First, complete Step 1 (Prepare) of the HBR Working Capital Simulation for Sunflower Nutraceuticals. The company operates on thin margins, with a constrained cash position and limited available credit. Looking at the income statement, balance sheet, and statement of cash flows for the company after completing Step 1, address the following:

• What were the pertinent findings of your analysis? How did you arrive at your decisions, and how did you use this information to calculate working capital for the company?
• What recommendations would you make to improve the situation for the company? Briefly describe your recommendations.