Blue Elk Manufacturing reported sales of $775,000 at the end of last year; but this year, sales are expected to grow by 6%. Blue Elk expects to maintain its current profit margin of 21% and dividend payout ratio of 15%. The firm's total assets equaled $425,000 and were operated at full capacity. Blue Elk's balance sheet shows the following current liabilities: accounts payable of $65,000, notes payable of $30,000, and accrued liabilitie of $60,000. Based on the AFN (Additional Funds Needed) equation, what is the firm's AFN for the coming year? $128,638$122,206$135,070$160,798 A positively 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 soles requirementh, a surplus of intemally generated funds that can be invested in physical or financal assets or paid out as additional dividends. a shortage of intemaliy generated funds that must be raised outside the company to finance the company's forecasted future growth. Because of is excess funds, Blue Elk is thinking about rabing its dividend payout ratio to satisfy sharehoiders. What percenntage of its eamings can Bive tik pay to shareholders without needing to raise any exterhal copital? (Hint: What can Blue tik increase its dividend payout ratio to befoce the ANN becomes positive? A positively 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 surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. a shortage of internally generated funds that must be raised outside the company to finance the company's forecasted future growth. Because of its excess funds, Blue Elk is thinking about raising its dividend payout ratio to satisfy shareholders. What percentage of its earnings can Blue Elk pay 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?) 62.7 89.6 80.6 67.2