My question isn't really a question at all, but rather I just don't know where to start with all of this information. I think I just need a jumping off point for help. I don't need any of the executive summary as that will get completed at the end of the project.

DELIVERABLES: 1. Your case study should begin with an Executive Summary of your recommendations (1 paragraph) and a Summary of Projects (in Excel format), showing NPV and IRR per project (all on 1 page). 2. Based on the 2018-2019 financial statements (provided at the end of this document), show your calculations of CFFA, CFC and CFS for BRD. Also show your calculation of BRD's Internal Growth Rate and Sustainable Growth Rate. Based on your calculations, assess BRD's ability to grow without additional investments of capital and/or debt. 3. Review and analyze each proposed investment: calculate both NPV and IRR. Create an Excel spreadsheet to run your NPVs (use a different tab for each investment option). Use as many lines as needed to detail your OCF and NPV analysis in Excel. Copy and paste your NPV table (showing OCF, NCS, and NWC) for each investment option in your Word Document using "Insert, Paste Special, Excel Worksheet Object". 4. After you have analyzed each proposed investment, recommend and justify a detailed plan of action for BRD. 5. Propose an optimal capital structure that will address the funding of the expansion. 6. Perform a short sensitivity analysis: come up with a (reasonable) worst case scenario for the Whiskey proposal and the Storefront proposal (create a separate tab in Excel for each). What would happen to NPV and IRR? Would this worst case scenario change your recommendations? 2019 2018 Blue Ridge Distillery Balance Sheet ASSETS CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable Inventory Raw Ingredients Inventory Finished Goods TOTAL CURRENT ASSETS $ 138,344 278,256 196,838 147,073 760,511 56,804 249,508 145,332 95,070 546,714 PROPERTY & EQUIPMENT Machinery and equipment Office equipment Furniture and Fixtures Vehicles Buildings Land TOTAL PROP. & EQUIPMENT Less Accumulated Depreciation NET FIXED ASSETS 284,181 26,501 4,400 45,488 275,970 321,900 958,440 191,936 766,504 284,181 26,501 4,400 45,488 275,970 321,900 958,440 131,828 826,612 INTANGIBLES Trademark and recipe Less amortization Net Intangibles 70,000 17,889 52,111 70,000 13,222 56,778 TOTAL ASSETS $ 1,579,126 $ 1,430,104 $ $ LIABILITIES & OWNERS' EQUITY CURRENT LIABILITIES Accounts Payable Accrued Expenses Bank Line of Credit Payable Current Portion of LTD TOTAL CURRENT LIABILITIES 27,654 3,263 48,501 20,960 100,378 15,739 1,409 59,784 20,134 97,066 269,309 290,269 Long-term Debt TOTAL LIABILITIES Owners' Equity Initial Capital Retained Earnings TOTAL EQUITY 1,500,000 (290,561) 1,209,439 1,500,000 (457,231) 1,042,769 TTL LIABILITIES & EQUITY $ 1,579,126 $ 1,430,104 $ $ Revenue Cost of Goods Sold GROSS PROFIT 2019 2,242,647 (964,339) 1,278,308 2018 1,690,594 (758,245) 932,349 Selling/Marketing Expenses General/Admin expenses Depreciation and Amortization (324,675) (547,869) (64,775) (254,861) (425,688) (59,375) OPERATING INCOME 340,989 192,425 Interest Expense (28,322) (30,234) INCOME BEFORE TAXES Taxes NET INCOME 312,667 (37,520.04) 275,147 162,191 (18,651.97) 143,539 $ $ Dividends paid to owners $ 108,477 $ 19,335 Grain storage and handling: BRD's current production of clear spirits is limited by the amount of grain it can distill at any one time. All corn, rye and wheat is delivered by BRSF when it is harvested. Since BRD does not have grain storage capacity, it is working overtime at harvest time, and is idle at other times of the year. Having grain silos and a handling system on the property would allow BRD to pace its distilling process all year long. BRSF has the ability to grow a lot more grain and is willing to grow larger quantities. BRD has determined that if it added two grain silos and 2 grain handling conveyor belts, it could increase its current production of clear spirits and shrub by 15% throughout the year. It is expecting to maintain the same 2019 gross profit margin. The silos will be stored outside, right behind the distillery. Their expected life for depreciation purposes is 5 years (the silos are used), with no resale value at the end of 5 years. The conveyor belt systems will also be depreciated over a period of 5 years to zero, but they are newer and are expected to have a market value of 20% of their original price at the end of 5 years. BRD will use straight-line depreciation. All year-long production would require the addition of 2 full-time employees, but would eliminate the overtime that has to be paid during the current peak production season. Additional production would require an investment in net working capital of $50,000. Grain silos and grain handling system Qty Unit Price Total 42' Diameter 8 Rings 37,338 bushels / outside stairs / 20HP Centrifugal Fan Full aeration floor Auger Conveyor belts Delivery and installation 2 2 $ $ 88,925 18,750 $ $ $ 177,850 37,500 5,000 Savings - overtime hours during peak Extra labor - 2 full time employees -1200 2080 $ $ 25 17 $ $ (30,000) 70,720 DELIVERABLES: 1. Your case study should begin with an Executive Summary of your recommendations (1 paragraph) and a Summary of Projects (in Excel format), showing NPV and IRR per project (all on 1 page). 2. Based on the 2018-2019 financial statements (provided at the end of this document), show your calculations of CFFA, CFC and CFS for BRD. Also show your calculation of BRD's Internal Growth Rate and Sustainable Growth Rate. Based on your calculations, assess BRD's ability to grow without additional investments of capital and/or debt. 3. Review and analyze each proposed investment: calculate both NPV and IRR. Create an Excel spreadsheet to run your NPVs (use a different tab for each investment option). Use as many lines as needed to detail your OCF and NPV analysis in Excel. Copy and paste your NPV table (showing OCF, NCS, and NWC) for each investment option in your Word Document using "Insert, Paste Special, Excel Worksheet Object". 4. After you have analyzed each proposed investment, recommend and justify a detailed plan of action for BRD. 5. Propose an optimal capital structure that will address the funding of the expansion. 6. Perform a short sensitivity analysis: come up with a (reasonable) worst case scenario for the Whiskey proposal and the Storefront proposal (create a separate tab in Excel for each). What would happen to NPV and IRR? Would this worst case scenario change your recommendations? 2019 2018 Blue Ridge Distillery Balance Sheet ASSETS CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable Inventory Raw Ingredients Inventory Finished Goods TOTAL CURRENT ASSETS $ 138,344 278,256 196,838 147,073 760,511 56,804 249,508 145,332 95,070 546,714 PROPERTY & EQUIPMENT Machinery and equipment Office equipment Furniture and Fixtures Vehicles Buildings Land TOTAL PROP. & EQUIPMENT Less Accumulated Depreciation NET FIXED ASSETS 284,181 26,501 4,400 45,488 275,970 321,900 958,440 191,936 766,504 284,181 26,501 4,400 45,488 275,970 321,900 958,440 131,828 826,612 INTANGIBLES Trademark and recipe Less amortization Net Intangibles 70,000 17,889 52,111 70,000 13,222 56,778 TOTAL ASSETS $ 1,579,126 $ 1,430,104 $ $ LIABILITIES & OWNERS' EQUITY CURRENT LIABILITIES Accounts Payable Accrued Expenses Bank Line of Credit Payable Current Portion of LTD TOTAL CURRENT LIABILITIES 27,654 3,263 48,501 20,960 100,378 15,739 1,409 59,784 20,134 97,066 269,309 290,269 Long-term Debt TOTAL LIABILITIES Owners' Equity Initial Capital Retained Earnings TOTAL EQUITY 1,500,000 (290,561) 1,209,439 1,500,000 (457,231) 1,042,769 TTL LIABILITIES & EQUITY $ 1,579,126 $ 1,430,104 $ $ Revenue Cost of Goods Sold GROSS PROFIT 2019 2,242,647 (964,339) 1,278,308 2018 1,690,594 (758,245) 932,349 Selling/Marketing Expenses General/Admin expenses Depreciation and Amortization (324,675) (547,869) (64,775) (254,861) (425,688) (59,375) OPERATING INCOME 340,989 192,425 Interest Expense (28,322) (30,234) INCOME BEFORE TAXES Taxes NET INCOME 312,667 (37,520.04) 275,147 162,191 (18,651.97) 143,539 $ $ Dividends paid to owners $ 108,477 $ 19,335 Grain storage and handling: BRD's current production of clear spirits is limited by the amount of grain it can distill at any one time. All corn, rye and wheat is delivered by BRSF when it is harvested. Since BRD does not have grain storage capacity, it is working overtime at harvest time, and is idle at other times of the year. Having grain silos and a handling system on the property would allow BRD to pace its distilling process all year long. BRSF has the ability to grow a lot more grain and is willing to grow larger quantities. BRD has determined that if it added two grain silos and 2 grain handling conveyor belts, it could increase its current production of clear spirits and shrub by 15% throughout the year. It is expecting to maintain the same 2019 gross profit margin. The silos will be stored outside, right behind the distillery. Their expected life for depreciation purposes is 5 years (the silos are used), with no resale value at the end of 5 years. The conveyor belt systems will also be depreciated over a period of 5 years to zero, but they are newer and are expected to have a market value of 20% of their original price at the end of 5 years. BRD will use straight-line depreciation. All year-long production would require the addition of 2 full-time employees, but would eliminate the overtime that has to be paid during the current peak production season. Additional production would require an investment in net working capital of $50,000. Grain silos and grain handling system Qty Unit Price Total 42' Diameter 8 Rings 37,338 bushels / outside stairs / 20HP Centrifugal Fan Full aeration floor Auger Conveyor belts Delivery and installation 2 2 $ $ 88,925 18,750 $ $ $ 177,850 37,500 5,000 Savings - overtime hours during peak Extra labor - 2 full time employees -1200 2080 $ $ 25 17 $ $ (30,000) 70,720