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...
On January 1, 2012, Action Inc issued $1,000,000 of 10% bonds at face value. These bonds are due in 10 years with interest payable semi-annually on June 30 and December 31. What is the amount of interest paid in 2012?
A) $ 10,000 B) $100,000 C) $ 25,000 D) $ 50,000
__________ reserve auctions are those in which the goods must be sold regardless of whether the auctioneer is satisfied with the levels of the bids
A) With B) Without C) Unqualified D) Unrestricted
Driscoe, Inc., is in the process of developing an advertising campaign for its new product. It has identified the group to whom it will direct advertisements and has drafted the advertising objectives. Which of the following is not an advertising objective and thus should be deleted from the list?
A. Increase product awareness. B. Hire a marketing manager within one year. C. Convey product information. D. Increase sales by 10 percent. E. Expand the market share by 5 percent.
Observation is
a. the same as a survey b. is not a primary research method c. watching or monitoring people or things in an effort to learn something d. both b and c