Eventati, Inc., is preparing pro forma financial statements for 2020. Eventati utilized the percent-of-sales method to estimate costs for the next year. Sales in 2019 were $2 million and are expected to increase to $2.4 million in 2020. The firm has a 40 percent tax rate. If $200,000 of the cost of goods sold and $40,000 of selling expense are fixed costs; and the interest expense and dividends are not expected to change, what is the dollar effect on net income and retained earnings? Income Statement Eventati, Inc. For the Year Ended December 31, 2019 Eventati, Inc., is preparing pro forma financial statements for 2020. Eventati utilized the percent-of-sales method to estimate costs for the next year. Sales in 2019 were $2 million and are expected to increase to $2.4 million in 2020. The firm has a 40 percent tax rate. If $200,000 of the cost of goods sold and $40,000 of selling expense are fixed costs; and the interest expense and dividends are not expected to change, what is the dollar effect on net income and retained earnings? Income Statement Eventati, Inc. For the Year Ended December 31, 2019