Round: 1Dec. 31, 2013 C52065

AndrewsManeesh BaglaJoshua HarrisonXin Luzahra RouhollahiLauren Thomson

BaldwinKiel MillerRamya NarayananHolly NicholsShan Zhu

ChesterMihir GhaelGlyn GraciasJainab KhatunPavel KomolovMichael Rudzki

DigbyPawanjot BajwaNoelle HarveyJon MainsRalph Kurt McFeeHaley Shoemaker

ErieAlfonso Maria III CuyegkengMarko GasicEvguenia HartDamanpreet SinghMarty Stanowich

Ferris

Selected Financial StatisticsAndrews Baldwin Chester Digby Erie Ferris

ROS 2.9% 2.3% -1.5% -0.6% -3.6% 1.3%Asset Turnover 1.13 1.09 1.07 1.02 0.76 1.07ROA 3.3% 2.5% -1.6% -0.6% -2.7% 1.4%Leverage(Assets/Equity)

1.9 2.0 2.4 2.1 2.6 2.0

ROE 6.3% 5.2% -3.8% -1.2% -7.1% 2.8%Emergency Loan $0 $0 $13,037,740 $0 $7,823,205 $0Sales $117,054,712 $129,185,920 $130,166,948 $132,929,914 $96,036,427 $99,549,048EBIT $10,770,829 $11,309,332 $5,306,154 $6,332,193 $2,885,619 $7,215,583Profits $3,437,697 $2,996,660 ($1,939,756) ($741,104) ($3,475,318) $1,280,683Cumulative Profit $7,626,205 $7,185,167 $2,248,751 $3,447,404 $713,190 $5,469,191SG&A / Sales 14.8% 16.0% 18.2% 14.0% 17.4% 20.2%Contrib. Margin % 30.5% 30.9% 29.3% 26.1% 30.4% 34.7%

CAPSTONE® COURIER Page 1

Stock & Bonds C52065 Round: 1Dec. 31, 2013

Stock Market Summary

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

Andrews $37.18 $2.92 2,087,582 $78 $26.05 $1.65 $0.00 0.0% 22.6Baldwin $36.55 $2.30 2,204,358 $81 $26.28 $1.36 $0.00 0.0% 26.9Chester $21.01 ($13.24) 2,128,453 $45 $23.68 ($0.91) $0.00 0.0% -23.1Digby $30.64 ($3.62) 2,399,957 $74 $25.38 ($0.31) $0.00 0.0% -99.5Erie $20.60 ($13.65) 2,131,373 $44 $22.97 ($1.63) $0.00 0.0% -12.6Ferris $31.44 ($2.81) 2,000,000 $63 $22.69 $0.64 $1.92 6.1% 49.0

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

11.0S2014 $3,960,267 11.0% 100.00 B 11.0S2014 $6,950,000 11.1% 99.46 CCC12.5S2016 $13,900,000 12.1% 103.67 B 12.5S2016 $13,900,000 12.2% 102.18 CCC14.0S2018 $20,850,000 12.6% 111.09 B 14.0S2018 $20,850,000 12.9% 108.74 CCC

Baldwin 10.8S2023 $18,994,000 11.3% 95.41 CCC11.0S2014 $6,950,000 11.0% 99.64 B Erie12.5S2016 $13,900,000 12.2% 102.67 B 11.0S2014 $6,950,000 11.1% 98.75 CC14.0S2018 $20,850,000 12.8% 109.51 B 12.5S2016 $13,900,000 12.5% 100.24 CC10.8S2023 $4,000,000 11.2% 96.53 B 14.0S2018 $20,850,000 13.2% 105.71 CC

Chester 10.8S2023 $15,000,000 11.9% 91.11 CC11.0S2014 $6,950,000 11.1% 99.02 CC Ferris12.5S2016 $13,900,000 12.4% 100.96 CC 12.5S2016 $9,747,013 12.2% 102.67 B14.0S2018 $20,850,000 13.1% 106.83 CC 14.0S2018 $20,850,000 12.8% 109.51 B10.8S2023 $4,400,000 11.7% 92.69 CC

Next Year's Prime Rate 7.50%

CAPSTONE® COURIER Page 2

Financial Summary C52065 Round: 1Dec. 31, 2013

Cash Flow Statement Survey Andrews Baldwin Chester Digby Erie FerrisCashFlows from operating activitiesNet Income(Loss) $3,438 $2,997 ($1,940) ($741) ($3,475) $1,281Adjustment for non-cash items: Depreciation $7,347 $7,101 $8,760 $7,673 $8,620 $6,387 Extraordinary gains/losses/writeoffs $70 $316 $0 $365 $30 $637Changes in current assets and liablilities Acounts payable $531 $527 $1,408 $1,702 $7,036 ($1,270) Inventory ($7,061) $1,996 ($7,160) ($4,070) ($19,358) ($729) Accounts Receivable ($1,314) ($12,929) ($13,090) ($2,618) ($7,479) $125Net cash from operations $3,011 $9 ($12,021) $2,311 ($14,627) $6,431

Cash flows from investing activitiesPlant improvements(net) $2,340 $644 ($17,600) ($14,365) ($16,130) $9,740Cash flows from financing activitiesDividends paid $0 $0 $0 $0 $0 ($3,835)Sales of common stock $3,000 $7,000 $4,400 $13,700 $4,500 $0Purchase of common stock $0 $0 $0 $0 $0 $0Cash from long term debt issued $0 $4,000 $4,400 $18,994 $15,000 $0Early retirement of long term debt ($3,000) $0 $0 $0 $0 ($11,347)Retirement of current debt $0 $0 $0 $0 $0 $0Cash from current debt borrowing $3,000 $8,000 $4,350 $0 $0 $11,359Cash from emergency loan $0 $0 $13,038 $0 $7,823 $0

Net cash from financing activities $3,000 $19,000 $26,188 $32,694 $27,323 ($3,823)

Net change in cash position $8,351 $19,653 ($3,434) $20,640 ($3,434) $12,347Balance Sheet Survey Andrews Baldwin Chester Digby Erie FerrisCash $11,785 $23,087 $0 $24,073 $0 $15,781Accounts Receivable $9,621 $21,236 $21,397 $10,926 $15,787 $8,182Inventory $15,678 $6,621 $15,777 $12,688 $27,975 $9,347Total Current Assets $37,084 $50,944 $37,175 $47,687 $43,762 $33,310

Plant and equipment $110,200 $106,520 $131,400 $120,500 $129,300 $95,800Accumulated Depreciation ($44,080) ($38,715) ($46,693) ($38,307) ($45,953) ($36,453)Total Fixed Assets $66,120 $67,805 $84,707 $82,193 $83,347 $59,347

Total Assets $103,204 $118,749 $121,881 $129,880 $127,109 $92,656

Account Payable $7,114 $7,111 $7,992 $8,285 $13,619 $5,313CurrentDebt $3,000 $8,000 $17,388 $0 $7,823 $11,359Long Term Debt $38,710 $45,700 $46,100 $60,694 $56,700 $30,597Total Liabilities $48,825 $60,811 $71,479 $68,979 $78,142 $47,269

Common Stock $21,360 $25,360 $22,760 $32,060 $22,860 $18,360Retained Earnings $33,020 $32,579 $27,642 $28,841 $26,107 $27,028Total Equity $54,380 $57,939 $50,402 $60,901 $48,967 $45,387

Total Liabilities & Owners'' Equity $103,204 $118,749 $121,881 $129,880 $127,109 $92,656

Income Statement Survey Andrews Baldwin Chester Digby Erie FerrisSales $117,055 $129,186 $130,167 $132,930 $96,036 $99,549Variable Costs(Labor,Material,Carry) $81,380 $89,304 $91,964 $98,258 $66,848 $65,038Depreciation $7,347 $7,101 $8,760 $7,673 $8,620 $6,387SGA(R&D,Promo,Sales,Admin) $17,292 $20,605 $23,697 $18,667 $16,677 $20,101Other(Fees,Writeoffs,TQM,Bonuses) $265 $866 $440 $2,000 $1,005 $807EBIT $10,771 $11,309 $5,306 $6,332 $2,886 $7,216Interest(Short term,Long term) $5,374 $6,605 $8,290 $7,472 $8,232 $5,205Taxes $1,889 $1,647 ($1,044) ($399) ($1,871) $704Profit Sharing $70 $61 $0 $0 $0 $26Net Profit $3,438 $2,997 ($1,940) ($741) ($3,475) $1,281

CAPSTONE® COURIER Page 3

Production Analysis C52065 Round: 1Dec. 31, 2013

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 1,200 376 3/17/2013 2.4 17500 5.7 14.3 $29.00 $10.85 $7.85 32% 0% 4.0 1,800 77%Acre Low 1,645 176 5/24/2008 5.6 14000 3.0 17.0 $20.50 $7.05 $7.43 27% 29% 5.0 1,400 127%Adam High 521 163 9/19/2013 1.5 23000 8.9 11.1 $39.50 $15.76 $8.97 35% 0% 3.0 900 72%Aft Pfmn 431 23 1/29/2013 3.5 27000 9.4 15.5 $33.50 $15.41 $8.97 26% 0% 3.0 400 94%Agape Size 398 60 4/4/2013 2.2 19000 4.0 10.5 $34.00 $12.94 $8.97 33% 0% 3.0 600 66%

Baker Trad 1,517 256 3/19/2013 2.4 18500 5.6 14.4 $27.00 $11.05 $7.85 27% 0% 5.2 1,650 96%Bead Low 1,831 0 5/24/2008 5.6 14000 3.0 17.0 $21.40 $7.05 $7.45 31% 29% 5.5 1,400 128%Bid High 492 4 4/19/2013 1.7 25000 8.3 11.7 $39.75 $15.75 $8.97 37% 0% 3.5 480 95%Bold Pfmn 427 62 4/16/2013 2.1 26000 9.9 15.5 $34.85 $15.44 $9.13 28% 4% 3.0 400 103%Buddy Size 420 4 4/16/2013 2.2 19000 4.3 10.5 $34.75 $13.02 $9.15 35% 4% 3.0 350 103%

Cake Trad 1,455 299 4/4/2013 2.4 17500 5.8 14.2 $27.00 $10.95 $7.85 28% 0% 5.0 1,800 87%Cedar Low 1,918 260 5/24/2008 5.6 14000 3.0 17.0 $21.50 $7.05 $7.85 28% 54% 6.0 1,400 153%Cid High 440 204 12/2/2013 1.4 23000 9.2 10.9 $39.00 $16.02 $8.97 34% 0% 3.0 900 67%Coat Pfmn 455 41 6/11/2013 2.0 26000 10.2 15.5 $34.00 $15.64 $8.97 27% 0% 4.0 600 70%Cure Size 500 6 6/29/2013 2.1 19000 4.3 10.1 $34.00 $13.28 $8.97 34% 0% 4.0 600 74%

Daze Trad 1,520 243 3/3/2013 2.5 17500 5.4 14.5 $26.50 $10.60 $8.06 27% 6% 6.0 1,500 105%Dell Low 2,495 20 5/24/2008 5.6 14000 3.0 17.0 $20.00 $7.05 $8.13 23% 79% 7.0 1,400 177%Dixie High 436 93 2/18/2013 1.8 23000 8.1 12.0 $38.00 $14.90 $9.35 34% 10% 3.0 450 109%Dot Pfmn 396 127 5/3/2013 2.1 27000 9.9 15.5 $34.00 $15.74 $9.44 23% 13% 3.0 400 111%Dune Size 374 100 8/10/2013 2.0 21000 4.4 10.1 $34.00 $13.91 $9.12 31% 4% 3.0 400 103%Doobie 0 0 3/5/2014 0.0 0 0.0 0.0 $0.00 $0.00 $0.00 0% 0% 3.0 300 0%

Eat Trad 1,046 479 4/24/2013 2.4 14000 5.6 14.4 $28.00 $9.70 $8.43 29% 0% 5.0 1,800 74%Ebb Low 1,160 261 1/29/2013 5.6 12000 3.0 17.0 $22.50 $6.45 $7.46 35% 7% 6.0 1,550 99%Echo High 467 126 10/3/2013 1.5 22000 8.9 11.1 $39.50 $15.46 $9.64 35% 0% 3.0 800 69%Edge Pfmn 386 198 8/18/2013 1.9 27000 10.4 15.3 $34.50 $16.13 $9.64 22% 0% 3.0 600 84%Egg Size 257 312 10/30/2013 1.9 19000 4.8 9.8 $34.50 $13.63 $9.64 24% 0% 3.0 600 84%

Fast Trad 1,156 122 3/3/2013 2.5 17500 5.6 14.5 $29.50 $10.70 $7.85 35% 0% 4.0 1,300 84%Feat Low 1,382 142 1/29/2013 5.6 12000 3.0 17.0 $22.00 $6.45 $6.94 37% 7% 5.0 1,400 106%Fist High 399 87 12/8/2013 1.4 25000 9.1 11.0 $39.50 $16.51 $9.44 35% 12% 4.0 400 111%Foam Pfmn 315 59 11/21/2013 1.8 26000 10.7 14.8 $34.50 $16.18 $8.97 28% 0% 4.0 500 59%Fume Size 244 66 12/14/2013 1.8 19000 5.1 9.8 $34.50 $13.72 $8.97 34% 0% 4.0 500 50%

CAPSTONE® COURIER Page 4

Traditional Segment Analysis C52065 Round: 1Dec. 31, 2013

Traditional StatisticsTotal Industry Unit Demand 8,067Actual Industry Unit Sales 8,067Segment % of Total Industry 31.4%

Next Year's Segment Growth Rate 9.2%

Traditional Customer Buying CriteriaExpectations Importance

1. Age Ideal Age = 2.0 47%2. Price $19.50 - 29.50 23%3. Ideal Position Pfmn 5.7 Size 14.3 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.

SurveyDaze 18% 1,456 3/3/2013 5.4 14.5 $26.50 17500 2.46 $1,700 77% $2,500 70% 47Baker 18% 1,455 3/19/2013 5.6 14.4 $27.00 18500 2.44 $1,500 73% $1,900 67% 49Cake 17% 1,403 4/4/2013 5.8 14.2 $27.00 17500 2.42 $1,500 73% $3,000 71% 51Able 14% 1,147 3/17/2013 5.7 14.3 $29.00 17500 2.44 $1,500 73% $2,050 64% 39Fast 14% 1,118 3/3/2013 5.6 14.5 $29.50 17500 2.46 $1,600 75% $1,650 63% 37Eat 13% 1,027 4/24/2013 5.6 14.4 $28.00 14000 2.39 $1,200 65% $1,700 62% 36Dell 1% 111 5/24/2008 3.0 17.0 $20.00 14000 5.60 $1,700 75% $2,500 70% 0Cedar 1% 93 5/24/2008 3.0 17.0 $21.50 14000 5.60 $1,500 71% $2,000 71% 0Bead 1% 87 5/24/2008 YES 3.0 17.0 $21.40 14000 5.60 $1,500 71% $2,300 67% 0Acre 1% 82 5/24/2008 3.0 17.0 $20.50 14000 5.60 $900 53% $900 64% 0Feat 1% 46 1/29/2013 3.0 17.0 $22.00 12000 5.60 $1,600 73% $1,732 63% 0Ebb 1% 41 1/29/2013 3.0 17.0 $22.50 12000 5.60 $1,100 59% $1,400 62% 0

CAPSTONE® COURIER Page 5

Low End Segment Analysis C52065 Round: 1Dec. 31, 2013

Low End StatisticsTotal Industry Unit Demand 10,009Actual Industry Unit Sales 10,009Segment % of Total Industry 39.0%

Next Year's Segment Growth Rate 11.7%

Low End Customer Buying CriteriaExpectations Importance

1. Price $14.50 - 24.50 53%2. Age Ideal Age = 7.0 24%3. Ideal Position Pfmn 2.2 Size 17.8 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.

SurveyDell 24% 2,384 5/24/2008 3.0 17.0 $20.00 14000 5.60 $1,700 75% $2,500 55% 26Cedar 18% 1,826 5/24/2008 3.0 17.0 $21.50 14000 5.60 $1,500 71% $2,000 50% 20Bead 17% 1,744 5/24/2008 YES 3.0 17.0 $21.40 14000 5.60 $1,500 71% $2,300 53% 21Acre 16% 1,563 5/24/2008 3.0 17.0 $20.50 14000 5.60 $900 53% $900 33% 17Feat 13% 1,335 1/29/2013 3.0 17.0 $22.00 12000 5.60 $1,600 73% $1,732 45% 15Ebb 11% 1,119 1/29/2013 3.0 17.0 $22.50 12000 5.60 $1,100 59% $1,400 41% 12Daze 0% 26 3/3/2013 5.4 14.5 $26.50 17500 2.46 $1,700 77% $2,500 55% 0Baker 0% 8 3/19/2013 5.6 14.4 $27.00 18500 2.44 $1,500 73% $1,900 53% 0Eat 0% 3 4/24/2013 5.6 14.4 $28.00 14000 2.39 $1,200 65% $1,700 41% 0

CAPSTONE® COURIER Page 6

High End Segment Analysis C52065 Round: 1Dec. 31, 2013

High End StatisticsTotal Industry Unit Demand 2,967Actual Industry Unit Sales 2,967Segment % of Total Industry 11.6%

Next Year's Segment Growth Rate 16.2%

High End Customer Buying CriteriaExpectations Importance

1. Ideal Position Pfmn 9.8 Size 10.2 43%2. Age Ideal Age = 0.0 29%3. Reliability MTBF 20000-25000 19%4. Price $29.50 - 39.50 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.

SurveyAdam 18% 521 9/19/2013 8.9 11.1 $39.50 23000 1.49 $1,500 68% $1,650 57% 27Bid 17% 492 4/19/2013 8.3 11.7 $39.75 25000 1.70 $1,500 68% $1,950 60% 22Echo 16% 467 10/3/2013 8.9 11.1 $39.50 22000 1.47 $1,400 66% $1,600 55% 25Cid 15% 440 12/2/2013 9.2 10.9 $39.00 23000 1.38 $1,250 62% $2,500 65% 35Dixie 15% 436 2/18/2013 8.1 12.0 $38.00 23000 1.78 $1,000 54% $1,000 46% 11Fist 13% 399 12/8/2013 9.1 11.0 $39.50 25000 1.38 $1,500 68% $1,732 58% 37Foam 1% 28 11/21/2013 10.7 14.8 $34.50 26000 1.80 $1,400 64% $1,567 58% 0Aft 1% 26 1/29/2013 9.4 15.5 $33.50 27000 3.50 $1,000 52% $1,500 57% 0Able 1% 24 3/17/2013 5.7 14.3 $29.00 17500 2.44 $1,500 73% $2,050 57% 0Edge 1% 22 8/18/2013 10.4 15.3 $34.50 27000 1.93 $1,400 64% $1,300 55% 0Coat 1% 19 6/11/2013 10.2 15.5 $34.00 26000 2.03 $1,250 60% $3,150 65% 0Fast 1% 19 3/3/2013 5.6 14.5 $29.50 17500 2.46 $1,600 75% $1,650 58% 0

CAPSTONE® COURIER Page 7

Performance Segment Analysis C52065 Round: 1Dec. 31, 2013

Performance StatisticsTotal Industry Unit Demand 2,294Actual Industry Unit Sales 2,294Segment % of Total Industry 8.9%

Next Year's Segment Growth Rate 19.8%

Performance Customer Buying CriteriaExpectations Importance

1. Reliability MTBF 22000-27000 43%2. Ideal Position Pfmn 10.4 Size 15.3 29%3. Price $24.50 - 34.50 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.

SurveyCoat 19% 436 6/11/2013 10.2 15.5 $34.00 26000 2.03 $1,250 60% $3,150 57% 38Bold 18% 412 4/16/2013 9.9 15.5 $34.85 26000 2.10 $1,400 64% $2,650 53% 33Aft 18% 405 1/29/2013 9.4 15.5 $33.50 27000 3.50 $1,000 52% $1,500 41% 28Dot 17% 382 5/3/2013 9.9 15.5 $34.00 27000 2.08 $1,200 58% $1,200 36% 34Edge 16% 364 8/18/2013 10.4 15.3 $34.50 27000 1.93 $1,400 64% $1,300 37% 39Foam 13% 287 11/21/2013 10.7 14.8 $34.50 26000 1.80 $1,400 64% $1,567 41% 30Baker 0% 4 3/19/2013 5.6 14.4 $27.00 18500 2.44 $1,500 73% $1,900 53% 0Cake 0% 2 4/4/2013 5.8 14.2 $27.00 17500 2.42 $1,500 73% $3,000 57% 0Fast 0% 1 3/3/2013 5.6 14.5 $29.50 17500 2.46 $1,600 75% $1,650 41% 0Able 0% 1 3/17/2013 5.7 14.3 $29.00 17500 2.44 $1,500 73% $2,050 41% 0Daze 0% 1 3/3/2013 5.4 14.5 $26.50 17500 2.46 $1,700 77% $2,500 36% 0

CAPSTONE® COURIER Page 8

Size Segment Analysis C52065 Round: 1Dec. 31, 2013

Size StatisticsTotal Industry Unit Demand 2,347Actual Industry Unit Sales 2,347Segment % of Total Industry 9.1%

Next Year's Segment Growth Rate 18.3%

Size Customer Buying CriteriaExpectations Importance

1. Ideal Position Pfmn 4.7 Size 9.6 43%2. Age Ideal Age = 1.5 29%3. Reliability MTBF 16000-21000 19%4. Price $24.50 - 34.50 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.

SurveyCure 21% 499 6/29/2013 4.3 10.1 $34.00 19000 2.05 $1,250 60% $3,000 62% 42Buddy 18% 419 4/16/2013 4.3 10.5 $34.75 19000 2.15 $1,500 66% $2,250 56% 30Agape 17% 398 4/4/2013 4.0 10.5 $34.00 19000 2.17 $1,250 60% $1,800 53% 24Dune 16% 373 8/10/2013 4.4 10.1 $34.00 21000 1.99 $1,200 58% $1,200 46% 40Egg 11% 257 10/30/2013 4.8 9.8 $34.50 19000 1.88 $1,000 52% $1,100 42% 39Fume 10% 243 12/14/2013 5.1 9.8 $34.50 19000 1.82 $1,400 64% $1,567 49% 40Baker 1% 35 3/19/2013 5.6 14.4 $27.00 18500 2.44 $1,500 73% $1,900 56% 0Cake 1% 33 4/4/2013 5.8 14.2 $27.00 17500 2.42 $1,500 73% $3,000 62% 1Daze 1% 31 3/3/2013 5.4 14.5 $26.50 17500 2.46 $1,700 77% $2,500 46% 0Able 1% 28 3/17/2013 5.7 14.3 $29.00 17500 2.44 $1,500 73% $2,050 53% 0Fast 1% 18 3/3/2013 5.6 14.5 $29.50 17500 2.46 $1,600 75% $1,650 49% 0Eat 1% 13 4/24/2013 5.6 14.4 $28.00 14000 2.39 $1,200 65% $1,700 42% 0

CAPSTONE® COURIER Page 9

Market Share C52065 Round: 1Dec. 31, 2013

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

Industry Unit Sales 8,067 10,009 2,967 2,294 2,347 25,684 Units Demanded 8,067 10,009 2,967 2,294 2,347 25,684% of Market 31.4% 39.0% 11.6% 8.9% 9.1% 100.0% % of Market 31.4% 39.0% 11.6% 8.9% 9.1% 100.0%

Able 14.2% 0.8% 1.2% 4.7% Able 14.2% 0.7% 1.2% 4.7%Acre 1.0% 15.6% 6.4% Acre 1.0% 15.2% 6.3%Adam 17.5% 2.0% Adam 16.4% 1.9%Aft 0.9% 17.6% 1.7% Aft 0.8% 17.6% 1.7%Agape 17.0% 1.5% Agape 16.7% 1.5%Total 15.2% 15.6% 19.2% 17.7% 18.1% 16.3% Total 15.2% 15.2% 17.9% 17.7% 17.8% 16.0%

Baker 18.0% 0.5% 0.2% 1.5% 5.9% Baker 18.0% 0.5% 0.2% 1.5% 5.9%Bead 1.1% 17.4% 7.1% Bead 1.2% 18.8% 7.7%Bid 16.6% 1.9% Bid 21.8% 2.5%Bold 0.5% 17.9% 1.7% Bold 0.5% 17.9% 1.7%Buddy 17.8% 1.6% Buddy 19.2% 1.8%Total 19.1% 17.5% 17.7% 18.1% 19.3% 18.2% Total 19.2% 18.8% 22.9% 18.1% 20.6% 19.5%

Cake 17.4% 0.6% 1.4% 5.7% Cake 17.4% 0.5% 1.4% 5.7%Cedar 1.1% 18.2% 7.5% Cedar 1.1% 17.8% 7.3%Cid 14.8% 1.7% Cid 13.9% 1.6%Coat 0.6% 19.0% 1.8% Coat 0.6% 19.0% 1.8%Cure 21.3% 2.0% Cure 20.8% 1.9%Total 18.5% 18.2% 16.1% 19.1% 22.7% 18.6% Total 18.5% 17.8% 15.1% 19.1% 22.2% 18.2%

Daze 18.0% 0.3% 0.2% 1.3% 5.9% Daze 18.0% 0.3% 0.2% 1.3% 5.9%Dell 1.4% 23.8% 9.7% Dell 1.4% 23.9% 9.7%Dixie 14.7% 1.7% Dixie 13.7% 1.6%Dot 0.5% 16.7% 1.5% Dot 0.5% 16.7% 1.5%Dune 15.9% 1.5% Dune 15.6% 1.4%Total 19.4% 24.1% 15.4% 16.7% 17.2% 20.3% Total 19.4% 24.1% 14.3% 16.7% 16.9% 20.2%

Eat 12.7% 0.6% 4.1% Eat 12.7% 0.6% 4.1%Ebb 0.5% 11.2% 4.5% Ebb 0.5% 10.9% 4.4%Echo 15.7% 1.8% Echo 14.7% 1.7%Edge 0.7% 15.9% 1.5% Edge 0.7% 15.9% 1.5%Egg 10.9% 1.0% Egg 10.8% 1.0%Total 13.2% 11.2% 16.6% 15.9% 11.5% 12.9% Total 13.2% 10.9% 15.6% 15.9% 11.4% 12.7%

Fast 13.9% 0.6% 0.8% 4.5% Fast 13.8% 0.6% 0.8% 4.5%Feat 0.6% 13.3% 5.4% Feat 0.6% 13.0% 5.3%Fist 13.4% 1.5% Fist 12.6% 1.5%Foam 1.0% 12.5% 1.2% Foam 0.9% 12.5% 1.2%Fume 10.4% 0.9% Fume 10.2% 0.9%Total 14.4% 13.3% 15.1% 12.6% 11.1% 13.6% Total 14.4% 13.0% 14.2% 12.6% 11.0% 13.4%

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Perceptual Map C52065 Round: 1Dec. 31, 2013

Andrews Baldwin ChesterName Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size RevisedAble 5.7 14.3 3/17/2013 Baker 5.6 14.4 3/19/2013 Cake 5.8 14.2 4/4/2013Acre 3.0 17.0 5/24/2008 Bead 3.0 17.0 5/24/2008 Cedar 3.0 17.0 5/24/2008Adam 8.9 11.1 9/19/2013 Bid 8.3 11.7 4/19/2013 Cid 9.2 10.9 12/2/2013Aft 9.4 15.5 1/29/2013 Bold 9.9 15.5 4/16/2013 Coat 10.2 15.5 6/11/2013Agape 4.0 10.5 4/4/2013 Buddy 4.3 10.5 4/16/2013 Cure 4.3 10.1 6/29/2013

Digby Erie FerrisName Pfmn Size Revised Name Pfmn Size Revised Name Pfmn Size RevisedDaze 5.4 14.5 3/3/2013 Eat 5.6 14.4 4/24/2013 Fast 5.6 14.5 3/3/2013Dell 3.0 17.0 5/24/2008 Ebb 3.0 17.0 1/29/2013 Feat 3.0 17.0 1/29/2013Dixie 8.1 12.0 2/18/2013 Echo 8.9 11.1 10/3/2013 Fist 9.1 11.0 12/8/2013Dot 9.9 15.5 5/3/2013 Edge 10.4 15.3 8/18/2013 Foam 10.7 14.8 11/21/2013Dune 4.4 10.1 8/10/2013 Egg 4.8 9.8 10/30/2013 Fume 5.1 9.8 12/14/2013

CAPSTONE® COURIER Page 11

HR/TQM Report C52065 Round: 1Dec. 31, 2013

HUMAN RESOURCES SUMMARYAndrews Baldwin Chester Digby Erie Ferris

Needed Complement 770 769 862 889 787 594Complement 770 769 862 889 787 5941st Shift Complement 712 704 753 695 773 5702nd Shift Complement 57 65 109 194 14 24

Overtime Percent 0.0% 0.0% 0.0% 0.1% 0.0% 0.0%Turnover Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%New Employees 147 146 248 278 166 59Separated Employees 0 0 0 0 0 106Recruiting Spend $0 $0 $0 $0 $0 $0Training Hours 0 0 0 0 0 0Productivity Index 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Recruiting Cost $147 $146 $248 $278 $166 $59Separation Cost $0 $0 $0 $0 $0 $530Training Cost $0 $0 $0 $0 $0 $0Total HR Admin Cost $147 $146 $248 $278 $166 $589

Labor Contract Next YearWages $22.05 $22.05 $22.05 $22.05 $22.05 $22.05Benefits 2,500 2,500 2,500 2,500 2,500 2,500Profit Sharing 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Annual Raise 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%

Starting Negotiation PositionWagesBenefitsProfit SharingAnnual Raise

Ceiling Negotiation PositionWagesBenefitsProfit SharingAnnual Raise

Adjusted Labor DemandsWagesBenefitsProfit SharingAnnual Raise

Strike Days

TQM SUMMARYAndrews Baldwin Chester Digby Erie Ferris

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

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

Cumulative ImpactsMaterial Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Labor Cost Reduction 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Reduction R&D Cycle Time 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Reduction Admin Costs 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%Demand Increase 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

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Ethics Report C52065 Round: 1Dec. 31, 2013

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 Erie C52065 Round: 1

Dec. 31, 2013

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 2013Common

Size

2012

Cash $0 0.0% $3,434Account Receivable $15,787 12.4% $8,307Inventory $27,975 22.0% $8,617Total Current Assets $43,762 34.4% $20,358

Plant & Equipment $129,300 102.0% $113,800Accumulated Depreciation ($45,953) -36.2% ($37,933)Total Fixed Assets $83,347 65.6% $75,867Total Assets $127,109 100.0% $96,225LIABILITIES & OWNER'SEQUITY

Accounts Payable $13,619 10.7% $6,583Current Debt $7,823 6.2% $0Long Term Debt $56,700 44.6% $41,700Total Liabilities $78,142 61.5% $48,283

Common Stock $22,860 18.0% $18,360Retained Earnings $26,107 20.5% $29,582Total Equity $48,967 38.5% $47,942Total Liab. & O. Equity $127,109 100.0% $96,225

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 2013 2012NetIncome(Loss) ($3,475) $4,189Depreciation $8,620 $7,587Extraordinary gains/losses/writeoffs $30 $0Accounts Payable $7,036 $3,583Inventory ($19,358) ($8,617)Accounts Receivable ($7,479) ($307)

Net cash from operation ($14,627) $6,434Cash Flows from Investing ActivitiesPlant Improvements ($16,130) $0Cash Flows from Financing ActivitiesDividends Paid $0 ($4,000)Sales of Common Stock $4,500 $0Purchase of Common Stock $0 $0Cash from long term debt $15,000 $0Retirement of long term debt $0 $0Change in current debt(net) $7,823 $0

Net Cash from financing activities $27,323 ($4,000)Net Change in cash position ($3,434) $2,434Closing cash position $0 $3,434

Annual Report Page 14

Annual Report Erie C52065 Round: 1Dec. 31, 2013

2013 Income Statement(Product Name) Eat Ebb Echo Edge Egg NA NA NA 2013

TotalCommon

SizeSales $29,284 $26,102 $18,436 $13,334 $8,880 $0 $0 $0 $96,036 100.0%

Variable Costs:Direct Labor $8,700 $8,640 $4,465 $3,670 $2,451 $0 $0 $0 $27,926 29.1%Direct Material $10,970 $7,869 $7,215 $6,107 $3,404 $0 $0 $0 $35,565 37.0%Inventory Carry $1,081 $445 $379 $600 $851 $0 $0 $0 $3,357 3.5%Total Variable $20,751 $16,954 $12,059 $10,378 $6,706 $0 $0 $0 $66,848 69.6%

Contribution Margin $8,533 $9,147 $6,377 $2,956 $2,174 $0 $0 $0 $29,188 30.4%

Period Costs:Depreciation $3,120 $3,100 $960 $720 $720 $0 $0 $0 $8,620 9.0%SG&A: R&D $317 $80 $765 $638 $840 $0 $0 $0 $2,639 2.7% Promotions $1,200 $1,100 $1,400 $1,400 $1,000 $0 $0 $0 $6,100 6.4% Sales $1,700 $1,400 $1,600 $1,300 $1,100 $0 $0 $0 $7,100 7.4% Admin $256 $228 $161 $116 $77 $0 $0 $0 $838 0.9%Total Period $6,592 $5,908 $4,886 $4,174 $3,737 $0 $0 $0 $25,297 26.3%

Net Margin $1,941 $3,240 $1,491 ($1,218) ($1,563) $0 $0 $0 $3,891 4.1%

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 $1,005 1.0%EBIT $2,886 3.0%Short Term Interest $1,191 1.2%Long Term Interest $7,041 7.3%Taxes ($1,871) -1.9%Profit Sharing $0 0.0%Net Profit ($3,475) -3.6%

Annual Report Page 15