Working Capital Simulation : Managing Growth Assignment

1454 Words Dec 16th, 2014 6 Pages
Working Capital Simulation: Managing Growth Assignment For any business stablishing the proper working capital management is critical. Having inappropriate working capital management can lead to bad operational business. Part of a management team in a company is to make business estimations in regards the company’s future expected sales as well as costs. This is done to better understand the requirements of the company’s future working capital. In additional, this provides management some guidelines on how to raise the appropriate funds at the appropriate time without having to interrupt any business operations. As a business owner and its management team makes the decision to seek for growth, it is important to ensure a critical analysis is done in respect the working capital requirements. For Sunflower Nutraceuticals there are three different growth phases. The different phases do have different decisions to implement. To better understand the company’s working capital requirements an appropriate analysis of each phase needs to be done.
Phase 01 – Acquire New Customer Acquiring new customers such as Atlantic Wellness can assist to Sunflower Nutraceuticals to create various changes within the company. Atlantic Wellness is a company that deals with the health food industry. By acquiring Atlantic Wellness, Sunflower Nutraceuticals can create changes such as sale increase, changes in the area of EBIT, net income, free cash flow as well as total value.
Sale Increase The…

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