AFN Additional Funds Needed

When to arrange additional funds

1. AFN (Additional Funds Needed) Presented by Syed Faraz Rizvi

2. The Formula Method for Forecasting AFN(Additional Funds Needed) Forecasting is the iterative process both in way Financial Statements are generated & Financial plan is developed. First Construct Pro forma Income Statement & Balance Sheet.

3. The Formula Method for Forecasting AFN The AFN Formula This formula can be used to initial rough estimate of financial requirements:

4. The Formula Method for Forecasting AFN The AFN Formula defined as:

5. The Formula Method for Forecasting AFN

6. The Formula Method for Forecasting AFN

7. Inserting values, we find additional funds needed to be $118 million The Formula Method for Forecasting AFN

8. Raise the Additional Funds Needed The Formula Method for Forecasting AFN

9. Relationship Between Growth & Financial Requirements: The Formula Method for Forecasting AFN Financial Feasibility: Effect of dividend policy on financing needs.

10. Forecasting Financial Requirements When the Balance Sheet Ratios are Subject to Change Economies of Scale Lumpy Assets No optimal Starting point Ratios The Formula Method for Forecasting AFN

11. The Formula Method for Forecasting AFN

12. Excess Capacity Adjustments: The Formula Method for Forecasting AFN

13. The Formula Method for Forecasting AFN

14. The END Thank you AFN