Ja-822 842 A company has the following on its balance sheet in $: Cash 100,000, Accounts Receivable 300,000, Other asset

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Ja 822 842 A Company Has The Following On Its Balance Sheet In Cash 100 000 Accounts Receivable 300 000 Other Asset 1 (29.95 KiB) Viewed 39 times

Ja-822 842 A company has the following on its balance sheet in $: Cash 100,000, Accounts Receivable 300,000, Other assets 50,000, Current liabilities 75,000, noncurrent liabilities 100,000, Shareholders' equity 275,000. It wants to raise 275,000 by borrowing against its accounts receivables. A) Describe securitisation of assets. B) Using the values provided, discuss how key elements of the balance sheet and financial ratios are impacted, differentiating the following scenarios: 1) Borrow directly against accounts receivables; 2) Create SPE with an initial capital of 25,000, and which borrows 275,000 and then purchases receivables of 300,000. Differentiate in a consolidated and unconsolidated balance sheet situation. 25358 poja