Question: 3. More on the AFN (Additional Funds Needed) equation Aa Aa Green Moose Industries reported sales of $720,000 at the end of last year, but

 3. More on the AFN (Additional Funds Needed) equation Aa Aa

3. More on the AFN (Additional Funds Needed) equation Aa Aa Green Moose Industries reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 6%. Green Moose expects to maintain its current profit margin of 22% and dividend payout ratio of 30%. The following information was taken from Green Moose's balance sheet: $475,000 Total assets: Accounts payable $75,000 Notes payable $30,000 Accrued liabilities: $75,000 Based on the AFN equation, the firm's AFN for the current year is A positively 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 0 A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements O A shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth Because of its excess funds, Green Moose Industries is thinking about raising its dividend payout ratio to satisfy shareholders. Green Moose could pay out external capital. (Hint: What can Green Moose increase its dividend payout ratio to before the AFN becomes positive?) of its earnings to shareholders without needing to raise any

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