1. Wheels Donald Tabor 201005706 Drew Garvie 201102361 Darcy McHugh 201102183 Adam Olsen 201102985

2. Performance Overview (2018) Sales:$13,298,680 COGS:$7,076,874 Units Sold (Total): 24,024 units 1)Mountain: 21,056 units at $709 2)Road: 2,968 units at $1650 Expenses: $3,177,017 Profit:$2,311,740 Shareholder Value: $23.56 Earnings Per Share: $2.31

3. Pricing and Quality Strategy Pricing: 1)Mountain Price Point: Mid-Low, $709 2)Road Price Point: Mid, $1600 Quality: Low quality rating compared to other firms

4. Financial Analysis Sales have underperformed industry - Sales increased from 2014-2018 - COGS remained consistent over time (Avg. 56.3% of sales) Expenses have increased over time, sales revenue increased as well Profit after tax of just over 2.3 million (2018) - approximately 1.5 million below the industry average

5. Financial Analysis Sales increased 83.6% between 2015-2017 29% decline moving into 2018 36% decrease in COGS from 2017-2018

6. Financial Analysis 2017 2017 was our best year in terms of firm performance $18.8 million in sales $10.9 million COGS Gross margin of $7.8 million Net Income of $3.5 million

7. 2014-2018 I/S Vertical Analysis Slight decrease in COGS over time Gross margin increased over time Net income increased over time

8. I/S Vertical Analysis The cost of goods sold in 2018 in relation to sales (53%) has decreased from that of 2017 (57%). 2018 COGS is slightly higher than the industry average of 52%. Gross Margin has increased over the last five years to 47% of sales, just above the industry average of 45%. Net Income went down from 19% of sales in 2017 to 17% which is on par with the industry average.

9. I/S Horizontal Analysis Growth in revenue from 2014-2017 Decrease in sales revenue in 2018

10. I/S Horizontal Analysis 2014-2017 Wheels experienced growth in sales revenue, COGS and net income In 2018 management decisions lead to a decline in sales revenue and net income Reason for decline: -Excess inventory -Did not reach forecasted sales for our road bicycle

11. Wheels: Ratio Analysis (2018) Current Ratio: 15.41 - Inventory at year end was high -$12.4 million in cash during this period ensures day-to-day operating costs are covered Debt-to-Owner’s Equity: 0.028 - Low debt-to-equity ratio, low risk firm to invest in Return on Sales 0.17 - Return on sales is undesirable

12. High Low Youth Mountain Road NAMKS - $1,700 RideIt. - $1,600 Mac Wheels - $1,550 *Wheels - $1600 2WD - $820 2WD - $425 Mac Wheels - $380 Pedalz - $385 Pedalz - $720 RideIt. - $720 *Wheels - $709 NAMKS - $700 Mac Wheels - $695 Cycle Solutions - $675