2. More on the AFN (Additional Funds Needed) equation Cold Duck Manufacturing Inc. reported sales of $775,000 at the end f last year, but this year, sales are expected to grow by 9%. Cold Duck expects maintain its current profit margin of 24% and dividend payout ratio of 25%. The following information was taken from Cold Duck's balance sheet: Total assets $425,000 Accounts payable: $75,000 Notes payable $30,000 Accrued liabilities: $80,000 Based on the AFN equation, the firm's AFN for the current year is positively signed AFN value represents A Doint at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements. A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth. A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends Based on the AFN equation, the firm's AFN for the current year is A positively signed AFN value represents A point at which the funds qenerated within the firm equal the demands for funds to finance the firm's future expected sales requirements. A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth A surplus of internally generated funds that can be invested physical or financial assets or paid out as additional dividends. Because of its excess funds, Cold Duck Manufacturing Inc. is thinking about raising its dividend payout ratio to satisfy shareholders. Cold Duck could of its earnings to shareholders without needing to raise any external capital.(Hint: What can Cold Duck increase its dividend pay out payout ratio to before the AFN becomes positive?)