Q$5.$ Jefferson City Computers has developed a forecasting model to estimate its AFN for the upooming year. All else being equal, which of the following factors is most likely to lead to an increass of the additional funds needed $($AFN$)?$

a$.$ A sharp increase in its forecasted sales.

b$.$ A sharp reduction in its forecasted sales.

c$.$ The company reduces its dividend payout ratio.

Q$6,$ The capital intensity ratio is generally defined as follows:

a$.$ Sales divided by total assets, i$.$e$.,$ the total assets turnover ratio.

b$.$ The percentage of liabilities that increase spontaneously as a percentage of sales.

c$.$ The ratio of sales to current assets.

d$.$ The ratio of current assets to sales.

c$.$ The amount of assets required per dollar of sales, or $\frac{A_0^{**}}{S_0}.$