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    Boston Beer Excel

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    Narinder
    Net sales increased from $130,000 in 1996 to $260,000 in 1997, representing a 100% growth rate. Cost of sales and expenses also doubled from 1996 to 1997. Despite higher sales, net income only increased from $3,800 to $7,142 over the same period due to higher costs. The free cash flow was negative in both years (-$14,864 in 1996 and -$29,727 in 1997) due to increases in working capital requirements outpacing earnings growth.

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    Boston Beer Excel

    Uploaded by

    Narinder
    103 views6 pages
    Net sales increased from $130,000 in 1996 to $260,000 in 1997, representing a 100% growth rate. Cost of sales and expenses also doubled from 1996 to 1997. Despite higher sales, net income only increased from $3,800 to $7,142 over the same period due to higher costs. The free cash flow was negative in both years (-$14,864 in 1996 and -$29,727 in 1997) due to increases in working capital requirements outpacing earnings growth.

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    Boston beer excel

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    Net sales increased from $130,000 in 1996 to $260,000 in 1997, representing a 100% growth rate. Cost of sales and expenses also doubled from 1996 to 1997. Despite higher sales, net income only increased from $3,800 to $7,142 over the same period due to higher costs. The free cash flow was negative in both years (-$14,864 in 1996 and -$29,727 in 1997) due to increases in working capital requirements outpacing earnings growth.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    103 views6 pages

    Boston Beer Excel

    Uploaded by

    Narinder
    Net sales increased from $130,000 in 1996 to $260,000 in 1997, representing a 100% growth rate. Cost of sales and expenses also doubled from 1996 to 1997. Despite higher sales, net income only increased from $3,800 to $7,142 over the same period due to higher costs. The free cash flow was negative in both years (-$14,864 in 1996 and -$29,727 in 1997) due to increases in working capital requirements outpacing earnings growth.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Net Sales

    1996 1997

    Sales $130,000 $260,000


    Cost of Sales 61,620 123,240
    Gross Profit 68,380 136,760
    less Expenses
    Selling and Administrative Exp 61100 122200
    Dep exp 1625 3250
    TOTAL EXP 62725 125450
    Operating Income 5655 11310
    Interest Income 221 230
    Interest exp -243 -239

    Tax 2319 4637


    Net Income 3800 7142

    FCFF
    Operating Income
    NOPAT (EBIT*(1-T)) 3336 6673
    Add: Dep 1625 3250
    Less: Change is working capital 13000 26000
    PP&E 5200 10400
    Less: CAPEX 6825 13650
    FCFF -14864 -29727
    1 2
    FCFF 6825 13650
    WACC / Discount Rate 8.00% 8.00%
    Terminal Value 110906 221812
    CASh Flows 102691 190168
    cashflows -pv Total Cash Flows
    Enterprice Value 1,166.02
    Debt 0
    Cash 200000

    total enterpirce value(2006) ev-debt+cash


    201,166.02
    Total Shares 100,000
    Price Per Share 2.0116602

    we 42 58
    wd 0.72 77.5
    we 0.775
    1996 1997 1998 1999 2000

    $100,000 $200,000 $250,000 $300,000 $350,000

    PROJECTION
    1998 1999 2000 2001 2002 2003

    $325,000 $390,000 $455,000 $500,000 $540,000 $575,000


    154,050 184,860 215,670 225,000 243,000 258,750
    170,950 205,140 239,330 275,000 297,000 316,250

    152750 183300 213850 235000 253800 270250


    4063 4875 5688 6250 6750 7188
    156813 188175 219538 241250 260550 277438
    14138 16965 19793 33750 36450 38813
    429 269 203 188 184 233
    -233 -177 -173 -188 -184 -233

    5796 6956 8115 13838 14945 15913


    9003 10455 12054 20289 21874 23365

    8341 10009 11678 19913 21506 22899


    4063 4875 5688 6250 6750 7188
    32500 39000 45500 50000 54000 57500
    13000 15600 18200 20000 21600 23000
    17063 20475 23888 26250 28350 30188
    -37158 -44591 -52022 -50088 -54095 -57600
    3 4 5 6 7 8
    17063 20475 23887.5 26250 28350 30187.5
    8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
    277265 332718 388172 410156 425250 433945
    220102 244558 264183 258468 248129 234447

    22.5
    8.025 WACC / Discount rate
    Sales Growth 30%
    Sales Growth 2001 to 2006
    25%
    20%
    15%
    10%
    7.50%
    5%
    Dep Exp 1.25%
    selling Exp 47%

    2004 2005 2006

    $605,000 $645,000 $735,000


    272,250 290,250 330,750
    332,750 354,750 404,250

    284350 303150 345450


    7563 8063 9188
    291913 311213 354638
    40838 43538 49613
    456 435 221
    -456 -435 -221

    16743 17850 20341


    25006 26557 29713

    24094 25687 29271


    7563 8063 9188
    60500 64500 73500
    24200 25800 29400
    31763 33863 38588
    -60605 -64612 -73628
    9 10 11
    31762.5 33862.5 38587.5
    8.00% 8.00% 8.00%
    436734 455027 506461
    218476 210766 217212
    2409200

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