Decker Enterprises
Below Are the Simplified Current and Projected Financial

question 5

Multiple Choice

Decker Enterprises
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 li abilities.
$\begin{array} { l c r } \text { Income statement } & \text { Current} & \text { Projected } \\ \text { Sales } & \text { na } & 1,500 \\ \text { Costs } & \text { na } & 1,080 \\ \text { Profit before tax } & \text { na } & 420 \\ \text { Taxes } ( 25 \% ) & \text { na } &\underline{ 105} \\ \text { Net income } & \text { na } & 315 \\ \text { Dividends } & \text { na } & 95 \end{array}$
$\begin{array} { l r r l r r } \text { Balance sheets } & \text { Current } & \text { Projected } & & \text { Current } & \text { Projected } \\ \text { Current assets } & 100 & 115 & \text { Current liabilities } & 70 & 81 \\ \text { Net fixed assets } & 1,200 & 1,440 & \text { Long-term debt } & 300 & 360 \\ & & & \text { Common stock } & 500 & 500 \\ & & & \text { Retained earnings } & 430 & 650 \end{array}$
-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

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The underlying foundation or framework of technologies (hardware, software, networks) that support and enable the delivery of information and services.

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Exerting influence or authority over others in a dominating or manipulating manner.

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An unpleasant emotion caused by the belief that someone or something is dangerous, likely to cause pain, or a threat.