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Green Moose Industries reported sales of $890,000 at the end of last year, but this year, sales are expected to grow by 8%. Green Moose

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Green Moose Industries reported sales of $890,000 at the end of last year, but this year, sales are expected to grow by 8%. Green Moose expects to maintain its current profit margin of 21% and dividend payout ratio of 20%. The following information was taken from Green Mouse's balance sheet: Total assets: $100,000 Accounts payable: $75,000 Notes payable: $30,000 Accrued liabilities: $80,000 Based on the AFN equation, the firm's AFN for the current year is -$170,258 A positively signed AFN value represents: -$163,164 A shortage of internally generated funds that must be the company to finance the company's forecasted future growth. -$134,788 A surplus of internally generated funds that can be inve al or financial assets or paid out as additional dividends. $141,882 A point at which the funds generated within the firm el Jads for funds to finance the firm's future expected sales 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 invested in physical or financial assets or paid out as additional dividends. A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements. outside the company to finance the company s forecasted future growth. 85.8% purplus of internally generated funds that can be invested in physical or financial assets or paid out as additional dividends. 90.3% Joint at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales 67.7% Juirements. 76.8% Bec out excess funds, Green Moose Industries is thinking about raising its dividend payout ratio to satisfy shareholders. Green Moose could pay of its earnings to shareholders without needing to raise any external capital.(Hint: What can Green Moose increase its dividend payout ratio to before the AFN becomes positive?)

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