What should you conclude if for the 20x4 fiscal Wally, Inc. has Cash after Debt Amortization (CADA) of $100,000 and Total Long-term Investment of $125,000.

1) The firm had a financiping surplus of $25,000 for the 20x4 fiscal year.

2) The firm had a financing requirement of $25,000 for the 20x4 fiscal year.

3) The firm had a financing surplus of $225,000 for the 20x4 fiscal year.

4) The firm had a financing requirement of $225,000 for the 20x4 fiscal year.

(I personally believe this answer is (2). The text reads: Financing surplus (requirement) is the result of subtracting fixed asset expenditures and other long-term investments from CADA. This measures either the magnitude of excess cash generated beyond all needs of the business, or the amount of external financing needed. Do you disagree or agree? Why? I posted this question earlier and an "expert" said it was anser (3)).