Question

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 now financing is needed in the following year? A. $30 million B. $22 million C. $25 million D. $18 million

Answer 1

Financing needed will be $30 million

So option (a) will be the correct answer

Step-by-step explanation:

We have given projected total assets = $200 million

Current liabilities = $100 million

Long term liabilities = $70 million

We have to find the financing need in this year

We know that financing needed is given by

Financing needed = total assets - current liabilities - long term liabilities = $200 - $100 - $70 = $30 million

So option (a) is correct answer