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1. Oute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest

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1. Oute Camel 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 80% 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, Cute Camel expects to pay $300,000 and $1,807,313 of preferred and common stock dividends, respectively, H , CASH Flow, and Taxes Complete the Year 2 income statement data for Cute Camel, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating Income (or EBIT) Less: Interest expense Pre-tax Income (or EBT) Less: Taxes (259) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less Common stock dividends Contribution to retained earnings Cute Camel Woodcraft Company Income Statement for Year Ending December 31 Year 1 Year 2 (Forecasted) $30,000,000 24,000,000 1,200,000 1,200,000 $4,800,000 480,000 4,320,000 1,080,000 $3,240,000 300,000 2,940,000 1,458,000 51,482,000 $1,908,937 Given the results of the previous income statement calculations, complete the following statements: In Year 2. if Cute Camel has 25.000 shares of preferred stock issued and outstanding, then each Q Seard 480,000 Ch 03: Assignment - Financial Statements, Cash Flow, and Taxes Less: Interest expense Pre-tax income (or EBT) Less: Taxes (25%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings 4,320,000 1,080,000 $3,240,000 300,000 2,940,000 1,458,000 $1,482,000 $1,908,937 Given the results of the previous income statement calculations, complete the following statements: OR YOU Tools In Year 2, if cute Camel has 25,000 shares of preferred stocksued and outstanding, then each preferred share should expect to receive in annual dividends. If Cute Camel has 200,000 shares of common stock issued and outstanding, then the firms caminos por share (EPS) is expected to change from in Year 1 to in Year 2 Cute Camel's earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year I to in Year 2. . It is to say that Cute Camel'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 carings, $1,482,000 and $1.908,937, respectively. This is because of the items reported in the income statement involve payments and receipts of cash. Introductory

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