You are an analyst for a small craft brewery that brews, bottles and markets its...
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You are an analyst for a small craft brewery that brews, bottles and markets its own brands of beer. Stella founded the company a few years ago and is the chair of the board. Stella's overall plan is to slowly build the business and eventually expand beyond the local market. Over the past few years, the company has experienced a fast increase in sales and brand recognition for its main products. At times, and especially in the last year, this uncontrolled growth has led to problems with both bottling and brewing production. Last year, the company had the following information: Other Information Assets are carried at historical cost less Long term assets (market value) Selected information from Financial Statements Sales (145,000 units) $1,450,000 depreciation Cost of Goods Sold 870,000 $5,450,00 Operating Expenses 230,000 Total Assets 4,187,500 Current Assets Total Liabilities 3,187,500 The company uses Dupont Method to define investment and calculate ROI (Net Income / Total Assets) Instructions a) Using the DuPont method, calculate the company's return on investment. b) The term "investment" can define several different ways when calculating ROI. Show one other way to calculate ROI, and comment on the merits of this approach c) Recently, the company has hired a Chief Executive Officer (CEO) to run the company. The CEO will be paid a base salary, plus the potential of a large performance bonus. Stella has asked you to identify a mix of appropriate performance measures for the new CEO, as these performance measures will be used to calculate the CEO's year-end bonus. Identify and briefly describe these performance measures

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