Annual Report

Annual Report

Digby

C74567

Balance Sheet
DEFINITIONS: Common Size: The common
size column simply represents each item as a
percentage of total assets for that year. Cash:
Your end-of-year cash position. Accounts
Receivable: Reflects the lag between delivery
and payment of your products. Inventories:
The current value of your inventory across all
products. A zero indicates your company
stocked out. Unmet demand would, of course,
fall to your competitors. Plant & Equipment:
The current value of your plant. Accum
Deprec: The total accumulated depreciation
from your plant. Accts Payable: What the
company currently owes suppliers for
materials and services. Current Debt: The
debt the company is obligated to pay during
the next year of operations. It includes
emergency loans used to keep your company
solvent should you run out of cash during the
year. Long Term Debt: The company's long
term debt is in the form of bonds, and this
represents the total value of your bonds.
Common Stock: The amount of capital
invested by shareholders in the company.
Retained Earnings: The profits that the
company chose to keep instead of paying to
shareholders as dividends.

ASSETS

Cash
Account Receivable
Inventory
Total Current Assets

$104,833

2022
Common
Size
0.0%
8.3%
67.4%
75.7%

$0
$8,344
$83,604
$91,948

$33,672
$138,504

69.7%
-45.4%
24.3%
100.0%

$96,592
($56,463)
$40,129
$132,077

$123,813

6.4%
57.9%
25.2%
89.4%

$12,788
$60,524
$34,843
$108,155

$14,692
$138,504

25.2%
-14.6%
10.6%
100.0%

$34,438
($10,517)
$23,921
$132,077

$0
$11,428
$93,405

Plant & Equipment

Accumulated Depreciation
Total Fixed Assets
Total Assets
LIABILITIES & OWNER'S
EQUITY
Accounts Payable
Current Debt
Long Term Debt
Total Liabilities

$96,550
($62,878)

$8,829
$80,141
$34,843

Common Stock
Retained Earnings
Total Equity
Total Liab. & O. Equity

$34,916
($20,224)

Cash Flow Statement

The Cash Flow Statement examines what happened in the Cash Account
during the year. Cash injections appear as positive numbers and cash
withdrawals as negative numbers. The Cash Flow Statement is an excellent
tool for diagnosing emergency loans. When negative cash flows exceed
positives, you are forced to seek emergency funding. For example, if sales
are bad and you find yourself carrying an abundance of excess inventory,
the report would show the increase in inventory as a huge negative cash
flow. Too much unexpected inventory could outstrip your inflows, exhaust
your starting cash and force you to beg for money to keep your company
afloat.

Round: 7
Dec. 31, 2022

Cash Flows from Operating Activities

NetIncome(Loss)
Depreciation
Extraordinary gains/losses/writeoffs

2021

2022

2021

($9,707)

($17,316)

$6,437

$5,966

$14

($2,414)

Accounts Payable

($3,960)

$599

Inventory

($9,801)

($59,116)

Accounts Receivable

($3,084)

$4,141

($20,101)

($68,141)

$6

($178)

Net cash from operation

Cash Flows from Investing Activities
Plant Improvements
Cash Flows from Financing Activities
Dividends Paid

$0

$0

$478

$0

Purchase of Common Stock

$0

$0

Cash from long term debt

$0

$0

Sales of Common Stock

Retirement of long term debt

Annual Report

$0

$0

Change in current debt(net)

$19,616

$60,524

Net Cash from financing activities

$20,094

$60,524

Net Change in cash position

$0

($7,794)

Closing cash position

$0

$0

Page 1

Annual Report

Digby

Round: 7
Dec. 31, 2022

C74567

2022 Income Statement

(Product Name)

$0

2022
Total
$139,035

Common
Size
100.0%

$4,756
$3,983
$820
$9,559

$0
$0
$0
$0

$45,947
$48,201
$11,209
$105,356

33.0%
34.7%
8.1%
75.8%

$893

$195

$0

$33,678

24.2%

$870
$627
$0
$1,500
$262
$3,260

$513
$863
$0
$1,500
$163
$3,039

$473
$607
$3,000
$1,500
$127
$5,707

$0
$0
$0
$0
$0
$0

$6,437
$3,904
$3,000
$8,900
$1,804
$24,044

4.6%
2.8%
2.2%
6.4%
1.3%
17.3%

$2,092

($2,147)

($5,512)

$0

$9,634

6.9%

$5,538
$4,096
$14,773
$4,257
($5,227)
$0
($9,707)

4.0%
2.9%
10.6%
3.1%
-3.8%
0.0%
-7.0%

Daze

Na

Dixie

Dot

Dune

Dick

Daisy

NA

Sales

$46,009

$0

$21,004

$29,486

$20,222

$12,559

$9,754

Variable Costs:
Direct Labor
Direct Material
Inventory Carry
Total Variable

$15,832
$14,395
$1,458
$31,684

$0
$0
$0
$0

$5,206
$7,106
$3,261
$15,573

$9,635
$11,816
$552
$22,003

$6,340
$6,819
$1,711
$14,870

$4,177
$4,083
$3,407
$11,667

Contribution Margin

$14,324

$0

$5,431

$7,483

$5,351

Period Costs:
Depreciation
SG&A: R&D
Promotions
Sales
Admin
Total Period

$2,567
$820
$0
$1,400
$597
$5,384

$0
$0
$0
$0
$0
$0

$1,173
$601
$0
$1,500
$273
$3,547

$840
$385
$0
$1,500
$383
$3,108

Net Margin

$8,941

$0

$1,884

$4,376

Definitions: Sales: Unit Sales times list price. Direct Labor: Labor costs incurred to produce the product 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 department expenditures for each product.
Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each
product. Sales: The sales force budget for each product. Other: Chargs not included in other categories
such as Fees, Write offs, and TQM. The fees include 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 or liquidate inventory as the result of eliminating a
production line. If the amount appears as a negative amount, then you actually made money on the
liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest
expense based on last year''s current debt, including short term debt, long term notes that have become
due, and emergency loans, Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax
based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract.
Net Profit: EBIT minus interest, taxes, and profit sharing.

Annual Report

Other
EBIT
Short Term Interest
Long Term Interest
Taxes
Profit Sharing
Net Profit

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