Explain the significance of the term additional funds needed, Financial Management

Assignment Help:

Explain the significance of the term additional funds needed.

When the pro forma balance sheet is finished, total liabilities and total assets and equity will rarely match.  The discrepancy among forecasted assets and forecasted liabilities and equity results when either too much or too little financing is projected for the amount of asset growth expected.  The discrepancy is called as additional funds needed (AFN) when forecast assets go beyond forecast liabilities and excess financing and equity when forecast liabilities and equity exceed forecast assets.

 

 


Related Discussions:- Explain the significance of the term additional funds needed

Explain the benefit plan, Q. Explain the benefit plan? Cafeteria Plan -...

Q. Explain the benefit plan? Cafeteria Plan - A benefit plan maintained by an employer for benefit of the employees underwhich every participant has the opportunity to select t

Investing surplus cash, Investing Surplus Cash : Cash not required for temp...

Investing Surplus Cash : Cash not required for temporary periods of short durations can be invested in near-cash assets, i.e. marketable securities which are readily convertible in

Cash management and inventory management, I am facing some problems in my a...

I am facing some problems in my assignment of Cash Management and Inventory Management. Can anybody suggest me the proper explanation for it?

International markets, Explain the random walk model for exchange rate fore...

Explain the random walk model for exchange rate forecasting. Can it be consistent with technical analysis?

State the term nature of financial instruments, State the term nature of fi...

State the term nature of financial instruments. Nature of financial instruments (securities): Financial instruments (termed as securities) can be classifies in two broad

Agency policy theorem, How might management try to solve the problems foun...

How might management try to solve the problems found in agency theorem

Explain transaction exposure, How would you explain transaction exposure? H...

How would you explain transaction exposure? How is it different from economic exposure? Answer:Transaction exposure is the sensitivity of comprehend domestic currency values of

Operating cycle, discuss the applicability of operating cycle in poultry in...

discuss the applicability of operating cycle in poultry industry

What is the cash flows from financing activities, Cash flows from financing...

Cash flows from financing activities: Items included in this heading are: Cash receipts Cash payments Cash  receipts  from  iss

Venn diagram, d iscuss the relationship between finance management,economic...

d iscuss the relationship between finance management,economics,accounting, and mathematics. illustrate/show through a venn diagram

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd