More on the AFN equation

Input Inc. reported sales of $$775,000$ at the end of last year, but this year, sales are expected to grow by $7\%.$ Input Inc. expects to maintain its

current profit margin of $24\%$ and dividend payout ratio of $30\%.$ The following information was taken from Input Inc.$\text{'}$s balance sheet:

Based on the additional funds needed $($AFN$)$ equation, the firm's AFN for the past year is

A positive 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

Because of its excess funds, Input Inc. is thinking about raising its dividend payout ratio to satisfy shareholders. Input Inc. could pay out

of its earnings to shareholders without needing to raise any external capital. $($Hint: What can Input Inc. increase its dividend payout

ratio to before the AFN becomes positive?$)$