AHG Ltd Has Done a Long-Term Forecast of Its Balance

question 8

Multiple Choice

AHG Ltd has done a long-term forecast of its balance sheet. The projected total assets for the next year are $150 million. The current liabilities are projected to be $100 million and other long-term liabilities are $30 million. How much net new financing is needed in the following year?

• A)$25 million
• B)$20 million
• C)$10 million
• D)$32 million

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Definitions:

Postbox Rule

A legal principle that an offer is considered accepted once the acceptance is dispatched by the offeree, not when it is received by the offeror.

Elephant Garlic

A large, mild-flavored variety of garlic that resembles a bulb of leek rather than a true garlic.

Invitation to Treat

An invitation for parties to make an offer, which can then be accepted or rejected, not an offer itself.

Breach of Contract

The violation of any term or condition in a contract without lawful excuse.