Question 2 (1 point) West Coast Landscaping Ltd had the following balance sheet at year end Cash $3.5 Accounts payable $9 Accounts receivable 26 Notes payable 26.5 Inventory 58 Long-term debt 6 Fixed assets 35 Common stock 15 Retained earnings 66 Total assets Total liabilities and $122.5 equity 51225 Sales for 2019 were $220, while net income was $11. The company paid dividends of $4.4 to common shareholders. Current assets and accounts payable will remain proportional to sales Foxed assets will not increase by the same percentage as sales. The company expects to increase sales by $50 for next year. Assume the profit margin and payout ratio remains constant. Using the BEN equation, how much asset growth can West Coast Landscaping support without requiring external funds? $6.05 $19.89 $9.74 $10.15 Question 4 11 point) Sunstar Fine Food's expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. All olse being equal, which of the following conditions would cause the AFN to increase? The company lowers its days sales outstanding, o The cigompany switches to a relaxed working capital policy The company lengthens its average payables period, The company begins to pay employees monthly rather than weekly Four years ago, a new bond was issued with a coupon rate of 7% paid semi-annually, and a maturity of 10 years. It is currently trading for $984. What is its yield to maturity? 7.11% 8.74% O 7.33% 7.23% Your company is analyzing whether to change its credit policy By changing its average collection policy from 20 to 28 days, your company expects sales to increase by $70,000. However, you will need to spend $5,000 more on collections. If the company's sales are currently $800,000, variable production cost is 45% of sales, and its cost of capital is 10%, what are the company's incremental carrying costs on receivables due to the new policy? $2,290 $2,416 $1,260 $1.031 Question 4 11 point) Sunstar Fine Food's expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. All else being equal, which of the following conditions would cause the AFN to increase? The company lowers its days sales outstanding, The scompany switches to a relaxed working capital policy The company lengthens its average payables period. The company begins to pay employees monthly rather than weekly