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) 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 clinics forecasted external financing requirement (in millions)?
-$10 (surplus)
-$5 (surplus)
$0
$5
$10
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