Pro Forma Income Statements

Managing Growth Assignment

FIN/571

September 10, 2015

Managing Growth Assignment  

        The goal of this paper is to act as the CEO of a small company. The company chosen is Amanda fit-snacks. Throughout this assignment, the principles of capital budgeting will be applied to the investment of growth. As well as reviewing cash flow improvement opportunities over 10 years in 3 phases. The effects of each opportunity on working capital will have a unique financial profile. Throughout the phases the final outcome on the sales, EBIT, Net Income, Free Cash flow and total firm value will be covered.

        Amanda fit-snacks is a privately owned company located in Austin Texas.  The company started out of the owner’s kitchen and has grown into a small success with two stores in the Austin area. The company sells fresh protein packed deserts such as peanut butter protein balls, protein brownies and a variety of smoothies. Amanda fit-snacks, mission statement is “living healthier by each snack,” the goal of the company is expand across the state of Texas in the next ten years.  It is also the goal of Amanda fit-snacks to continue to expand their product line. The company has continued to break-even in total revenue and sales growth annually. The goal is to advise Amanda fit-snacks on how to invest in growth and cash flow opportunities. By looking at the decision making process through Phase 1-3 which will occur in the next ten years; such as creating new products, capitalizing on supplier discounts, reducing labor costs it can assist Amanda fit-snacks in a more profitable financial position.

References

Parrino. (2015). Fundamentals of Corporate Finance, 2e. Retrieved from Wiley Plus: http://edugen.wiley.com/edugen/student/main.uni