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Select the corresponding balance sheet based on the Projected P&L, assuming 50% debt financing , and a return on equity of 28% . Revenue $150,000
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Select the corresponding balance sheet based on the Projected P&L, assuming 50% debt financing, and a return on equity of 28%.
Revenue $150,000 Operating costs 98,000 Operating income $52,000 Interest expense 10,000 Taxable income $42,000 Taxes (21%) 8,820 Profit $33,180 Return on Equity 28% A
Assets
$150,000
Liabilities (i.e. Debt)
$75,000
Equity
$75,000
Total Liabilities + Equity
$150,000
B
Assets
$237,000
Liabilities (i.e. Debt)
$118,500
Equity
$118,500
Total Liabilities + Equity
$237,000
C
Assets
$300,000
Liabilities (i.e. Debt)
$150,000
Equity
$150,000
Total Liabilities + Equity
$300,000
D
Assets
$118,500
Liabilities (i.e. Debt)
$0
Equity
$118,500
Total Liabilities + Equity
$118,500
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