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Task 1 Supply Chain Management

In: Business and Management

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Task 1 – Supply Chain Management


Submit the following documents from your simulation company:
• Fourth quarter cumulative balanced scorecard
• Income statements for the four quarters
• Balance sheets for the four quarters 

1. Evaluate how you utilized budgets and pro-forma statements to ensure adequacy of funds for providing the production capacity you needed to achieve your business goals.

The pro forma statements helped me by giving me an estimate of the next quarter based on the decisions I made during the quarter in which the pro forma statement was created. This enables management to determine how much money is available for expansion. The cash flow statement showed me a detailed breakdown of all available assets including cash and liquid assets. Pro forma financial statements were instrumental in determining the funding available to the company. The income statement was very easy to read in the first quarter, since there were not a lot of expenses. I had only a couple of expenses. One expense was for research and development. The other expense was to establish a sales office. My operating profit was in the negative as expected. It was not until the third quarter that the business had an operating profit. In the 3rd quarter, my pro forma cash flow statement indicated that if I repaid the entire emergency loan, I would still have over $600,000 cash balance. This also meant that I had adequate funding for advertising and to invest in a certificate. The profit would have been even larger had I made different decisions.

The pro forma balance sheet showed me how much cash I had at the beginning of a quarter, listed all other assets, and added the fixed assets. It then balanced that with my debt and equity. I did not use this report wisely during the simulation. Afterwards, I noticed that the retained earnings were in the…...

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