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.

Question

Quizplus · Accepted Answer

This statement is incorrect. To determine the AFN, you need to subtract the expected increase in assets from the expected increase in liabilities and equity.

Determine the Amount of Additional Funds Needed (AFN), You May