11. Projected financial statements and basic analysis You are the most creative analyst for Black Sheep Broadcasting Company, and your admirers want to see you work your analytical magic once more. 2016 Actual Results 2017 Initial Forecast Interest (400) (400) Fixed operating costs except depreciation (1,100) (1,000) $4,000 Gross profit $4,400 Earnings per share $66 $74 Earnings before interest and taxes $2,600 $2,860 Depreciation (400) (440) Common dividends (713) (713) Addition to retained earnings $607 $763 Net sales $20,000 $22,000 Taxes (880) (984) Number of common shares (millions) 20.0 20.0 Net income $1,320 1,476 Earnings before taxes $2,200 $2,460 Dividends per share $36 $36 Cost of goods sold (16,000) (17,600) Which of the following are assumptions made by the initial income statement forecast? Check all that apply. Spontaneously generated funds will sufficiently cover any financing needs. Black Sheep Broadcasting Company will be issuing additional shares of common stock in the coming year. The cost of sales percentage for Black Sheep Broadcasting Company will decrease due to economies of scale. No excess capacity currently exists. The forecasted increase in net sales is 10%. O Black Sheep Broadcasting Company will be issuing additional debt in the coming year. If Black Sheep Broadcasting Company had neither a sufficient amount of excess capacity to handle forecasted increases in operations nor the level of retained earnings required to increase asset levels up to the necessary level for production, this difference would be referred to as and could be acquired in which of the following forms? additional financing needed alternative fiduciary necessities stock additional funds needed ng notes payable added fair needs If Black Sheep Broadcasting Company had neither a sufficient amount of excess capacity to handle forecasted increases in operations nor the level of retained earnings required to increase asset levels up to the necessary level for production, this difference would be referred to as and could be acquired in which of the following forms? I. Issuing additional common stock II. Borrowing from a bank using notes payable III. Issuing long-term bonds O Just II O I only O Just III I, II, and III O I and II O II and