Chapter 16 Assignment Net sales Cost of goods sold and Study Tools This Year's Actual Results Next Year's Initial Forecast $16,000,000 12,800,000 $17,280,000 13,824,000 Gross profit $3,200,000 $3,456,000 Offers ptions Ruccess Tips ccess Tips Fixed operating costs except depreciation 800,000 800,000 Depreciation 320,000 345,600 Earnings before interest and taxes $2,000,000 $2,246,400 Interest Earnings before taxes 320,000 $1,760,000 320,000 $1,926,400 704,000 770,560 Net income $1,056,000 1,155,840 gage Unlimited Common dividends 570,240 570,240 es in 2 Days Addition to retained earnings $485,760 $585,600 Earnings per share $0.21 $0.23 hase Options Dividends per share $0.11 $0.11 Number of comrdon shares (millions) 5.00 5.00 more back Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The cost of sales percentage for Spotted Skunk Soft Drink Company will decrease due to economies of scale. No excess capacity currently exists. Spontaneously generated funds will sufficiently cover any financing needs. Spotted Skunk Soft Drink Company will be issuing additional debt in the coming year. The forecasted increase in net sales is 8.00% Suppose Spotted Skunk had neither sufficient excess capacity to handle any forecasted increases in operations nor sufficient retained earnings to Q Search this course Tips Tips Unlimited 2 Days e Options more ack Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The cost of sales percentage for Spotted Skunk Soft Drink Company will decrease due to economies of scale. No excess capacity currently exists. Spontaneously generated funds will sufficiently cover any financing needs. Spotted Skunk Soft Drink Company will be issuing additional debt in the coming year. The forecasted increase in net sales is 8.00%. Suppose Spotted Skunk had neither sufficient excess capacity to handle any forecasted increases in operations nor sufficient retained earnings to increase the level of company asset up to the amount necessary for production. This deficiency is called These funds could be acquired in which of the following forms? Check all that apply. Issuing long-term bonds Repayment of outstanding bonds Repurchase of outstanding common stock Issuing additional common stock Grade It Now Save & Continue in without saying