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

question 16

Multiple Choice

LG Inc. has done a long-term forecast of its balance sheet. The projected total assets for the next year are $200 million. The current liabilities are projected to be $100 million and other long term liabilities are $70 million. How much net new financing is needed in the following year?

• A) $18 million
• B) $22 million
• C) $25 million
• D) $30 million

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Definitions:

Grasping

The action of taking hold of something firmly with the hands or utilizing tools to obtain or gather something.

Cutting

The act of making an incision or dividing materials into parts using a sharp tool.

Dilating/probing

The act of expanding or opening wider a body part, often combined with an examination to explore or investigate.

Jewelry

Decorative items worn for personal adornment, such as rings, earrings, bracelets, and necklaces, often made of precious metals and stones.