apital that it must raise.  Which of the following conditions would cause the AFN to DECREASE? Group of answer choices: The company begins to pay employees weekly rather than monthly. The company decides to take discounts on purchased materials. The company’s profit margin increase

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?
Group of answer choices:
The company begins to pay employees weekly rather than monthly.
The company decides to take discounts on purchased materials.
The company’s profit margin increases.
The company learns that it has no excess capacity.
The company increases its dividend payout ratio.
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