Step 1: FINANCING
The junior accounting team has assembled a Financing Report that (a) offers three options for securing the additional funds required to meet the new order; and (b) details the criteria Shaun, the owner of SunsTruck, would like you to consider when choosing one of the three options. Based on this report:
Explain the rationale for your decision.
Step 2: ACCOUNTING CYCLE
A junior accountant is working to get everything in order for the new financing and has come to you with a question about what do next in the accounting cycle.
Step 3: FINANCIAL STATEMENTS
A potential investor has been identified, but before it is willing to commit, it has requested information about SunsTruck’s current debt from the junior accountants.
Explain to your junior accountants why you are giving them this financial statement and where the debt information is located.
Step 4: FINANCIAL ANALYSIS
If you were the type of financier selected in Step 1, would you invest in SunsTruck? Explain the rationale for your decision.