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
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 clinics forecasted external financing requirement (in millions)? -$13.2 (surplus) -$5.6 (surplus) $0 $5.6 $13.2
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