Could you be sure to answer the first part about assumptions from the forecast. Thanks in advance!!!
4. Projected financial statements and basic analysis Aa Aa You are the most creative analyst for Avatar Animators Inc., and your admirers want to see you work your analytical magic once more. Interest Net sales Taxes Gross profit Earnings before interest and taxes Number of common shares (millions) Common dividends Earnings before taxes Cost of goods sold Fixed operating costs except depreciation Dividends per share Net income Depreciation Addition to retained earnings Earnings per share 2016 Actual Results (300) $15,000 (660) $3,000 $1,950 20.0 (535) $1,650 (12,000) (750) $27 $990 (300) $455 $50 2017 Initial Forecast (300) $16,500 (738) $3,300 $2,145 20.0 (535) $1,845 (13,200) (825) $27 1,107 (330) $572 $55 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 forecasted increase in net sales is 10%. The facility is not currently operating at full capacity. The facility is currently operating at full capacity. Additional external financing will be required by Avatar Animators Inc. The assigned depreciation method has changed. 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 forecasted increase in net sales is 10%. The facility is not currently operating at full capacity. The facility is currently operating at full capacity. Additional external financing will be required by Avatar Animators Inc. The assigned depreciation method has changed. If Avatar Animators Inc. had neither a sufficient amount of excess capacity to handle forecasted increases in operations nor the level of retained earings 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? alternative fiduciary necessities additional financing needed I. Issuing additional common stock additional funds needed added fair needs II. Borrowing from a bank using notes payable III. Issuing long-term bonds O O O Just III I only I and II I, II, and III Just II II and III O Flash Player WIN 32,0,0,344