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You have prepared a set of projections for your new startup and you have an additional funds needed (AFN) line item on your balance sheet.

You have prepared a set of projections for your new startup and you have an additional funds needed (AFN) line item on your balance sheet. You determine that next year's AFN has a negative balance. What does this indicate?

Your business is projected to generate excess cash

Your business will require additional funds to support growth

You have made a mistake in your calculations

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