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Why does ice float and why is this important for life in our ocean?
Long-term Debt
Borrowings or financial obligations that are due to be repaid over a period longer than one year.
Pro Forma Financial Statements
Financial statements based on hypothetical scenarios or assumptions about the future of a business.
Spontaneously Generated Funds
Funds generated if a liability account increases spontaneously (automatically) as sales increase. An increase in a liability account is a source of funds; thus, funds have been generated. Two examples of spontaneous liability accounts are accounts payable and accrued wages. Note that notes payable, although a current liability account, is not a spontaneous source of funds since an increase in notes payable requires a specific action between the firm and a creditor.
AFN Formula
Additional Funds Needed formula, a financial tool used to estimate the additional amount of financing a firm will require in the future.
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