Ch 02: Assignment-Financial Statements, Cash Flow, and Taxes Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that follow. Be sure to 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 $10,000,000 Less: Operating costs, except depreciation and amortization 8,000,000 Less: Depreciation and amortization expenses 400,000 Operating income (or EBIT) $1,600,000 Less: Interest expense 160,000 Pre-tax income (or EBT) 1,440,000 Less: Taxes (40 % ) 576,000 Earnings after taxes $864,000 Less: Preferred stock dividends 300,000 Earnings available to common shareholders 564,000 Less: Common stock dividends 388,800 Contribution to retained earnings $175,200 Given the results of the previous income statement calculations, complete the following statements In Year 2, f Green Caterpillar has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to in annual dividends. receve If Green Caterpilar has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected ge 400,000 Less: Deprecation and amortization expenses $1,600,000 Operating income (or EBIT) Less: Interest expense 160,000 Pre-tax income (or EBT) 1,440,000 Less: Taxes (40%) 576,000 S $864,000 Eanings after taxes Less: Preferred stock dividends 300,000 564,000 Earnings available to common shareholders 388,800 Less: Common stock dividends Contribution to retained earnings $175,200 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Green Caterpillar has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to in annual dividends. receive If Green Caterpillar has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change in Year 2. in Year 1 to from in Year 1 Green Caterpillar's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2 toi to say that Green Caterpillar's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual of the item reported in the income statement involve payments and receipts of It is contribution to retained earnings. This is because cash. Ch 02: Assignment-Financial Statements, Cash Flow, and Taxes Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that follow. Be sure to 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 $10,000,000 Less: Operating costs, except depreciation and amortization 8,000,000 Less: Depreciation and amortization expenses 400,000 Operating income (or EBIT) $1,600,000 Less: Interest expense 160,000 Pre-tax income (or EBT) 1,440,000 Less: Taxes (40 % ) 576,000 Earnings after taxes $864,000 Less: Preferred stock dividends 300,000 Earnings available to common shareholders 564,000 Less: Common stock dividends 388,800 Contribution to retained earnings $175,200 Given the results of the previous income statement calculations, complete the following statements In Year 2, f Green Caterpillar has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to in annual dividends. receve If Green Caterpilar has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected ge 400,000 Less: Deprecation and amortization expenses $1,600,000 Operating income (or EBIT) Less: Interest expense 160,000 Pre-tax income (or EBT) 1,440,000 Less: Taxes (40%) 576,000 S $864,000 Eanings after taxes Less: Preferred stock dividends 300,000 564,000 Earnings available to common shareholders 388,800 Less: Common stock dividends Contribution to retained earnings $175,200 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Green Caterpillar has 25,000 shares of preferred stock issued and outstanding, then each preferred share should expect to in annual dividends. receive If Green Caterpillar has 200,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change in Year 2. in Year 1 to from in Year 1 Green Caterpillar's before interest, taxes, depreciation and amortization (EBITDA) value changed from in Year 2 toi to say that Green Caterpillar's net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual of the item reported in the income statement involve payments and receipts of It is contribution to retained earnings. This is because cash