Question
Greenwood clinic (a not for profit provider) has the following balance sheet (in millions) Cash $20, Receivables $20, Inventory $20, Plant/Equip $180 - Total Assets
Greenwood clinic (a not for profit provider) has the following balance sheet (in millions)
Cash $20, Receivables $20, Inventory $20, Plant/Equip $180 - Total Assets - $240
Accounts Payable $20, Notes payable $40, Lont-term debt $80, Equity (fund) capital $100 - Total Claims $240
Revenues for the past 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)?
1) -$13.2 (Surplus)
2) -5.6 (Surplus)
3) $0
4) $5.6
5) $13.2
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