1. Green Caterpillar 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 depredation and amortization) remain at 65.00% 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, Green Caterpillar expects to pay $100,000 and $2,432,700 of preferred and common stock dividends, respectively. Complete the Year 2 Income statement data for Green Caterpillar, then answer the questions that follow. Round each dollar value to the nearest whole dollar. Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 Year 1 Year 2 (Forecasted) Net sales $30,000,000 19,500,000 1,200,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating Income (or EBIT) 1,200,000 $9,300,000 Less: Interest expense Pre-tax Income (or EBT) Less: Taxes (40%) 930,000 $8,370,000 3,348,000 $ $5,022,000 100,000 Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders $4,922,000 Less: Common stock dividends 2,000,000 $2,489,300 $3,549,050 Contribution to retained earnings