6. Projected financial statements and basic analysis You are the most creative analyst for Green Rabbit Transportation Inc., and your admirers want to see you work your analytical magic once more. 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. The forecasted increase in net sales is 30%. Additional external financing will be required by Green Rabbit Transportation Inc. Which of the following could be a direct cause of financing feedback? 1. Issuing additional common stock II. Purchasing additional buildings with internally generated funds III. An unexpected increase in sales IV. Borrowing from the bank I and IV IV 1 I and II III II and IV III and IV II 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 the length of the operating cycle. reduce the level of cash on hand. spontaneously increase liablities associated with the cost of goods sold. increase charges against net income, reducing the amount of availisble intemally generated funds