Question: You construct a pro forma income statement and balance sheet in order to estimate the amount a company needs to borrow in the forthcoming period.

You construct a pro forma income statement and balance sheet in order to estimate the amount a company needs to borrow in the forthcoming period. If ______ are greater than _______ plus equity, this means the company needs to borrow money.

1)	Liabilities, assets

2)	Assets, liabilities

3)	Liabilities, income

4)	Assets, income

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