A firm has prepared the coming year’s pro forma balance sheet resulting in a plug figure in a preliminary statement—called the external financing required—of $230,000. The firm should prepare to
A. repurchase common stock totaling $230,000.
B. arrange for a loan of $230,000.
C. do nothing; the balance sheet balances.
D. invest in marketable securities totaling $230,000.
Answer:B
A firm has prepared the coming year’s pro forma balance sheet resulting in a plug figure in a preliminary statement—called the external financing required—of $230,000. The firm should prepare to
A. repurchase common stock totaling $230,000. B. arrange for a loan of $230,000. C. do nothing; the balance sheet balances. D. invest in marketable securities totaling $230,000.