Long-Term Financing Need for Huffman Trucking

June 23, 2014
FIN / 486

Long-Term Financing Needs for Huffman Trucking The recent economy gives light unto high need for future preparations and budgeting for a successful company to succeed. Huffman Trucking has taken the initiative to evaluate its previous years and analyze its data in order to project a steadily growing success in its near and long sight future. Huffman has continued to grow over the years with wisely thought out acquisitions and continued exemplary customer service. The company sees its future by creating a new direction with its financial and strategic planning as well as being a major leader in the competitive trucking industry. Marketing research evaluating customer’s needs was at the forefront of this development providing Huffman with opportunities for additional growth. The External Financing Needs, or a shorter version known as EFN, expresses the amount of difference between the company’s assets and its liabilities. This equation is the amount referred to in order to make the balance sheet accurately balance. On the balance sheet for Huffman Trucking (below), the net income is slightly off in numbers. In order for Huffman to balance these numbers out, they will need to secure EFN. To calculate this equation the liabilities are subtracted from the assets.

Balance Sheet | December 2011 2010 | Assets | Current Assets | Cash | $51,993 | $38,893 | Accounts Receivable | 56,292 | 57,441 | Prepaid Expenses | 3,443 | 3,343 | Total Current Assets | $111,728 | $99,677 | | Operating Costs | $73,024 | $70,957 | Depreciation | (57,536) | (55,477) | Net Operating Costs | $15,488 | $15,480 | Discount Operations | 16,192 | 18,891 | Goodwill | 57,767 | 53,977 | Other | 26,613 | 24,194 | Total Assets | $227,788 |