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In: Finance

Below are the simplified current and projected financial statements for Decker Enterprises. All of Decker's assets...

Below 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 statement

Current

 Projected
Sales

na

         1,500
Costs

na

         1,050
Profit before tax

na

            450
Taxes

na

            135
Net income

na

            315
Dividends

na

               95
Balance sheets Current Projected Current Projected
Current 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 deficit of $255
b.

a financing deficit of $36
c.

zero financing surplus or deficit
d.

a financing surplus of $255
e.

a financing surplus of $36

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 16 hours ago
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