LG Inc. has done a long-term forecast of its balance sheet. The projected total assets for the next year are $300 million. The current liabilities are projected to be $170 million and other long term liabilities are $70 million. How net new financing is needed in the following year?
A) $58 million
B) $60 million
C) $65 million
D) $70 million

Question

Quizplus · Accepted Answer

B) Net new financing = Projected amount of Total Assets - (Current + Long-term Liabilities)
Net new financing = $300 - ($170 + $70) = $60 million

LG Inc Has Done a Long-Term Forecast of Its Balance Sheet