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user100 [1]
3 years ago
11

In the financial planning model external funds needed (efn) is equal to changes in

Business
2 answers:
notsponge [240]3 years ago
4 0

Answer:

Hi your question lacks the required options here is the complete question and options

In the financial planning model, the external financing needed (EFN) as shown on a pro forma balance sheet is equal to the changes in assets:

A. plus the changes in both liabilities and equity.

B. plus the changes in liabilities minus the changes in equity.

C. minus the change in retained earnings.

D. minus the changes in liabilities.

E. minus the changes in both liabilities and equity.

Answer : Changes in assets minus the changes in both liabilities and equity ( E )

Explanation:

The external financing needed is calculated by subtracting the the working capital needs of a company and the company expenditures from the net income of the company and this will help determine how much of external financing that the company will require.

Hence from the options listed the assets the changes in assets minus the changes in both liabilities and equity which is equivalent to the company's expenditure and net income of the company.

shtirl [24]3 years ago
3 0

Assets - (liabilities + equity)

<em>Hope this helps!</em>

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