LG Inc. has done a long-term forecast of its balance sheet. The projected total assets for the next year are $100 million. The current liabilities are projected to be $40 million and other long term liabilities are $30 million. How much net new financing is needed in the following year?
A) $18 million
B) $22 million
C) $25 million
D) $30 million

Question

Quizplus · Accepted Answer

D) Net new financing = Projected amount of Total Assets - (Current + Long Term Liabilities).
Net new financing = $100 - ($40 + $30) = $30 million

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