Cash Flow and Working Capital Simulation

Topics: Cash flow, Corporate finance, Investment Pages: 2 (326 words) Published: October 15, 2014
FIN 571 Week 6 Working Capital Simulation Managing Growth Assignment Click this link to get the tutorial:

Harvard Business Publishing: Working Capital Simulation: Managing Growth Assignment 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 cash flow improvement opportunities in three phases over 10 simulated years. Each opportunity has a unique financial profile and you must analyze the effects on working 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 of cash flows are interconnected and be able to analyze forecasted financial information to consider possible effects of each opportunity on the firm's financial position. The company operates on thin margins with a constrained cash position and limited available credit. You must optimize use of internal and external credit as you balance the desire for growth with the need for maintaining liquidity. Sign-in to the simulation and review each of the following:

Welcome Statement
How to Play
Terminology Primer
More Details (this includes information to help you understand how to play the simulation) Write a paper of no more than 1,400 words that analyzes your decisions during each phase (1-3) and how they influenced each of the following final outcomes (metrics) of SNC: Sales

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...
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