Assignment Prompt & Instructions
[>Management homework help](https://www.sweetstudy.com/fields/business-finance-management)
– 2 years ago
**files (3)**
– ## MGT6203-Three-YearReportExample-Template61.docx
– ## RevivalAthleticCompanyCAnnualReport.docx
– ## AnnualReportSample1-1.pdf
**## MGT6203-Three-YearReportExample-Template61.docx**
MGT 6203
Three-Year Strategic Plan for Years 11-13
Synopsis
Mission and Vision
Mission
Provide your mission statement.
Vision
Provide your vision statement.
Corporate Social Responsibility
Describe how the organization has been involved with CSR, and the intention of the organization going forward.
To Our Stockholders
Construct a letter to the stockholders. In the letter, the students will include:
· Appreciation for their support
· An overview of company financial status
· Brief plans for the future.
Past and Present Performance
· A synopsis of the actions and decision made from the last three years that deal with the stock price, credit rating, Image, ROE, and EPS
· Why the stock price, credit rating, Image, ROE, and EPS are the levels they are today
· (Provide a chart of the net revenues over the past three years)
SWOT Analysis
What is the organization’s Strengths, Weaknesses, Opportunities, and Threats.
(Please identify each of these and then provide a brief description of how they are strengths, weaknesses, opportunities, and threats.)
Consolidated Financial Statements
Provide a chart of three-year report (Year 11, Year 12, and Year 13) for the following consolidated financial statements regarding the overall totals of all the four regions (North America, Europe-Africa, Asia-Pacific and Latin America). (Refer to the template)
Income Statement (Profits and Losses)
Three-Year Statement (Refer to the template)
Balance Sheet
Three-Year Statements (Refer to the template)
Statement of Cash Flows
Three-Year Statements (Refer to the template)
Future Outlook – What you plan to do in Years 14-18
There is no need for financial documents. Just the strategy plan
Describe what you plan on doing in the future. If your organization has performed well, what will you do to sustain the growth and prosperity. If your organization has performed poorly, what will the organization do to correct these problems and restore the organization to prosperity.
It is important that you remember you are writing this to the stockholders, therefore, you must be specific in your actions that you can gain their confidence and continued support.
**## RevivalAthleticCompanyCAnnualReport.docx**
Revival athletic
## aNNUAL REPORT
### Revival athletic 2025
This is the annual report for Revival Athletic.
Authors: Katharine Johnson, Karla Matise, Robert Kidd, and Sandesh Khadka.
Mission and Vision
Corporate Social Responsibility
To Our Stockholders
Past and Present Performance
SWOT Analysis
Consolidated Financial Statements
Income Statements (Profits and Losses)
Balance Sheet
Statement of Cash Flows
Table of Contents
Future Outlook
[Type here]
## Mission and Vision
### MissioN Our mission is to design and deliver high-quality athletic footwear that enhances performance, comfort, and durability. We are committed to supporting athletes and fitness enthusiasts by providing innovative products that meet their needs. Through continuous innovation and expansion across North America and Asia, we aim to build a globally recognized brand that empowers individuals to achieve their best.
### Vision
### We continually strive to enhance lives by manufacturing the highest quality athletic footwear.
## Corporate Social Responsibility At Company C, we are committed to the well-being of our workforce and the international community at large. We have committed to using recyclable materials for our packaging, and we have recently increased our charitable contributions by 10% worldwide. Additionally, we have improved working conditions for our valuable workforce by supplying on-site childcare, installing additional safety equipment, and providing a supplier code of conduct. These initiatives have contributed to a workforce that takes pride in their place of work and improves relationships with our suppliers.
## To Our Stockholders We are pleased to share our performance with our investors as we continue to improve upon our international impact. Our performance is marked by strong financial results, successful application of strategy, and strong leadership in the market. Despite challenges posed by earlier leadership, we are committed to improve in subsequent years.
## Past and Present Performance Am going to use feedback from the past reflections to tell the stockholders what we have done in the past and what we intend to do in order to improve.
## SWOT Analysis OPPORTUNITIES THREATS STRENGTHS WEAKNESSES
## Consolidated Financial Statements
## Income Statement 
## Balance Sheet 
## Statement of Cash Flows 
## Future Outlook
Page 6
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## image2.jpg
## image3.jpg
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## image5.png
## image6.png
**## AnnualReportSample1-1.pdf**
ANNUAL
REPORT
BOREALIS
2018
TABLE
OF
CONTENTS
Mission and Vision—————————————————————————————–1
Corporate Social Responsibility ———————————————————————–1
To Our Stockholders—————————————————————————————-2
Past and Present——————————————————————————————-2
SWOT Analysis ——————————————————————————————-3
Consolidated Financial Statements————————————————————————5
Income Statement (Profits and Losses)—————————————————————-5
Balance Sheet———————————————————————————————6
Statement of Cash Flows——————————————————————————–7
Future Outlook———————————————————————————————-8
BOREALIS
Page
1
Mission and Vision
We take pride in the services we
provide for our customers, employees,
shareholders and stakeholders. We
provide the lowest priced shoes with
great quality and numerous models.
Our vision is to keep on moving
forward in the four regions, North
America, Europe-Africa, Asia-Pacific
and Latin America.
Corporate Social Responsibility
Both the community and our employees are valuable to our production and efficiency. At
Borealis we provide ethics and enforcement training in addition to workforce diversity
programs concerning sex, age, and other factors for all our employees.
All of our warehouses in the regions, North America, Asia-Pacific and Latin America were
upgraded to increase worker productivity hence reducing the waste and pollution back into the
community. In addition, our employees are trained to be energy efficient, turn off the light
when done, turn down unused machines and exposure of waste products properly. The beauty
of the borealis aurora entails us to maintain a positive image in the community so we strive to
maintain a 70 or above for the company image rating.
In years 2014 and 2017 we ranked second for the corporate citizenship award. The world
council for Exemplary Corporate Citizenship ranks and presents an award to the company
spending the biggest percentage of its revenues for social responsibility and citizenship
incentives.
BOREALIS
Page
2
To Our Shareholders
We want to thank all our investors for supporting Borealis and joining us on the ongoing
journey of moving forward. We will continue to maximize the shareholders wealth and
increase stock price and shares in the future by increasing our efficiency in production, keeping
our model varieties diverse, and always striving to increase the satisfaction of our customers.
Past and Present
Borealis continues to grow and expand each year to meet both the company and investor
expectations. There were a few rocky years in the beginning but the company is back on track
and heading for the new mover.
In the year 2011, the company had a slight drop in revenues which affected the investor returns
like the return on equity, earnings per share and the stock price. In 2012, the risk was greater
than the returns due to the aggressive decisions by management. A plant was built in Latin
America while working on upgrades on the Asia-Pacific plant at the same time. Return on
equity (ROE) and earnings per share (EPS) were below the industry, (-1.3 and -0.21
respectively) for the year 2012 and since the construction was mainly financed by credit, the
company’s credit rating dropped to C- . Due to the high interest rate payments from the low
credit rating and high default risk, the overall company’s expenses were very high.
The next couple of years a consultant was utilized to help improve and assist management with
attaining average returns and striving for better results. In 2014 the company achieved the
investor expectations and since then Borealis is now moving forward and continues to expand
and grow while balancing the risk with the returns.
One of the main factors is the low price that is advertised for the shoes, with the celebrity
endorsements that help boost sales. In addition, the great retail support from the retailers and
the various models offered helped increase revenues as well. Today Borealis is up to speed and
maintaining the increasing revenues (graph 1 below).
Graph 1- Borealis Net Revenues
BOREALIS
Page
3
One plant at a time is upgraded to increase the capacity in order to keep up the increasing
demand and sales for the shoes; incentives are in order to help motivate employee to make
better shoes hence reducing the reject rate. Overall all the three plants (North America, Asia-
Pacific and Latin America) have been upgraded to option A and B which are assembly line
upgrade to reduce reject rate by 50% and facilities upgrade to reduce production run setup by
50% which in the end reduce the overall expenses.
In the year 2015 and 2016, our ROE (16.8, 15.8 respectively) and EPS of 4.00 and 4.41
respectively were part of the best in the industry; and the stock price increased as well to
$51.29 and $55.97. Our credit rating has improved from a C- to B- and heading for an A+ by
2020.
Currently we are maintaining a 16% to 20% of the market share in both internet and wholesales
in all four regions. For the future, we will keep on growing in revenues, market share and unit
sales while maintaining our standards, morals and low prices for the customers in internet,
wholesale and private-label sales.
SWOT Analysis
Strength
• Model Offered- Borealis offers more
models than any other company, a
variety selection attracts and retains
more customers.
Weakness
• No free shipping offered so we lose
some customers and may not intake
any new customers.
BOREALIS
Page
4
• Lowest prices- due to the high
quantity of models offers, we can
lower our prices and still obtain
profits from the sales.
• Celebrity endorsement- different
locations have different interests, the
multiple number of different
celebrities increase the volume and
demand for Borealis footwear.
• Multiple warehouses- the additional
location in Latin American decreases
the exchanges rate expenses and
traffics costs.
• Mail in rebate is offered to the
customers.
• Advertising expenses are too high
and in order to keep low prices,
advertising has to decrease.
• Cost of production is too high in
portion to the revenue generated and
in order to maintain the low prices,
changes in production need to be
implemented like less superior
materials but while maintaining great
quality.
Opportunity
• Build a plant in Europe –Africa to
better met the uprising demand and
lower the exchange rate expenses and
traffic.
• Increase capacity to have left over
sales for the private label sales.
• Increase retail support to increase
overall sales.
• Focus on celebrity endorsement that
will strengthen the weak sales areas.
• Offer free shipping to some of the
customers, in order to compete with
the competitors’.
Threat
• The lower S/Q rating compared to the
competitors decreases the attraction
of the retail supporters.
• High operating expenses in
comparison to the revenues
generation.
• Low price competitive advantage is
easily adaptable by both the
competitors and any incoming
entrants.
• Long delivery time for the customers
and on top that no free shipping is
offered, there is a potential threat of
losing customers to our competitors
with less delivery time and or free
shipping.
• High competitive market, aggressive
decisions have been implemented
increasing the company risk and may
possibly reducing returns.
BOREALIS
Page
5
Financial Statements
The past three years, 2015, 2016 and 2017 consolidated financial statement – Income statement,
balance sheet and statement of cash flow for the overall totals of all the four regions North
America, Europe-Africa, Asia-Pacific and Latin America.
Borealis
Consolidated Income statement ($000s)
Year Ended December 31,
2015 2016 2017
Net Revenue-Internet 60,297 85,802 83,623
Wholesale 345,787 393,453 400,690
Private-Label 31,146 0 0
Exchange rate adjustments 2,884 (7,865) (21,608)
Net Revenues from sales 440,114 471,390 462,705
Cost of Pairs Sold 249,699 256,798 263,981
Gross Profit 190,415 214,592 198,724
Operating Expenses
Warehouse Expenses 26,876 32,156 31,807
Marketing Expenses 74,406 92,022 100,840
Administration Expenses 12,287 12,349 12,414
Total Expense 113,569 136,527 145,061
Operating Profit (Loss) 76,846 78,065 53,663
Interest Income(Expense) (20,980) (16,994) (11,463)
Pre-tax profit(Loss) 55,866 61,071 42,200
Income Taxes 16,760 18,321 12,660
Net Income 39,106 42,750 29,540
BOREALIS
Page
6
Borealis
Consolidated Balance Sheet ($000)
December 31,
2015 2016 2017
ASSETS
Cash on Hand 0 0 0
Accounts Receivable 110,029 117,848 115,676
Inventory 27,465 29,310 32,628
Total Current Assets 137,494 147,158 148,304
Property Plant & Equipment
Total Fixed Assets 328,885 304,570 344,605
Total Assets 466,379 451,728 492,909
LIABILITIES
Accounts Payable 16,608 19,801 20,559
Overdraft Loan payable 25,113 4,895 52,280
Current Loan Payable 36,500 36,500 25,000
Total Current Liabilities 78,221 61,196 97,839
Long term Loans
Outstanding 136,500 100,000 75,000
Total Liabilities 214,721 161,196 172,839
SHAREHOLDER EQUITY
Common stock 9,775 9,700 9,700
Additional paid in capital 96,470 92,668 92,668
Retained Earnings 145,413 188,164 217,702
Total Shareholder Equity 251,658 290,532 320,070
Total Liabilities & Equity 466,379 451,728 492,909
BOREALIS
Page
7
Borealis
Consolidated Statement of Cash Flow ($000)
Year Ended December 31,
2015 2016 2017
Beginning cash 0 0 0
OPERATIONS
Cash receipts from sales 429,821 463,572 464,877
Cash paid for
Inventory purchase-material
supplies (64,275) (76,011) (81,477)
Production Expenses (143,727) (132,024) (138,059)
Warehouse Expense (48,874) (55,256) (54,499)
Marketing Expenses (86,693) (104,371) (113,254)
Income Taxes (16,760) (18,321) (12,660)
Interest Payment- Overdraft (4,047) (3,039) (485)
10-year loan (16,933) (13,955) (10,978)
Net Cash Flow from Operations 48,512 60,595 53,465
INVESTING ACTIVITES
Construction of new capacity 0 0 (64,350)
Stock Repurchase 0 (3,877) 0
Net Cash Flow from Investing
Activities 0 (3,877) (64,350)
FINANCING ACTIVITIES
Loans to cover overdraft 25,113 4,895 52,280
Repayment on Loans
Overdraft (37,125) (25,113) (4,895)
10-year loan (36,500) (36,500) (36,500)
Net Cash Flow from Financing
Activities (48,512) (56,718) 10,885
Net Cash Balance 0 0 0
BOREALIS
Page
8
3- Year Future Projections
Our future outlook is to maintain the low price and highest model offered competitive
advantage over the competitors. With the growing retail support in private, wholesale and
internet sales, this will lead to contentious capacity increase each year for the plants depending
on the number of insufficiency feedback from the previous year. The other factor is the loan
repayment as soon as possible for this will decrease the interest expense and increase the
ending cash, and with excess cash there is potential for expansion and upgrades. There will be
continuous training for the employees to stay updated with the changing technology, latest sales
skills and customer demands. The most important of all is make sure that our investors are
receiving the highest returns with low risk, making sure that each decision yields a substantial
return.
***Other external factors may affect the overall performance of the company, resulting in
different returns from the projections below.
BOREALIS
Page
9
BOREALIS
Page
10
BOREALIS
Page
11
BOREALIS
Page
12
**## AnnualReportSample1-1.pdf**
ANNUAL
REPORT
BOREALIS
2018
TABLE
OF
CONTENTS
Mission and Vision—————————————————————————————–1
Corporate Social Responsibility ———————————————————————–1
To Our Stockholders—————————————————————————————-2
Past and Present——————————————————————————————-2
SWOT Analysis ——————————————————————————————-3
Consolidated Financial Statements————————————————————————5
Income Statement (Profits and Losses)—————————————————————-5
Balance Sheet———————————————————————————————6
Statement of Cash Flows——————————————————————————–7
Future Outlook———————————————————————————————-8
BOREALIS
Page
1
Mission and Vision
We take pride in the services we
provide for our customers, employees,
shareholders and stakeholders. We
provide the lowest priced shoes with
great quality and numerous models.
Our vision is to keep on moving
forward in the four regions, North
America, Europe-Africa, Asia-Pacific
and Latin America.
Corporate Social Responsibility
Both the community and our employees are valuable to our production and efficiency. At
Borealis we provide ethics and enforcement training in addition to workforce diversity
programs concerning sex, age, and other factors for all our employees.
All of our warehouses in the regions, North America, Asia-Pacific and Latin America were
upgraded to increase worker productivity hence reducing the waste and pollution back into the
community. In addition, our employees are trained to be energy efficient, turn off the light
when done, turn down unused machines and exposure of waste products properly. The beauty
of the borealis aurora entails us to maintain a positive image in the community so we strive to
maintain a 70 or above for the company image rating.
In years 2014 and 2017 we ranked second for the corporate citizenship award. The world
council for Exemplary Corporate Citizenship ranks and presents an award to the company
spending the biggest percentage of its revenues for social responsibility and citizenship
incentives.
BOREALIS
Page
2
To Our Shareholders
We want to thank all our investors for supporting Borealis and joining us on the ongoing
journey of moving forward. We will continue to maximize the shareholders wealth and
increase stock price and shares in the future by increasing our efficiency in production, keeping
our model varieties diverse, and always striving to increase the satisfaction of our customers.
Past and Present
Borealis continues to grow and expand each year to meet both the company and investor
expectations. There were a few rocky years in the beginning but the company is back on track
and heading for the new mover.
In the year 2011, the company had a slight drop in revenues which affected the investor returns
like the return on equity, earnings per share and the stock price. In 2012, the risk was greater
than the returns due to the aggressive decisions by management. A plant was built in Latin
America while working on upgrades on the Asia-Pacific plant at the same time. Return on
equity (ROE) and earnings per share (EPS) were below the industry, (-1.3 and -0.21
respectively) for the year 2012 and since the construction was mainly financed by credit, the
company’s credit rating dropped to C- . Due to the high interest rate payments from the low
credit rating and high default risk, the overall company’s expenses were very high.
The next couple of years a consultant was utilized to help improve and assist management with
attaining average returns and striving for better results. In 2014 the company achieved the
investor expectations and since then Borealis is now moving forward and continues to expand
and grow while balancing the risk with the returns.
One of the main factors is the low price that is advertised for the shoes, with the celebrity
endorsements that help boost sales. In addition, the great retail support from the retailers and
the various models offered helped increase revenues as well. Today Borealis is up to speed and
maintaining the increasing revenues (graph 1 below).
Graph 1- Borealis Net Revenues
BOREALIS
Page
3
One plant at a time is upgraded to increase the capacity in order to keep up the increasing
demand and sales for the shoes; incentives are in order to help motivate employee to make
better shoes hence reducing the reject rate. Overall all the three plants (North America, Asia-
Pacific and Latin America) have been upgraded to option A and B which are assembly line
upgrade to reduce reject rate by 50% and facilities upgrade to reduce production run setup by
50% which in the end reduce the overall expenses.
In the year 2015 and 2016, our ROE (16.8, 15.8 respectively) and EPS of 4.00 and 4.41
respectively were part of the best in the industry; and the stock price increased as well to
$51.29 and $55.97. Our credit rating has improved from a C- to B- and heading for an A+ by
2020.
Currently we are maintaining a 16% to 20% of the market share in both internet and wholesales
in all four regions. For the future, we will keep on growing in revenues, market share and unit
sales while maintaining our standards, morals and low prices for the customers in internet,
wholesale and private-label sales.
SWOT Analysis
Strength
• Model Offered- Borealis offers more
models than any other company, a
variety selection attracts and retains
more customers.
Weakness
• No free shipping offered so we lose
some customers and may not intake
any new customers.
BOREALIS
Page
4
• Lowest prices- due to the high
quantity of models offers, we can
lower our prices and still obtain
profits from the sales.
• Celebrity endorsement- different
locations have different interests, the
multiple number of different
celebrities increase the volume and
demand for Borealis footwear.
• Multiple warehouses- the additional
location in Latin American decreases
the exchanges rate expenses and
traffics costs.
• Mail in rebate is offered to the
customers.
• Advertising expenses are too high
and in order to keep low prices,
advertising has to decrease.
• Cost of production is too high in
portion to the revenue generated and
in order to maintain the low prices,
changes in production need to be
implemented like less superior
materials but while maintaining great
quality.
Opportunity
• Build a plant in Europe –Africa to
better met the uprising demand and
lower the exchange rate expenses and
traffic.
• Increase capacity to have left over
sales for the private label sales.
• Increase retail support to increase
overall sales.
• Focus on celebrity endorsement that
will strengthen the weak sales areas.
• Offer free shipping to some of the
customers, in order to compete with
the competitors’.
Threat
• The lower S/Q rating compared to the
competitors decreases the attraction
of the retail supporters.
• High operating expenses in
comparison to the revenues
generation.
• Low price competitive advantage is
easily adaptable by both the
competitors and any incoming
entrants.
• Long delivery time for the customers
and on top that no free shipping is
offered, there is a potential threat of
losing customers to our competitors
with less delivery time and or free
shipping.
• High competitive market, aggressive
decisions have been implemented
increasing the company risk and may
possibly reducing returns.
BOREALIS
Page
5
Financial Statements
The past three years, 2015, 2016 and 2017 consolidated financial statement – Income statement,
balance sheet and statement of cash flow for the overall totals of all the four regions North
America, Europe-Africa, Asia-Pacific and Latin America.
Borealis
Consolidated Income statement ($000s)
Year Ended December 31,
2015 2016 2017
Net Revenue-Internet 60,297 85,802 83,623
Wholesale 345,787 393,453 400,690
Private-Label 31,146 0 0
Exchange rate adjustments 2,884 (7,865) (21,608)
Net Revenues from sales 440,114 471,390 462,705
Cost of Pairs Sold 249,699 256,798 263,981
Gross Profit 190,415 214,592 198,724
Operating Expenses
Warehouse Expenses 26,876 32,156 31,807
Marketing Expenses 74,406 92,022 100,840
Administration Expenses 12,287 12,349 12,414
Total Expense 113,569 136,527 145,061
Operating Profit (Loss) 76,846 78,065 53,663
Interest Income(Expense) (20,980) (16,994) (11,463)
Pre-tax profit(Loss) 55,866 61,071 42,200
Income Taxes 16,760 18,321 12,660
Net Income 39,106 42,750 29,540
BOREALIS
Page
6
Borealis
Consolidated Balance Sheet ($000)
December 31,
2015 2016 2017
ASSETS
Cash on Hand 0 0 0
Accounts Receivable 110,029 117,848 115,676
Inventory 27,465 29,310 32,628
Total Current Assets 137,494 147,158 148,304
Property Plant & Equipment
Total Fixed Assets 328,885 304,570 344,605
Total Assets 466,379 451,728 492,909
LIABILITIES
Accounts Payable 16,608 19,801 20,559
Overdraft Loan payable 25,113 4,895 52,280
Current Loan Payable 36,500 36,500 25,000
Total Current Liabilities 78,221 61,196 97,839
Long term Loans
Outstanding 136,500 100,000 75,000
Total Liabilities 214,721 161,196 172,839
SHAREHOLDER EQUITY
Common stock 9,775 9,700 9,700
Additional paid in capital 96,470 92,668 92,668
Retained Earnings 145,413 188,164 217,702
Total Shareholder Equity 251,658 290,532 320,070
Total Liabilities & Equity 466,379 451,728 492,909
BOREALIS
Page
7
Borealis
Consolidated Statement of Cash Flow ($000)
Year Ended December 31,
2015 2016 2017
Beginning cash 0 0 0
OPERATIONS
Cash receipts from sales 429,821 463,572 464,877
Cash paid for
Inventory purchase-material
supplies (64,275) (76,011) (81,477)
Production Expenses (143,727) (132,024) (138,059)
Warehouse Expense (48,874) (55,256) (54,499)
Marketing Expenses (86,693) (104,371) (113,254)
Income Taxes (16,760) (18,321) (12,660)
Interest Payment- Overdraft (4,047) (3,039) (485)
10-year loan (16,933) (13,955) (10,978)
Net Cash Flow from Operations 48,512 60,595 53,465
INVESTING ACTIVITES
Construction of new capacity 0 0 (64,350)
Stock Repurchase 0 (3,877) 0
Net Cash Flow from Investing
Activities 0 (3,877) (64,350)
FINANCING ACTIVITIES
Loans to cover overdraft 25,113 4,895 52,280
Repayment on Loans
Overdraft (37,125) (25,113) (4,895)
10-year loan (36,500) (36,500) (36,500)
Net Cash Flow from Financing
Activities (48,512) (56,718) 10,885
Net Cash Balance 0 0 0
BOREALIS
Page
8
3- Year Future Projections
Our future outlook is to maintain the low price and highest model offered competitive
advantage over the competitors. With the growing retail support in private, wholesale and
internet sales, this will lead to contentious capacity increase each year for the plants depending
on the number of insufficiency feedback from the previous year. The other factor is the loan
repayment as soon as possible for this will decrease the interest expense and increase the
ending cash, and with excess cash there is potential for expansion and upgrades. There will be
continuous training for the employees to stay updated with the changing technology, latest sales
skills and customer demands. The most important of all is make sure that our investors are
receiving the highest returns with low risk, making sure that each decision yields a substantial
return.
***Other external factors may affect the overall performance of the company, resulting in
different returns from the projections below.
BOREALIS
Page
9
BOREALIS
Page
10
BOREALIS
Page
11
BOREALIS
Page
12
**## MGT6203-Three-YearReportExample-Template61.docx**
MGT 6203
Three-Year Strategic Plan for Years 11-13
Synopsis
Mission and Vision
Mission
Provide your mission statement.
Vision
Provide your vision statement.
Corporate Social Responsibility
Describe how the organization has been involved with CSR, and the intention of the organization going forward.
To Our Stockholders
Construct a letter to the stockholders. In the letter, the students will include:
· Appreciation for their support
· An overview of company financial status
· Brief plans for the future.
Past and Present Performance
· A synopsis of the actions and decision made from the last three years that deal with the stock price, credit rating, Image, ROE, and EPS
· Why the stock price, credit rating, Image, ROE, and EPS are the levels they are today
· (Provide a chart of the net revenues over the past three years)
SWOT Analysis
What is the organization’s Strengths, Weaknesses, Opportunities, and Threats.
(Please identify each of these and then provide a brief description of how they are strengths, weaknesses, opportunities, and threats.)
Consolidated Financial Statements
Provide a chart of three-year report (Year 11, Year 12, and Year 13) for the following consolidated financial statements regarding the overall totals of all the four regions (North America, Europe-Africa, Asia-Pacific and Latin America). (Refer to the template)
Income Statement (Profits and Losses)
Three-Year Statement (Refer to the template)
Balance Sheet
Three-Year Statements (Refer to the template)
Statement of Cash Flows
Three-Year Statements (Refer to the template)
Future Outlook – What you plan to do in Years 14-18
There is no need for financial documents. Just the strategy plan
Describe what you plan on doing in the future. If your organization has performed well, what will you do to sustain the growth and prosperity. If your organization has performed poorly, what will the organization do to correct these problems and restore the organization to prosperity.
It is important that you remember you are writing this to the stockholders, therefore, you must be specific in your actions that you can gain their confidence and continued support.
**## RevivalAthleticCompanyCAnnualReport.docx**
Revival athletic
## aNNUAL REPORT
### Revival athletic 2025
This is the annual report for Revival Athletic.
Authors: Katharine Johnson, Karla Matise, Robert Kidd, and Sandesh Khadka.
Mission and Vision
Corporate Social Responsibility
To Our Stockholders
Past and Present Performance
SWOT Analysis
Consolidated Financial Statements
Income Statements (Profits and Losses)
Balance Sheet
Statement of Cash Flows
Table of Contents
Future Outlook
[Type here]
## Mission and Vision
### MissioN Our mission is to design and deliver high-quality athletic footwear that enhances performance, comfort, and durability. We are committed to supporting athletes and fitness enthusiasts by providing innovative products that meet their needs. Through continuous innovation and expansion across North America and Asia, we aim to build a globally recognized brand that empowers individuals to achieve their best.
### Vision
### We continually strive to enhance lives by manufacturing the highest quality athletic footwear.
## Corporate Social Responsibility At Company C, we are committed to the well-being of our workforce and the international community at large. We have committed to using recyclable materials for our packaging, and we have recently increased our charitable contributions by 10% worldwide. Additionally, we have improved working conditions for our valuable workforce by supplying on-site childcare, installing additional safety equipment, and providing a supplier code of conduct. These initiatives have contributed to a workforce that takes pride in their place of work and improves relationships with our suppliers.
## To Our Stockholders We are pleased to share our performance with our investors as we continue to improve upon our international impact. Our performance is marked by strong financial results, successful application of strategy, and strong leadership in the market. Despite challenges posed by earlier leadership, we are committed to improve in subsequent years.
## Past and Present Performance Am going to use feedback from the past reflections to tell the stockholders what we have done in the past and what we intend to do in order to improve.
## SWOT Analysis OPPORTUNITIES THREATS STRENGTHS WEAKNESSES
## Consolidated Financial Statements
## Income Statement 
## Balance Sheet 
## Statement of Cash Flows 
## Future Outlook
Page 6
## image1.jpg!d
## image2.jpg
## image3.jpg
## image4.png
## image5.png
## image6.png
**## AnnualReportSample1-1.pdf**
ANNUAL
REPORT
BOREALIS
2018
TABLE
OF
CONTENTS
Mission and Vision—————————————————————————————–1
Corporate Social Responsibility ———————————————————————–1
To Our Stockholders—————————————————————————————-2
Past and Present——————————————————————————————-2
SWOT Analysis ——————————————————————————————-3
Consolidated Financial Statements————————————————————————5
Income Statement (Profits and Losses)—————————————————————-5
Balance Sheet———————————————————————————————6
Statement of Cash Flows——————————————————————————–7
Future Outlook———————————————————————————————-8
BOREALIS
Page
1
Mission and Vision
We take pride in the services we
provide for our customers, employees,
shareholders and stakeholders. We
provide the lowest priced shoes with
great quality and numerous models.
Our vision is to keep on moving
forward in the four regions, North
America, Europe-Africa, Asia-Pacific
and Latin America.
Corporate Social Responsibility
Both the community and our employees are valuable to our production and efficiency. At
Borealis we provide ethics and enforcement training in addition to workforce diversity
programs concerning sex, age, and other factors for all our employees.
All of our warehouses in the regions, North America, Asia-Pacific and Latin America were
upgraded to increase worker productivity hence reducing the waste and pollution back into the
community. In addition, our employees are trained to be energy efficient, turn off the light
when done, turn down unused machines and exposure of waste products properly. The beauty
of the borealis aurora entails us to maintain a positive image in the community so we strive to
maintain a 70 or above for the company image rating.
In years 2014 and 2017 we ranked second for the corporate citizenship award. The world
council for Exemplary Corporate Citizenship ranks and presents an award to the company
spending the biggest percentage of its revenues for social responsibility and citizenship
incentives.
BOREALIS
Page
2
To Our Shareholders
We want to thank all our investors for supporting Borealis and joining us on the ongoing
journey of moving forward. We will continue to maximize the shareholders wealth and
increase stock price and shares in the future by increasing our efficiency in production, keeping
our model varieties diverse, and always striving to increase the satisfaction of our customers.
Past and Present
Borealis continues to grow and expand each year to meet both the company and investor
expectations. There were a few rocky years in the beginning but the company is back on track
and heading for the new mover.
In the year 2011, the company had a slight drop in revenues which affected the investor returns
like the return on equity, earnings per share and the stock price. In 2012, the risk was greater
than the returns due to the aggressive decisions by management. A plant was built in Latin
America while working on upgrades on the Asia-Pacific plant at the same time. Return on
equity (ROE) and earnings per share (EPS) were below the industry, (-1.3 and -0.21
respectively) for the year 2012 and since the construction was mainly financed by credit, the
company’s credit rating dropped to C- . Due to the high interest rate payments from the low
credit rating and high default risk, the overall company’s expenses were very high.
The next couple of years a consultant was utilized to help improve and assist management with
attaining average returns and striving for better results. In 2014 the company achieved the
investor expectations and since then Borealis is now moving forward and continues to expand
and grow while balancing the risk with the returns.
One of the main factors is the low price that is advertised for the shoes, with the celebrity
endorsements that help boost sales. In addition, the great retail support from the retailers and
the various models offered helped increase revenues as well. Today Borealis is up to speed and
maintaining the increasing revenues (graph 1 below).
Graph 1- Borealis Net Revenues
BOREALIS
Page
3
One plant at a time is upgraded to increase the capacity in order to keep up the increasing
demand and sales for the shoes; incentives are in order to help motivate employee to make
better shoes hence reducing the reject rate. Overall all the three plants (North America, Asia-
Pacific and Latin America) have been upgraded to option A and B which are assembly line
upgrade to reduce reject rate by 50% and facilities upgrade to reduce production run setup by
50% which in the end reduce the overall expenses.
In the year 2015 and 2016, our ROE (16.8, 15.8 respectively) and EPS of 4.00 and 4.41
respectively were part of the best in the industry; and the stock price increased as well to
$51.29 and $55.97. Our credit rating has improved from a C- to B- and heading for an A+ by
2020.
Currently we are maintaining a 16% to 20% of the market share in both internet and wholesales
in all four regions. For the future, we will keep on growing in revenues, market share and unit
sales while maintaining our standards, morals and low prices for the customers in internet,
wholesale and private-label sales.
SWOT Analysis
Strength
• Model Offered- Borealis offers more
models than any other company, a
variety selection attracts and retains
more customers.
Weakness
• No free shipping offered so we lose
some customers and may not intake
any new customers.
BOREALIS
Page
4
• Lowest prices- due to the high
quantity of models offers, we can
lower our prices and still obtain
profits from the sales.
• Celebrity endorsement- different
locations have different interests, the
multiple number of different
celebrities increase the volume and
demand for Borealis footwear.
• Multiple warehouses- the additional
location in Latin American decreases
the exchanges rate expenses and
traffics costs.
• Mail in rebate is offered to the
customers.
• Advertising expenses are too high
and in order to keep low prices,
advertising has to decrease.
• Cost of production is too high in
portion to the revenue generated and
in order to maintain the low prices,
changes in production need to be
implemented like less superior
materials but while maintaining great
quality.
Opportunity
• Build a plant in Europe –Africa to
better met the uprising demand and
lower the exchange rate expenses and
traffic.
• Increase capacity to have left over
sales for the private label sales.
• Increase retail support to increase
overall sales.
• Focus on celebrity endorsement that
will strengthen the weak sales areas.
• Offer free shipping to some of the
customers, in order to compete with
the competitors’.
Threat
• The lower S/Q rating compared to the
competitors decreases the attraction
of the retail supporters.
• High operating expenses in
comparison to the revenues
generation.
• Low price competitive advantage is
easily adaptable by both the
competitors and any incoming
entrants.
• Long delivery time for the customers
and on top that no free shipping is
offered, there is a potential threat of
losing customers to our competitors
with less delivery time and or free
shipping.
• High competitive market, aggressive
decisions have been implemented
increasing the company risk and may
possibly reducing returns.
BOREALIS
Page
5
Financial Statements
The past three years, 2015, 2016 and 2017 consolidated financial statement – Income statement,
balance sheet and statement of cash flow for the overall totals of all the four regions North
America, Europe-Africa, Asia-Pacific and Latin America.
Borealis
Consolidated Income statement ($000s)
Year Ended December 31,
2015 2016 2017
Net Revenue-Internet 60,297 85,802 83,623
Wholesale 345,787 393,453 400,690
Private-Label 31,146 0 0
Exchange rate adjustments 2,884 (7,865) (21,608)
Net Revenues from sales 440,114 471,390 462,705
Cost of Pairs Sold 249,699 256,798 263,981
Gross Profit 190,415 214,592 198,724
Operating Expenses
Warehouse Expenses 26,876 32,156 31,807
Marketing Expenses 74,406 92,022 100,840
Administration Expenses 12,287 12,349 12,414
Total Expense 113,569 136,527 145,061
Operating Profit (Loss) 76,846 78,065 53,663
Interest Income(Expense) (20,980) (16,994) (11,463)
Pre-tax profit(Loss) 55,866 61,071 42,200
Income Taxes 16,760 18,321 12,660
Net Income 39,106 42,750 29,540
BOREALIS
Page
6
Borealis
Consolidated Balance Sheet ($000)
December 31,
2015 2016 2017
ASSETS
Cash on Hand 0 0 0
Accounts Receivable 110,029 117,848 115,676
Inventory 27,465 29,310 32,628
Total Current Assets 137,494 147,158 148,304
Property Plant & Equipment
Total Fixed Assets 328,885 304,570 344,605
Total Assets 466,379 451,728 492,909
LIABILITIES
Accounts Payable 16,608 19,801 20,559
Overdraft Loan payable 25,113 4,895 52,280
Current Loan Payable 36,500 36,500 25,000
Total Current Liabilities 78,221 61,196 97,839
Long term Loans
Outstanding 136,500 100,000 75,000
Total Liabilities 214,721 161,196 172,839
SHAREHOLDER EQUITY
Common stock 9,775 9,700 9,700
Additional paid in capital 96,470 92,668 92,668
Retained Earnings 145,413 188,164 217,702
Total Shareholder Equity 251,658 290,532 320,070
Total Liabilities & Equity 466,379 451,728 492,909
BOREALIS
Page
7
Borealis
Consolidated Statement of Cash Flow ($000)
Year Ended December 31,
2015 2016 2017
Beginning cash 0 0 0
OPERATIONS
Cash receipts from sales 429,821 463,572 464,877
Cash paid for
Inventory purchase-material
supplies (64,275) (76,011) (81,477)
Production Expenses (143,727) (132,024) (138,059)
Warehouse Expense (48,874) (55,256) (54,499)
Marketing Expenses (86,693) (104,371) (113,254)
Income Taxes (16,760) (18,321) (12,660)
Interest Payment- Overdraft (4,047) (3,039) (485)
10-year loan (16,933) (13,955) (10,978)
Net Cash Flow from Operations 48,512 60,595 53,465
INVESTING ACTIVITES
Construction of new capacity 0 0 (64,350)
Stock Repurchase 0 (3,877) 0
Net Cash Flow from Investing
Activities 0 (3,877) (64,350)
FINANCING ACTIVITIES
Loans to cover overdraft 25,113 4,895 52,280
Repayment on Loans
Overdraft (37,125) (25,113) (4,895)
10-year loan (36,500) (36,500) (36,500)
Net Cash Flow from Financing
Activities (48,512) (56,718) 10,885
Net Cash Balance 0 0 0
BOREALIS
Page
8
3- Year Future Projections
Our future outlook is to maintain the low price and highest model offered competitive
advantage over the competitors. With the growing retail support in private, wholesale and
internet sales, this will lead to contentious capacity increase each year for the plants depending
on the number of insufficiency feedback from the previous year. The other factor is the loan
repayment as soon as possible for this will decrease the interest expense and increase the
ending cash, and with excess cash there is potential for expansion and upgrades. There will be
continuous training for the employees to stay updated with the changing technology, latest sales
skills and customer demands. The most important of all is make sure that our investors are
receiving the highest returns with low risk, making sure that each decision yields a substantial
return.
***Other external factors may affect the overall performance of the company, resulting in
different returns from the projections below.
BOREALIS
Page
9
BOREALIS
Page
10
BOREALIS
Page
11
BOREALIS
Page
12
**## MGT6203-Three-YearReportExample-Template61.docx**
MGT 6203
Three-Year Strategic Plan for Years 11-13
Synopsis
Mission and Vision
Mission
Provide your mission statement.
Vision
Provide your vision statement.
Corporate Social Responsibility
Describe how the organization has been involved with CSR, and the intention of the organization going forward.
To Our Stockholders
Construct a letter to the stockholders. In the letter, the students will include:
· Appreciation for their support
· An overview of company financial status
· Brief plans for the future.
Past and Present Performance
· A synopsis of the actions and decision made from the last three years that deal with the stock price, credit rating, Image, ROE, and EPS
· Why the stock price, credit rating, Image, ROE, and EPS are the levels they are today
· (Provide a chart of the net revenues over the past three years)
SWOT Analysis
What is the organization’s Strengths, Weaknesses, Opportunities, and Threats.
(Please identify each of these and then provide a brief description of how they are strengths, weaknesses, opportunities, and threats.)
Consolidated Financial Statements
Provide a chart of three-year report (Year 11, Year 12, and Year 13) for the following consolidated financial statements regarding the overall totals of all the four regions (North America, Europe-Africa, Asia-Pacific and Latin America). (Refer to the template)
Income Statement (Profits and Losses)
Three-Year Statement (Refer to the template)
Balance Sheet
Three-Year Statements (Refer to the template)
Statement of Cash Flows
Three-Year Statements (Refer to the template)
Future Outlook – What you plan to do in Years 14-18
There is no need for financial documents. Just the strategy plan
Describe what you plan on doing in the future. If your organization has performed well, what will you do to sustain the growth and prosperity. If your organization has performed poorly, what will the organization do to correct these problems and restore the organization to prosperity.
It is important that you remember you are writing this to the stockholders, therefore, you must be specific in your actions that you can gain their confidence and continued support.
**## RevivalAthleticCompanyCAnnualReport.docx**
Revival athletic
## aNNUAL REPORT
### Revival athletic 2025
This is the annual report for Revival Athletic.
Authors: Katharine Johnson, Karla Matise, Robert Kidd, and Sandesh Khadka.
Mission and Vision
Corporate Social Responsibility
To Our Stockholders
Past and Present Performance
SWOT Analysis
Consolidated Financial Statements
Income Statements (Profits and Losses)
Balance Sheet
Statement of Cash Flows
Table of Contents
Future Outlook
[Type here]
## Mission and Vision
### MissioN Our mission is to design and deliver high-quality athletic footwear that enhances performance, comfort, and durability. We are committed to supporting athletes and fitness enthusiasts by providing innovative products that meet their needs. Through continuous innovation and expansion across North America and Asia, we aim to build a globally recognized brand that empowers individuals to achieve their best.
### Vision
### We continually strive to enhance lives by manufacturing the highest quality athletic footwear.
## Corporate Social Responsibility At Company C, we are committed to the well-being of our workforce and the international community at large. We have committed to using recyclable materials for our packaging, and we have recently increased our charitable contributions by 10% worldwide. Additionally, we have improved working conditions for our valuable workforce by supplying on-site childcare, installing additional safety equipment, and providing a supplier code of conduct. These initiatives have contributed to a workforce that takes pride in their place of work and improves relationships with our suppliers.
## To Our Stockholders We are pleased to share our performance with our investors as we continue to improve upon our international impact. Our performance is marked by strong financial results, successful application of strategy, and strong leadership in the market. Despite challenges posed by earlier leadership, we are committed to improve in subsequent years.
## Past and Present Performance Am going to use feedback from the past reflections to tell the stockholders what we have done in the past and what we intend to do in order to improve.
## SWOT Analysis OPPORTUNITIES THREATS STRENGTHS WEAKNESSES
## Consolidated Financial Statements
## Income Statement 
## Balance Sheet 
## Statement of Cash Flows 
## Future Outlook
Page 6
## image1.jpg!d
## image2.jpg
## image3.jpg
## image4.png
## image5.png
## image6.png
**## AnnualReportSample1-1.pdf**
ANNUAL
REPORT
BOREALIS
2018
TABLE
OF
CONTENTS
Mission and Vision—————————————————————————————–1
Corporate Social Responsibility ———————————————————————–1
To Our Stockholders—————————————————————————————-2
Past and Present——————————————————————————————-2
SWOT Analysis ——————————————————————————————-3
Consolidated Financial Statements————————————————————————5
Income Statement (Profits and Losses)—————————————————————-5
Balance Sheet———————————————————————————————6
Statement of Cash Flows——————————————————————————–7
Future Outlook———————————————————————————————-8
BOREALIS
Page
1
Mission and Vision
We take pride in the services we
provide for our customers, employees,
shareholders and stakeholders. We
provide the lowest priced shoes with
great quality and numerous models.
Our vision is to keep on moving
forward in the four regions, North
America, Europe-Africa, Asia-Pacific
and Latin America.
Corporate Social Responsibility
Both the community and our employees are valuable to our production and efficiency. At
Borealis we provide ethics and enforcement training in addition to workforce diversity
programs concerning sex, age, and other factors for all our employees.
All of our warehouses in the regions, North America, Asia-Pacific and Latin America were
upgraded to increase worker productivity hence reducing the waste and pollution back into the
community. In addition, our employees are trained to be energy efficient, turn off the light
when done, turn down unused machines and exposure of waste products properly. The beauty
of the borealis aurora entails us to maintain a positive image in the community so we strive to
maintain a 70 or above for the company image rating.
In years 2014 and 2017 we ranked second for the corporate citizenship award. The world
council for Exemplary Corporate Citizenship ranks and presents an award to the company
spending the biggest percentage of its revenues for social responsibility and citizenship
incentives.
BOREALIS
Page
2
To Our Shareholders
We want to thank all our investors for supporting Borealis and joining us on the ongoing
journey of moving forward. We will continue to maximize the shareholders wealth and
increase stock price and shares in the future by increasing our efficiency in production, keeping
our model varieties diverse, and always striving to increase the satisfaction of our customers.
Past and Present
Borealis continues to grow and expand each year to meet both the company and investor
expectations. There were a few rocky years in the beginning but the company is back on track
and heading for the new mover.
In the year 2011, the company had a slight drop in revenues which affected the investor returns
like the return on equity, earnings per share and the stock price. In 2012, the risk was greater
than the returns due to the aggressive decisions by management. A plant was built in Latin
America while working on upgrades on the Asia-Pacific plant at the same time. Return on
equity (ROE) and earnings per share (EPS) were below the industry, (-1.3 and -0.21
respectively) for the year 2012 and since the construction was mainly financed by credit, the
company’s credit rating dropped to C- . Due to the high interest rate payments from the low
credit rating and high default risk, the overall company’s expenses were very high.
The next couple of years a consultant was utilized to help improve and assist management with
attaining average returns and striving for better results. In 2014 the company achieved the
investor expectations and since then Borealis is now moving forward and continues to expand
and grow while balancing the risk with the returns.
One of the main factors is the low price that is advertised for the shoes, with the celebrity
endorsements that help boost sales. In addition, the great retail support from the retailers and
the various models offered helped increase revenues as well. Today Borealis is up to speed and
maintaining the increasing revenues (graph 1 below).
Graph 1- Borealis Net Revenues
BOREALIS
Page
3
One plant at a time is upgraded to increase the capacity in order to keep up the increasing
demand and sales for the shoes; incentives are in order to help motivate employee to make
better shoes hence reducing the reject rate. Overall all the three plants (North America, Asia-
Pacific and Latin America) have been upgraded to option A and B which are assembly line
upgrade to reduce reject rate by 50% and facilities upgrade to reduce production run setup by
50% which in the end reduce the overall expenses.
In the year 2015 and 2016, our ROE (16.8, 15.8 respectively) and EPS of 4.00 and 4.41
respectively were part of the best in the industry; and the stock price increased as well to
$51.29 and $55.97. Our credit rating has improved from a C- to B- and heading for an A+ by
2020.
Currently we are maintaining a 16% to 20% of the market share in both internet and wholesales
in all four regions. For the future, we will keep on growing in revenues, market share and unit
sales while maintaining our standards, morals and low prices for the customers in internet,
wholesale and private-label sales.
SWOT Analysis
Strength
• Model Offered- Borealis offers more
models than any other company, a
variety selection attracts and retains
more customers.
Weakness
• No free shipping offered so we lose
some customers and may not intake
any new customers.
BOREALIS
Page
4
• Lowest prices- due to the high
quantity of models offers, we can
lower our prices and still obtain
profits from the sales.
• Celebrity endorsement- different
locations have different interests, the
multiple number of different
celebrities increase the volume and
demand for Borealis footwear.
• Multiple warehouses- the additional
location in Latin American decreases
the exchanges rate expenses and
traffics costs.
• Mail in rebate is offered to the
customers.
• Advertising expenses are too high
and in order to keep low prices,
advertising has to decrease.
• Cost of production is too high in
portion to the revenue generated and
in order to maintain the low prices,
changes in production need to be
implemented like less superior
materials but while maintaining great
quality.
Opportunity
• Build a plant in Europe –Africa to
better met the uprising demand and
lower the exchange rate expenses and
traffic.
• Increase capacity to have left over
sales for the private label sales.
• Increase retail support to increase
overall sales.
• Focus on celebrity endorsement that
will strengthen the weak sales areas.
• Offer free shipping to some of the
customers, in order to compete with
the competitors’.
Threat
• The lower S/Q rating compared to the
competitors decreases the attraction
of the retail supporters.
• High operating expenses in
comparison to the revenues
generation.
• Low price competitive advantage is
easily adaptable by both the
competitors and any incoming
entrants.
• Long delivery time for the customers
and on top that no free shipping is
offered, there is a potential threat of
losing customers to our competitors
with less delivery time and or free
shipping.
• High competitive market, aggressive
decisions have been implemented
increasing the company risk and may
possibly reducing returns.
BOREALIS
Page
5
Financial Statements
The past three years, 2015, 2016 and 2017 consolidated financial statement – Income statement,
balance sheet and statement of cash flow for the overall totals of all the four regions North
America, Europe-Africa, Asia-Pacific and Latin America.
Borealis
Consolidated Income statement ($000s)
Year Ended December 31,
2015 2016 2017
Net Revenue-Internet 60,297 85,802 83,623
Wholesale 345,787 393,453 400,690
Private-Label 31,146 0 0
Exchange rate adjustments 2,884 (7,865) (21,608)
Net Revenues from sales 440,114 471,390 462,705
Cost of Pairs Sold 249,699 256,798 263,981
Gross Profit 190,415 214,592 198,724
Operating Expenses
Warehouse Expenses 26,876 32,156 31,807
Marketing Expenses 74,406 92,022 100,840
Administration Expenses 12,287 12,349 12,414
Total Expense 113,569 136,527 145,061
Operating Profit (Loss) 76,846 78,065 53,663
Interest Income(Expense) (20,980) (16,994) (11,463)
Pre-tax profit(Loss) 55,866 61,071 42,200
Income Taxes 16,760 18,321 12,660
Net Income 39,106 42,750 29,540
BOREALIS
Page
6
Borealis
Consolidated Balance Sheet ($000)
December 31,
2015 2016 2017
ASSETS
Cash on Hand 0 0 0
Accounts Receivable 110,029 117,848 115,676
Inventory 27,465 29,310 32,628
Total Current Assets 137,494 147,158 148,304
Property Plant & Equipment
Total Fixed Assets 328,885 304,570 344,605
Total Assets 466,379 451,728 492,909
LIABILITIES
Accounts Payable 16,608 19,801 20,559
Overdraft Loan payable 25,113 4,895 52,280
Current Loan Payable 36,500 36,500 25,000
Total Current Liabilities 78,221 61,196 97,839
Long term Loans
Outstanding 136,500 100,000 75,000
Total Liabilities 214,721 161,196 172,839
SHAREHOLDER EQUITY
Common stock 9,775 9,700 9,700
Additional paid in capital 96,470 92,668 92,668
Retained Earnings 145,413 188,164 217,702
Total Shareholder Equity 251,658 290,532 320,070
Total Liabilities & Equity 466,379 451,728 492,909
BOREALIS
Page
7
Borealis
Consolidated Statement of Cash Flow ($000)
Year Ended December 31,
2015 2016 2017
Beginning cash 0 0 0
OPERATIONS
Cash receipts from sales 429,821 463,572 464,877
Cash paid for
Inventory purchase-material
supplies (64,275) (76,011) (81,477)
Production Expenses (143,727) (132,024) (138,059)
Warehouse Expense (48,874) (55,256) (54,499)
Marketing Expenses (86,693) (104,371) (113,254)
Income Taxes (16,760) (18,321) (12,660)
Interest Payment- Overdraft (4,047) (3,039) (485)
10-year loan (16,933) (13,955) (10,978)
Net Cash Flow from Operations 48,512 60,595 53,465
INVESTING ACTIVITES
Construction of new capacity 0 0 (64,350)
Stock Repurchase 0 (3,877) 0
Net Cash Flow from Investing
Activities 0 (3,877) (64,350)
FINANCING ACTIVITIES
Loans to cover overdraft 25,113 4,895 52,280
Repayment on Loans
Overdraft (37,125) (25,113) (4,895)
10-year loan (36,500) (36,500) (36,500)
Net Cash Flow from Financing
Activities (48,512) (56,718) 10,885
Net Cash Balance 0 0 0
BOREALIS
Page
8
3- Year Future Projections
Our future outlook is to maintain the low price and highest model offered competitive
advantage over the competitors. With the growing retail support in private, wholesale and
internet sales, this will lead to contentious capacity increase each year for the plants depending
on the number of insufficiency feedback from the previous year. The other factor is the loan
repayment as soon as possible for this will decrease the interest expense and increase the
ending cash, and with excess cash there is potential for expansion and upgrades. There will be
continuous training for the employees to stay updated with the changing technology, latest sales
skills and customer demands. The most important of all is make sure that our investors are
receiving the highest returns with low risk, making sure that each decision yields a substantial
return.
***Other external factors may affect the overall performance of the company, resulting in
different returns from the projections below.
BOREALIS
Page
9
BOREALIS
Page
10
BOREALIS
Page
11
BOREALIS
Page
12