To 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

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To determine the amount of additional funds needed (AFN), you should subtract the sum of the expected increases in liabilities and retained earnings from the expected increase in assets. This is because assets and retained earnings represent uses of funds, while liabilities represent a source of funds.

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