PLEASE Show how you got answers!!!!

QUESTIONS!!

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

Drop Poorly Selling Products

Although reducing the number of SKUs that SNC carries in its product offering did have a negative impact on sales volume, the amount of cash tied up in inventory decreased significantly as a result of streamlining the SKU count

Tighten Accounts Receivable

Although sales declined as a result of SNC's decision to drop Super Sports Centers, the company's accounts receivable picture improved dramatically, freeing up cash.

Acquire a New Customer

Taking on Atlantic Wellness as a new customer increased sales significantly but resulted in higher accounts receivable and inventory balances

Develop a Private-Label Product

Selling the private label product to Fountain of Youth Spas increased SNC's EBIT margin, only modestly resulting in increased accounts receivable and inventory balances.

Pursue Big-Box Distribution

Taking on Mega- Mart Inc. as a customer resulted in impressive top-line growth but the company's EBIT margin declined.

Renegotiate Supplier Credit Terms

SNC's ability to renegotiate payment terms with Dynasty Enterprises resulted in a significantly lower accounts payable balance and improved margin.

Acquire a High-Risk Customer

Taking on Midwest Miracles as a new customer meaningfully increased sales volume, but had a dramatic impact on the company's accounts receivable balance. Given recent rumors regarding Midwest Miracles' potential Chapter 11 filing, SNC now has to consider writing off a portion of the outstanding balance.

(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