6. Projected financial statements and basic analysis You are the most creative analyst for Saltwater Logistics Corp., and your admirers want to see you work your analytical magic once more. 2016 Actual Results 2017 Initial Forecast Net sales Cost of goods sold $16,000 (12,800) $19,200 (15,360) Gross profit $3,840 Fixed operating costs except depreciation Depreciation Earnings before interest and taxes $3,200 (800) (320) $2,080 (320) (960) (384) $2,496 Interest (320) Earnings before taxes $1,760 $2,176 (870.4) Taxes Net income (704) $1,056 (570.24) 1,305.6 Common dividends (570.24) Addition to retained earnings $485.76 $735.36 Earnings per share $52.8 $65.28 $28.512 Dividends per share Number of common shares (millions) $28.512 20.0 20.0 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. 0 No additional external financing will be required. 0 The assigned depreciation method has changed. 0 The forecasted increase in net sales is 20%. 0 The facility is not currently operating at full capacity. 0 The facility is currently operating at full capacity. 0 Additional external financing will be required by Saltwater Logistics Corp. If Saltwater Logistics Corp. 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 added fair needs tes payable additional funds needed alternative fiduciary necessities O I, II, and III Just II I only II and III I and II Just III If Saltwater Logistics Corp. 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 I, II, and 111 O Just II O O I only O II and III O I and II O Just