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	1,080
Profit before tax	na	420
Taxes (25%)	na	105
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. borrowing from its retained earnings

b. reducing its dividend.

c. issuing more common stock.

d. borrowing on its line of credit.

e. paying a special dividend

Answer rating: 100% (QA)

Income statement Current Projected Sales na 1500 Costs na 1050 Profit before tax na 450 Taxes na 13... View the full answer