Cold Goose Metal Works Inc.

Income Statement for Year Ending December $31$

Given the results of the previous income statement calculations, complete the following statements:

In Year $2,$ if Cold Goose has $10,000$ shares of preferred stock issued and outstanding, then each preferred share should expect to receive

in annual dividends.

If Cold Goose has $500,000$ 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 $2.$

Cold Goose's earnings before interest, taxes, depreciation and amortization $($EBITDA$)$ value changed from

in Year $1$ to

in Year $2.$

It is

to say that Cold Goose'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, $$3,059,000$ and $$3,712,250,$ respectively. This is because

of the items reported in the income

statement involve payments and receipts of cash.