What is the total amount of funding that management will nee

What is the total amount of funding that management will need to raise through discretionary sources in order to support the projected sales of ST0 million if the company has projected total assets to be $90 million, total liabilities to be S42 million, and stockholders equity to be $20 million? projected

Solution

Discreationary Funding Need

= Projected total assets - Projected total liabilities - Stock holders equity

= 90 million - 42 million - 20 million

= $28 million

Thus, the management will need $28 million.