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Any help would be glorious, thanks so much! 6. Projected financial statements and basic analysis Aa Aa E You are the most creative analyst for

Any help would be glorious, thanks so much!image text in transcribed

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6. Projected financial statements and basic analysis Aa Aa E 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 Interest Number of common shares (millions) Common dividends Fixed operating costs except depreciation Net sales Depreciation Earnings per share Dividends per share Earnings before taxes Earnings before interest and taxes Addition to retained earnings Taxes Gross profit Net income Cost of goods sold (340) 20.0 (606) (850) $17,000 (340) $56 $30 $1,870 $2,210 $516 (748) $3,400 $1,122 (13,600) (340) 20.0 (606) (1,105) $22,100 (442) $76 $30 $2,533 $2,873 $914 (1,013) $4,420 1,520 (17,680) Which of the following are assumptions made by the initial income statement forecast? Check all that apply. No additional external financing will be required. The assigned depreciation method has changed. The facility is not currently operating at full capacity. The forecasted increase in net sales is 30%. The facility is currently operating at full capacity. Additional external financing will be required by Saltwater Logistics Corp. O Which of the following are assumptions made by the initial income statement forecast? Check all that apply. O No additional external financing will be required. The assigned depreciation method has changed. The facility is not currently operating at full capacity. The forecasted increase in net sales is 30%. The facility is currently operating at full capacity. 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? I. Issuing additional common stock II. Borrowing from a bank using notes payable III. Issuing long-term bonds O Just III I and II II and III Just II I, II, and III I only O O

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