1. Blue Hamster 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 65% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $150,000 and $1,267,031 of preferred and common stock dividends, respectively Complete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Blue Hamster Manufacturing Inc. Income Statement for Year Ending December 31 Year 1 Year 2 (Forecasted) Net sales $20,000,000 $ Less: Operating costs, except depreciation and amortization 13,000,000 Less: Depreciation and amortization expenses 800,000 800,000 Operating income (or EBIT) $6,200,000 $ Less: Interest expense 620,000 Pre-tax income (or EBT) 5,580,000 Less: Taxes (25%) 1,395,000 Eamings after taxes $4,185,000 Less: Preferred stock dividends 150,000 Earnings available to common shareholders 4,035,000 Less: Common stock dividends 1,046,250 Contribution to retained earings $2,988,750 $3,651,094 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Blue Hamster has 10,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. If Blue Hamster 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 In Year 1 to Blue Hamster's earnings before interest, taxes, depreciation and amortization (EBITDA) Value changed from in Year 2. . It is incorrect to say that Blue Hamster'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 camnings, $2,988,750 and $3,651,094, respectively. This is because all but one v of the items reported in the income statement involve payments and receipts of cash