Use the Financial Statement Data for Sam's Craft Brewery to answer the 5 questions below. If no data appears in the financial statements below, it means you have not entered your student number in the appropriate cell on the Cover Sheet tab.

1. Provide a ratio analysis for SCB using only the current ratio, days in inventory and debt to equity ratios for 2019 and 2018. Include in your analysis comments on how the ratio is trending and how it compares to the industry ratios provided below. (3 marks)Show your work and make sure you identify your final answers for each of the 5 questions.

	2019	2018	Industry	Comments
Current ratio			1.25:1
Days in Inventory			55 days
Debt to Equity Ratio			1:1

2. Calculate Return on Equity (ROE) using the DuPont identity for SCB for both 2019 and 2018. What does the DuPont Identity tell us about SCB with respect to its financial performance in 2019 compared to 2018? (3 marks)

3.Using 2019 financial data, calculate the sustainable 2020 growth rate for SCB assuming SCB was operating at full capacity in 2019 and it will maintain the same dividend payout policy it had in 2019 (4 marks).

4. Create the proforma income statement and balance sheet for 2020 (use the yellow highlighted cells above), assuming that assets, costs and current liabilities vary with sales which are expected to increase by 15%. What level of external financing would be required to grow at this rate, assuming SCB was operating at full capacity in 2019 and that it maintains a consistent dividend payout policy? (5 marks) Is the projected sales growth rate feasible (indicate why or why not)? (2 marks)

5. What are the sources and uses of cash in 2019? Reconcile these to the net change in cash from 2018 to 2019. (5 marks)

Sources and Uses of Cash
Sources of Cash:	$
Total Sources	-
Uses of Cash:
Total Uses	-
Net Addition to Cash	-

Admin Question 1 - Financial Analysis Please do not use column A as I would like to use that column for marking purposes Use the Financial Statement Data for Sam's Craft Brewery to answer the 5 questions below. If no data appears in the financial statements below, it means you have not entered your student number in the appropriate cell on the Cover Sheet tab. Sam's Craft Brewery Statement of Financial Position ($ in millions) 2019 2018 Proforma 2019 2018 Cash $ 601.00 $ 520.00 Accounts payable $ 972.00 $ 853.00 AR $ 487.00 $ 467.00 Note Payable $ 272.00 $ 333.00 Inventory $ 1,067.00 $ 1,196.00 Total Current Liabilities $ 1,244.00 $ 1,186.00 Total Current Assets $ 2,155.00 $ 2,183.00 Long term Debt $ 60.00 $ 350.00 Net Fixed Assets $ 930.00 $ 890.00 Common Stock $ 820.00 $ 800.00 Retained Earnings $ 961.00 $ 737.00 Total Assets $ 3,085.00 $ 3,073.00 Total Liabilities & Equity $ 3,085.00 $ 3,073.00 Proforma Net Sales Less: COGS Less: Depreciation EBIT Less: Interest Paid Earnings before taxes Less: Taxes Net Income Sam's Craft Brewery Income Statement ($ in millions) 2019 $ 4,389.00 $ $ 3,072.00 $ $ $ 104.00 $ $ $ 1,213.00 $ $ 25.00 $ $ 1,188.00 $ $ 404.00 $ $ 784.00 $ 2018 Proforma 3,840.00 2,688.00 100.00 1,052.00 40.00 1,012.00 344.00 668.00 $ 901.60 Dividends $ 560.00 $ 644.00 Show your work and make sure you identify your final answers for each of the 5 questions. Admin Question 1 - Financial Analysis Please do not use column A as I would like to use that column for marking purposes Use the Financial Statement Data for Sam's Craft Brewery to answer the 5 questions below. If no data appears in the financial statements below, it means you have not entered your student number in the appropriate cell on the Cover Sheet tab. Sam's Craft Brewery Statement of Financial Position ($ in millions) 2019 2018 Proforma 2019 2018 Cash $ 601.00 $ 520.00 Accounts payable $ 972.00 $ 853.00 AR $ 487.00 $ 467.00 Note Payable $ 272.00 $ 333.00 Inventory $ 1,067.00 $ 1,196.00 Total Current Liabilities $ 1,244.00 $ 1,186.00 Total Current Assets $ 2,155.00 $ 2,183.00 Long term Debt $ 60.00 $ 350.00 Net Fixed Assets $ 930.00 $ 890.00 Common Stock $ 820.00 $ 800.00 Retained Earnings $ 961.00 $ 737.00 Total Assets $ 3,085.00 $ 3,073.00 Total Liabilities & Equity $ 3,085.00 $ 3,073.00 Proforma Net Sales Less: COGS Less: Depreciation EBIT Less: Interest Paid Earnings before taxes Less: Taxes Net Income Sam's Craft Brewery Income Statement ($ in millions) 2019 $ 4,389.00 $ $ 3,072.00 $ $ $ 104.00 $ $ $ 1,213.00 $ $ 25.00 $ $ 1,188.00 $ $ 404.00 $ $ 784.00 $ 2018 Proforma 3,840.00 2,688.00 100.00 1,052.00 40.00 1,012.00 344.00 668.00 $ 901.60 Dividends $ 560.00 $ 644.00 Show your work and make sure you identify your final answers for each of the 5 questions