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:

Experience

The knowledge or skill acquired by a period of practical involvement in an activity.

Slippery Slope Fallacy

A logical fallacy in which a relatively small first step is assumed to lead to a chain of related events culminating in some significant effect, often with little evidence to support the connection.

Unrepresentative Sample

A sample that fails to accurately mirror the population from which it was drawn, potentially leading to skewed research findings.

Argument Form

The structure or pattern of reasoning used in making a logical argument.