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

question 4

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

---

Definitions:

Human Nature

The natural traits, encompassing modes of thought, emotion, and behavior, presumed to be common among all humans.

Aggression

Behavior aimed at causing harm or pain to others, which can be physical or verbal, and motivated by various factors including anger or frustration.

Life Instincts

The drive for ensuring survival of the individual and the species by satisfying the needs for food, water, air, and sex.

Death Instincts

The unconscious drive toward decay, destruction, and aggression.