Broussard Skateboard's sales are expected to increase by 25% from $7 million in 2021 to $8.75 million in 2022. Its operating assets were $4 million at the end of 2021. Broussard is already:
A) Debt-free
B) Leveraged
C) Unprofitable
D) Insolvent

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Answer:

Based on the information provided, we only have information regarding Broussard Skateboard's sales increase and its operating assets. We don't have information regarding its debt or profitability.

However, we can infer that Broussard Skateboard is not insolvent, as its assets exceed its liabilities (no indication of debt or insolvency is provided).

Without additional information, we cannot determine whether Broussard is debt-free or leveraged, nor can we determine its profitability.

Therefore, based on the information given, the most accurate choice is:

A) Debt-free

Explanation:

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