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 increase?
A. The company increases its dividend payout ratio.
B. The company begins to pay employees monthly rather than weekly.
C. The company's profit margin increases.
D. The company decides to stop taking discounts on purchased materials.
E. The company previously thought its fixed assets were being operated at full capacity, but now it learns that it actually has excess capacity.
Answer: A
You might also like to view...
The control of projects involves close monitoring of which of the following?
A) resources B) costs C) quality D) budgets E) all of the above
GAAP and IFRS convergence will lead to:
A. the end of the FASB B. the blending of GAAP and IFRS standards C. decreased role for the AICPA D. less costly processes for financial reporting
Consider the Demand for Microwave Ovens data set. What is the total demand corresponding to random numbers 88, 63, 57, 79, 38, and 18?
A. 13
B. 14
C. 15
D. 16
Grocery store owners are required to periodically sweep their floors to protect customers
Indicate whether the statement is true or false