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Problem 1-Healthy Snack Food Ine's Cash Flows Problem 1 -- Healthy Snack Food Inc.'s Cash Flows 042416 Laura Henderson, a 2008 graduate of George Fox

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Problem 1-Healthy Snack Food Ine's Cash Flows Problem 1 -- Healthy Snack Food Inc.'s Cash Flows 042416 Laura Henderson, a 2008 graduate of George Fox University with 3 years of banking experience, was recently brought in as a financial analyst for Healthy Snack Foods Inc. (HSFI), a small food producer that operated in northern Florida and whose specialty was healthy pecan and other nut products sold alongside snack foods. HSFI's president, Al Watkins, decided in 2011 to undertake a major expansion and to "go national" in competition with Frito-Lay, Eagle, and other major snack foods companies. Watkins believed that HSFI's products were, and would be, of higher quality than the competition's. He further believed that this quality differential would enable it to charge a premium price, and that the end result would be greatly increased sales, profits,and stock price. a. Calculate the Operating, Investing and Financing Cash Flows for HFSI. b. Based on the Cash Flows, should Laura characterize the new Strategy as a "Success" or a "Failure" c. Can the new Strategy ever be a success? Please answer "Yes" or "No" Investing Cash Flow Cash Flow Cash Flow Operating Financing b. Success or Failure? c. Yes or No

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