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 $200,000 and $2,280,656 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) $37,500,000 Net sales $30,000,000 19,500,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) 24,375,000 1,200,000 Less: Interest expense 1,200,000 $9,300,000 930,000 8,370,000 2,092,500 Pre-tax income (or EBT) Less: Taxes (25%) Earnings after taxes $6,277,500 $ Less: Preferred stock dividends 200,000 Earnings available to common shareholders 6,077,500 1,883,250 Less: Common stock dividends Contribution to retained earnings $4,194,250 $5,121,531 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive in annual dividends. If Blue Hamster has 400,000 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. Blue Hamster's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 1 to in Year 2 It is 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 earnings, $4,194,250 and $5,121,531, respectively. This is because of the items reported in the income statement involve payments and receipts of cash