Judd Enterprises
These Are the Simplified Financial Statements for Judd

question 36

Multiple Choice

Judd Enterprises
These are the simplified financial statements for Judd
Enterprises.
$\begin{array} { l r r } \text { Income statement } & \text { Current } & \text { Frojected } \\ \text { Sales } & \text { na } & 1,000 \\ \text { Costs } & \text { na } & \underline{720 }\\ \text { Profit before tax } & \text { na } & 280 \\ \text { Taxes } ( 25 \% ) & \text { na } & 70 \\ \text { Net income } & \text { na } & 210 \\ \text { Dividends } & \text { na } & 63 \end{array}$

$\begin{array} { l r r r r r } \text { Balance sheets } & \text { Current } & \text { Projected } && \text { Current } & \text { Projected } \\ \text { Current assets } & 100 & 115 & \text { Current } & 70 & 81 \\ \text { Net fixed assets } & 900 & 1,080& \text { liabilities } & \\ & & & \text { Long-term debt } & 400 \\ & & & \text { Common stock } & 300 \\ & & & \text { Retained } & 230\\&&&\text { earnings } \end{array}$ ?
-Refer to the Judd Enterprises financial statements.If Judd does not plan on issuing new stock or additional long-term debt, then what is the additional net financing needed for the projected year?

• A) $30
• B) $33
• C) $37
• D) $339
• E) $396

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