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 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 If Decker had a financing surplus, it could remedy the situation by a. reducing its dividend. b. borrowing on its line of credit. c. borrowing from its retained earnings d. paying a special dividend e. issuing more common stock.

Decker Enterprises

If Decker had a financing surplus, it could remedy the situation by

d. paying a special dividend

Explanation:

a) Data and Calculations:

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

Retained earnings na       220

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

Total                     $1,300 $1,555       Total                  $1,300   $1,591

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answer///a coalition;