Question
A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must
A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. Which of the following conditions would cause the AFN to DECREASE? The company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity. The company increases its dividend payout ratio. The company begins to pay employees weekly rather than monthly. The company's profit margin decreases. The company decides to take discounts on purchased materials, paying suppliers sooner.
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