2016 Actual Results 2017 initial forecast

earnings per share	$50	$67
gross profit	$3,000	$3,900
cost of goods sold	(12,000)	(15,600)
interest	(300)	(300)
common dividends	(535)	(535)
fixed operating costs except depreciation	(750)	(975)
addition to retained earnings	$455	$806
net sales	$15,000	$19,500
dividends per share	$27	$27
depreciation	(300)	(390)
net income	$990	1,341
earnings before tax	$1,650	$2,235
earnings before interest and taxes	$1,950	$2,535
number of common shares (millions)	20.0	20.0
taxes	(660)	(894)

Question:
You are the most creative analyst for your company Inc., and youradmirers want to see you work your analytical magic oncemore.
Which of the following are assumptions made by the initial incomestatement forecast? Check all that apply.

a. additional external financing will be required by yourcompany.
b. the forecasted increase in net sales is 30%
c. the facility is currently operating at full capacity
d. the facility is no currently operating at full capacity.
e. the assigned depreciation method has changed.
f. no additional external financing will be required.

Part two
If the company above had neitiher a sufficient amount of excesscapacity to handle the forecasted increases in operations nor thelevel of retained earnings required to increase asset levels up tothe necessary level for production, this difference would bereferred to as _____________________________________ and could beacquired in which of the following forms?
a. alternative fiduciary necessities
b. additional funds needed
c. added fair needs
d. additional financing needed