You are the most creative analyst for Black Sheep Broadcasting Company, and your admirers want to see you work your analytical magic once more Net sales Cost of goods sold Gross profit Fixed operating costs except depreciation Depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes 2016 Actual Results $18,000 (14,400) $3,600 (900) (360) $2,340 (360) $1,980 (792) $1,188 2017 Initial Forecast $23,400 (18,720) $4,680 (1.170) (468) $3,042 (360) $2,682 (1,072.8) 1.609.2 (641:52) $967.68 $80.46 Net Income Common dividends Addition to retained earnings (641.52) $546.48 559.4 Earnings per share Dividends per share Number of common shares (millions) $32.076 $32.076 20.0 20.0 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 30%. The assigned depreciation method has changed. The facility is currently operating at full capacity. Additional external financing will be required by Black Sheep Broadcasting Company The facility is not currently operating at full capacity. Which of the following could be a direct cause of financing feedback? 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 111 O I and IV O I and II OIII and IV O IV O II II and IV 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 increase charges against net income, reducing the amount of available internally generated funds. spontaneously increase liabilities associated with the cost of goods sold. reduce the level of cash as hand, Increase the length of the operating cycle