The term "additional funds needed $($AFN$)"$ is generally defined as follows:

Option A

Funds that a firm must raise externally from non$-$spontaneous sources, i$.$e$.,$ by borrowing or by selling new stock to support operations.

Option B

The amount of assets required per dollar of sales.

Option C

A forecasting approach in which the forecasted percentage of sales for each balance sheet account is held constant.