For the next fiscal year, Kramer Corporation is forecasting net income to be $20 millions and ending assets to be $259 millions. The firm mantains a payout ratio of 70%. Kramers beginning stockholders equity is $148 millions and their beginning total liabilities are $95 millions. Kramers non-debt liabilities such as accounts payable are forecasted to increase by $14 millions. Using the percent sales method, is Kramer Co. predicting to have a surplus or a deficit next year, and how much is it?

Group of answer choices

A) Deficit of $21.90 millions

B) Surplus of $16.00 millions

C) Surplus of $4.00 millions

D) Surplus of $20.00 millions