Which of the following can be computed as: Necessary increase in assets minus spontaneous increase in liabilities minus projected increase in retained earnings?
A) additional funds needed
B) capital intensity ratio
C) current ratio
D) spontaneous assets

Question

Quizplus · Accepted Answer

The necessary increase in assets minus spontaneous increase in liabilities minus projected increase in retained earnings gives the amount of additional funds needed to finance a company's growth and expansion. This is commonly known as the additional funds needed (AFN).

Which of the Following Can Be Computed As: Necessary Increase