ent: Chapter 16 Financial Planning and Control Earnings before taxes Taxes Net income Common dividends Addition to retained earnings Earnings per share Dividends per share Number of common shares (millions) $1,760,000 704,000 $1,056,000 570,240 $485,760 $0.21 $0.11 5.00 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The cost of sales percentage for Happy Horse Logistics will decrease due to economies of scale. Happy Horse Logistics will be issuing additional debt in the coming year. No excess capacity currently exists. Happy Horse Logistics will be issuing additional shares of common stock in the coming year. Spontaneously generated funds will sufficiently cover any financing needs. $1,926,400 770,560 $1,155,840 570,240 $585,600 $0.23 $0.11 5.00 Suppose Happy Horse 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