to jan v ppt part 2 amp 3 to jan v 494755

Boston Beer Company – by Michael J. Motes, CPA Boston Beer Co. Table 1 Horizontal Trend Analysis 2011 2010 2009 2008 2007 Net Sales 150 136 121 117 100 Cost of Goods Sold 150 136 132 141 100 Total Operating Expenses 119 115 105 111 100 Income form Operations 281 220 147 38 100 Other Revenue(Expenses) (3) (1) 2 37 100 Income Taxes 195 162 121 40 100 Net Income 294 223 138 36 100 Current Assets 93 82 83 51 100 Plant, Property & Equipment (net) 311 309 318 320 100 Other Assets 14 18 12 13 100 Intangible Assets 100 100 100 100 100 Total Assets 139 132 134 112 100 Current Liabilities 115 124 127 116 100 Long Term Liabilities 492 493 380 301 100 Stockholders’ Equity 138 124 130 105 100 Total Liabilities & Equity 139 132 134 112 100 (Note 1) (Note 1) (Note 2) (Note 3) (Note 3) Note 1: 2011 Annual Report, 23, 36, 37, 39 & 47 Note 2: 2009 Annual Report, 39, 40& 51 Note 3: 2008 Annual Report, 37, 38& 49 Boston Beer Co. Table 2 Vertical Trend Analysis 2011 2010 2009 2008 2007 Net Sales 100 100 100 100 100 Cost of Goods Sold 45 45 48 54 45 Total Operating Expenses 35 38 38 43 45 Income form Operations 20 18 13 4 11 Other Revenue(Expenses) (0) (0) 0 0 1 Income Taxes 7 7 6 2 6 Net Income 13 11 7 2 7 Current Assets 46 43 43 31 69 Plant, Property & Equipment (net) 53 55 56 67 24 Other Assets 1 1 1 1 6 Intangible Assets 1 1 1 1 1 Total Assets 100 100 100 100 100 Current Liabilities 25 28 28 31 30 Long Term Liabilities 8 8 6 6 2 Stockholders’ Equity 68 64 66 64 68 Total Liabilities & Equity 100 100 100 100 100 (Note 1) (Note 1) (Note 2) (Note 3) (Note 3) Note 1: 2011 Annual Report, 23, 36, 37, 39 & 47 Note 2: 2009 Annual Report, 39, 40& 51 Note 3: 2008 Annual Report, 37, 38& 49 Significant Event: From 2007 to 2008 Net Income significantly decreased by 5%percentage points (Table 2). The following observations are provided: Observations: · Sales increased an average of 12.5%per year from 2007 base dollars (Table 1) · Sales from 2007 to 2008 increased 17%based on 2007 dollars (Table…