Saturday, October 7, 2017
Review the Harvard Business Simulation to prepare for your Working Capital Simulation: Managing Growth assignment due in Week 6.
Reviewthe following scenario:Acting as the CEO of a small company, you will apply the principles of capital budgeting to invest ingrowth and cash flow improvement opportunities in three phases over 10 simulated years. Eachopportunity 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, andreducing inventory.You must understand how the income statement, balance sheet, and statement of cash flows areinterconnected and be able to analyze forecasted financial information to consider possible effects ofeach opportunity on the firm's financial position. The company operates on thin margins with aconstrained cash position and limited available credit. You must optimize use of internal and externalcredit as you balance the desire for growth with the need for maintaining liquidity.Sign-into the simulation and review each of the following:Welcome StatementHow to PlayTerminology PrimerMore Details (this includes information to help you understand how to play the simulation)Writea 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:SalesEBITNet IncomeFree Cash FlowTotal Firm Value
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