5. 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 reduced 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 3/14, net 35.

e. The company discovers that it has excess capacity in its fixed assets.