Several factors affect a firms 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 firms need for external capitalthat is, its AFN (additional funds needed). Check all that apply.

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 firms forecasted sales are unexpectedly increased.

The firm improves its production system and increases its profit margin.