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u Search the Ch 17. Assignment. Prancial Planning and Forecasting Am Average/ 2. More on the APN (Additional Funds Needed) equation Bohemian Manufacturing Company reported sales of 720,000 at the end of last year, but this year, sales are expected to grow by 10% Bohemian obots to maintain is current profit margin of 21 and dividend payout ratio of 25%. The following information was taken from Bohemian's balance whe $450,000 Accounts payable $70,000 Notes payable 545,000 Acredits: 165,000 Based on the ArNequation, the firm's AFN for the current year is A positively signed in a represents A point at which the funds generated within the firm equal the demands for funds to finance the forms Future expected sales requirements Asurplus of internally generated funds that can be invested in physical or financial assets or paid out at aditional dividends A shortage of internal generated funds that must be raised outside the company to finance the company's forecasted future growth Because of its excess Funds, Bohemian Manufacturing Company is thinking about raising its dividend payout ratio to satisfy shareholders Bohemian could pay out of its earrings to holders without needing to raise any external capital (Hint: What can Bohemian increase is dividend payout ratio to before the APN becomes positive? Grade It Now Save & Continue Continue without saving