The term "additional funds needed (afn)" is generally defined as follows:
a. 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.
b. the amount of assets required per dollar of sales.
c. a forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.
d. funds that a firm must raise externally from non-spontaneous sources, i. e., by borrowing or by selling new stock, to support operations.
e. funds that are obtained automatically from routine business transactions.