Granger Inc.has done a long-term forecast of its balance sheet.The current liabilities are projected to be $25 million and other long-term liabilities are $10 million.If the firm expects to need $8 million in net new financing,what are the projected total assets?
A)$43 million
B)$23 million
C)$27 million
D)$7 million
E)$35 million

Question

Quizplus · Accepted Answer

The projected total assets are calculated by adding the current liabilities, other long-term liabilities, and the net new financing needed. So, $25 million (current liabilities) + $10 million (other long-term liabilities) + $8 million (net new financing) = $43 million.