Financial Report

For this part of the assessment, you will prepare a financial report in response to a hypothetical scenario:

A major global disaster (inthis case an oil spill)hascaused environmental damageand has affected globaltransportation as well. As the controller of your chosen company, youare tasked with providing a financial report to theboard of directorsaddressing how this event will affect your company.

A.

Analyze the effects of the global disaster on thefinancial statements of your chosen companyusing the financial information from your

company.

B.

Recommendstrategiesto address the effects of the disaster on your chosen company based on your analysis.

My chosen company is Boston Beer Co. (financial reports attached). I have no idea what a financial report should look like and what areas of the finances I should focus on. Any suggestions/help is greatly appreciated. Thank you!

The Boston Beer Company Annual Balance Sheet Period Ended 12/26/2015 12/27/2014 12/28/2013 Update Update Update 4/22/2016 4/22/2016 4/30/2015 In millions of USD (except for per share items) Cash & Equivalents Cash and Short Term Investments Accounts Receivable - Trade, Gross Provision for Doubtful Accounts Accounts Receivable - Trade, Net Receivables - Other Total Receivables, Net Inventories - Finished Goods Inventories - Work In Progress Inventories - Raw Materials Inventories - Other Total Inventory Prepaid Expenses Deferred Income Tax - Current Asset Other Current Assets Other Current Assets, Total 94.19 94.19 39.23 -0.24 38.98 14.93 53.91 8.26 8.88 42.12 -2.8 56.46 9.84 6.98 2.22 9.2 76.4 76.4 37 -0.14 36.86 21.83 58.69 10.79 7.39 39.54 -6.41 51.31 11.59 8.69 0.79 9.48 49.52 49.52 42.16 -0.16 42 2.02 44.02 17.09 8.45 35.12 -4.26 56.4 8.27 5.71 0.35 6.07 Total Current Assets 223.6 207.46 164.28 113.87 25.14 478.21 617.21 -207.29 409.93 3.68 8.19 8.19 85.02 23.99 444.97 553.98 -172.41 381.57 3.68 12.45 12.45 51.83 23.26 334.6 409.69 -143.13 266.56 3.68 9.56 9.56 Total Assets 645.4 605.16 444.08 Accounts Payable Accrued Expenses Notes Payable / Short Term Debt 42.72 30 0 0.06 35.58 32.99 0 0.06 34.42 38.73 0 0.05 12.31 18.87 13.43 19.67 2.67 19.45 Buildings - Gross Land / Improvements - Gross Machinery / Equipment - Gross Property / Plant / Equipment, Total - Gross Accumulated Depreciation, Total Property / Plant / Equipment, Total - Net Goodwill, Net Other Long Term Assets Other Long Term Assets, Total Current Portion of Long Term Debt / Capital Leases Customer Advances Security Deposits 2.01 1.88 150.36% 141.74% 3.95 3.25 38.38 6.03 2.42 41.55 8.83 0.23 31.17 111.16 110.17 104.38 0.47 0.47 0.53 56 56 16.55 16.55 0.53 0.53 0.58 50.72 50.72 7.61 7.61 0.58 0.58 0.64 32.39 32.39 4.64 4.64 Total Liabilities 184.18 169.02 141.99 Common Stock Common Stock, Total Additional Paid-In Capital Retained Earnings (Accumulated Deficit) Other Comprehensive Income Other Equity, Total 0.13 0.13 290.1 171.95 -0.95 -0.95 0.13 0.13 224.91 212.23 -1.13 -1.13 0.13 0.13 173.03 129.35 -0.42 -0.42 Total Equity 461.22 436.14 302.09 645.4 605.16 444.08 9.39 9.45 8.79 3.37 3.62 3.96 12.76 13.07 12.75 0 0 0 0 1,429.00 10,248.00 12.31 167.14 1.5 2.01 -93.66 457.54 35.87 17.52 0 1,325.00 11,256.00 13.43 156.16 1.42 1.88 -75.82 432.46 33.09 7.26 0 1,120.00 12,362.00 2.67 107.88 1.03 1.57 -48.89 298.4 23.41 9.4 Income Taxes Payable Other Current Liabilities Other Current liabilities, Total Total Current Liabilities Long Term Debt Total Long Term Debt Total Debt Deferred Income Tax - Long Term Liability Deferred Income Tax Other Long Term Liabilities Other Liabilities, Total Total Liabilities & Shareholders' Equity Shares Outstanding - Common Stock Primary Issue Shares Outstanding - Common Issue 2 Total Common Shares Outstanding Treasury Shares - Common Stock Primary Issue Treasury Shares - Common Issue 2 Employees Number of Common Shareholders Deferred Revenue - Current Total Current Assets less Inventory Quick Ratio Current Ratio Net Debt Tangible Book Value Tangible Book Value per Share Total Operating Leases, Supplemental 39.93% 38.75% Operating Lease Payments Due in Year 1 Operating Lease Payments Due in Year 2 Operating Lease Payments Due in Year 3 Operating Lease Payments Due in Year 4 Operating Lease Payments Due in Year 5 Operating Lease Payments Due in 2-3 Years Operating Lease Payments Due in 4-5 Years Operating Lease Payments Due in Year 6 & Beyond Pension Obligation - Domestic Post-Retirement Obligation Plan Assets - Domestic Funded Status - Domestic Funded Status - Post-Retirement Accumulated Obligation - Post-Retirement Total Funded Status Discount Rate - Domestic Equity % - Domestic Debt Securities % - Domestic Total Plan Obligations Total Plan Assets 2.66 2.81 2.81 2.48 2.48 5.62 4.96 4.29 2.26 1.6 1.6 0.51 0.51 3.2 1.01 0.78 2.73 2.04 1.94 0.98 0.57 3.98 1.54 1.15 4.11 0.67 2.47 -1.63 -0.67 0.67 -2.31 4.5 67 33 4.78 2.47 4.09 0.72 2.4 -1.69 -0.72 0.72 -2.41 4 66 34 4.81 2.4 2.89 0.51 2.23 -0.66 -0.51 0.51 -1.17 5 65 35 3.39 2.23 1.57 103.35% 47.00% The Boston Beer Company Annual Income Statement Period Ended In millions of USD (except for per share items) Gross Revenue Excise Tax Receipts Revenue 12/26/2015 Update 4/22/2016 1,024.04 -64.11 959.93 Total Revenue 959.93 Cost of Revenue Cost of Revenue, Total 458.32 458.32 Gross Profit 501.62 Selling / General / Administrative Expense Advertising Expense Selling / General / Administrative Expenses, Total Litigation Impairment-Assets Held for Use Unusual Expense (Income) 71.56 273.63 345.19 -0.26 0.26 Total Operating Expense 803.76 Operating Income 156.17 Interest Income - Non-Operating Interest / Investment Income, Non-Operating Interest Income (Expense), Net Non-Operating Interest Income (Expense), Net-Non-Operating, Total Other Non-Operating Income (Expense) Other, Net Net Income Before Taxes Provision for Income Taxes --0.06 0.06 -1.22 -1.22 155.01 56.6 Net Income After Taxes 98.41 Net Income Before Extraordinary Items 98.41 Net Income 98.41 Miscellaneous Earnings Adjustment Total Adjustments to Net Income -0.46 -0.46 Income Available to Common Excluding Extraordinary Items 97.95 Income Available to Common Stocks Including Extraordinary Items 97.95 Basic Weighted Average Shares Basic EPS Excluding Extraordinary Items Basic EPS Including Extraordinary Items Dilution Adjustment 13.12 7.46 7.46 0.01 Diluted Net Income 97.97 Diluted Weighted Average Shares Diluted EPS Excluding Extraordinary Items Diluted EPS Including Extraordinary Items DPS - Common Stock Primary Issue Dividends per Share - Common Stock Issue 2 Gross Dividends - Common Stock Stock-Based Compensation, Supplemental Depreciation, Supplemental Total Special Items 13.52 7.25 7.25 0 -0 6.67 42.89 0.26 Normalized Income Before Taxes 155.27 Effect of Special Items on Income Taxes Income Taxes Excluding Impact of Special Items 0.09 56.69 Normalized Income After Taxes 98.58 Normalized Income Available to Common 98.12 Basic Normalized EPS Diluted Normalized EPS Rental Expense, Supplemental Advertising Expense, Supplemental Audit Fees Audit-Related Fees Tax Fees All Other Fees Gross Margin Operating Margin Pretax Margin Effective Tax Rate 7.48 7.26 3.4 273.63 ----52.26 16.27 16.15 36.51 Net Profit Margin Normalized EBIT Normalized EBITDA Current Tax - Domestic Current Tax - Local Current Tax - Total Deferred Tax - Domestic Deferred Tax - Local Deferred Tax - Total Other Tax Income Tax - Total Defined Contribution Expense - Domestic Total Pension Expense 10.2 156.43 199.32 42.39 7.4 49.79 6.28 0.52 6.8 -56.6 3 3 12/27/2014 Update 4/22/2016 12/28/2013 Update 4/30/2015 966.48 -63.47 903.01 793.71 -54.65 739.05 928.08 903.01 739.05 156.17 438 438 354.13 354.13 465.01 384.92 65.97 250.7 316.67 -1.78 1.78 62.33 207.93 270.26 0 1.57 1.57 756.44 625.96 146.57 113.09 --0.02 0.02 -0.99 -0.99 --0.03 0.03 -0.58 -0.58 145.59 112.54 54.85 42.15 90.74 70.39 90.74 70.39 90.74 70.39 220.88 65.7 74.93 32.00% 27.73% 10.25% 10.05% 9.52% -0.51 -0.51 -0.51 -0.51 90.23 69.88 90.23 69.88 12.97 6.96 6.96 0.02 12.86 5.43 5.43 0.03 90.25 69.91 13.48 6.69 6.69 0 -0 6.86 35.14 1.78 13.5 5.18 5.18 0 0 0 7.32 25.9 1.57 147.37 114.11 0.67 55.52 0.59 42.74 91.85 71.37 91.34 70.86 7.04 6.78 3.2 250.7 0.75 0.03 0.07 -51.5 16.23 16.12 37.67 5.51 5.25 2.7 207.93 0.54 0.04 0.08 -52.08 15.3 15.23 37.45 9.99 148.34 183.48 30.6 8.26 38.86 15.41 0.59 15.99 -54.85 2.8 2.8 9.46 114.66 140.56 24.09 6.72 30.81 11.12 0.22 11.34 -42.15 2.4 2.4 The Boston Beer Company Annual Cash Flow Statement Period Ended In millions of USD (except for per share items) Net Income / Starting Line Depreciation Depreciation / Depletion Deferred Taxes Unusual Items Other Non-Cash Items Non-Cash Items Accounts Receivable Inventories Prepaid Expenses Accounts Payable Accrued Expenses Other Liabilities Changes in Working Capital Cash from Operating Activities Purchase of Fixed Assets Capital Expenditures Acquisition of Business Sale of Fixed Assets Other Investing Cash Flow Other Investing Cash Flow Items, Total Cash from Investing Activities Other Financing Cash Flow Financing Cash Flow Items Repurchase / Retirement of Common Common Stock, Net Sale / Issuance of Common / Preferred Options Exercised Issuance (Retirement) of Stock, Net Long Term Debt Issued Long Term Debt Reduction Long Term Debt, Net Issuance (Retirement) of Debt, Net Cash from Financing Activities Net Change in Cash Net Cash - Beginning Balance Net Cash - Ending Balance Cash Taxes Paid 12/26/2015 Update 4/22/2016 12/27/2014 Update 4/22/2016 12/28/2013 Update 4/30/2015 98.41 42.89 42.89 6.99 0.77 -8.52 -7.75 -2.29 -5.16 11.86 5.99 9.01 8.73 28.15 90.74 35.14 35.14 15.35 2.21 -10.51 -8.3 5.16 5.09 -9.45 0.88 4.58 2.02 8.28 70.39 25.9 25.9 11.63 2.03 2.06 4.08 -10.54 -12.04 -7.62 3.17 14.63 0.36 -12.03 168.68 141.21 99.98 -74.19 -74.19 -0.1 0 0.06 -0.04 -151.78 -151.78 -0.1 0 0.05 -0.05 -100.66 -100.66 -2.75 0.02 0.06 -2.67 -74.23 -151.83 -103.33 15.35 15.35 -135.71 -135.71 1.41 42.34 -91.96 --0.05 -0.05 -0.05 17.35 17.35 -7.86 -7.86 0.79 27.27 20.2 0 -0.05 -0.05 -0.05 5.28 5.28 -29.59 -29.59 0.96 2.54 -26.09 0 -0.79 -0.79 -0.79 -76.66 37.5 -21.59 17.79 26.88 -24.94 76.4 94.19 45.08 49.52 76.4 42.32 74.46 49.52 29.44 Ratios for Financial Analysis of The Boston Beer Company 2013 through 2015 2015 2014 2013 Debt to Equity Ratio 39.93% 38.75% 47.00% Current Ratio 2.01 1.88 1.57 P/E Ratio 27.45 43.57 46.64 Return on Equity (ROE) 21.34% 20.81% 23.30% Net Profit Margin 10.25% 10.05% 9.52% Formula fo Formula for Formula fo Formul Formula Formula for Debt to Equity Ratio is total liability/shareholers' equity Formula for current ratio is current assets/current liabilities Formula for P/E ratio is price per share/earnings per share Formula for ROE is net income/sharholders' equity Formula for Net Profit Margin is net profitet sales