You are estimating your company's external financing needs for the next year.At the end of the year you expect that owners' equity will be $80 million,total assets will amount to $170 million,and total liabilities will be $70 million.How much will your firm need to borrow,or otherwise acquire,from outside sources during the year?
A) $20 million
B) $70 million
C) $150 million
D) $160 million
E) $180 million
F) None of the above.

Question

Quizplus · Accepted Answer

External financing needs = Total assets - (Owners' equity + Total liabilities)= $170 million - ($80 million + $70 million)= $20 million

You Are Estimating Your Company's External Financing Needs for the Next