6. 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 Net sales $15,000 $21,000 Cost of goods sold (12,000) (16,800) Gross profit $3,000 $4,200 Fixed operating costs except depreciation (750) (1,050) Depreciation (300) (420) Earnings before interest and taxes $1,950 $2,730 Interest (300) (300) Earnings before taxes $1,650 $2,430 Taxes (660) (972) Net income 3990 1,455 Common dividends (534.6) (534.6) Addition to retained earnings $455.4 5923.4 Earnings per share $49.5 $72.9 Dividends per share $26.73 $26.73 Number of common shares (millions) 20.0 20.0 Which of the following are assumptions made by the initial income statement forecast? Check out that apply No additional external financing will be required. The assigned depreciation method has changed Additional external financing will be required by Black Sheep Broadcasting Company The facility is not currently operating at full capacity The facility is currently operating at Pull capacity | The Forecasted increase in net sales is 40% It Back Sheep Broadcasting Company had neither a sufficient amount of excess capacity to handle forecated increases in operations nor the level of retained earnings required to increase at 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 and ta O I, II, and 111 Just It and the I only Just 111