recentyearofoperationfigures.
SellingexpensesandG&A
44.5%ofsalesfortheforecastperiod.Sellingexpenses Exhibit#DCFValuationAssumptions
GrossMargin
52.7%ofsalesfortheforecastperiod,basedonthemost
are broken down into: delivery and distribution costs,
salaries and benefits, promotional material, and
communitysponsorship.
General and administrative expenses are broken down
into: salaries and benefits, professional fees, reporting
fees, insurance, building maintenance, taxes, bank
charges,andoffice/administrative.
OtherExpenses
0.6%ofsalesfortheforecastperiod.
Depreciation
0.9%ofsalesfortheforecastperiod.
CapitalExpenditure
Consistentat$331,000peryearovertheforecastperiod.
Estimatedtobealittlelessthan1%ofsales.
TaxRate
DuetotaxincentivesinAlberta,insteadofpaying$98per
hectolitre,smallbreweriespayonly$58perhectolitreon
thefirst200,000hectolitressold.In 2011,the statutory
taxratewas27.4%.
ChangesinWorkingCapital
Noncash current assets grew slightly over the 5 year
forecastperiod.Fornowtheyareroughly16.5%ofsales
change
andnoncashcurrentliabilitiesare2.68%ofsales.The in net working capital forecast is going up by
0.22%onaverageeveryyear.
ExplicitForecastPeriod
20112016(5years).
TerminalGrowthRate
1.496% was the calculated average based off report A
figures.
GovernmentAssistance
Grants from the Growing Forward (government of
Albertasdepartmentofagricultureprogram)gotowards
operatingexpensesandarecreditedtoearningsforthat
period.In2011,BigRockreceived$76,000ingovernment
assistance. In order to receive these grants, they must
abidebycertaintermsandconditionswhichhavebeen
metanditsassumedthattheywillcontinuetobemet.
Commitments
Expenditures
for Forallof2012,BigRockhasacontractforthesupplyof
malt barley at a fixed price of $575 per metric tonne.
Furthermore, Big Rock has a 5 year contract with an
electricity retailer to supply electricity at a fixed rate of
$67.61permegawatthour.
AccountingStandards
Theconversionfromanincometrusttoacorporateentity
in2011requiredBigRockBreweriestoadopttheIFRS
policy.