2. Problem 16.02 Click here to read the eBook: The AFN Equation AFN EQUATION Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $5 million at the end of 2016. Carlstad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current abilities are $1 million consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 7%, and the forecasted retention ratio is 35%. Use the An equation to forecast Carlsbad'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 cont. $ Now assume the company's ostets totaled $3 million at the end of 2016, Is the company's capital intensity the same or different comparing to initial situation? -Select