Several factors affect a firm's need for external funds. Evaluate the effect of each following factor and place a check next to each factor that is likely to increase a firm's need for external capital-that is, its AFN (additional funds needed). Check all that apply. O The firm previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity. O The firm switches its supplier for the majority of its raw materials. The new supplier offers less favorable credit terms and thus reduces the trade credit available to the firm, resulting in a reduction in accounts payable. The firm's forecasted sales are unexpectedly increased. Tolbotics Inc. has seen its profit margin eroded by increased competition over the last year, but its sales have remained steady. Assuming everything else is held constant, will this affect the firm's AFN? O No, the firm's AFN will not be affected, because the firm's sales have remained constant. O Yes, the decrease in profit margin will affect the firm's AFN even though its sales have remained constant