2. More on the AFN (Additional Funds Needed) equation Fuzzy Button Clothing Company reported sales of $890,000 at the end of last year, but this year, sales are expected to grow by 9%. Fuzzy Button expects to maintain its current profit margin of 24% atid dividend payout ratio of 20%. The following information was taken from Fuzzy Button's balance sheet: Based on the AFN equation, the Tirm's AFN for the current year is A positively signed AFN value represents: A point at which the funds generated within the lirm equal the demands for funds to finance the lim's future expected sales requirements. A shortage of internally generated funds that must be raised outside the company to linance 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. Because of its excess funds, Fuzzy Buttont Clothing Company is thinking about raising its dividend payout ratio to satisfy shareholders. Fuzzy Button could pay out of its earnings to shareholders without needing to raise any external capital. (Hint: What can Fuzzy Button increase its dividend payout ratio to before the AFN becornes positive?)