Low 2,673 0 1/15/2017 6.1 12500 5.5 14.5 $19.50 $5.34 $3.94 52% 93% 9.0 1,400 191%Ebb Low 2,959 111 6/18/2018 5.6 12000 5.3 13.7 $18.00 $5.42 $3.90 51% 82% 9.0 2,100 181%Echo Trad 1,741 185 10/19/2017 2.3 14000 8.5 11.5 $25.00 $7.75 $6.61 40% 43% 6.5 1,350 142%Egg Trad 1,880 123 10/30/2017 2.4 15000 8.7 11.3 $25.00 $8.16 $8.30 32% 58% 6.0 1,500 157%

Fast Low 792 0 1/24/2016 6.1 12000 5.5 14.5 $20.50 $5.59 $11.44 16% 100% 4.0 650 198%Feat Pfmn 731 175 8/6/2018 3.2 27000 15.0 12.3 $32.00 $14.80 $6.60 36% 0% 6.0 1,200 58%Fist High 1,155 255 7/15/2018 1.3 25000 14.7 5.4 $37.00 $16.03 $10.29 26% 32% 4.5 1,000 130%Foam Pfmn 944 224 8/6/2018 1.4 27000 15.8 11.1 $32.00 $15.41 $7.43 27% 5% 6.0 950 104%Fume Size 716 505 7/17/2018 1.4 17000 8.2 3.8 $32.00 $12.46 $7.26 33% 0% 6.0 1,150 95%Fox High 1,034 291 6/24/2018 1.3 25000 14.7 5.3 $37.00 $16.07 $7.26 35% 0% 6.0 1,250 91%Fuel Size 655 87 4/15/2018 0.7 25000 8.0 4.5 $32.00 $14.49 $7.95 28% 76% 6.0 750 124%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C52259 Round: 6Dec. 31, 2018

Traditional StatisticsTotal Industry Unit Demand 12,526Actual Industry Unit Sales 12,526Segment % of Total Industry 26.5%

Next Year's Segment Growth Rate 9.2%

Traditional Customer Buying CriteriaExpectations Importance

1. Age Ideal Age = 2.0 47%2. Price $17.00 - 27.00 23%3. Ideal Position Pfmn 9.2 Size 10.8 21%4. Reliability MTBF 14000-19000 9%

Top Products in Traditional Segment

NameMarketShare

UnitsSold to

SegRevisionDate

StockOut

PfmnCoord

SizeCoord

ListPrice MTBF

AgeDec.31

PromoBudget

Cust.Aware-ness

SalesBudget

Cust.Access-

ibility

Dec.Cust.

SurveyAble 17% 2,101 11/13/2017 YES 9.2 10.8 $26.50 17500 2.32 $1,600 79% $1,695 92% 56Bold 16% 2,019 10/12/2018 10.1 9.9 $27.00 19000 1.39 $1,800 68% $1,200 100% 36Buddy 16% 1,946 10/21/2018 10.1 9.9 $27.00 19000 1.38 $1,800 68% $1,200 100% 35Egg 15% 1,880 10/30/2017 8.7 11.3 $25.00 15000 2.43 $1,600 63% $1,056 100% 39Echo 14% 1,741 10/19/2017 8.5 11.5 $25.00 14000 2.26 $1,600 65% $1,056 100% 39Daze 13% 1,656 6/26/2017 8.9 11.2 $28.00 19000 2.51 $1,475 64% $1,601 88% 34Cake 6% 768 1/25/2019 7.8 12.2 $25.00 14000 3.45 $1,400 63% $1,930 93% 8Baker 3% 416 3/20/2017 YES 6.5 13.5 $19.50 16000 3.26 $1,800 29% $1,200 100% 2

CAPSTONE® COURIER Page 5

Low End Segment Analysis C52259 Round: 6Dec. 31, 2018

Low End StatisticsTotal Industry Unit Demand 17,404Actual Industry Unit Sales 17,404Segment % of Total Industry 36.8%

Next Year's Segment Growth Rate 11.7%

Low End Customer Buying CriteriaExpectations Importance

1. Price $12.00 - 22.00 53%2. Age Ideal Age = 7.0 24%3. Ideal Position Pfmn 4.7 Size 15.3 16%4. Reliability MTBF 12000-17000 7%

Top Products in Low End Segment

NameMarketShare

UnitsSold to

SegRevisionDate

StockOut

PfmnCoord

SizeCoord

ListPrice MTBF

AgeDec.31

PromoBudget

Cust.Aware-ness

SalesBudget

Cust.Access-

ibility

Dec.Cust.

SurveyEbb 17% 2,959 6/18/2018 5.3 13.7 $18.00 12000 5.57 $1,600 66% $1,056 97% 21Bead 17% 2,883 7/19/2018 5.2 14.8 $19.50 14000 5.52 $1,800 71% $1,200 94% 25Dell 16% 2,701 1/12/2018 5.4 14.6 $20.50 14000 5.78 $1,475 63% $1,601 87% 19Acre 15% 2,692 4/5/2017 YES 4.2 15.8 $18.00 14000 6.17 $1,400 78% $1,695 93% 40Eat 15% 2,673 1/15/2017 YES 5.5 14.5 $19.50 12500 6.09 $1,600 60% $1,056 97% 20Cedar 8% 1,337 2/5/2019 3.0 17.0 $18.00 12000 10.60 $1,400 62% $2,026 94% 4Baker 8% 1,315 3/20/2017 YES 6.5 13.5 $19.50 16000 3.26 $1,800 57% $1,200 94% 10Fast 5% 792 1/24/2016 YES 5.5 14.5 $20.50 12000 6.08 $200 37% $695 61% 12Cake 0% 50 1/25/2019 7.8 12.2 $25.00 14000 3.45 $1,400 31% $1,930 94% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C52259 Round: 6Dec. 31, 2018

High End StatisticsTotal Industry Unit Demand 6,286Actual Industry Unit Sales 6,286Segment % of Total Industry 13.3%

Next Year's Segment Growth Rate 16.2%

High End Customer Buying CriteriaExpectations Importance

1. Ideal Position Pfmn 14.3 Size 5.7 43%2. Age Ideal Age = 0.0 29%3. Reliability MTBF 20000-25000 19%4. Price $27.00 - 37.00 9%

Top Products in High End Segment

NameMarketShare

UnitsSold to

SegRevisionDate

StockOut

PfmnCoord

SizeCoord

ListPrice MTBF

AgeDec.31

PromoBudget

Cust.Aware-ness

SalesBudget

Cust.Access-

ibility

Dec.Cust.

SurveyFist 18% 1,155 7/15/2018 14.7 5.4 $37.00 25000 1.35 $1,600 67% $1,042 100% 56Dixie 18% 1,147 8/1/2018 14.6 5.4 $37.00 25000 1.33 $1,480 67% $1,494 88% 54Avator 17% 1,058 5/18/2018 YES 14.3 5.7 $38.00 25000 1.04 $2,550 85% $1,695 87% 57Fox 16% 1,034 6/24/2018 14.7 5.3 $37.00 25000 1.33 $1,600 61% $1,042 100% 52Cid 16% 986 10/29/2018 14.6 5.4 $36.00 23000 1.14 $1,400 64% $2,026 95% 48Bid 14% 900 6/23/2018 14.6 5.4 $37.00 24000 1.42 $1,800 71% $1,200 72% 45Buddy 0% 3 10/21/2018 10.1 9.9 $27.00 19000 1.38 $1,800 34% $1,200 72% 0Bold 0% 3 10/12/2018 10.1 9.9 $27.00 19000 1.39 $1,800 34% $1,200 72% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C52259 Round: 6Dec. 31, 2018

Performance StatisticsTotal Industry Unit Demand 5,662Actual Industry Unit Sales 5,662Segment % of Total Industry 12.0%

Next Year's Segment Growth Rate 19.8%

Performance Customer Buying CriteriaExpectations Importance

1. Reliability MTBF 22000-27000 43%2. Ideal Position Pfmn 15.4 Size 11.8 29%3. Price $22.00 - 32.00 19%4. Age Ideal Age = 1.0 9%

Top Products in Performance Segment

NameMarketShare

UnitsSold to

SegRevisionDate

StockOut

PfmnCoord

SizeCoord

ListPrice MTBF

AgeDec.31

PromoBudget

Cust.Aware-ness

SalesBudget

Cust.Access-

ibility

Dec.Cust.

SurveyDoom 19% 1,051 7/18/2018 15.7 11.5 $32.00 27000 1.30 $1,400 71% $1,494 100% 61Coat 18% 998 10/11/2018 15.7 11.6 $31.00 27000 1.22 $1,400 71% $1,833 89% 58Dot 18% 994 6/21/2018 15.8 11.4 $32.00 27000 1.48 $1,400 75% $1,494 100% 61Aft 17% 944 5/28/2018 15.4 11.8 $33.00 27000 1.58 $1,500 84% $1,695 91% 55Foam 17% 944 8/6/2018 15.8 11.1 $32.00 27000 1.40 $1,600 76% $1,042 92% 56Feat 13% 731 8/6/2018 15.0 12.3 $32.00 27000 3.20 $1,600 60% $1,042 92% 44

CAPSTONE® COURIER Page 8

Size Segment Analysis C52259 Round: 6Dec. 31, 2018

Size StatisticsTotal Industry Unit Demand 5,437Actual Industry Unit Sales 5,437Segment % of Total Industry 11.5%

Next Year's Segment Growth Rate 18.3%

Size Customer Buying CriteriaExpectations Importance

1. Ideal Position Pfmn 8.2 Size 4.6 43%2. Age Ideal Age = 1.5 29%3. Reliability MTBF 16000-21000 19%4. Price $22.00 - 32.00 9%

Top Products in Size Segment

NameMarketShare

UnitsSold to

SegRevisionDate

StockOut

PfmnCoord

SizeCoord

ListPrice MTBF

AgeDec.31

PromoBudget

Cust.Aware-ness

SalesBudget

Cust.Access-

ibility

Dec.Cust.

SurveyAngel 19% 1,052 5/20/2018 8.2 4.6 $33.50 21000 1.36 $1,800 80% $1,695 89% 58Dust 19% 1,036 7/31/2018 8.5 4.3 $32.00 19000 1.04 $1,400 58% $1,494 96% 53Dune 19% 1,019 5/7/2018 8.6 4.4 $32.00 19000 1.49 $1,400 69% $1,494 96% 59Cure 18% 958 10/26/2018 8.5 4.3 $31.00 17000 1.18 $1,400 68% $1,833 89% 45Fume 13% 716 7/17/2018 8.2 3.8 $32.00 17000 1.39 $1,600 72% $1,042 84% 38Fuel 12% 655 4/15/2018 8.0 4.5 $32.00 25000 0.71 $1,600 52% $1,042 84% 53

CAPSTONE® COURIER Page 9

Market Share C52259 Round: 6Dec. 31, 2018

Actual Market Share in Units Potential Market Share in UnitsTrad Low High Pfmn Size Total Trad Low High Pfmn Size Total

Industry Unit Sales 12,526 17,404 6,286 5,662 5,437 47,315 Units Demanded 12,526 17,404 6,286 5,662 5,437 47,315% of Market 26.5% 36.8% 13.3% 12.0% 11.5% 100.0% % of Market 26.5% 36.8% 13.3% 12.0% 11.5% 100.0%

Able 16.8% 4.4% Able 18.2% 4.8%Acre 15.5% 5.7% Acre 31.5% 11.6%Aft 16.7% 2.0% Aft 16.7% 2.0%Avator 16.8% 2.2% Avator 20.8% 2.8%Angel 19.3% 2.2% Angel 19.8% 2.3%Total 16.8% 15.5% 16.8% 16.7% 19.3% 16.6% Total 18.2% 31.5% 20.8% 16.7% 19.8% 23.4%

Baker 3.3% 7.6% 3.7% Baker 3.5% 6.7% 3.4%Bead 16.6% 6.1% Bead 11.7% 4.3%Bid 14.3% 1.9% Bid 13.6% 1.8%Bold 16.1% 4.3% Bold 15.8% 4.2%Buddy 15.5% 4.1% Buddy 15.3% 4.0%Total 35.0% 24.1% 14.4% 20.1% Total 34.5% 18.4% 13.7% 17.7%

Cake 6.1% 0.3% 1.7% Cake 6.1% 0.2% 1.7%Cedar 7.7% 2.8% Cedar 6.0% 2.2%Cid 15.7% 2.1% Cid 14.9% 2.0%Coat 17.6% 2.1% Coat 17.6% 2.1%Cure 17.6% 2.0% Cure 17.5% 2.0%Total 6.1% 8.0% 15.7% 17.6% 17.6% 10.8% Total 6.1% 6.2% 14.9% 17.6% 17.5% 10.0%

Daze 13.2% 3.5% Daze 12.9% 3.4%Dell 15.5% 5.7% Dell 11.9% 4.4%Dixie 18.2% 2.4% Dixie 17.4% 2.3%Dot 17.6% 2.1% Dot 17.6% 2.1%Dune 18.8% 2.1% Dune 18.6% 2.1%Doom 18.6% 2.2% Doom 18.6% 2.2%Dust 19.1% 2.2% Dust 19.0% 2.2%Total 13.2% 15.5% 18.2% 36.1% 37.8% 20.3% Total 12.9% 11.9% 17.4% 36.1% 37.6% 18.8%

Eat 15.4% 5.7% Eat 13.0% 4.8%Ebb 17.0% 6.3% Ebb 11.7% 4.3%Echo 13.9% 3.7% Echo 13.6% 3.6%Egg 15.0% 4.0% Egg 14.7% 3.9%Total 28.9% 32.4% 19.6% Total 28.3% 24.6% 16.6%

Fast 4.5% 1.7% Fast 7.3% 2.7%Feat 12.9% 1.5% Feat 12.9% 1.5%Fist 18.4% 2.4% Fist 17.5% 2.3%Foam 16.7% 2.0% Foam 16.7% 2.0%Fume 13.2% 1.5% Fume 13.1% 1.5%Fox 16.4% 2.2% Fox 15.7% 2.1%Fuel 12.1% 1.4% Fuel 12.0% 1.4%Total 4.5% 34.8% 29.6% 25.2% 12.7% Total 7.3% 33.2% 29.6% 25.1% 13.5%

CAPSTONE® COURIER Page 10

Perceptual Map C52259 Round: 6Dec. 31, 2018

Andrews Baldwin ChesterName Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size RevisedAble 9.2 10.8 11/13/2017 Baker 6.5 13.5 3/20/2017 Cake 7.8 12.2 1/25/2019Acre 4.2 15.8 4/5/2017 Bead 5.2 14.8 7/19/2018 Cedar 3.0 17.0 2/5/2019Aft 15.4 11.8 5/28/2018 Bid 14.6 5.4 6/23/2018 Cid 14.6 5.4 10/29/2018Avator 14.3 5.7 5/18/2018 Bold 10.1 9.9 10/12/2018 Coat 15.7 11.6 10/11/2018Angel 8.2 4.6 5/20/2018 Buddy 10.1 9.9 10/21/2018 Cure 8.5 4.3 10/26/2018

Digby Erie FerrisName Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size RevisedDaze 8.9 11.2 6/26/2017 Eat 5.5 14.5 1/15/2017 Fast 5.5 14.5 1/24/2016Dell 5.4 14.6 1/12/2018 Ebb 5.3 13.7 6/18/2018 Feat 15.0 12.3 8/6/2018Dixie 14.6 5.4 8/1/2018 Echo 8.5 11.5 10/19/2017 Fist 14.7 5.4 7/15/2018Dot 15.8 11.4 6/21/2018 Egg 8.7 11.3 10/30/2017 Foam 15.8 11.1 8/6/2018Dune 8.6 4.4 5/7/2018 Fume 8.2 3.8 7/17/2018Doom 15.7 11.5 7/18/2018 Fox 14.7 5.3 6/24/2018Dust 8.5 4.3 7/31/2018 Fuel 8.0 4.5 4/15/2018

CAPSTONE® COURIER Page 11

HR/TQM Report C52259 Round: 6Dec. 31, 2018

HUMAN RESOURCES SUMMARYAndrews Baldwin Chester Digby Erie Ferris

Needed Complement 759 959 710 1,170 709 885Complement 759 959 710 1,170 709 8851st Shift Complement 392 630 654 927 427 7322nd Shift Complement 367 329 56 243 281 153

Overtime Percent 0.1% 0.0% 0.0% 0.0% 0.0% 0.0%Turnover Rate 8.6% 9.2% 9.3% 9.1% 9.4% 9.1%New Employees 262 155 66 292 88 80Separated Employees 0 0 198 0 0 71Recruiting Spend $2,000 $2,000 $2,000 $2,200 $2,000 $2,500Training Hours 30 30 25 30 25 30Productivity Index 103.0% 106.5% 105.0% 106.8% 104.5% 108.5%

Recruiting Cost $786 $465 $198 $935 $263 $280Separation Cost $0 $0 $991 $0 $0 $354Training Cost $455 $576 $355 $702 $354 $531Total HR Admin Cost $1,242 $1,040 $1,545 $1,637 $618 $1,165

Labor Contract Next YearWages $28.88 $28.29 $28.29 $28.29 $28.29 $28.29Benefits 2,756 2,756 2,756 2,756 2,756 2,756Profit Sharing 2.2% 2.2% 2.2% 2.2% 2.2% 2.2%Annual Raise 5.6% 5.6% 5.6% 5.6% 5.6% 5.6%

Starting Negotiation PositionWages $25.57 $26.95 $26.95 $26.95 $26.95 $26.95Benefits 2,625 2,625 2,625 2,625 2,625 2,625Profit Sharing 2.1% 2.1% 2.1% 2.1% 2.1% 2.1%Annual Raise 5.3% 5.3% 5.3% 5.3% 5.3% 5.3%

Ceiling Negotiation PositionWages $28.13 $29.64 $29.64 $29.64 $29.64 $29.64Benefits 2,888 2,887 2,887 2,887 2,887 2,887Profit Sharing 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%Annual Raise 5.8% 5.8% 5.8% 5.8% 5.8% 5.8%

Adjusted Labor DemandsWages $29.64 $29.64 $29.64 $29.64 $29.64 $29.64Benefits 2,887 2,887 2,887 2,887 2,887 2,887Profit Sharing 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%Annual Raise 5.8% 5.8% 5.8% 5.8% 5.8% 5.8%

Strike Days 11 0 0 0 0 0

TQM SUMMARYAndrews Baldwin Chester Digby Erie Ferris

Process Mgt Budgets Last YearCPI Systems $1,300 $0 $750 $0 $750 $0Vendor/JIT $1,300 $0 $750 $0 $750 $0Quality Initiative Training $1,300 $0 $750 $0 $750 $0Channel Support Systems $1,300 $750 $0 $750 $0 $750Concurrent Engineering $1,300 $750 $0 $750 $0 $750UNEP Green Programs $1,300 $0 $750 $0 $750 $0

TQM Budgets Last YearBenchmarking $0 $750 $0 $750 $0 $750Quality Function Deployment Effort $0 $750 $0 $750 $0 $750CCE/6 Sigma Training $0 $750 $0 $750 $0 $750GEMI TQEM Sustainability Initiatives $0 $0 $750 $0 $750 $0Total Expenditures $7,800 $3,750 $3,750 $3,750 $3,750 $3,750

Cumulative ImpactsMaterial Cost Reduction 11.48% 0.28% 7.33% 0.28% 7.33% 0.28%Labor Cost Reduction 13.76% 1.17% 6.98% 1.17% 6.98% 1.17%Reduction R&D Cycle Time 40.01% 38.78% 0.00% 38.78% 0.00% 38.78%Reduction Admin Costs 53.32% 44.30% 12.59% 44.30% 12.59% 44.30%Demand Increase 14.40% 7.43% 1.26% 7.43% 1.26% 7.43%

CAPSTONE® COURIER Page 12

Ethics Report C52259 Round: 6Dec. 31, 2018

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.

No Impact Andrews Baldwin Chester Digby Erie FerrisTotalOther (Fees, Writeoffs, etc.) $0 $0 $0 $0 $0 $0 $0Demand Factor 100% 100% 100% 100% 100% 100% 100%Material Cost Impact 100% 100% 100% 100% 100% 100% 100%Admin Cost Impact 100% 100% 100% 100% 100% 100% 100%Productivity Impact 100% 100% 100% 100% 100% 100% 100%Awareness Impact 100% 100% 100% 100% 100% 100% 100%Accessibility Impact 100% 100% 100% 100% 100% 100% 100%

CAPSTONE® COURIER Page 13

Annual ReportAnnual Report Andrews C52259 Round: 6

Dec. 31, 2018

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.

ASSETS 2018Common

Size

2017

Cash $50,379 33.9% $26,195Account Receivable $17,319 11.6% $14,005Inventory $2,855 1.9% $1,213Total Current Assets $70,553 47.5% $41,413

Plant & Equipment $148,500 99.9% $137,100Accumulated Depreciation ($70,373) -47.3% ($60,473)Total Fixed Assets $78,127 52.5% $76,627Total Assets $148,679 100.0% $118,040LIABILITIES & OWNER'SEQUITY

Accounts Payable $10,305 6.9% $7,984Current Debt $20,850 14.0% $0Long Term Debt $16,000 10.8% $36,850Total Liabilities $47,155 31.7% $44,834

Common Stock $18,360 12.3% $18,360Retained Earnings $83,165 55.9% $54,846Total Equity $101,525 68.3% $73,206Total Liab. & O. Equity $148,679 100.0% $118,040

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.

Cash Flows from Operating Activities 2018 2017NetIncome(Loss) $28,319 $19,876Depreciation $9,900 $9,140Extraordinary gains/losses/writeoffs $0 $0Accounts Payable $2,321 $3,049Inventory ($1,642) ($1,213)Accounts Receivable ($3,314) ($3,509)

Net cash from operation $35,584 $27,343Cash Flows from Investing ActivitiesPlant Improvements ($11,400) ($8,700)Cash Flows from Financing ActivitiesDividends Paid $0 $0Sales of Common Stock $0 $0Purchase of Common Stock $0 $0Cash from long term debt $0 $0Retirement of long term debt ($20,850) $0Change in current debt(net) $20,850 ($13,900)

Net Cash from financing activities $0 ($13,900)Net Change in cash position $24,184 $4,743Closing cash position $50,379 $26,195

Annual Report Page 14

Annual Report Andrews C52259 Round: 6Dec. 31, 2018

2018 Income Statement(Product Name) Able Acre NA Aft Avator Angel NA NA 2018

TotalCommon

SizeSales $55,675 $48,455 $0 $31,164 $40,187 $35,231 $0 $0 $210,712 100.0%

Variable Costs:Direct Labor $12,307 $4,057 $0 $9,962 $12,750 $12,679 $0 $0 $51,754 24.6%Direct Material $18,903 $13,027 $0 $12,692 $14,899 $12,458 $0 $0 $71,979 34.2%Inventory Carry $0 $0 $0 $326 $0 $17 $0 $0 $343 0.2%Total Variable $31,210 $17,083 $0 $22,979 $27,649 $25,154 $0 $0 $124,075 58.9%

Contribution Margin $24,464 $31,371 $0 $8,185 $12,538 $10,078 $0 $0 $86,637 41.1%

Period Costs:Depreciation $2,720 $4,753 $0 $807 $780 $840 $0 $0 $9,900 4.7%SG&A: R&D $0 $0 $0 $411 $383 $389 $0 $0 $1,182 0.6% Promotions $1,600 $1,400 $0 $1,500 $2,550 $1,800 $0 $0 $8,850 4.2% Sales $1,695 $1,695 $0 $1,695 $1,695 $1,695 $0 $0 $8,475 4.0% Admin $510 $444 $0 $285 $368 $323 $0 $0 $1,930 0.9%Total Period $6,525 $8,292 $0 $4,698 $5,776 $5,046 $0 $0 $30,337 14.4%

Net Margin $17,939 $23,079 $0 $3,487 $6,763 $5,031 $0 $0 $56,300 26.7%

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 $7,800 3.7%EBIT $48,500 23.0%Short Term Interest $2,189 1.0%Long Term Interest $1,808 0.9%Taxes $15,576 7.4%Profit Sharing $607 0.3%Net Profit $28,319 13.4%

Annual Report Page 15

Annual ReportAnnual Report Baldwin C52259 Round: 6

Dec. 31, 2018

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.

ASSETS 2018Common

Size

2017

Cash $62,036 27.0% $35,054Account Receivable $18,946 8.3% $15,332Inventory $11,477 5.0% $16,085Total Current Assets $92,459 40.3% $66,471

Plant & Equipment $226,000 98.5% $182,400Accumulated Depreciation ($89,120) -38.9% ($74,053)Total Fixed Assets $136,880 59.7% $108,347Total Assets $229,340 100.0% $174,818LIABILITIES & OWNER'SEQUITY

Accounts Payable $12,058 5.3% $10,323Current Debt $48,322 21.1% $23,846Long Term Debt $64,201 28.0% $51,027Total Liabilities $124,581 54.3% $85,196

Common Stock $34,488 15.0% $34,488Retained Earnings $70,271 30.6% $55,135Total Equity $104,759 45.7% $89,623Total Liab. & O. Equity $229,340 100.0% $174,818

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.

Cash Flows from Operating Activities 2018 2017NetIncome(Loss) $15,177 $12,414Depreciation $15,067 $12,160Extraordinary gains/losses/writeoffs $0 $0Accounts Payable $1,735 $814Inventory $4,608 ($5,098)Accounts Receivable ($3,614) ($1,297)

Net cash from operation $32,973 $18,994Cash Flows from Investing ActivitiesPlant Improvements ($43,600) ($31,800)Cash Flows from Financing ActivitiesDividends Paid ($42) $0Sales of Common Stock $0 $8,020Purchase of Common Stock $0 $0Cash from long term debt $34,025 $10,645Retirement of long term debt ($20,850) $0Change in current debt(net) $24,476 ($6,450)

Net Cash from financing activities $37,609 $12,215Net Change in cash position $26,982 ($592)Closing cash position $62,036 $35,054

Annual Report Page 16

Annual Report Baldwin C52259 Round: 6Dec. 31, 2018

2018 Income Statement(Product Name) Baker Bead Bid Bold Buddy Na Na Na 2018

TotalCommon

SizeSales $33,751 $56,226 $33,310 $54,586 $52,640 $0 $0 $0 $230,514 100.0%

Variable Costs:Direct Labor $11,743 $11,954 $8,036 $18,048 $17,200 $0 $0 $0 $66,981 29.1%Direct Material $13,540 $15,474 $14,124 $21,197 $19,992 $0 $0 $0 $84,326 36.6%Inventory Carry $0 $99 $715 $323 $240 $0 $0 $0 $1,377 0.6%Total Variable $25,283 $27,527 $22,875 $39,568 $37,432 $0 $0 $0 $152,685 66.2%

Contribution Margin $8,468 $28,699 $10,435 $15,018 $15,208 $0 $0 $0 $77,829 33.8%

Period Costs:Depreciation $2,493 $5,040 $1,733 $2,900 $2,900 $0 $0 $0 $15,067 6.5%SG&A: R&D $0 $555 $482 $791 $815 $0 $0 $0 $2,642 1.1% Promotions $1,800 $1,800 $1,800 $1,800 $1,800 $0 $0 $0 $9,000 3.9% Sales $1,200 $1,200 $1,200 $1,200 $1,200 $0 $0 $0 $6,000 2.6% Admin $284 $473 $280 $459 $443 $0 $0 $0 $1,939 0.8%Total Period $5,777 $9,068 $5,495 $7,150 $7,158 $0 $0 $0 $34,648 15.0%

Net Margin $2,691 $19,631 $4,940 $7,869 $8,050 $0 $0 $0 $43,181 18.7%

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 $5,451 2.4%EBIT $37,730 16.4%Short Term Interest $5,654 2.5%Long Term Interest $8,226 3.6%Taxes $8,348 3.6%Profit Sharing $326 0.1%Net Profit $15,177 6.6%

Annual Report Page 17

Annual ReportAnnual Report Chester C52259 Round: 6

Dec. 31, 2018

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.

ASSETS 2018Common

Size

2017

Cash $30,713 14.3% $40,564Account Receivable $11,563 5.4% $16,122Inventory $31,633 14.7% $13,906Total Current Assets $73,909 34.4% $70,592

Plant & Equipment $233,400 108.0% $184,000Accumulated Depreciation ($92,160) -42.8% ($76,600)Total Fixed Assets $141,240 65.6% $107,400Total Assets $215,149 100.0% $177,993LIABILITIES & OWNER'SEQUITY

Accounts Payable $8,438 3.9% $10,367Current Debt $55,189 25.7% $29,829Long Term Debt $63,540 29.5% $48,168Total Liabilities $127,167 59.1% $88,364

Common Stock $24,276 11.3% $21,043Retained Earnings $63,707 29.6% $68,585Total Equity $87,983 40.9% $89,628Total Liab. & O. Equity $215,149 100.0% $177,993

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.

Cash Flows from Operating Activities 2018 2017NetIncome(Loss) ($4,878) $15,386Depreciation $15,560 $12,267Extraordinary gains/losses/writeoffs $0 $0Accounts Payable ($1,929) $1,691Inventory ($17,727) ($3,984)Accounts Receivable $4,560 ($1,899)

Net cash from operation ($4,415) $23,460Cash Flows from Investing ActivitiesPlant Improvements ($49,400) ($31,200)Cash Flows from Financing ActivitiesDividends Paid $0 ($4,207)Sales of Common Stock $3,232 $0Purchase of Common Stock $0 $0Cash from long term debt $36,222 $5,981Retirement of long term debt ($20,850) $0Change in current debt(net) $25,360 ($5,049)

Net Cash from financing activities $43,964 ($3,275)Net Change in cash position ($9,851) ($11,015)Closing cash position $30,713 $40,564

Annual Report Page 18

Annual Report Chester C52259 Round: 6Dec. 31, 2018

2018 Income Statement(Product Name) Cake Cedar Cid Coat Cure Na Na Na 2018

TotalCommon

SizeSales $20,449 $24,072 $35,499 $30,949 $29,712 $0 $0 $0 $140,680 100.0%

Variable Costs:Direct Labor $5,310 $4,537 $9,906 $7,771 $7,561 $0 $0 $0 $35,084 24.9%Direct Material $6,147 $4,941 $13,921 $14,049 $10,792 $0 $0 $0 $49,849 35.4%Inventory Carry $930 $505 $537 $488 $1,338 $0 $0 $0 $3,796 2.7%Total Variable $12,386 $9,982 $24,363 $22,307 $19,691 $0 $0 $0 $88,729 63.1%

Contribution Margin $8,063 $14,090 $11,136 $8,642 $10,021 $0 $0 $0 $51,951 36.9%

Period Costs:Depreciation $2,560 $5,740 $1,760 $2,400 $3,100 $0 $0 $0 $15,560 11.1%SG&A: R&D $1,000 $1,000 $837 $788 $829 $0 $0 $0 $4,454 3.2% Promotions $1,400 $1,400 $1,400 $1,400 $1,400 $0 $0 $0 $7,000 5.0% Sales $1,930 $2,026 $2,026 $1,833 $1,833 $0 $0 $0 $9,648 6.9% Admin $350 $412 $607 $529 $508 $0 $0 $0 $2,406 1.7%Total Period $7,240 $10,578 $6,630 $6,951 $7,670 $0 $0 $0 $39,067 27.8%

Net Margin $823 $3,513 $4,506 $1,691 $2,351 $0 $0 $0 $12,884 9.2%

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 $5,723 4.1%EBIT $7,161 5.1%Short Term Interest $6,512 4.6%Long Term Interest $8,154 5.8%Taxes ($2,627) -1.9%Profit Sharing $0 0.0%Net Profit ($4,878) -3.5%

Annual Report Page 19

Annual ReportAnnual Report Digby C52259 Round: 6

Dec. 31, 2018

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.

ASSETS 2018Common

Size

2017

Cash $58,631 22.9% $35,602Account Receivable $22,637 8.8% $16,974Inventory $33,140 12.9% $25,179Total Current Assets $114,408 44.7% $77,755

Plant & Equipment $235,000 91.7% $205,200Accumulated Depreciation ($93,193) -36.4% ($77,527)Total Fixed Assets $141,807 55.3% $127,673Total Assets $256,216 100.0% $205,428LIABILITIES & OWNER'SEQUITY

Accounts Payable $15,599 6.1% $11,834Current Debt $55,916 21.8% $35,955Long Term Debt $64,616 25.2% $57,023Total Liabilities $136,131 53.1% $104,812

Common Stock $31,632 12.3% $29,787Retained Earnings $88,453 34.5% $70,830Total Equity $120,085 46.9% $100,617Total Liab. & O. Equity $256,216 100.0% $205,428

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.

Cash Flows from Operating Activities 2018 2017NetIncome(Loss) $17,623 $9,055Depreciation $15,667 $13,680Extraordinary gains/losses/writeoffs $0 $0Accounts Payable $3,765 $858Inventory ($7,962) ($10,073)Accounts Receivable ($5,663) ($136)

Net cash from operation $23,429 $13,383Cash Flows from Investing ActivitiesPlant Improvements ($29,800) ($43,400)Cash Flows from Financing ActivitiesDividends Paid $0 $0Sales of Common Stock $1,845 $4,487Purchase of Common Stock $0 $0Cash from long term debt $28,444 $11,148Retirement of long term debt ($20,850) $0Change in current debt(net) $19,961 ($3,178)

Net Cash from financing activities $29,400 $12,457Net Change in cash position $23,029 ($17,560)Closing cash position $58,631 $35,602

Annual Report Page 20

Annual Report Digby C52259 Round: 6Dec. 31, 2018

2018 Income Statement(Product Name) Daze Dell Dixie Dot Dune Doom Dust Na 2018

TotalCommon

SizeSales $46,364 $55,377 $42,453 $31,822 $32,622 $33,618 $33,164 $0 $275,420 100.0%

Variable Costs:Direct Labor $12,707 $13,310 $12,374 $8,639 $8,936 $7,105 $8,439 $0 $71,510 26.0%Direct Material $17,240 $17,067 $18,177 $15,306 $13,243 $16,047 $13,230 $0 $110,311 40.1%Inventory Carry $251 $96 $710 $519 $1,633 $510 $257 $0 $3,977 1.4%Total Variable $30,199 $30,473 $31,261 $24,465 $23,812 $23,663 $21,926 $0 $185,799 67.5%

Contribution Margin $16,165 $24,905 $11,191 $7,357 $8,810 $9,955 $11,238 $0 $89,621 32.5%

Period Costs:Depreciation $2,000 $3,867 $1,467 $1,820 $2,513 $2,400 $1,600 $0 $15,667 5.7%SG&A: R&D $0 $31 $590 $476 $351 $552 $588 $0 $2,588 0.9% Promotions $1,475 $1,475 $1,480 $1,400 $1,400 $1,400 $1,400 $0 $10,030 3.6% Sales $1,601 $1,601 $1,494 $1,494 $1,494 $1,494 $1,494 $0 $10,672 3.9% Admin $456 $545 $418 $313 $321 $331 $326 $0 $2,711 1.0%Total Period $5,532 $7,519 $5,448 $5,503 $6,080 $6,177 $5,408 $0 $41,668 15.1%

Net Margin $10,633 $17,386 $5,743 $1,854 $2,731 $3,778 $5,830 $0 $47,953 17.4%

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 $5,264 1.9%EBIT $42,689 15.5%Short Term Interest $6,710 2.4%Long Term Interest $8,285 3.0%Taxes $9,693 3.5%Profit Sharing $378 0.1%Net Profit $17,623 6.4%

Annual Report Page 21

Annual ReportAnnual Report Erie C52259 Round: 6

Dec. 31, 2018

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.

ASSETS 2018Common

Size

2017

Cash $66,255 29.1% $37,049Account Receivable $16,103 7.1% $12,888Inventory $5,747 2.5% $6,807Total Current Assets $88,105 38.8% $56,744

Plant & Equipment $235,200 103.0% $194,400Accumulated Depreciation ($95,953) -42.2% ($80,273)Total Fixed Assets $139,247 61.2% $114,127Total Assets $227,351 100.0% $170,870LIABILITIES & OWNER'SEQUITY

Accounts Payable $8,810 3.9% $7,757Current Debt $44,033 19.4% $17,741Long Term Debt $66,567 29.3% $55,323Total Liabilities $119,410 52.5% $80,821

Common Stock $36,353 16.0% $36,353Retained Earnings $71,588 31.5% $53,697Total Equity $107,941 47.5% $90,050Total Liab. & O. Equity $227,351 100.0% $170,870

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.

Cash Flows from Operating Activities 2018 2017NetIncome(Loss) $25,105 $14,670Depreciation $15,680 $12,960Extraordinary gains/losses/writeoffs $0 $0Accounts Payable $1,053 $1,388Inventory $1,060 ($2,779)Accounts Receivable ($3,215) ($2,255)

Net cash from operation $39,683 $23,985Cash Flows from Investing ActivitiesPlant Improvements ($40,800) ($31,000)Cash Flows from Financing ActivitiesDividends Paid ($7,213) $0Sales of Common Stock $0 $5,010Purchase of Common Stock $0 $0Cash from long term debt $32,094 $7,838Retirement of long term debt ($20,850) $0Change in current debt(net) $26,292 ($9,033)

Net Cash from financing activities $30,323 $3,815Net Change in cash position $29,206 ($3,200)Closing cash position $66,255 $37,049

Annual Report Page 22

Annual Report Erie C52259 Round: 6Dec. 31, 2018

2018 Income Statement(Product Name) Eat Ebb Echo Na Egg Na Na Na 2018

TotalCommon

SizeSales $52,132 $53,261 $43,522 $0 $47,001 $0 $0 $0 $195,916 100.0%

Variable Costs:Direct Labor $10,543 $11,534 $11,597 $0 $15,707 $0 $0 $0 $49,381 25.2%Direct Material $14,761 $14,216 $14,068 $0 $15,821 $0 $0 $0 $58,867 30.0%Inventory Carry $0 $115 $327 $0 $247 $0 $0 $0 $690 0.4%Total Variable $25,304 $25,865 $25,992 $0 $31,776 $0 $0 $0 $108,938 55.6%

Contribution Margin $26,828 $27,396 $17,530 $0 $15,225 $0 $0 $0 $86,979 44.4%

Period Costs:Depreciation $3,920 $5,880 $2,880 $0 $3,000 $0 $0 $0 $15,680 8.0%SG&A: R&D $0 $469 $0 $0 $0 $0 $0 $0 $469 0.2% Promotions $1,600 $1,600 $1,600 $0 $1,600 $0 $0 $0 $6,400 3.3% Sales $1,056 $1,056 $1,056 $0 $1,056 $0 $0 $0 $4,224 2.2% Admin $483 $494 $403 $0 $436 $0 $0 $0 $1,816 0.9%Total Period $7,059 $9,499 $5,939 $0 $6,092 $0 $0 $0 $28,590 14.6%

Net Margin $19,768 $17,896 $11,591 $0 $9,134 $0 $0 $0 $58,389 29.8%

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 $5,355 2.7%EBIT $53,034 27.1%Short Term Interest $5,108 2.6%Long Term Interest $8,475 4.3%Taxes $13,808 7.0%Profit Sharing $539 0.3%Net Profit $25,105 12.8%

Annual Report Page 23

Annual ReportAnnual Report Ferris C52259 Round: 6

Dec. 31, 2018

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.

ASSETS 2018Common

Size

2017

Cash $40,415 18.5% $30,990Account Receivable $16,000 7.3% $15,889Inventory $34,199 15.7% $20,681Total Current Assets $90,614 41.5% $67,560

Plant & Equipment $196,100 89.9% $174,900Accumulated Depreciation ($68,520) -31.4% ($55,447)Total Fixed Assets $127,580 58.5% $119,453Total Assets $218,194 100.0% $187,013LIABILITIES & OWNER'SEQUITY

Accounts Payable $12,102 5.5% $11,917Current Debt $49,857 22.8% $30,626Long Term Debt $59,344 27.2% $53,445Total Liabilities $121,303 55.6% $95,988

Common Stock $38,646 17.7% $34,773Retained Earnings $58,245 26.7% $56,252Total Equity $96,891 44.4% $91,025Total Liab. & O. Equity $218,194 100.0% $187,013

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.

Cash Flows from Operating Activities 2018 2017NetIncome(Loss) $1,993 $5,370Depreciation $13,073 $10,540Extraordinary gains/losses/writeoffs $0 ($550)Accounts Payable $185 $1,490Inventory ($13,518) ($8,310)Accounts Receivable ($111) ($438)

Net cash from operation $1,622 $8,102Cash Flows from Investing ActivitiesPlant Improvements ($21,200) ($34,770)Cash Flows from Financing ActivitiesDividends Paid $0 $0Sales of Common Stock $3,873 $5,234Purchase of Common Stock $0 $0Cash from long term debt $26,749 $10,712Retirement of long term debt ($20,850) $0Change in current debt(net) $19,230 ($1,305)

Net Cash from financing activities $29,003 $14,641Net Change in cash position $9,425 ($12,027)Closing cash position $40,415 $30,990

Annual Report Page 24

Annual Report Ferris C52259 Round: 6Dec. 31, 2018

2018 Income Statement(Product Name) Fast Feat Fist Foam Fume Fox Fuel Na 2018

TotalCommon

SizeSales $16,239 $23,376 $42,731 $30,194 $22,899 $38,246 $20,976 $0 $194,661 100.0%

Variable Costs:Direct Labor $9,061 $4,821 $12,183 $7,118 $5,323 $7,501 $5,214 $0 $51,222 26.3%Direct Material $4,588 $9,783 $18,443 $14,462 $8,897 $16,705 $9,622 $0 $82,501 42.4%Inventory Carry $0 $420 $812 $615 $1,204 $817 $237 $0 $4,104 2.1%Total Variable $13,650 $15,023 $31,438 $22,195 $15,424 $25,023 $15,073 $0 $137,827 70.8%

Contribution Margin $2,589 $8,353 $11,293 $7,999 $7,475 $13,223 $5,903 $0 $56,835 29.2%

Period Costs:Depreciation $953 $2,400 $1,600 $1,900 $2,300 $2,500 $1,420 $0 $13,073 6.7%SG&A: R&D $0 $604 $542 $605 $547 $484 $289 $0 $3,071 1.6% Promotions $200 $1,600 $1,600 $1,600 $1,600 $1,600 $1,600 $0 $9,800 5.0% Sales $695 $1,042 $1,042 $1,042 $1,042 $1,042 $1,042 $0 $6,947 3.6% Admin $161 $231 $422 $298 $226 $378 $207 $0 $1,924 1.0%Total Period $2,009 $5,877 $5,207 $5,445 $5,716 $6,004 $4,558 $0 $34,816 17.9%

Net Margin $580 $2,476 $6,087 $2,554 $1,759 $7,219 $1,344 $0 $22,019 11.3%

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 $5,281 2.7%EBIT $16,738 8.6%Short Term Interest $5,983 3.1%Long Term Interest $7,623 3.9%Taxes $1,096 0.6%Profit Sharing $43 0.0%Net Profit $1,993 1.0%

Annual Report Page 25