More on the Additional Funds Needed $($AFN$)$ equation

Cold Duck Manufacturing Inc. reported sales of $$720,000$ at the end of last year; but this year, sales are expected to grow by $8\%.$ Cold Duck expects to maintain its current profit margin of $20\%$ and dividend payout ratio of $25\%.$ The firm's total assets equaled $$400,000$ and were operated at full capacity. Cold Duck's balance sheet shows the following current liabilities: accounts payable of $$80,000,$ notes payable of $$25,000,$ and accrued liabilities of $$60,000.$ Based on the AFN $($Additional Funds Needed$)$ equation, what is the firm's AFN for the coming year?

$-$$$100,632$

$-$$$119,800$

$-$$$95,840$

$-$$$115,008$

A positively signed AFN value represents

a shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth.

$60\mathrm{.}6\%$ thich the funds generated within the firm equal the demands for funds to finance the firm's future expected sales $69\mathrm{.}3\%$ rents.

$86\mathrm{.}6\%$ s of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends.

Because

$73\mathrm{.}6\%$ pay out $86\mathrm{.}6\%$ ess funds, Cold Duck Manufacturing Inc. is thinking about raising its dividend payout ratio to satisfy shareholders. Cold Duck could payout ratio to before the AFN becomes positive?$)$