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:
- Identify which financing option you think is the best option for SunsTruck to pursue given Shaun’s constraints. Write 3 sentences explaining the rationale for your decision.
Note: You should complete Steps 2 & 3 after reading the material in Week 5.
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.
- Read the email the junior accountant sent you and identify the best next step to take in the accounting cycle. Write 2 sentences explaining your reasoning.
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.
- Identify the correct financial statement for your junior accountants that will provide the investor with the information it has requested. Write 2 sentences to explain to your junior accountants why you are giving them this financial statement and where the debt information is located.