Business, 13.10.2020 03:01 emmaguentherp3hjd3

Impressed by SNC's success with developing private-label products, Fountain of Youth Spas, a California-based network of exclusive day spas, has approached SNC with its own private-label product-line request. Fountain of Youth Spas would like SNC to develop a high-end, organic, age-defying nutraceutical line that spa beauticians could offer to well-heeled clientele. Overall sales would increase by 5% in 2016-and by a cumulative 4% in 2017 and 3% in 2018. This project would definitely increase SNC's overall margin by 2% but would also increase both DSO and DSI. What would you like to do about this opportunity?
Accept or Decline
2016 2017 2018 Post 2018
Incremental Summary Income Statement ($ in thousands)
Change in Sales $800 $1,472 $1,996 $1,996 Change in Cost of Sales $410 $1,023 $1,502 $1,502
Change in EBIT
$390 $449 $494 $494
Incremental Balance Sheet ($ in thousands) Change in Accounts Receivable
$379 $587 $749 $749
Change in Inventories
$269 $427 $550 $550
Change in Accounts Payable
$45 $111 $163 $163

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Impressed by SNC's success with developing private-label products, Fountain of Youth Spas, a Califor...

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