11. Projected financial statements and basic analysis You are the most creative analyst for Saltwater Logistics Corp., and your admirers want to see you work your analytical magic once more. Taxes Earnings before interest and taxes Common dividends Cost of goods sold Depreciation Gross profit Net sales Number of common shares (millions) Fixed operating costs except depreciation Dividends per share Addition to retained earnings Earnings per share Earnings before taxes Interest Net income 2016 Actual Results (704) $2,080 (570) (12,800) (320) $3,200 $16,000 20.0 (800) 2017 Initial Forecast (870) $2,496 (570) (15,360) (384) $3,840 $19,200 20.0 (960) $29 $486 $52.8 $1,760 (320) $1,056 $29 $736 $65 $2,176 (320) 1,306 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The forecasted increase in net sales is 20%. Additional external financing will be required by Saltwater Logistics Corp. 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. If Saltwater Logistics Corp. 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