Discretionary financing needed is equal to total financing needed or pro forma total assets, less projected sources of financing.

Question

Quizplus · Accepted Answer

Discretionary financing needed is the amount of financing a company needs beyond what it expects to generate from operations and other regular sources. It is calculated as the total financing or funds needed (often represented by pro forma total assets) minus the projected internal sources of financing (like retained earnings or increases in current liabilities).

Discretionary Financing Needed Is Equal to Total Financing Needed or Pro