Working Capital Simulation
Any Name

Introduction

The purpose of this paper is to analyze the Sunflower Nutraceutics (SNC) opportunities for investment, which will result in growth and increase/better cash flow for a forecast years of 10 years from the present year. Each stimulation should provide information/data that allows for opportunity and effects of the company’s working capital (future). The paper will analyze each phase of SNC’s simulation regarding working capital and its ability to have adequate cash flow for meeting debt (long and short) and operating expenses. Sunflower Nutraceutics (SNC) efforts to manage its working capital are a continuous process. SNC needs new business ventures to found from other capital invests in the business. SNC has to continue to generate working capital to pay its bills, take advantage of profit generating opportunities, expand on present and future growth of its business and compete in its market.
Company Background Sunflower Nutraceuticals (SNC) is a privately owned nutraceuticals distributor, Miami, Florida. SNC distribute dietary supplements, vitamins, minerals and herbs for women of all ages. SNC has expanded its business into several new retail outlets and launched several private-label brands, which include an electrolyte sports drinks, metabolism-boosting powders for women 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. SNC has the potential to grow in its market but the company has struggled several times in the past. SNC has struggled to finance the payroll, issues with company’s line of credit, overdraft/overdrawn. SNC keeps a minimum amount of cash on hand to meet operational needs and this level of required cash is $300,000.