LG Inc.has done a long-term forecast of its balance sheet.The projected total assets for the next year are $200 million.The current liabilities are projected to be $100 million and other long-term liabilities are $70 million.How much net new financing is needed in the following year?
A)$18 million
B)$22 million
C)$25 million
D)$30 million
E)$27 million

Question

Quizplus · Accepted Answer

To calculate the net new financing needed, we need to subtract the projected liabilities from the projected assets.

Net new financing needed = Projected Total Assets - Projected Current Liabilities - Other Long-term Liabilities
= $200 million - $100 million - $70 million
= $30 million

Therefore, the best choice is D.

LG IncHas Done a Long-Term Forecast of Its Balance Sheet