PLEASE SHOW HOW GOT WORK!!!!!

4 Balance sheets over 3 years each.

What challenges did you encounter in these steps of the simulation?

What working capital options did you consider in making cash flow decisions and/or cash forecasting?

How do cash flow decisions in prior phases affect current cash flow?

How did your choices lead to different outcomes achieved for SNCs revenue and firm value?

What are the effects of credit restrictions.

Sunflower Nutraceuticals (SNC) is a privately held nutraceuticals distributor based in Miami, Florida, and founded in 2006. SNC started as an internet-based, direct-to-consumer distributor and retailer of dietary supplements, including vitamins, minerals, and herbs for women, with product offerings for all age groups. Through its website and catalog, SNC offers customers a large selection of stock keeping units (SKUs) from more than 50 third-party brands. Since its founding, the company ambitiously expanded into new retail outlets and launched several private-label brands, including a line of women's electrolyte sports drinks, metabolism-boosting powders, and a vitamin line for teenage girls.

SNC is breaking even, with relatively flat annual sales growth on total revenues of $10 million. The business is working-capital-intensive, and margins are generally thin. Several times during the past few years, the company struggled to finance the payroll, given the firm's constrained cash position, and more than once the company's line of credit was overdrawn. SNC keeps a minimum amount of cash on hand to meet operational needs and this level of required cash is $300,000. The company also accesses a line of credit, with a fairly restrictive set of governing covenants, issued by a national bank. The credit limit on the facility of $3,200,000 is priced as a spread over the 1-year LIBOR. It is currently set at a rate of 8%. SNC uses a cost of capital of 12% to evaluate investment opportunities.

Health food companies have sold vitamins for decades, but the nutraceuticals industry is relatively new. Although regulatory bodies apply stricter definitions, the term nutraceuticals generally means "a fortified food or dietary supplement that provides health benefits". Examples include omega-3 fatty acids, probiotics, and soy and energy drinks. By 2010, the global nutraceuticals market was worth approximately $128.6 billion; it is forecasted to grow at a compound annual growth rate (CAGR) of 4.9% and reach $180.1 billion by 2017. The key driving factors for industry growth are the increase in the elderly population, the rate of growth in chronic diseases, the relative affluence of the working population, and increasing societal awareness of preventive medicine.

data in thousands of dollars)	2010	2011	2012
Minimum Cash Requirement	$300	$300	$300
Cash & Equivalents (Shortfall)*	$0	$0	$0
Accounts Receivable	$3,123	$3,096	$3,014
Inventories	$2,357	$2,348	$2,305
Other CA	$0	$0	$0
Total Current Assets	$5,781	$5,744	$5,619
Net PP&E	$40	$40	$40
Other FA	$0	$0	$0
Total Assets	$5,821	$5,784	$5,659
Accounts Payable	$1,021	$1,055	$1,050
Acrued Expenses	$0	$0	$0
Total Current Liabilities	$1,021	$1,055	$1,050
Amount Borrowed from Credit Line	$3,332	$3,200	$2,844
Total Liabilities	$4,353	$4,255	$3,894
Common Stock	$200	$200	$200
Retained Earnings	$1,267	$1,329	$1,565
Total Stockholder's Equity	$1,467	$1,529	$1,765
Total Liabilities & Equity	$5,821	$5,784	$5,659

data in thousands of dollars)	2012	2013	2014	2015
Minimum Cash Requirement	$300	$300	$300	$300
Cash & Equivalents (Shortfall)*	$0	$0	$0	$0
Accounts Receivable	$3,014	$2,822	$2,822	$2,822
Inventories	$2,305	$2,444	$2,444	$2,444
Other CA	$0	$0	$0	$0
Total Current Assets	$5,619	$5,566	$5,566	$5,566
Net PP&E	$40	$40	$40	$40
Other FA	$0	$0	$0	$0
Total Assets	$5,659	$5,606	$5,606	$5,606
Accounts Payable	$1,050	$1,155	$1,155	$1,155
Acrued Expenses	$0	$0	$0	$0
Total Current Liabilities	$1,050	$1,155	$1,155	$1,155
Amount Borrowed from Credit Line	$2,844	$2,393	$2,079	$1,750
Total Liabilities	$3,894	$3,548	$3,235	$2,906
Common Stock	$200	$200	$200	$200
Retained Earnings	$1,565	$1,857	$2,171	$2,500
Total Stockholder's Equity	$1,765	$2,057	$2,371	$2,700
Total Liabilities & Equity	$5,659	$5,606	$5,606	$5,606

data in thousands of dollars)	2015	2016	2017	2018
Minimum Cash Requirement	$300	$300	$300	$300
Cash & Equivalents (Shortfall)*	$0	$0	$0	$0
Accounts Receivable	$2,822	$3,650	$4,031	$4,310
Inventories	$2,444	$3,254	$3,666	$3,917
Other CA	$0	$0	$0	$0
Total Current Assets	$5,566	$7,205	$7,998	$8,528
Net PP&E	$40	$40	$40	$40
Other FA	$0	$0	$0	$0
Total Assets	$5,606	$7,245	$8,038	$8,568
Accounts Payable	$1,155	$1,484	$1,676	$1,793
Acrued Expenses	$0	$0	$0	$0
Total Current Liabilities	$1,155	$1,484	$1,676	$1,793
Amount Borrowed from Credit Line	$1,750	$2,490	$2,482	$2,241
Total Liabilities	$2,906	$3,974	$4,158	$4,034
Common Stock	$200	$200	$200	$200
Retained Earnings	$2,500	$3,071	$3,679	$4,334
Total Stockholder's Equity	$2,700	$3,271	$3,879	$4,534
Total Liabilities & Equity	$5,606	$7,245	$8,038	$8,568

(data in thousands of dollars)	2018	2019	2020	2021
Minimum Cash Requirement	$300	$300	$300	$300
Cash & Equivalents (Shortfall)*	$0	-$2,252	-$1,092	$0
Accounts Receivable	$4,310	$6,832	$6,832	$6,832
Inventories	$3,917	$4,967	$4,967	$4,967
Other CA	$0	$0	$0	$0
Total Current Assets	$8,528	$9,847	$11,007	$12,099
Net PP&E	$40	$40	$40	$40
Other FA	$0	$0	$0	$0
Total Assets	$8,568	$9,887	$11,047	$12,139
Accounts Payable	$1,793	$947	$947	$947
Acrued Expenses	$0	$0	$0	$0
Total Current Liabilities	$1,793	$947	$947	$947
Amount Borrowed from Credit Line	$2,241	$3,200	$3,200	$3,132
Total Liabilities	$4,034	$4,147	$4,147	$4,079
Common Stock	$200	$200	$200	$200
Retained Earnings	$4,334	$5,540	$6,700	$7,860
Total Stockholder's Equity	$4,534	$5,740	$6,900	$8,060
Total Liabilities & Equity	$8,568	$9,887	$11,047	$12,139