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You are the most creative analyst for Saltwater Logistics Corp., and your admirers want to see you work your analytical magic once more. 2016 Actual

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You are the most creative analyst for Saltwater Logistics Corp., and your admirers want to see you work your analytical magic once more. 2016 Actual 2017 Initial Results Forecast Common dividends Taxes Fixed operating costs except d Earnings before taxes Net sales Cost of goods sold Net income Interest Earnings before interest and taxes Gross profit Depreciation Earnings per share Dividends per share Number of common shares (millions) Addition to retained eamings (642) (792) (900) $1,980 $18,000 (14,400) $1,188 (360) $2,340 $3,600 (360) 559 $32 20.0 $546 (642) (979) (1,080) $2,448 $21,600 (17,280) 1,469 (360) $2,808 $4,320 (432) $73 $32 20.0 $827 Which of the following are assumptions made by the initial income statement forecast? Check all that apply Additional external financing will be required by Saltwater Logistics Corp The facility is not currently operating at full capacity The forecasted increase in net sales is 20%. No additional external financing will be required. The facility is currently operating at full capacity The assigned depreciation method has changed If Saltwater Logistics Corp. had neither a sufficient amount of excess capacity to handle forecasted increases in operations nor the level of retained eamings required to increase asset levels up to the necessary level for production, this difference would be referred to as which of the following forms? and could be acquired in I. Issuing additional common stock II. Borrowin III. Issuing long-term bonds g from a bank using notes payable O I, II, and III O I and II O 11 and O Just II O Just O I only

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