bl ll! 3. What will be the consequence in firm's of the 25 percent growth sales on the profit retention does not issue new equity, modify its debt-to- 4. equity ratio, or change its operational efficiency? if it wishes to grow its How should ACC modify its operational efficiency sales by percent without issuing new equity or modifying its financing policy? c. Suppose that ACC expects its sales to grow by 10 percent in 2016 1. What will be the consequence of the 10 percent growth in sales on the firm's cash position if ACC oes not modify its financing policy or change its opera tional efficiency? 2. What can ACC do with the extra cash? What should it do? QUESTIONS 1. Transactions. Indicate the effects of the following transactions on operating rgin, invested capi turnover, debt ratio. to an increase, to indicate a decrease, and 0 to indicate no effect. Operating Invested capital Debt ratio turnover margin 1. Shares are issued for cash 2. Goods from inventory are sold for cash at a profit 3. A fixed asset is sold for cash at its book value 4. A fixed asset is sold for more than its book value 5. A dividend is declared and paid 6. Cash is obtained through a bank loan 7. Accounts receivable are collected 8. Minority interest in a firm is acquired for 9. A fixed asset is depreciated 10. obsolete inventory is written off 11. Merchandise is purchased on account 12. Shares are repurchased