For each statement, please indicate whether you agree or disagree with the statement (ie, true/false) and, in 1-3 sentences or a mathematical theorem, explain why you agree or disagree. If you think the statement is false, you can correct it to make it true. If the statement is true, use evidence or an example.

To determine the amount of additional funds needed (AFN), you may subtract the expected increase in liabilities, which represents a source of funds, from the sum of the expected increases in retained earnings and assets, both of which are uses of funds.