Homework: Finance and Accounting
Step I: FINANCING
The junior accounting team has assembled a Financing Report that (i) offers three options for securing the additional funds required to meet the new order; and (ii details the criteria Shaun, the owner of SunsTruck, would like you to consider when choosing one of the three options. Based on this report:
• Identify which financing option you think is the best option for SunsTruck to pursue given Shaun's constraints. Underline your selection:
a) Option 1: Equity
b) Option 2: Debt
c) Option 3: Debt + Self-Financing
Explain the rationale for your decision.
Step II: 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 Read the email the junior accountant sent you and identify the best next step to take in the accounting cycle. Explain your reasoning
Step III: 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.
• Identify the correct financial statement for your junior accountants that will provide the investor with the information it has requested. Underline your selection:
a) Income Statement
b) Balance Sheet
c) Cash Flow Statement
Explain to your junior accountants why you are giving them this financial statement and where the debt information is located.
Step IV: FINANCIAL ANALYSIS
If you were the type of financier selected in Step I, would you invest in SunsTruck? Explain the rationale for your decision?
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.