Hi, I was informed by Shakeel from order 83354 that my assignment has been missing depreciation, without it, all my numbers change and I need it for my DCF valuation. I followed the 10k of this...

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Answered 7 days AfterMay 13, 2021

Answer To: Hi, I was informed by Shakeel from order 83354 that my assignment has been missing depreciation,...

Shakeel answered on May 18 2021
151 Votes
Financial Analysis.
        The Boston Beer Company Inc.
Income Statement for the Years
2018 through 2020
        (FYE February 3)
                    Historical                Forecast
                2017    2018    2019    2020    2021    2022    2023    2024    2025
        Income Statement
        Revenue Annual Growth Rate        -4.75%    15.41%    25.50%    39.20%    18.84%    18.84%    18.84%    18.84%    18.84%
        Annual Absolute Value Increase        -43,000    133,000    254,000    490,000    327,847    389,6
20    463,031    550,275    653,956
        COGS % of Revenue        43.82%    41.95%    43.27%    45.52%    45.52%    45.52%    45.52%    45.52%    45.52%
        Depreciation: % of revenue        5.91%    5.22%    4.48%    4.20%    4.20%    4.20%    4.20%    4.20%    4.20%
        Gross Margin        52.14%    51.41%    49.92%    48.10%    48.10%    48.10%    48.10%    48.10%    48.10%
        SG&A % of Revenue        38.47%    39.76%    36.88%    32.24%    32.24%    32.24%    32.24%    32.24%    32.24%
        SG&A Annual Growth Rate        3.11%    19.28%    16.41%    21.69%    18.84%    18.84%    18.84%    18.84%    18.84%
        Annual Absolute Value Increase        10,000    64,000    65,000    100,000    105,703    125,619    149,288    177,416    210,845
        EBITDA Margin        19.58%    16.97%    16.96%    19.43%    19.43%    19.43%    19.43%    19.43%    19.43%
        Income tax        14.66%    20.69%    23.61%    21.31%    21.31%    21.31%    21.31%    21.31%    21.31%
        Balance Sheeet
        Inventory: Days in Inventory (DII)        51.42    59.28    68.00    57.68    57.68    57.68    57.68    57.68    57.68
        Account Receivable: Average Collection (DSO)        14.38    12.46    15.77    16.36    16.36    16.36    16.36    16.36    16.36
        Gross Fixed Assets: % of revenue        79.26%    73.69%    78.72%    64.43%    64.43%    64.43%    64.43%    64.43%    64.43%
        Other Current Assets: % of Revenue        1.04%    1.10%    0.88%    1.72%    1.72%    1.72%    1.72%    1.72%    1.72%
        Accumulated depreciation as % of Revenue        34.76%    34.54%    31.12%    25.23%    25.23%    25.23%    25.23%    25.23%    25.23%
        Account Payable: Days Payable Outstanding (DPO)        38.31    39.80    48.75    53.72    53.72    53.72    53.72    53.72    53.72
        Accrued Salaries & Benefits % of Revenue        1.85%    2.71%    2.80%    2.93%    2.93%    2.93%    2.93%    2.93%    2.93%
        Miscellaneous Current liabilities % of Revenue        5.21%    4.42%    5.12%    4.43%    4.43%    4.43%    4.43%    4.43%    4.43%
        Deferred tax % of Revenue        4.06%    4.92%    6.00%    5.34%    5.34%    5.34%    5.34%    5.34%    5.34%
        Other liabilities % of Revenue        1.16%    1.00%    0.56%    0.46%    0.46%    0.46%    0.46%    0.46%    0.46%
        Paid in Capital % of Revenue        43.22%    40.76%    45.76%    34.48%    34.48%    34.48%    34.48%    34.48%    34.48%
        Retained earnings % of Revenue        6.03%    5.62%    13.20%    20.52%    20.5%    20.5%    20.5%    20.5%    20.5%
        Net Working Capital
        Current Assets (less cash)        102,000    124,000    182,000    250,000    520,161    616,473    730,931    866,956    1,028,611
        Less: Current Liabilities        102,000    121,000    181,000    259,000    299,642    354,404    419,484    496,827    588,742
        Net Woring Capital        0    3,000    1,000    -9,000    220,519    262,069    311,447    370,129    439,868
        % of revenue        0.00%    0.30%    0.08%    -0.52%    -0.52%    -0.52%    -0.52%    -0.52%    -0.52%
In the current forecast we are forecasting the revenue, financial statements, and cash flow statement for the next 5 years from 2021 based on the data available from 2018 to 2020 for forecasting from 2021 to 2025.
In assuming the income statement, we assume the revenue growth of 39% from 2021 to 2025 which is the stable growth rate as the case was in 2020. The increase in absolute value in 2021 to 2025 shall be 728,318 in 2021, 1,014,766 in 2022, 1,413,873 in 2023, 1,969,949 in 2024 and 2,744,730 in 2025. The increase in gross margin is 44% which is same gross margin from 2021 to 2025. The selling, general and administrative exp would increase on an average by 31%, which was same as 2020 and the assumption in forecast remains the same. The EBITDA margin has remained stable at 13% which had increased from 11% in 2019 to 13% in 2020 and henceforth.
The average inventory days are 46 days which was the same as the forecast for 2021 till 2025. The average collection days were 15 days which was based on the realistic data of 2020. % of revenue of gross fixed assets shall be 34% which shall remain stable which is same as 2020. The ratio of other current assets with % of revenue shall be 1.6%. which shall remain same as 2020. The accounts payable days of...
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