6. Projected financial statements and basic analysis You are the most creative analyst for reen Rabbit Transportation Inc., and your admirers want to see you work your analytical magic once more. 2017 Initial Forecast 2016 Actual Results Interest Net sales Earnings before taxes Earnings before interest and taxes Net income Addition to retained eamings Number of common shares (millions) Earnings per share Depreciation Taxes Cost of goods sold Fixed operating costs except d Common dividends Gross profit Dividends per share (320) $16,000 $1,760 $2,080 $1,056 $486 20.0 $53 (320) (704) (12,800) (800) (570) $3,200 529 (320) $22,400 $2,592 $2,912 1,555 $985 20.0 578 (448) (1,037) (17,920) (1,120) (570) $4,480 529 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 forecasted increase in net sales is 40%. The facility is not currently operating at full capacity Additional external financing will be required by Green Rabbit Transportation Inc. The assigned depreciation method has changed The facility is currently operating at full capacity If Green Rabbit Transportation Inc. had neither a sufficient amount of excess capacity to handle forecasted increases in operations nor the level of retained eanings 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. Borrowing from a bank using notes payable III. Issuing long-term bonds O I only O I and II O Just II O I, II, and III O Just III O II and