Question: Refer to Problem 12-1.What would be the additional funds needed if the company's yearend 2016 assets had been $7 million? Assume that all other numbers,

Refer to Problem 12-1.What would be the additional funds needed if the company's yearend 2016 assets had been $7 million? Assume that all other numbers, including sales, are the same as in Problem 12-1 and that the company is operating at full capacity. Why is this AFN different from the one you found in Problem 12-1? Is the company's "capital intensity" ratio the same or different?

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