ACC699 – Current Topics in Accounting

Overview:

In this single-player simulation, you will act as the CEO of Sunflower Nutraceuticals, a distributor of dietary supplements. In multiple phases over 10 simulated years, you will consider investment opportunities in revenue and EBIT (earnings before interest and taxes) growth and cash flow improvements. The firm operates on thin margins with a constrained cash position and limited credit. You will understand how the income statement, balance sheet, and statement of cash flows are interconnected as you analyze the effects of each opportunity on working capital. The goal is to choose opportunities that add the most value to the firm and balance the desire for growth with the need for maintaining liquidity.

Instructions:

• In each phase, you will consider a variety of investment opportunities that can increase revenue or improve cash flow. Opportunities range from acquiring new customers and expanding into new distribution channels to reducing inventory and capitalizing on supplier discounts. Each opportunity has a unique financial profile and includes a summary of incremental changes to the income statement and balance sheet. You must analyze the effects of each opportunity on working capital and decide whether it can be funded and how much value it adds to the firm.
• During the simulation, create and update a journal that documents your progress, issues, and results. Screenshots from the simulation may be copied and pasted into the Journal; however, they must be appropriately labeled (Ex: Figure #1 – Working Capital Initial Results) and referred to in the journal narrative.

Requirements:

• Five to ten-page Journal, with a cover sheet which includes a conclusions/observations paragraph.
• Submit a Word document in APA format.

Be sure to read the criteria below by which your work will be evaluated before you write and again after you write.

Evaluation Rubric for Simulation Journal Assignment