Please help with intro and conclusion with Tootsie Roll working capital strategies. I need help addressing these questions:
Assume next year's forecasted revenues increase by 20%. Provide a detailed working capital recommendation to senior management based on next year's increase in revenue along with assumptions you make regarding other line items in the pro forma financial statements.
Discuss the effect of this revenue increase on the firm's working capital policy. In your conclusion, identify lessons learned and discuss areas for further development.
To be able to properly analyze the impact of a 20% increase in forecasted revenues on working, the effect of that increase on forecasted inventory, accounts receivable and accounts payable must be analyzed. Assuming that accounts receivable is also forecasted to increase by half of the increase in sales while inventories ...
The solution examines Tootsie Roll working capital strategies. The effects of the revenue increase on the firm's working capital policy.