Based on the AFN equation, the firm's AFN for the current year is $-$$$123,608.$

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 point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements.

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, Cold Duck Manufacturing Inc. is thinking about raising its dividend payout ratio to satisfy shareholders. Cold Duck could

pay out of its earnings to shareholders without needing to raise any external capital. $($Hint: What can Cold Duck increase its dividend payout ratio to before the AFN becomes positive?$)$