Eatan Inc. has a take-or-pay contract with SeaTac Inc. for $1000000 per year for five years. Eatan also recently sold receivables of $ 500000. The present value (PV) of Eatan’s take-or-pay contract is $ 4000000 and the buyer of the receivables has recourse to Eatan. Once an analyst has adjusted Eatan’s debt to equity ratio, earnings before interest and taxes (EBIT), and assets for these two off-balance-sheet financing arrangements, the changes are best described by: Debt-to-equity EBIT Assets（）
A. Increase Decrease Increase by $ 4000000
B. Increase Increase Increase by $ 4500000
C. Decrease Decrease Increase by $ 5000000
参考答案：B
解析：
For take or pay contracts, an analyst should add the present value of the obligation ($4000000) to both assets and long-term liabilities, which will increase the D/E ratio. Sales of receivables with recourse should be accounted for as a collateralized borrowing, which includes increasing current liabilities on the balance sheet and increasing EBIT by the amount of the loss taken to account for the implicit interest when the receivables were "sold" at a discount from their (face) balance sheet amount. Assets are further increased by putting the receivables ($500000) back on the balance sheet.