You are the most creative analyst for Black Sheep Broadcasting Company, and your admirers want to see you work your analytical magic once more 2016 Actual 2017 Initial Results Forecast $5,600 Gross profit $4,000 Net sales $20,000 $28,000 Earnings per share $66 $97 Cost of goods sold (22,400) (16,000) (1,296) Taxes (880) (400) (400) Interest Fixed operating costs except depreciation (1,000) (1,400) Dividends per share $36 $36 Earnings before interest and taxes $2,600 $3,640 Net income $1,320 1,944 Earnings before taxes $2,200 $3,240 Addition to retained earnings $607 $1,231 Common dividends (713) (713) Number of common shares (millions) 20.0 20.0 (400) Depreciation (560) Which of the following are assumptions made by the initial income statement forecast? Check all that apply. No excess capacity currently exists. O The forecasted increase in net sales is 40%. O The cost of sales percentage for Black Sheep Broadcasting Company will decrease due to economies of scale. Spontaneously generated funds will sufficiently cover any financing needs Black Sheep Broadcasting Company will be issuing additional shares of common stock in the coming year. Black Sheep Broadcasting Company will be issuing additional debt in the coming year