Jefferson City Computers has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal which of the following factors
is most likely to increase its additional funds needed (AFN)?
A. A sharp increase in its forecasted sales.
B. A sharp reduction in its forecasted sales.
C. The company reduces its dividend payout ratio.
D. The company decides to switch its materials purchases to a supplier that sells on terms of 1/5 net 90 from a supplier whose terms are 3/15 net 35.
E. The company discovers that it has excess capacity in its fixed assets.