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    AFN Formula

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    What would happen to AFN if:

    (1) sales increase
    (2) profit margin increases
    (3) suppliers are paid on delivery rather than a 30 day delay
    (4) dividend payout ratio is increased
    (5) the company begins to sell on credit (previously all sales have been cash)

    © BrainMass Inc. brainmass.com October 10, 2019, 12:49 am ad1c9bdddf
    https://brainmass.com/business/accounting/afn-formula-309105

    Solution Preview

    What would happen to AFN if:

    (1) sales increase - AFN will reduce due to increase in Retained earnings
    (2) profit margin ...

    Solution Summary

    The response discusses AFN Formula.

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