Consider an FSM using three D flip$-$flops. There are eight possible states associated with this arrangement: S$0,$ S$1,...,$ S$7.$ The FSM was designed assuming binary encoding of these states $($S$2$:$0=000$ for S$0,$ S$2$:$0=001$ for S$1,$ S$2$:$0=010$ for S$2,$ etc., where the S$-$bits are the current state variables$)$ with the next states given by the Boolean equations