Create notes on two key considerations, "Cash Flows" and "Cash Cycle", using the options chosen below and mostly only highlighting key "Cash Flows" and "Cash Cycle" considerations with "We Accepted: Expand Online Presence" From the three options I had to choose from. I also have written what I have chosen, what was the investment opportunity, and more information about the investment opportunity below: We Declined: Pursue Big Box Distribution

SNC is seriously considering establishing a distribution partnership with the big-box retailer Mega-Mart, which has 2,000 stores across the United States. This opportunity could bring promising growth to SNC's top line over next three years: a 25% increase in sales in 2016, plus additional cumulative increases of 10% in 2017 and another 5% in 2018. However, because Mega-Mart uses its national, volume-based purchasing power to negotiate lower prices, the overall margins for SNC will drop from 6.5% to 6%. Nevertheless, Mega-Mart pays its invoices very promptly, which would benefit SNC by reducing DSO for the whole company by 3 days in the first year (2016) and by an additional 2 days in 2017 and beyond, for a total improvement of 5 days. Thus, the DSO will be 5 days lower than what it was at start of 2016. Going forward, the DSO would stay at this lower level. ---------------------------------------------------------------------------

We Accepted: Expand Online Presence

SNC has its own, modest internet-based business. However, the company has been approached by Golden Years Nutraceuticals, a much larger online distributer of third-party brands with connections to a national healthcare website endorsed by a leading senior advocacy associate. Therefore, Golden Years reaches a large-and increasing consumer base of older Americans. This opportunity would generate an additional 10% increase in sales in 2016, followed by increases of 5% in 2017 and 3% in 2018.Increasing the percentage of SNCs business conducted online would decrease DSO because of the quick collection of Internet sales. Accounts receivable would fall within seven days in the first year and an additional three days in 2017, for a total improvement of 10 days. In 2018, the DSO would decline by another two days in effect, 12 days lower than at the start of 2016.The DSO would continue to stay at this level, and SNCs profit would remain unchanged

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We Declined: Develop a Private- Label Product

Impressed by SNC's success with developing private-label products, Fountain of Youth Spas, a California-based network of exclusive day spas, has approached SNC with its private-label product-line request. Fountain of Youth Spas would like SNC to develop ahigh-end organic age-defying nutraceutical line that spa beauticians could offer to well-heeled clientele. Overall sales would increase by 5% in 2016-andby a cumulative 4% in 2017 and 3% in 2018. This project would increase SNC's overall margin by 2% but would also increase both DSO and DSI.

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