Harvard Business Publishing:
Working Capital Simulation: Managing Growth Assignment
Ch. 1 – 21 ofFundamentals of Corporate
Finance
WileyPLUS Assignments
All additional resources from
each week
Reviewthe following scenario:
Acting as the CEO of a small
company, 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-into 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)
Writea paper of no more than 1,000 words that analyzes
your decisions during each phase (1-3) and how they influenced each of the
following final outcomes (metrics) of SNC:
·
Sales
·
EBIT
·
Net Income
·
Free Cash Flow
·
Total Firm Value
Addressthe 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 to financing
Includescholarly references (in addition to your course
textbook and simulation materials) to support your positions.
Formatyour paper consistent with APA guidelines.
