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 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 clinic's forecasted external financing requirement (in millions)?
- $13.2 (surplus)
- $5.6 (surplus)
- $0
- $5.6
- $13.2