The Term "Additional Funds Needed (AFN)" Is Generally Defined as Follows

question 19

Multiple Choice

The term "additional funds needed (AFN) " is generally defined as follows:

• A) funds that a firm must raise externally from non-spontaneous sources, i.e., by borrowing or by selling new stock to support operations.
• B) the amount of assets required per dollar of sales.
• C) the amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
• D) a forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.
• E) funds that are obtained automatically from routine business transactions.

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