Which of the following are assumptions made by the initial income statement forecast? Check all that apply. Avatar Animators Inc. will be issuing additional shares of common stock in the coming year. The cost of sales percentage for Avatar Animators Inc. will decrease due to economies of scale. spontaneously generated tunds will surficiently cover any financing needs. No excess capacity currently exists. The forecasted increase in net sales is 20%. Avatar Animators Inc. will be issuing additional debt in the coming year. Which of the following could be a direct cause of financing feedbacki? I. Issuing additional common stock II. Purchasing additional buildings with internally generated funds III. An unexpected increase in sales IV. Borrowing from the bank O II III and IV O 11 and IV I and II What is one of the potential consequences of financing feedback that might cause the actual financing needs to be higher than initially thought? Financing feedback might: O Reduce the level of cash on hand Spontaneously increase liabilities associated with the cost of goods sold Increase the length of the operating cycle Increase charges against net income, reducing the amount of available internally generated funds Which of the following are assumptions made by the initial income statement forecast? Check all that apply. Avatar Animators Inc. will be issuing additional shares of common stock in the coming year. The cost of sales percentage for Avatar Animators Inc. will decrease due to economies of scale. spontaneously generated tunds will surficiently cover any financing needs. No excess capacity currently exists. The forecasted increase in net sales is 20%. Avatar Animators Inc. will be issuing additional debt in the coming year. Which of the following could be a direct cause of financing feedbacki? I. Issuing additional common stock II. Purchasing additional buildings with internally generated funds III. An unexpected increase in sales IV. Borrowing from the bank O II III and IV O 11 and IV I and II What is one of the potential consequences of financing feedback that might cause the actual financing needs to be higher than initially thought? Financing feedback might: O Reduce the level of cash on hand Spontaneously increase liabilities associated with the cost of goods sold Increase the length of the operating cycle Increase charges against net income, reducing the amount of available internally generated funds