Cold Goose Metal Works Inc.

Income Statement for Year Ending December $31$

Year $1$

Year $2($Forecasted$)1.$ Cold Goose 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 $60\%$ 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 $2,$ Cold Goose expects to pay $$100,000$ and $$2,052,750$ of preferred and common stock dividends, respectively.