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    Aadditional funds needed (AFN)

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    The term "additional funds needed (AFN)" is generally defined as:

    A Funds that are obtained automatically from routine business transactions.
    B Funds that a firm must raise externally from non-spontaneous sources, i.e., through borrowing or by selling new stock, to support operations.
    C The amount of assets required per dollar of sales.
    D The amount of internally generated cash in a given year minus the amount of cash needed to acquire the new assets needed to support growth.
    E A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.

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    Solution Summary

    Response defines additional funds needed (AFN)