Which of the following is the correct method of determining discretionary financing needed (DFN)?
A) Projected change in assets, divided by projected change in liabilities, plus projected change in owner's equity
B) Projected change in assets, times projected change in owner's equity, minus projected change in liabilities
C) Projected change in owner's equity, minus projected change in liabilities, plus projected change in assets
D) Projected change in assets, minus projected change in liabilities, minus projected change in owner's equity

Question

Quizplus · Accepted Answer

Discretionary Financing Needed (DFN) is calculated by taking the projected change in total assets and subtracting both the projected change in liabilities and the projected change in owner's equity. This formula helps in determining the additional financing needed or surplus funds a company will have after financing its projected growth.

Which of the Following Is the Correct Method of Determining