Green Moose Industries reported sales of $820,000 at the end of last year, but this year, sales are expected to grow by 10%. Green Moose Industries expects to maintain its current profit margin of 22% and dividend payout ratio of 10%. The following information was taken from Green Moose Industries's balance sheet:

Total Assets = $ 475,000

Accounts Payable = $ 70,000

Notes Payable = $ 40,000

Accrued Liabilities = $ 65,000

1. Based on the AFN equation, the firm's AFN for the current year is:

-$144,596

$ 151,826

$ 130,136

$ 180,745

2. 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 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 invested in physical or financial assets or paid out as additional dividends.

3. Because of its excess funds, Green Moose Industries is thinking about raising its dividend payout ratio to satisfy shareholders. Green Moose Industries could pay out 66.3% / 82.9% / 58.0% / 62.2% of its earnings to shareholders without needing to raise any external capital. (Hint: What can Green Moose Industries increase its dividend pay-out ratio to, before the AFN becomes positive?)

(Please reply for 3rd Q as well)