Cadbury plc is a global confectionery company. Cadbury is forecasting its financial statements for Year 5. Selected financial information for Year 4 is provided in the table
What is the long term debt, the plug variable, amount for the forecasted year? To forecast accounts payable use the percentage of sales method based on Year 4 figures. Assume that no dividends are paid in Year 5.
Selected Financial Information
Cadbury plc Year 4 (£ millions)
Year 4 Forecast
Revenue £4,022 £5,802
Net Income £393 £528
TOTAL ASSETS 8,895 10,275
LIABILITIES AND STOCKHOLDERS' EQUITY
Short Term Debt 1,189 1,189
Accounts payable 1,551
Total Current Liabilities 2,740
Long Term Debt 1,973
Other Liabilities 648 648
Total Liabilities 5,361
Shareholders' Equity
Common Stock 1,036 1,036
Retained Earnings 2,498
Total Shareholders' Equity 3,534
Total Liabilities & Shareholders' Equity 8,895
A) £1,259
B) £1,397
C) £1,530
D) £2,027
E) £2,138
E