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Question: Brandywine Clinic (a not-for-profit provider) has the following balance sheet (in millions):

Cash $20 Accounts payable $20

Receivables 20 Notes payable 40

Inventory 20 Long-term debt 80

Plant/Equipment180 Equity (fund) capital100

Total assets $240

Total claims $240

Revenues for the past year were $400, and fixed assets were used at 100 percent of capacity. Revenues are expected to grow by 10 percent in the coming year, and the clinic is expected to have a 2 percent profit margin. What is the clinic's forecasted external financing requirement (in millions)?

- $13.2 (surplus)

- $5.6 (surplus)

- $0

- $5.6

- $13.2

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  • Category:- Basic Finance
  • Reference No.:- M92595373

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