ANHEUSER-BUSCH COMPANIES, INC.

Income Statement

Year Ended December 31 (in millions, except per share)

2006

2005

Net sales

15,717.10

15,035.70

Cost of sales

(10,165.00)

(9,606.30)

Gross profit

5,552.10

5,429.40

Marketing, distribution and administrative expenses

(2,832.50)

(2,837.50)

Litigation settlement

0.00

(105.00)

Operating income

2,719.60

2,486.90

Interest expense

(451.30)

(454.50)

Interest capitalized

17.60

19.90

Interest income

1.80

2.40

Other income/(expense), net

(10.80)

2.70

Income before income taxes

2,276.90

2,057.40

Provision for income taxes

(900.50)

(811.10)

Equity income, net of tax

588.80

498.10

Net income

$1,965.20

$1,744.40

Basic earnings per share

$2.55

$2.24

Diluted earnings per share

$2.53

$2.23

ANHEUSER-BUSCH COMPANIES, INC.

Balance Sheet

Year Ended December 31 (in millions, except per share)

2006

2005

ASSETS

Current Assets

Cash

$219.20

$225.80

Accounts receivable

720.20

681.40

Inventories

694.90

654.50

Other current assets

195.20

197.00

Total current assets

1,829.50

1,758.70

Investments in affiliated companies

3,680.30

3,448.20

Plant and equipment, net

8,916.10

9,041.60

Intangible assets, including goodwill

1,367.20

1,232.60

Other assets

584.10

1,073.90

Total Assets

$16,377.20

$16,555.00

LIABILITIES AND SHAREHOLDERS EQUITY

Current Liabilities

Accounts payable

$1,426.30

$1,249.50

Accrued salaries, wages and benefits

342.80

250.90

Accrued taxes

133.90

156.70

Accrued interest

124.20

123.70

Other current liabilities

218.90

201.80

Total current liabilities

2,246.10

1,982.60

Retirement benefits

1,191.50

1,412.80

Debt

7,653.50

7,972.10

Deferred income taxes

1,194.50

1,345.90

Other long-term liabilities

152.90

161.80

Total Liabilities

12,438.50

12,875.20

Shareholders Equity

Common stock, $1.00 par value

1,473.70

1,468.60

Capital in excess of par value

2,962.50

2,685.90

Retained earnings

16,741.00

15,698.00

Treasury stock, at cost

(16,007.70)

(15,258.90)

Accumulated nonowner changes in shareholders equity

(1,230.80)

(913.80)

Total Shareholders Equity

3,938.70

3,679.80

Total Liabilities and Shareholders Equity

$16,377.20

$16,555.00

____________________________

Statement of Cash Flows
Year Ended December 31 (in millions)	2006	2005
Cash Flow from Operating Activities
Net Income	$1,965.20	$1,744.40
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation and amortization	988.70	979.00
Stock compensation expense	122.90	134.10
lncrease/(Decrease) in deferred income taxes	(45.80)	(39.10)
Gain on sale of business	0.00	(15.40)
Undistributed earnings of affiliated companies	(341.80)	(288.00)
Other, net	(168.60)	136.60
Operating cash flow before change in working capital	2,520.60	2,651.60
(Increase)/Decrease in working capital	188.80	50.30
Cash provided by operating activities	2,709.40	2,701.90
Cash Flow from Investing Activities
Capital expenditures	(812.50)	(1,136.70)
New business acquisitions	(101.00)	0.00
Proceeds from sale of business	0.00	48.30
Cash used for investing activities	(913.50)	(1,088.40)
Cash Flow from Financing Activities
Increase in debt	334.80	100.00
Decrease in debt	(663.30)	(456.00)
Dividends paid to shareholders	(871.60)	(800.80)
Acquisition of treasury stock	(745.90)	(620.40)
Shares issued under stock plans	143.50	161.40
Cash used for financing activities	(1,802.50)	(1,615.80)
Net increase in cash during the year	(6.60)	(2.30)
Cash, beginning of year	225.80	228.10
Cash, end of year	$219.20	$225.80

Liquidity		2006
	Current Ratio	0.81
	Quick Ratio	?
Solvency
	Debt to Equity	?
	Interest Coverage Ratio	?
Profitability
	Gross Profit Margin	?
	Net Profit Margin (= Return on Sales)	?
	Return on Equity	?
	Return on Assets	?
Efficiency
	Days in Receivables	?
	Days in Inventory	?
	Inventory Turnover	?
	Asset Turnover	?
Growth Rates 2005 to 2006 to 2007
	2005 to 2006 Sales Growth Rate (= top line growth rate)	?
	Assuming same growth rate, what do you project 2007 sales to be?	?
	2005 to 2006 Net Income Growth Rate (= bottom line growth rate)	?
	Assuming same growth rate, what do you project 2007 net income to be?	?