1. 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