Summerfuel FinanceClass 10: 7-25-2016

Today Mr Mac does a quick Business

Plan Business Presentation To give you a sense of how to

go about it.

Stock Reports 3 Prepared in Class

Business Plan Outline1.Executive Summary2.Part I: The Organizational Plan3.Part II: The Marketing Plan4.Part III: Financial DocumentsWork on In Class : Today, TomorrowPresent WednesdayYou will get out of this what you put into it !

KMAC Brewing LLC SummaryAfter honing his skills as master brewer for

Samuel Adams, Kevin McWilliams is taking his talents to create his own craft brewing company.

The emphasis of KMAC brewing will be to make craft beer of exceptional quality to sere the higher end of the gourmet craft beer market,

Market data indicates a clear trend from standard beer to which has seen flat sales to increasing growth in the craft beer market showing a consumer preference for quality beer.

KMAC Brewing is seeking capital financing of: In a 10 year bank loan at the rate of 4%Private Equity invest of no more than 4 investors

for

The Organizational Plan

The inaugural signature beer” KMAC’s Heavenly Hoppyness IPA” ; an IPA made with world best hops: Amarillo Hops. These hops will be privately grown only by Virgil Gamache Farms in Toppenish, Washington.

A sample batch was created was very successful in obtaining agreements with over 50 New England Restaurants and the and a contract to distribute with Guild Craft Beer Distributers

The initial production will be created and packaged by leasing the facilities of Dorchester Brewing Company

The Organizational Plan

Initial staffing will be 5 employees: brewing assistants, delivery people and one sales person.

A small warehouse office will be leased in South Boston , close proximity to Dorchester Brewing aand with easy access to the regions highways

The Marketing PlanAlthough the there are numerous and growing creators of craft beer , the growing demand in the market for craft indicates that there continues to be space on the supply side of the market.

KMAC brewing will target the beer enthusiast , selling high end, high price beer made with exceptional quality.

Product – The inaugural signature beer” KMAC’s Heavenly Hoppyness IPA” ; an IPA made with world best hops: Amarillo Hops. KMAC Brewing will use only the finest quality

ingredients including:Amarillo Hops. These hops will be privately grown only

by Virgil Gamache Farms in Toppenish, Washington.The purest water that has been run a special triple

filters process to eliminate any undesirable mineral or chemical taste to the water

The Marketing PlanPlace – KMAC Brewing will distribute in the New England Region of the United Sates Guild Craft will market and distribute the regions retail

beer stores KMAC Brewing will supply the regions restaurants directly

Promotion-

Advertising will be comprised of 3 mediums

1. A presence at all craft beer festivals in the region

2. A full page advertisement in Beer Aficionado magazine for two months

3. A Billboard for 3 months on the Mass Turnpike just outside of Boston

In addition promotions will be run at the bars and restaurants where KMAC’s Heavenly Hoppyness IPA will be sold.

The Marketing PlanPricing

Heavenly Hoppyness IPA will be priced at at the higher end of the craft beer market reflecting its quality ingredients and top craftsmanship.4 packs will retail for $13 and wholesale

for $10.The all in cost to create six packs

approximate $5 per 4 packKegs for restaurant draft distribution will

be priced at $100 to restaurants and to bars .The cost of each keg will be approximate

$25

KMAC Brewing Beginning Balance Sheet

Assets $ in (000) Liabilities$ in (000)  

Cash 10Bank Loan 45 

Supplies- Hops, Barley Etc. 10     Beer Inventory 30     

Delivery Trucks 40     Warehouse & Delivery Equipment- 10 Total Liabilities   45    Equity    

   Equity Kevin McWilliams 25 

    Equity Others 30 

Total Assets $100Total Assets & Liabilities $100 

Income Statement

Income statement $ in (000)Keg Sales ( project 500 sold) 504 pack sold (project 5,000 sold) 50Cost of Goods sold- Kegs -12.5Cost of Goods sold - Bottles -25Gross Profit Margin 62.5Operational Expenses -25Earning before Interest & Tax 37.5Interest Expense -1.8Earnings Before Tax 35.7Tax (15%) -5.36Net Income $30.35Dividend paid to private equity (7% of 30) -2.1Loan Repay year 1 -4.5Retained Earnings 23.75

Ending Balance Sheet

Assets $ in (000) Liabilities $ in (000) Cash 29Bank Loan 40.5 Supplies- Hops, Barley Etc. 10 Beer Inventory 30 Delivery Trucks 40 Warehouse & Delivery Equipment- 10 Total Liabilities 45 Equity

Retained Earnings 23.75

Equity Kevin McWilliams 25

Equity Others 30

Total Assets $119Total Assets & Liabilities $119

Stock ReportsA Little Competition

An additional KMAC Buck each day to the stock analyst who presents the stock that has had the greatest percentage increase over its 52 week low

But you need to explain why

The S & P 500 Index 2175 points at Friday’s Close

Up Just 0.46 % for the 52 weeks

Micron Technology

Micron Technology, Inc. is engaged in semiconductor systems. The Company's portfolio of memory technologies, including dynamic random-access memory (DRAM), negative-AND (NAND) Flash and NOR Flash are the basis for solid-state drives, modules, multi-chip packages and other system solutionshttps://www.google.com/finance?q=NASDAQ%3AMU&ei=fuGUV_GtKpLGe8O_u6AF

Current – $13.1352 Week Low – $9.3113.13 – $9.31 = $3.82$3.82/ $9.31 = 41%

Why Micron Is Doing WellMicron' competitors have downsized

their Dram exposure so Micron is set to win market share here.

Nand is the future which is why the company is restructuring to concentrate resources & Micron has a leading cost position here.

3D X-point technology will be on the market before many think. Micron along with Intel should have first movers advantage here.

Stock ReportsTuesday

Oliver, Javier, Ali, Joseph, Eduardo, Joao

WednesdayKaan, Gonzalo, Francisco, Gabriel, Mathilda, Niki, Nasia

ThursdayRafael, Soraya, Bea, Pablo, Aboud, Ben