The term "additional funds needed (AFN)" is generally defined as follows:   a. A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.     b. The amount of assets required per dollar of sales.     c. Funds that are obtained automatically from routine business transactions.     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. 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.

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A:

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.