6. Projected financial statements and basic analysis You are the most creative analyst for Villa Inc., and your admirers want to see you work your analytical magic once 2010 Actual Results 2011 Initial Forecast Eamings before taxes Dividends per share Interest Num ber of common shares (milions) Eamings per share Taxes Depreciation Common dividends Net sales Fixed operating costs except depreciation Addition to retained eamings Cost af gaods sold Gross proft Net income Eamings before interest and taxes $2,090 34 (3BD) 20.0 63 (836) (3BD) $2,337 34 (3B0) 20.0 70 $19,000 (950) $577 (15,200) $3,800 (41B) (677) $20,900 (1,045) $725 (16,720) $4,180 1,402 $2,717 $1,25 $2,470 Which of the following are assumptions made by the initial income statement forecast? Check all that apply Spontaneously geneated funds will sufficiently cover any financing needs. The cost of sales percentage for Tomes Inc. will decrease due to economies of scale. Torres Inc. will be issuing additional debt in the coming year Tomes Inc. will be issuing additional shares of common stock in the coming year No excess capacity currently exists. The forecasted increase in net sales is 10%