You are the most creative analyst for Avatar Animators Inc., and your admirers want to see you work your analytical magic once more. 2017 Initial Forecast 2016 Actual Results $63 $3,800 $2,470 (380) Earnings per share Gross profit Earnings before interest and taxes Depreciation Common dividends Cost of goods sold Number of common shares (millions) Earnings before taxes Net sales Fixed operating costs except depreciation Dividends per share Taxes (677) (15,200) 20.0 $2,090 $19,000 (950) $34 (836) (380) $1,254 $577 $70 $4,180 $2,717 (418) (677) (16,720) 20.0 $2,337 $20,900 (1,045) $34 (935) (380) 1,402 $725 Interest Net income Addition to retained earnings Which of the following are assumptions made by the initial income statement forecast? Check all that apply. The assigned depreciation method has changed. The forecasted increase in net sales is 10%. No additional external financing will be required. The facility is currently operating at full capacity. Additional external financing will be required by Avatar Animators Inc. The facility is not currently operating at full capacity. If Avatar Animators Inc. had neither a sufficient amount of excess capacity to handle forecasted increases in operations nor the level of retained earnings required to increase asset levels up to the necessary level for production, this difference would be referred to as and could be acquired in which of the following forms? I. Issuing additional common stock II. Borrowing from a bank using notes payable III. Issuing long-term bonds O Just III O I and II I, II, and III II and III O Just II O I only