2. More on the AFN (Additional Funds Needed) equation Fuzzy Button Clothing Company reported sales of $820,000 at the end of last year; but this year; sales are expected to grow by 10%. Fuzzy Button expects to maintain its current profit margin of 24% and dividend payout ratio of 20%. The firm's total assets equaled $500,000 and were operated at full capacity. Fuzzy Button's balance sheet shows the following current liabilities: accounts payable of $80,000, notes payable of $40,000, and accrued tiabilibies of $75,000. Based on the AFN (Additional Funds Needed) equation, what is the firm's AFN for the coming year? $145,618 $166,421 $124,816 5138,684 A negatively-signed AFN value represents: A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. A point 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 companys forecasted future growth. Because of its excess funds, Fuzy Eutton is thinking about raising its dividend payout ratio to satisfy shareholders, What percentage of its eamings can fuzry Button poy to shareholders without needing to raise any external capital? (Wint: What can furzy Button increase its dividend payout ratbo to before the AFN becomes positive? 71.5% 58.9% 84,1% 67.3%