options for the 4th question :

a. Correct / Incorrect

b. all / all but one

Fuzzy Button Clothing Company Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) $25,000,000 16,250,000 800,000 $8,670,000 1,300,500 7,369,500 2,947,800 $4,421,700 150,000 4,271,700 1,013,625 $2,890,875 Net sales $20,000,000 13,000,000 800,000 $6,200,000 620,000 5,580,000 2,232,000 $3,348,000 150,000 3,198,000 837,000 $2,361,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Pre-tax income (or EBT) Earnings after taxes Earnings available to common shareholders Contribution to retained earnings Less: Interest expense Less: Taxes (40%) Less: Preferred stock dividends Less: Common stock dividends