2016 Actual Results Net sales 2017 Initial Forecast $24,700 (19,760) $4,940 Cost of goods sold Gross profit Fixed operating costs except depreciation Depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes Net income Common dividends Addition to retained earnings Earnings per share Dividends per share Number of common shares (millions) $19,000 (15,200) $3,800 (950) (380) $2,470 (380) $2,090 (836) $1,254 (677.16) $576.84 (1,235) (494) $3,211 (380) $2,831 (1,132.4) 1,698.6 (677.16) $1,021.44 $62.2 $84.93 $33.858 $33.858 20.0 20.0 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The cost of sales percentage for Saltwater Logistics Corp. will decrease due to economies of scale. No excess capacity currently exists. Saltwater Logistics Corp. will be issuing additional shares of common stock in the coming year. Saltwater Logistics Corp. will be issuing additional debt in the coming year. Spontaneously generated funds will sufficiently cover any financing needs. The forecasted increase in net sales is 30%. No excess capacity currently exists. Saltwater Logistics Corp. will be issuing additional shares of common stock in the coming year. Saltwater Logistics Corp. will be issuing additional debt in the coming year. Spontaneously generated funds will sufficiently cover any financing needs The forecasted increase in net sales is 30%. if Saltwater Logistics Corp. had neither a sufficient amount of excess capacity to handte 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 forma? 1. Issuing additional common stock 11. Borrowing from a bank using notes payable III. Issuing long-term bonds O I, II, and III O Just 111 Just 11 I and 11 II and III I only 2016 Actual Results Net sales 2017 Initial Forecast $24,700 (19,760) $4,940 Cost of goods sold Gross profit Fixed operating costs except depreciation Depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes Net income Common dividends Addition to retained earnings Earnings per share Dividends per share Number of common shares (millions) $19,000 (15,200) $3,800 (950) (380) $2,470 (380) $2,090 (836) $1,254 (677.16) $576.84 (1,235) (494) $3,211 (380) $2,831 (1,132.4) 1,698.6 (677.16) $1,021.44 $62.2 $84.93 $33.858 $33.858 20.0 20.0 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The cost of sales percentage for Saltwater Logistics Corp. will decrease due to economies of scale. No excess capacity currently exists. Saltwater Logistics Corp. will be issuing additional shares of common stock in the coming year. Saltwater Logistics Corp. will be issuing additional debt in the coming year. Spontaneously generated funds will sufficiently cover any financing needs. The forecasted increase in net sales is 30%. No excess capacity currently exists. Saltwater Logistics Corp. will be issuing additional shares of common stock in the coming year. Saltwater Logistics Corp. will be issuing additional debt in the coming year. Spontaneously generated funds will sufficiently cover any financing needs The forecasted increase in net sales is 30%. if Saltwater Logistics Corp. had neither a sufficient amount of excess capacity to handte 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 forma? 1. Issuing additional common stock 11. Borrowing from a bank using notes payable III. Issuing long-term bonds O I, II, and III O Just 111 Just 11 I and 11 II and III I only