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
Based on the projections, Decker will have
A. a financing surplus of $36
B. a financing deficit of $36
C. a financing surplus of $255
D. a financing deficit of $255
E. zero financing surplus or deficit
Answer: A
You might also like to view...
Cash bonuses are usually given to encourage short-term performance
Indicate whether the statement is true or false
The golden rule, "Do unto others as you would have them do unto you," is most directly
reflected in which moral theory? A) Rawls's distributive justice theory B) Ethical relativism C) Ethical fundamentalism D) Kantian ethics E) Utilitarianism
In 2014, online bill payment accounted for ________ of all bill payments, while paper checks accounted for ________
A) less than 10%; less than 25% B) about 25%; about 10% C) more than 50%; less than 25% D) 100%; 0%
The degrees of freedom for a contingency table with 6 rows and 3 columns is _____
a. 18 b. 15 c. 6 d. 10