Question
When constructing pro forma financial statements, which of the following equations can be used to estimate additional funds needed (AFN)? A. Estimated AFN = Forecasted
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 feedbacksSpontaneously generated funds
D. Estimated AFN = Forecasted increase in assets Forecasted increase in liabilities Forecasted increase in retained earnings
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