SCENARIO: You are the owner of a start-up business that creates 3D-printed, carbon fiber bicycles. Up through the businesss third quarter (Q3), you have used your own money to fund the business. The business model shows promise, you will create a written report (see attached Stockholder Report Template for recommended page lengths) for stockholders and the board of directors to review. Justify your decisions throughout the simulation and evaluate the current state of the business for all functional areas.
Stockholder Report
B. Create a written stockholder report for the board of directors and stockholders, using the attached Stockholder Report Template, in which you do the following:
1. Analyze how four corporate strategic thrusts that you selected within the simulation drove two of your financial decisions and two of your nonfinancial decisions.
2. Reflect on the decisions that were made during the last three quarters of the simulation by doing the following:
Note: Support for your reflection may include graphs and other data.
a. Explain two decisions that you would change and why.
b. Explain two decisions that had a positive effect and how, including specific examples.
C. Discuss your companys financial projections and valuation in relation to the companys quarter six (Q6) statement of cash flow, balance sheet, income statement (result found in Q7 tab), and Q6 stock history report by doing the following:
1. Calculate a valuation of the company and explain the key components of how you came to that valuation.
2. Calculate the projected financial return on investment (ROI) at end of quarter six (Q6) and explain the effects that this return would have for an investor.
Note: You should include, within your valuation, any financial data that you use to justify your valuation, such as statement of cash flows, balance sheet, income statement, and stock history report, which can all be exported from within the simulation. You may copy and paste the information directly into the stockholder report template.
Business Analysis
D. Analyze the overall performance of the business compared to the financial reports from the simulation by doing the following:
Note: Use quarters four, five, and six when analyzing performance. The analysis should include definitions of the financial statistics that occurred for these three quarters. Refer to the simulation reports, including the balanced scorecard and conscious scorecard for the required data.
1. Analyze the effect on overall financial performance of one ratio from each of the following categories, including the performance measures found within the industry financial ratios tab within the simulation:
liquidity ratios
activity ratios
leverage ratios
profitability ratios
2. Analyze the beginning and ending cash positions from your statement of cash flows from quarter seven (Q7) for each of the following:
cash flow from operating activities
cash flow from investing activities
cash flow from financing activities
3. Explain how three decisions that you made and are shown on your conscious scorecard affected the companys performance.
E. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.
