You are the most creative analyst for Avatar Animators Inc, and youradmirers want to see you work your analytical magic once more. 2016 Actual Results 2017 Initial Forecast Gross prOTIL Netincome Earnings per share Dividends per share Common dividends Earnings before interest and taxes Earnings before taxes $3,000 99D 50 $27 (535) $1,950 $1,650 (300) $3,900 1,341 Addition to retained earnings Taxes Number of common shares (milions) Net sales Interest Fixed operating costs e Cost of gaads sold $27 (535) $2,535 $2,235 (390) $806 (894) 20.0 $19,500 (300) (975) (15,600) (650) 20.0 $15,000 (300) xcept depreciation 750 (12,000) which of the following are assumptions made by the initial income statement forecast? Check al that apply The forecasted increase in net sales is 30%. Avatar Animators Inc will be issuing additional debt in the coming year The cost of sales percentage for Avatar Animators Inc. will decrease due to economies of scale. 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 intemally generated funds III. An unexpected increase in sales IV. Bomowing from the bank O III and IV Iand IV Iand II O II and IV What is one of the potential consequences of financing feedback that might cause the actual financing needs to be higher than initialy thought? Financing feedbackmight O Spontaneously increase liabilities associated with the cost of goads sold O Reduoe the level of cash on hand O Increase charges against net income, reducing the amount of available intemaly generated funds O Increase the length of the operating cydle