Decker EnterprisesBelow are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets are operating assets. All of Decker's current liabilities are operating liabilities.       Income statementCurrent

Projected    Salesna
         1,500
    Costsna
         1,080
    Profit before taxna
            420
    Taxes (25%)na
            105
    Net incomena
            315
    Dividendsna
               95
           Balance sheetsCurrentProjected  CurrentProjectedCurrent assets         100
            115
 Current liabilities          70
              81
Net fixed assets     1,200
         1,440
 Long-term debt        300
           360
    Common stock        500
           500
    Retained earnings        430
           650

If Decker had a financing deficit, it could remedy the situation by  

A. buying back common stock
B. paying a special dividend
C. paying down its long-term debt
D. borrowing on its line of credit
E. borrowing from retained earnings


Answer: D

Business

You might also like to view...

When a company pays an employee for work performed, it is considered an economic event that is recorded as a transaction

Indicate whether the statement is true or false

Business

You have been asked to develop guidelines for your company's new weblog. What are the major elements that you will include in the guidelines?

Business

Indira manages a team of people in the accounting department at Financial Partners, LLP. The company has been in buyout talks with a large competitor for the past few months. As the merger deal nears completion, Indira started noticing a change in her team's conduct. One of the collection agents, Malcolm, is taking longer lunches and often returns reeking of alcohol. She observed Akobo, the accounts receivable supervisor, uncharacteristically lashing out at vendors on the phone. Her own assistant, Marjorie, started nervously tapping her feet and pulling at her hair during meetings. Indira is worried about her team and their well-being. According to the protocols of assessment, which of the following actions will help Indira best understanding her team's issues?

A. hiring an expert to observe her team as they work and to report on the status of each member B. considering what might be causing the issues and having her team members fill out questionnaires asking about the sources of their anxieties C. bringing in a masseuse at lunch time once a week to give free massages to the team members who want them D. instituting a program through which high-performing employees mentor lower-performing team members, regardless of seniority E. reading through her team's e-mail correspondence to search for clues about their shift in behavior

Business

______ leaders act against the interests of both subordinates and the organization Laissez-faire leaders: engage in passive.

A. Supportive B. Derailed C. Disloyal D. Tyrannical

Business