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

question 50

Multiple Choice

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
• E)$10 million

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Definitions:

Accessibility

In psychology, it refers to the ease with which information can be retrieved from memory; in general, it describes how readily available or obtainable something is.

Association

A connection or relationship between thoughts, ideas, people, or objects, which may be formed through experiences or cognitive processes.

Schema

A cognitive framework that organizes and interprets information in the brain, influencing perception and understanding.

Storytelling Bias

The tendency to interpret, remember, and predict events in a narrative format, often overlooking statistical or factual information.