Estimating the Additional Funds Needed (Afn) for Corporate Growth: A Contingency Planning Approach

Has there been a Change in the Need for Additional Funds due to Covid 19? Influencing Factors

“…The previous finding on planned growth rate in sales is significantly different in fact. Thus, the additional investment in the buildings and equipment or inventories namely by capital intensity is not necessarily to increases spontaneous accounts receivable or accounts payable (Dondeti et al, 2021). Thus, H2 Current Liabilities are rejected.…”

“…AFN was increased during the study period so the firms have to reduce the AFN, dividend payout ratio, plant capacity and in order to increase the retained earnings and profit margin (Sivakumar, 2015). The higher the planned growth rate in sales, the larger is the amount of investment needed in the fixed and current assets for firms (Dondeti et al, 2021) but the additional investment in the buildings and equipment or inventories that namely by capital intensity is not necessarily increases spontaneous accounts receivable or accounts payable (Dondeti et al, 2021) and different evidence found that the additional funds give impact on disadvantaged people in Schools (Witte et al, 2017). Thus, H1 Capital Intensity is accepted.…”

“…The method of sales approach for financial forecasting actually is significant different in fact. The new model for forecasting additional funds using contingency planning approach and develop different estimates for current assets such as accounts receivable, and for current liabilities such as accounts payable, using probability distributions under different scenarios (Dondeti et al, 2021). Financial planning based on financial accounting evidence on household during social dictancing of covid-19 pandemic (Prasetyo, 2020).…”