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Product Overview

R. G. Barry management is considering the introduction of its new product, Mushrooms shoes, into the US domestic market. Management must decide what course of action to take with the Mushrooms Division and must estimate whether the parent firm has sufficient capital resources to pursue the strategy. Financial forecasting for a division for several alternative strategies and a projection of funds needs constitute the minimum analysis. Discounted cash flow can be used for valuation of the alternatives. In addition, data in the case allow students to forecast the difference in working capital required if the division goes from level to seasonal production. (The B case is F-0718, and the C case is F-0924.)