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More on the AFN (Additional Funds Needed) equation Fuzzy Button Clothing Company reported sales of dollar 820,000 at the end of last year, but this

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More on the AFN (Additional Funds Needed) equation Fuzzy Button Clothing Company reported sales of dollar 820,000 at the end of last year, but this year, sales are expected to grow by 8%. Fuzzy Button Clothing Company expects to maintain its current profit margin of 20% and dividend payout ratio of 20%. The following information was taken from Fuzzy Button Clothing Company's balance sheet: Based on the AFN equation, the firm's AFN for the current year is A positively signed AFN value represents: 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 A point at which the funds generated within the firm equal the demands for funds to finance the firm's future expected sales requirements

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