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Question

Judd Enterprises
These are the simplified financial statements for Judd Enterprises.
Income statement Current Projected
Sales na 1,000
Costs na 700
Profit before tax na 300
Taxes na 90
Net income na 210
Dividends na 63

Balance sheets Current Projected Current Projected
Current assets 100 115 Current liabilities 70 81
Net fixed assets 900 1,080 Long-term debt 400
Common stock 300
Retained earnings 230

Refer to the Judd Enterprises financial statements. If Judd does not plan on issuing new stock or additional long-term debt, then what is the additional net financing needed for the projected year?
a. $30 b. $33
c. $37 d. $339
e. $396

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