Working Capital Simulation: Case Study

Working Capital Simulation: Managing Growth Assigment
University of Phoenix
Dillian Rivera
FIN/571 CORPORATE FINANCE
September 30, 2014
Dr. Jose Berrios Lugo

Working Capital Simulation: Managing Growth Assignment

Sunflower Nutraceutical (SNC) is a distributor in the Miami, Florida area is a privately

owned company. Sunflower Nutraceutical is a business that started as a direct –to-consumer

distributor and retailer in products related to supplements that include vitamins, minerals and

herbs for women, and all ages. This company has successfully and ambitiously expanded their

business and SNC continues to operate and
The purpose is to assist the decision making process through the

phases 1 to 3 on opportunities such as taking on new customers, capitalizing on supplier

discounts and reducing the inventory. This may position SNC in a more lucrative financial

positions. SNC has currently expanded into launching several private label brands “Although

health food companies have been around for ages providing such products, this is new for SNC.

Research shows that the target audience for the company to thrive in industry growth will be

“increase in the elderly population, the rate of growth in chronic diseases, and the relative

affluence of the working population, and increasing societal awareness of preventative

medicine.”

For SNC entering into this new market will be monumental step for the entity to posiblly

succeed in growth and increased revenues. Looking at the comparative Balance Sheet, the

accounts receivables have been declining from 2010-2012. The Income Statement shows that

sales have been consistent the cost of sales has shifted causing the EBIT to drop in 2011

and to rise in
As being an online company it is very important to maintain their website making it user friendly to increase their sales. Since SNC is an online business is imperative that these area works perfectly that is friendly user. This activity increases their sales and has little impact on the working
Youth Spas increased the EBIT, the accounts receivable and the inventory slightly... (See
Phase 2 Expand online presence) as this implementations are considered sales will continue to increase which is favorable for the EBIT and the Net Income. At the conclusion of phase 2 the company continues to progress financially, sales continue to increase after the sales did not showed improvements for that period. (See Phase 2 Balance Sheet)

Finally for phase 3 the company has to continue on with the implementation and the decision taken to provide that financial advantage that SNC wants to obtain without having to worry about cash flow or even payroll. The decision to adopt Global Expansion shows to be financial advantage versus taking Viva Familia as a new customer. The later ones has to be decline due