B. MULTIPLE CHOICE QUESTIONS For each question, select the best answer and write the letter of the response you have chosen in the blank preceding the question A__ 19. Jefferson City Computers has developed a forecasting model to determine the additional funds it needs in the upcoming year. All else being equal, which of the following factors is likely to increase its additional funds needed (AFN)? A. An increase in the firm's "Net Income.". B. A reduction in its dividend payout ratio. C. The company reduces its reliance on trade credit from its suppliers, which sharply reduces its "Accounts Payable." C_ 20. Considering each action independently and holding other things constant, which of the following actions would reduce a firm's need for additional capital? A. An increase in the dividend payout ratio. . A decrease in the profit margin. C. A decrease in the days sales outstanding" for Accounts Receivable. D. An increase in expected sales growth. E. A decrease in the accrual accounts (accrued wages and taxes). 21. for forecasting sales dollars is generally believed by finance theorists and researchers to produce the most reliable sales forecast A. Regression analysis (which can be calculated via the Excel LOGEST function) B. The compound annual growth rate (which may be calculated with the BA-II Plus calculator) C. The arithmetic average annual growth rate D. The Weighted Average Cost of Capital (WACC) method 22. Future sales for a firm may depend on each of the following EXCEPT A. prospects for the industry in which the firm operates B. the firm's current product line. C. the firm's marketing campaigns. D. the number of common stock shares which the firm has outstanding 23. Each of the following is an account that is assumed to increase proportionately with an increase in