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You are the most creative analyst for Puyol Co., and your admirers want to see you work your analytical magic once more 2011 Initial 2010
You are the most creative analyst for Puyol Co., and your admirers want to see you work your analytical magic once more 2011 Initial 2010 Actual Results Forecast Interest Fixed operating costs except depreciation Earnings per share Earnings before taxes Net income Common dividends Number of common shares (millions) Cost of goods sold Gross profit Depreciation Taxes Net sales Dividends per share Addition to retained earnings Earnings before interest and taxes (340) (850) $56 $1,870 $1,122 (606) 20.0 (13,600) $3,400 (340) (748) $17,000 $30 $516 $2,210 (340) (1,190) $83 $2,754 1,652 (606) 20.0 (19,040) $4,760 (476) (1,102) $23,800 $30 $1,046 $3,094 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 facility is currently operating at full capacity The assigned depreciation method has changed The facility is not currently operating at full capacity Additional external financing will be required by Torres Inc. The forecasted increase in net sales is 40%
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