2. More on the AFN (Additional Funds Needed) cquation Blue Elk Manufacturing reported sales of $720,000 at the end of last year, but this year, sales are expected to grow by 8%. Blue Elk expects to maintain its current profit margin of 24% and dividend payout ratio of 15%. The following information was taken from Blue Elks balance sheet: Based on the AFN equation, the firm's AfN for the current year is 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. A surplus of internally generated funds that can be irvested in physical or financial assets or paid out as additional dividendsi A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements. Because of its excess funds, Blue Hik Manufacturing is thinking about raising its dividend payout ratio to satisfy shareholders. Blue Elk could pay out of its eamings to shareholders without needing to raise any extemal capital, (1hint: What can Blue Elk increase its dividend payout ratio to before the AFN becomes positive?) Based on the AFN equation, the firm's AFN for the current year is A positively signed AFN value represents: A shortage of internally generated funds that must be r:$138,422 A surplus of internally generated funds that can be inve A point at which the funds generated within the firm eq requirements. A shortage of internally generated funds that must be raised outside the company to finance the compary's forecasted future growth. 68.5% A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. 85.6\% A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales 77,0% requirements. 59.9%% its exoess funds, Blue Elk Manufacturing is thinking about raising its dividend payout ratio to satisfy shareholders. Blue Eik could pay out of its earnings to shareholders without needing to raise any external capital,(Hint: What can Blue Elk increase its dividend payout ratio to before the AFN becomes positive?)