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value 0.00 polints You are considering investing in Annies Eatery. You have been able to locate the following information on the firm: Total assets are $35.3 million, accounts receivable are 58.05 millian, ACP is 30 days, net income is 54 million, debt-to-equity is 1.8 times, and dividend payout ratio is 45 percent All sales are on credit. Annies is considering I expected oosening its credit policy such that ACP will increase to 35 days. The change is to increase credit sales by 5 percent. Any change in accounts receivable will be offset with a No other balanoe sheet changes are expected. Annies profit margin and dividend payout ratio will remain unchanged growth rate for current and new year and also indicate the change in these numbers. (Do not round intermediate calculations and round your final answers to 2 decimal places ) Sustainable Growth Rate Current New Change % | (Click to see References eBook & Resources Worksheet Difficulty 2 Intermediate
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2 In Mn Current year Total assets (Debt +Equit D/E Equity/ (Debt Equity Equi Accounts Receivable Average Credit period ACP Sales (al sales are on credit) Net Income Profit Margin 35.3 1.6 0.3846153851/1+C5 Сб * C4 13.57692308 6.05 30 73.60833333| 4 ACP Accounts receivable/Avg credit sales per day Accounts receivable/(Credit sales/365) C9*365/C10 | Sales-Credit sales Account receivable * 365 / ACP 13 0.054341673 C13/C11 15 16 18 19 20 New Year Sales Net Income Equit 77.28875| 4.2 13.57692308 C11 1.05 C14*C18 | Increase in sales by 5% Profit margin is constant Equity remains same as all increase in accounts receivables are funded by debt

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