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

question 10

Multiple Choice

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

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Definitions:

Brokers

Intermediaries that facilitate buying and selling of securities, commodities, or other financial instruments for a commission.

Proprietorship

A business entity owned and run by one individual where there is no legal distinction between the owner and the business.

Taxed

Subjected to a financial charge or levy by a governmental authority on income, property, or sales.

Liabilities

Obligations that a company owes to outside parties, typically consisting of loans and accounts payable.