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Carisbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $6 million

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Carisbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $6 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019 , current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued llabilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio is 40%. Use the AFN equation to forecast Carisbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar. Now assume the company's assets totaled $4 million at the end of 2019. Is the company's "capital intensity" the same or different comparing to initial situation

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