Marketing Plan For A Business Plan - 1268 Words

1 †Beer is proof that God loves us and wants us to be happy† Benjamin Franklin Sunny Brewing Company is located in Small Town USA. For the purpose of this assignment the following assumptions will be used: ï‚ · The liquor licensing laws allow for onsite consumption as well as distribution. ï‚ · The physical plant location is not geographically bound thus allowing for physical expansion, rather than total relocation, to add square footage for the operation. In this instance the term bound refers to no available tenant space on either side of the existing location. ï‚ · Credit history of the company is solid, with no loan or bill default having occurred. ï‚ · Management has an established tracking of customer sales and preferences. ï‚ · Owners/stakeholders†¦show more content†¦They do not wish to become an Anheuser Busch. 2 Financial Status Sunny Brewing Company has been in business for one calendar year. We will make the assumption that the two new part time employee’s salary includes all taxes and social security contribution. Also, health benefits are not included as part of the compensation package. Included in the compensation package is one half gallon growler of beer per week and two logoed T-shirts every six months as a uniform. The financial ratio calculations have been adjusted to include the employee compensation for two employees at $15,000.00 per twelve months or $30,000.00 divided by twelve. The Current Ratio Formula; Current Ratio is determined by dividing the assets by the liabilities. (MBA in a Nutshell) Current Ratio= Assets /Liabilities with balance sheet numbers: $18,211 / $6573 = a ratio of 2.77 Short term creditors prefer a higher ratio as it reduces the risk of default. Conversely, shareholders prefer a low ratio as it indicates that the assets are being utilized to grow the business. Based on the project information we are assuming that inventory turnover is not a factor of concern as â€Å"they are selling as fast as they can make it.† The Net Working Capital Ratio: Net Working Capital Ratio is determined by the current assets minus the current liabilities. (MBA in a Nutshell) (Net Working Capital Ratio= Current Assets –Current Liabilities) With the