The firm's CEO would like to increase sales by 25% next year.

zy Button is able to achieve this level of increased sales, but its interest taxes (EBIT). The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year costs increase from 10% to 15% of earnings before interest and 2. 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 $100,000 and $2,128,613 of preferred and common stock dividends, respectively omplete the Year 2 income statement data for Fuzzy Button, then answer the questions that follow. Be sure to round each dollar value to the nearest hole dollar Fuzzy Button Clothing Company Income Statement for Year Ending December 31 Year 2 Net sales $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 3,348,000 $5,022,000 100,000 4,922,000 1,757,700 43. 164 300 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses 1,200,000 Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings zy Button is able to achieve this level of increased sales, but its interest taxes (EBIT). The company's operating costs (excluding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year costs increase from 10% to 15% of earnings before interest and 2. 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 $100,000 and $2,128,613 of preferred and common stock dividends, respectively omplete the Year 2 income statement data for Fuzzy Button, then answer the questions that follow. Be sure to round each dollar value to the nearest hole dollar Fuzzy Button Clothing Company Income Statement for Year Ending December 31 Year 2 Net sales $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 3,348,000 $5,022,000 100,000 4,922,000 1,757,700 43. 164 300 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses 1,200,000 Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings