You are the most creative analyst for Spotted Skunk Soft Drink Company, and your admirers want to see you work your analytical magic once more. Net sales Cost of goods sold Gross profit Fixed operating costs except depreciation Depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes Net Income Common dividends Addition to retained earnings Earnings per share Dividends per share Number of common shares (millions) This Year's Actual Results Next Year's Initial Forecast $17,000,000 $20,060,000 13,600,000 16,048,000 $3,400,000 $4,012,000 850,000 850,000 340,000 401,200 $2,210,000 $2,607,800 340,000 340,000 $1,870,000 $2,267,800 748,000 907,120 $1,122,000 1.360,680 605,880 605,880 $516,120 $754,800 $0.22 $0.27 $0.12 $0.12 5.00 5.00 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The facility is not currently operating at full capacity The forecasted increase in net sales is 18.00% Additional external financing will be required by Spotted Skunk Soft Drink Company No additional external financing will be required. The facility is currently operating at l capacity Which of the following could be a direct cause of financing foedback? Check all that apply. Borrowing from the bank Purchasing additional buildings with internally generated funds Issuing additional common stock Repaying notes payable 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: Reduce the level of cash on hand Increase the length of the operating cycle Increase charges against net income, reducing the amount of available internaly generated funds Spontaneously increase liabilities associated with the cost of goods sold