Carlsbad Corporation's sales are expected to increase from $5 milion in 2016 to $6 million...
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Carlsbad Corporation's sales are expected to increase from $5 milion in 2016 to $6 million in 2017 , or by 20%. Its assets totaled $5 million at the end of 2016 . Cartsbad is at full capacty, so its assets must grow in proportion to projected sales. At the end of 2016 , current labalities are $1 milion, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued libilties. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 45%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 millon should be entered as 5,000,000, Round your answer to the nearest cent. 4 Now assume the company's assets totaled $3 million at the end of 2016. is the compary's "capital intensity" the same or dfferent comparing to initial situation
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