1. Matt Albritton ACG2021.004

2. Anheuser-Busch has continued to grow in sales and earnings for the past 10 years. The company showed significant growth in 2003 especially. http://www.anheuserbusch.com/annual/2003/complete_ar.pdf

3. Chief Executive Officer:Chief Executive Officer: Patrick T. StokesPatrick T. Stokes Location of home office:Location of home office: One Busch Place, St. Louis, MO 63118One Busch Place, St. Louis, MO 63118 Ending date of latest fiscal year:Ending date of latest fiscal year: December 31 st, 2003December 31 st, 2003 Description of the principal products:Description of the principal products: A wide variety of beer and entertainment as well as packaging servicesA wide variety of beer and entertainment as well as packaging services Main geographic area of business:Main geographic area of business: United StatesUnited States

4. Part A. Audit Report Independent Auditors:Independent Auditors: PricewaterhouseCoopers LLP 800 Market Street St. Louis, MO 63101PricewaterhouseCoopers LLP 800 Market Street St. Louis, MO 63101 The Independent Auditors state that the Financial Statements presented by Anheuser-Busch accurately portray the financial position of the company. Anheuser-Busch has followed the standard accounting principles during the three years analyzed by the auditors.The Independent Auditors state that the Financial Statements presented by Anheuser-Busch accurately portray the financial position of the company. Anheuser-Busch has followed the standard accounting principles during the three years analyzed by the auditors.

5. Most recent stock price: $49.45 Twelve month range: $48.75 – $54.74 Dividend per share: $0.98 Date of the above information: October 31 st, 2004 I believe that stockholders should hold their shares due to the fact that the company continues to grow each year. The stock has not shown much change in the past year, so investors should not feel the urge to buy stocks of Anheuser-Busch until there is evidence of significant change.

6. Anheuser-Busch is involved in three industries that will continue to grow every year. The entertainment industry will most likely grow the most since tourism decreased after 9/11 but now continues to grow each day. Anheuser-Busch has bright plans for the future, including a $200 million modernization of their brewery in Williamsburg, VA (Christopher Dinsmore of the Virginian-Pilot). The company has also joined forces with the popular Bacardi rum company recently to produce many flavored alcoholic beverages. Anheuser-Busch has invested $60 million towards advertisement of the new drinks. The flavored alcoholic beverages are intended for men and especially woman between the ages of 21-27 (Marlene Coulis of Anheuser- Busch’s New Products Division). Anheuser-Busch reported that 2003 was a great year and that 2004 is anticipated to be even better as the economy continues to strengthen. http://spearsystem.com/Pages/PRBacardiSilver.html http://home.hamptonroads.com/stories/story.cfm?story=53414&ran=64428

7. The format used for Anheuser- Busch’s Consolidated Statement of Income is a multi-step format.The format used for Anheuser- Busch’s Consolidated Statement of Income is a multi-step format. 20032002 Gross Profit $5,697.6 $5,435.1 Operating Income $3,199.3 $2,979.7 Net Income $2,075.9 $1,933.8 (In Millions) All aspects of the Income Statement analyzed show an increase. The increases are not outstanding, but they do show how the company continues to grow no matter what is happening in the economy.All aspects of the Income Statement analyzed show an increase. The increases are not outstanding, but they do show how the company continues to grow no matter what is happening in the economy.

8. Total Assets = Total Liabilities + Shareholders Equity Total Assets = Total Liabilities + Shareholders Equity (In Millions) (In Millions) 2003 $14,689.5 = $11,977.8 + $2,711.7 2002 $14,119.5 = $11,067.2 + $3,052.3 Total Assets increased in 2003 from 2002. Shareholder’s Equity was greater in 2002 than in 2003, which obviously means that Total Liabilities were smaller in 2002 than in 2003. Total Liabilities changed the most to produce the increase in Total Assets for 2003.

9. Cash flows from operations is more than net income in both 2002 and 2003. Anheuser-Busch continues to grow significantly each year. Over the years they have expanded the land of their theme parks, upgraded plants and stadiums, and expanded their alcohol sales to flavored beverages in addition to a wide variety of beers. The company’s primary source of financing is through the issuance of long-term debts. Cash has increased in the past two years.

10. Anheuser-Busch follows general accounting policies. There are no significant policies used by the company that are noted in the annual report. Anheuser-Busch changed their accounting policies for goodwill and other intangible assets as of January 1 st, 2002. These policies were updated to keep up with current accounting standards.

11. Working Capital (in millions) $1489.2 $1362.7 Current Ratio 7.63 times 7.14 times Receivable turnover 23.09 times 21.41 times Average days’ sales uncollected 26.38 days 24.31 days Inventory turnover 1.52 times 1.21 times Average days’ inventory on hand 61.4 days 72.3 days 20032002 Working capital increased significantly in 2003 from 2002. The current ratio and turnover ratios also improved. The average days’ sales uncollected was the only ratio that did not improve. Finally, the average days’ inventory on hand improved as well.

12. Profit margin 1.5 % 1.4 % Asset turnover.96 times.94 times Return on assets 14.3 % 13.9 % Return on equity 17.2 % 16.4 % 20032002 Every ratio dealing with profitability had a slight improvement. No improvement was extremely noticeable, so it is hard to tell from profitability that Anheuser-Busch had a much better year in 2003 than in 2002.

13. Debt to equity 68.5% 67.4% Debt to equity 68.5% 67.4% 20032002 The solvency ratio shows that Anheuser-Busch received even more support from investors. The change was small, but it shows that Anheuser-Busch has a steady following from investors.

14. Price/Earnings per share 52.6849.82 Price/Earnings per share 52.6849.82 Dividend yield8.5% 7% Dividend yield8.5% 7% 20032002 The Price/Earnings per share ratio showed a slight increase due to a raise in both price and earnings per share. The dividend yield also improved due to slightly better sales.