When Constructing Pro Forma Financial Statements, Which of the Following

question 17

Multiple Choice

When constructing pro forma financial statements, which of the following equations can be used to estimate additional funds needed (AFN) ?

• A)Estimated AFN = Forecasted increase in assets + Forecasted increase in liabilities + Forecasted increase in retained earnings
• B)Estimated AFN = Forecasted increase in assets - Financing feedbacks + Forecasted increase in retained earnings
• C)Estimated AFN = Forecasted increase in assets - Financing feedbacks - Spontaneously generated funds
• D)Estimated AFN = Forecasted increase in liabilities + Financing feedbacks + Spontaneously generated funds
• E)Estimated AFN = Forecasted increase in assets - Forecasted increase in liabilities - Forecasted increase in retained earnings

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Definitions:

Production

The process of creating goods and services from various inputs like labor, land, and capital.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available for everyone to use without preventing others from using them as well.

Withheld

The act of holding back or keeping something from happening or being known.

Pays

A term that likely refers to the act of giving money in exchange for goods, services, or to fulfill obligations, but without additional context, it's too generic to define specifically.