Fuzzy Button Clothing Company reported sales of $743,000 at the end of last year, but this year, sales are expected to grow by 10%. Fuzzy Button expects to maintain its current profit margin of 21% and dividend payout ratio of 30%. The following information was taken from Fuzzy Buttons balance sheet:

Total assets:	$500,000
Accounts payable:	$70,000
Notes payable:	$40,000
Accrued liabilities:	$75,000

Based on the AFN equation, the firms AFN for the current year is a.-$76,179 b.-$84,643 c.-$93,107 d.-$105,804

A positively signed AFN value represents:

a. A shortage of internally generated funds that must be raised outside the company to finance the companys forecasted future growth.

b. A surplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends.

c. A point at which the funds generated within the firm equal the demands for funds to finance the firms future expected sales requirements.