Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2016 Actual Results 2017 Initial Forecast Fixed operating costs except depreciation Netincome Earnings per share Gross profit Cost of gaads sold Earnings before taxes Dividends
2016 Actual Results 2017 Initial Forecast Fixed operating costs except depreciation Netincome Earnings per share Gross profit Cost of gaads sold Earnings before taxes Dividends per share Taxes Number of common shares (millions) Common dividends Net sales Earnings before interest and taxes Depreciation Addition to retained eamings Interest 950) $1,254 $63 $3,80D (15,200) $2,090 34 (836) 20.0 (677) $19,0D0 $2,470 (380) $577 (380) (1,140) 1,550 78 $4,560 (18,240) $2,584 34 (1,034) 20.0 (677) $22,800 $2,964 (456) $873 (380) which of the following are assumptions made by the initial income statement forecast? Check all that apply The fadility is currently operating at full capacity ged. No additional extemal financing will be required. The facility is not currently operating at full capacity The assigned depreciation method has chan The forecasted increase in net sales is 20%. Additional extemal financing will be required by Green Rabbit Transportation Inc. If Green Rabbit Transportation Inc. had neither a sufficient amount of excess capadity to handle forecasted increases in operations nor the level of retained eamings required to increase asset levels up to the necessary level for production, this difference would be referred to as which of the following forms? and could be acquired in additional financing needed alternative fiduciary necessities additional funds needed I. Issuing additional common stock II. Borrowing from a bank using nates payable III. Issuing long-term bonds O I only O I and II O I, II, and 1I O Just II O IIand III O Just
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started