Phase 3: 2019 2021: Adopt a Global Expansion Strategy SNC is considering adding to its client base Viva Familia, a family-oriented vitamin retail chain with medium-size outlets in most metropolitan areas in Latin America and only a few non-local brands. Therefore, SNC could distribute only a small lower-priced selection of its product line to this company. This would provide SNC with a moderate increase in initial sales volume an incremental rise of 3%), but the margins would be similar to those for the existing business. Because Viva Familia is willing to pay upon delivery of SNC's shipment of goods at ports, the DSO measure is essentially equivalent to the time for transit, thereby reducing SNC's overall DSO by almost 2 days. However, it would cause a minor DSI increase of 2 days. What would you like to do about this opportunity? Accept Decline 2019 2020 2021 Change in Sales Change in Cost of Sales Change in EBIT Incremental Summary Income Statement ($ in thousands) $300 $712 $712 $281 $666 $666 $20 $46 $46 Change in Accounts Receivable Change in Inventories Change in Accounts Payable Incremental Balance Sheet ($ in thousands) $62 $156 $156 $96 $219 $219 $32 $75 $75 Copy to clipboard Phase 3: 2019 2021: Adopt a Global Expansion Strategy SNC is considering adding to its client base Viva Familia, a family-oriented vitamin retail chain with medium-size outlets in most metropolitan areas in Latin America and only a few non-local brands. Therefore, SNC could distribute only a small lower-priced selection of its product line to this company. This would provide SNC with a moderate increase in initial sales volume an incremental rise of 3%), but the margins would be similar to those for the existing business. Because Viva Familia is willing to pay upon delivery of SNC's shipment of goods at ports, the DSO measure is essentially equivalent to the time for transit, thereby reducing SNC's overall DSO by almost 2 days. However, it would cause a minor DSI increase of 2 days. What would you like to do about this opportunity? Accept Decline 2019 2020 2021 Change in Sales Change in Cost of Sales Change in EBIT Incremental Summary Income Statement ($ in thousands) $300 $712 $712 $281 $666 $666 $20 $46 $46 Change in Accounts Receivable Change in Inventories Change in Accounts Payable Incremental Balance Sheet ($ in thousands) $62 $156 $156 $96 $219 $219 $32 $75 $75 Copy to clipboard