Healthy Life Group
(5 pages of text)
An entrepreneur and her father have purchased exclusive Canadian distribution rights to Nutrifusion, a new health supplement that provides servings of fruits and vegetables when added to a variety of foods. They are contemplating launching Healthy Life Group, a company to market and distribute Nutrifusion in Canada. They want to evaluate the product’s financial feasibility for the company’s first year of operations, ending December 31, 2011. If the financials look favourable and the business plan seems feasible, the father and daughter will proceed with the new venture.
This case serves as an introduction to financial analysis and the development of projected financial statements. Students are given the opportunity to qualitatively assess the food and health industry, analyze a proposed distribution strategy, prepare the first year’s projected income statement and balance sheet, and then make an overall decision based on their analysis.
Canada, Small, 2010
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