Fuzzy Button Clothing Company's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Fuzzy Button is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 75% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Fuzzy Button expects to pay $150,000 and $347,438 of preferred and common stock dividends, respectively. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - I ttton has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - F $37.50 on's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual $22.50 n to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. $10.50 Giv $5.67 sults of the previous income statement calculations, complete the following statements: - I $9.45 if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - I $4.92 utton has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Given the results of the prev $11.58 he statement calculations, complete the following statements: - In Year 2, if Fuzzy Button $6.950 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual di - If Fuzzy Button has 200,0 ( $13.63 of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each should expect to receive in annual dividends. - If Fuzzy Button has 200,000 shares of common stock issued and outstanding, then the firm's earni EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Given the roulte of the previous income statement calculations, complete the following statements: $10,764,750 - I By Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive $4,114,750 annual dividends. - I $3,125,000 has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from Year 1 to in Year 2. efore interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because the items reported in the statement involve payments and receipts of cash. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - If Fuzzy Button has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from 'ear 1 to in Year 2. - F fore interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to - in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because statement involve payments and receipts of cash. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - If Fuzzy Button has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value char in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the en nd 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Fuzzy Button Clothing Company's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. Fuzzy Button is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding depreciation and amortization) remain at 75% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Fuzzy Button expects to pay $150,000 and $347,438 of preferred and common stock dividends, respectively. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - I ttton has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - F $37.50 on's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual $22.50 n to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. $10.50 Giv $5.67 sults of the previous income statement calculations, complete the following statements: - I $9.45 if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - I $4.92 utton has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Given the results of the prev $11.58 he statement calculations, complete the following statements: - In Year 2, if Fuzzy Button $6.950 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual di - If Fuzzy Button has 200,0 ( $13.63 of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each should expect to receive in annual dividends. - If Fuzzy Button has 200,000 shares of common stock issued and outstanding, then the firm's earni EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Given the roulte of the previous income statement calculations, complete the following statements: $10,764,750 - I By Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive $4,114,750 annual dividends. - I $3,125,000 has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from Year 1 to in Year 2. efore interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because the items reported in the statement involve payments and receipts of cash. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - If Fuzzy Button has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from 'ear 1 to in Year 2. - F fore interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to - in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because statement involve payments and receipts of cash. Given the results of the previous income statement calculations, complete the following statements: - In Year 2, if Fuzzy Button has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. - If Fuzzy Button has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change from in Year 1 to in Year 2. - Fuzzy Button's before interest, taxes, depreciation and amortization (EBITDA) value char in Year 1 to in Year 2. - It is to say that Fuzzy Button's net inflows and outflows of cash at the en nd 2 are equal to the company's annual contribution to retained earnings, $700,500 and $892,312, respectively. This is because of the items reported in the income statement involve payments and receipts of cash