What is the clinic forecasted external financing requirement

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Reference no: EM131613664

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) capital 100

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 5 percent profit margin. What is the clinic’s forecasted external financing requirement (in millions)?

-$10 (surplus)

-$5 (surplus)

$0

$5

$10

Reference no: EM131613664

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