capstone exam

statement of cash flows, balance sheet, Income statement

3 financial statements

current debt, stock issues, profits, long term debt

4 different ways to acquire capital

marketing, finance, product, research and development

4 functional areas

acquire capital, dividend policy, AP/AR policy, debt to equity structure, performance measures

5 decisions that come with financing

performance, low end, high end, size, traditional

5 different markets

R and D cycle time factors

- automation level of production line - number of projects underway - distance moved

New product development

- takes at least one year - max is 2x listed capacity - additional capacity takes at least one year -create 25% awareness at no cost require capacity and automation

traditional

age - price - position - quality

customer survey score

calculated 12x/year -age and positioning taken into account -100 - ideal spot, bottom priced, ideal age, MTBF top

overall cost leader, differentiation

competition strategies

high end

position - age - quality - price

size

position - age - quality - price

low end

price - age - position - quality

performance

quality - position - price - age

poor investing and financing decisions, negative cash flows result in emergency loan

reasons for having bad cash flows

match product to market, rank best product

two step purchase decision

raising automation risks

1) expensive - $4 per unit 2) as you raise, increasingly difficult for R and D to reposition products short distances

awareness

1/3 forget from year to year -built over time by products promotion budget -fund advertising and public relations campaign

over forecasting, failed to raise funds needed for expenditures

Emergency loan factors

marketing

Prices are established by the: Finance Department Marketing Department Production Department R&D Department

Research and development

Products are invented and revised by which department? Marketing Production Research and Development Finance

true

The Proformas are dynamic financial statements that recalculate based on your decisions. True False

a b and c

What are your company's options for raising money? Borrowing Long-term debt Borrowing Short-term debt Issuing Stock A and C only A, B and C

capstone courier

What is the industry newsletter called? Capstone Courier Capstone Quarterly Capstone Messenger

wage increases

Which of these investments is not a function of the Production department? Increasing Automation Wage Increases Creating new production lines

accessibility

built over time by products sales budget -fund salespeople and distribution systems to service customers