.Question (3) Directions: Click the \"Case Link\" above and use the information
ID: 2332433 • Letter: #
Question
.Question (3) Directions: Click the "Case Link" above and use the information provided to answer this question: What is the impact of sales growth on Digitronics' borrowing needs? Digitronics has long-term sales growth and a seasonal sales peak, both of which are borrowing causes. Digitronics has no long-term sales growth and no seasonal peak, so there is no borrowing caused by sales growth. Digitronics has both long-term sales growth and a seasonal sales peak, which reduce its need to borrow Digitronics has high long-term sales growth, which is a borrowing cause, but it has no seasonal sales peak.Explanation / Answer
Answer)
My answer is the last answer.
Here as per the data provided there is boost in sales from 20Y2 if you campare sales of 20Y3 with 20Y2 and 20Y4 with 20Y3.This may cause the need for borrowing.However, there is no seasonal peak upto my frank opinion as this is an electrical production company and if one observe the montly trends provided there is no high peak months so in the montly trends provided for 20Y3 and 20Y4.
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