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Questions 26 - 30 pertain to the financial data of Anycorp, Inc., which recently hired you as Controller. Anycorp has been experiencing rapid growth and

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Questions 26 - 30 pertain to the financial data of Anycorp, Inc., which recently hired you as Controller. Anycorp has been experiencing rapid growth and is negotiating with EasyBank for a new larger line of credit. The CEO has asked you to determine if this is a good idea. Your initial analysis indicates the actual growth rate for Anycorp was 12% and 22% for the last two years and the sustainable growth rate was 15% and 25% for those same years. Based on this information, you conclude: A. Anycorp is growing way too fast and will probably grow broke" OB. Anycorp is growing fast, but is still able to fund this growth internally. OC. Anycorp should increase its prices to slow growth D. Anycorp should find ways to increase its sustainable growth rate. You investigate Anycorp's accounts receivable and find the following for the past two years: Credit Sales of $12,000 and $14,640. Accounts Receivable of $825 and $1,200. Based on this information you conclude: A That Anycorp's collection period is increasing B. That Anycorp's collection period is constant OC. That Anycorp's collection period is decreasing. D. None of the above. Reset Selection You study Anycorp's Income Statement and find that profit margins over the past two years were 8% and 12% respectively. Based on this information you conclude: A. Anycarp is utilizing its assets very well. OB. Anycorp will certainly need more financing. C. Anycorp is experiencing rising net income on sales. D. Anycorp is growing too fast and could grow broke". Reset Selection You analyze selected Balance Sheet items of Anycorp and calculate the following for the past two years: External Funding Requirement $1,000 and $2,000. Debt-to- Equity Ratio of 100% and 90%. Based on this information you conclude: A. Anycorp's external funding requirements are too high and growing too fast. OB. Anycorp's debt-to-equity trends indicate weakness. C. Anycorp should issue more stock. D. Though Anycorp's EFR is growing the level of debt-to-equity is improving, indicating a stronger balance sheet. Reset Selection The CEO informs you that EasyBank is willing to extend a $2,100 line of credit to Anycorp for the upcoming year. Base on this information, what do you recommend to the CEO? O A The bank line of $2.100 is too much money to borrow OB. The 52.100 bank line will meet Anycorp's EFR and support their growth. C. The company will need more than the proposed $2.100 bank line and needs to slow its growth in order to not grow broke en Tools D. In order to determine the adequacy of the $2,100 line, we will need to create a porforma and calculate FR for the upcoming year. No decision can be made at this time. Reset Selection 5 Mark for Review Whats This

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