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[Get Answer ]-Working Capital Simulation Managing Growth Assignment

Question Description

Resources:

Harvard Business Publishing: Working Capital Simulation: Managing GrowthAssignment

Ch. 1 – 21 ofFundamentals of Corporate Finance

WileyPLUS Assignments

All additional resources from each week

Review the following scenario:

Acting as the CEO of a small company called Sunflower Nutraceuticals (SNC),you will apply the principles of capital budgeting to invest in growth and cashflow improvement opportunities in three phases over 10 simulated years. Eachopportunity has a unique financial profile and you must analyze the effects onworking capital. Examples of opportunities include taking on new customers,capitalizing on supplier discounts, and reducing inventory.

You must understand how the income statement, balance sheet, and statement ofcash flows are interconnected and be able to analyze forecasted financialinformation to consider possible effects of each opportunity on the firm’sfinancial position. The company operates on thin margins with a constrained cashposition and limited available credit. You must optimize use of internal andexternal credit as you balance the desire for growth with the need formaintaining liquidity.

Sign-in to the simulation and review each of thefollowing:

  • Welcome Statement
  • How to Play
  • Terminology Primer
  • More Details (this includes information to help you understand how to playthe simulation)

Write a paper of no more than 1,400 words that analyzes yourdecisions during each phase (1-3) and how they influenced each of the followingfinal outcomes (metrics) of SNC:

  • Sales
  • EBIT
  • Net Income
  • Free Cash Flow
  • Total Firm Value 

Address the following in your paper:

  • A summary of your decisions and why you made them
  • How they affected SNC’s working capital
  • What general effects are associated with limited access tofinancing

Include scholarly references (in addition to your coursetextbook and simulation materials) to support your positions.

Format your paper consistent with APA guidelines.

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