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You are the most creative analyst for Avatar Animators Inc., and your admirers want to see you work your analytical magic once more. Spontaneously generated

image text in transcribedimage text in transcribedimage text in transcribed You are the most creative analyst for Avatar Animators Inc., and your admirers want to see you work your analytical magic once more. Spontaneously generated funds will sufficiently cover any financing needs. Avatar Animators Inc. will be issuing additional debt in the coming year. Avatar Animators Inc. will be issuing additional shares of common stock in the coming year. No excess capacity currently exists. The cost of sales percentage for Avatar Animators Inc. will decrease due to economies of scale. The forecasted increase in net sales is 30%. If Avatar Animators Inc. 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 II and III I, II, and III Just III Just II I and II I only

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