PPT Slide
- Forecasted assets = $1,250 (no change)
- Forecasted claims = $1,244 (higher)
- 2nd pass AFN = $ 6 (short)
- Cumulative AFN = $179 + $6 = $185.
- The $6 shortfall came from the $6 reduction in retained earnings. Additional passes could be made until assets exactly equal claims. $6(0.08) = $0.48 interest on 3rd pass.
Results After the Second Pass