6. Projected financial statements and basic analysis You are the most creative analyst for Avatar Animators 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. The cost of sales percentage for Avatar Animators Inc. will decrease due to economies of scale. Avatar Animators Inc. will be issuing additional debt in the coming year. The forecasted increase in net sales is 20%. Avatar Animators Inc. will be issuing additional debt in the coming year. The forecasted increase in net sales is 20%. Avatar Animators Inc. will be issuing additional shares of common stock in the coming year. Spontaneously generated funds will sufficiently cover any financing needs. No excess capacity currently exists. Which of the following could be a direct cause of financing feedback? I. Issuing additional common stock II. Purchasing additional buildings with internally generated funds III. An unexpected increase in sales IV. Borrowing from the bank I III and IV III I and IV II I and II II and IV IV 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. increase charges against net income, reducing the amount of available internally generated funds. reduce the level of cash on hand. spontaneously increase liabilities associated with the cost of goods sold