2-1 Journal: Working Capital Simulation, Step 1: Prepare

First, complete Step 1 (Prepare) of the HBR Working Capital Simulation for Sunflower Nutraceuticals.

The company operates on thin margins, with a constrained cash position and limited available credit. Looking at the income statement, balance sheet, and statement of cash flows for the company after completing Step 1, address the following:

• Findings: What were the pertinent findings of your analysis? How did you arrive at your decisions, and how did you use this information to calculate working capital for the company?
• Recommendations: What recommendations would you make to improve the situation for the company? Briefly describe your recommendations.
• Application to Final Project: How can you apply your work on this simulation exercise to your final project?

Support your responses by referencing the textbook, the simulation, and other scholarly sources, as this will add substance to your report.