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Deficit-budget or surplus-budget unit

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Reference no: EM132119130

Consider two computer companies - Orange and PH - that report current sales receipts of $323 million and $294 million, respectively. Their cur-rent operating expenses were $150 million each. Orange issued $5 million in new debt, while PH paid off a $6 million bank loan. What changes in financial assets must have occurred for each during the period? Were either or both a deficit-budget or surplus-budget unit? Explain.

Reference no: EM132119130

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