In Year 2, if Fuzzy Button has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive ($30, $18, $12, OR $14) in annual dividends.
	If Fuzzy Button has 200,000 shares of common stock issued and outstanding, then the firms earnings per share (EPS) is expected to change from ($7, $8.51, $15.75, OR $14.18) in Year 1 to ($17.37, $20.44, $8.92, OR $10.42) in Year 2.
	Fuzzy Buttons before interest, taxes, depreciation and amortization (EBITDA) value changed from ($3,750,000, $14,400,000, $4851000, OR $4,284,000) in Year 1 to ($16147125, $6,172,125, $4,687,500, OR 19,363,125) in Year 2.
	It is (INCORRECT OR CORRECT) to say that Fuzzy Buttons net inflows and outflows of cash at the end of Years 1 and 2 are equal to the companys annual contribution to retained earnings, $462,919 and $846,544, respectively. This is because (ALL OR ALL BUT ONE) of the items reported in the income statement involve payments and receipts of cash.

The income statement, also known as a profit and loss (P&L) statement, provides a snapshot of a company's financial performance during a specified period of time. It reports a firm's gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders. The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm's revenues and expenses to the period in which they are incurred, not necessarily when cash is received or paid. Investors and analysts use the information presented in the income statement, and the other financial statements and reports, to evaluate the company's financial performance and condition. Consider the following scenario: 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 75.00% 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 $300,000 and $938,081 of preferred and common stock dividends, respectively