--%>
Assignment Help - homework help

Describe the importance of additional funds required

Describe the importance of the term additional funds required.

While 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 while either too little or too much financing is projected for the amount of asset growth expected.  The discrepancy is termed additional funds needed (AFN) while forecast assets exceed forecast liabilities and equity, and excess financing while forecast liabilities and equity exceed forecast assets.

 

   Related Questions in Finance Basics

  • Q : Marketing of hardware stores Normal 0

    Normal 0 false false

    		•
  • Q : Standard deviation of the portfolio If

    If a stock with a standard deviation of 7% is combined with a stock that has a standard deviation of 5%, what will the standard deviation of the portfolio be? A) 6%B) Greater than 6%C) Less than 6%D) There is not

    		•
  • Q : Describe the financial leverage effect

    Describe the financial leverage effect and what causes it? Explain the potential benefits and negative consequences of high financial leverage? Financial leverage is the additional volatility of overall income caused through the presence of fix

    		•
  • Q : Generalization Normal 0 false false

    Normal 0 false false

  • Q : Describe the risk-return relationship

    Describe the risk-return relationship.The relationship among risk and required rate of return is term as the risk–return relationship.  This is a positive relationship since the more risk assumed, the higher the required rate of retur

    		•
  • Q : State time dimensions State time

    State time dimensions of the income statement, the balance sheet, and the statement of cash flows?  Describe. The income statement is such as a video: This measures a firm's profitability on a period of time (that can be a week, a

    		•
  • Q : Inflationary expenditure gap or

    Normal 0 false false

  • Q : Fiscal policy Normal 0 false false

    Normal 0 false false

    		•
  • Q : What is Sinking Fund Sinking Fund : It

    Sinking Fund: It is a fund or account in which money is deposited at customary intervals to offer for the retirement of bonded debt.

    		•
  • Q : What are Authorized Positions

    Authorized Positions: As replicated in the Governor’s Budget (Expenditures by Category and modifications in Authorized Positions), corresponds with the “Total, Authorized Positions” illustrated in the Wages and Salaries.

    		•