Question: . 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

 . 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 6%. Fuzzy Button

. 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 6%. Fuzzy Button expects to maintain its current profit margin of 23% and dividend payout ratio of 25%. The following information was taken from Fuzzy Button's balance sheet: Total assets: Accounts payable: Notes payable: Accrued abilities: $400,000 $70,000 $35,000 $75,000 Based on the equation, the firm's AFN for the current year A negatively signed AFN value represents: -$147,437 A point at which the funds generated within the firme requirements -5176,924 bds for funds to finance the firm's future expected sales -$132,693 A shortage of inter e sted funds that must be - 5169.553 the company to finance the company's forecasted future growth A do 11:51 AM Based on the AFN equation, the firm's AFN for the current year is A negatively-signed AFN value represents: 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 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 Button 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 becomes positive?) negatively-signed AFN value represents: A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales regu 88.3 As pf internally generated funds that must be raised outside the company to finance the company's forecasted future growth 69.7 As internally generated funds that can be invested in physical or financial assets or paid out as additional dividends 83.6 Because of its Junds, Fuzzy Button Clothing Company is thinking about raising its dividend payout ratio to satisfy shareholders. Fuzzy Butte 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 becomes positive

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