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Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) Net sales $20,000,000 12,000,000 800,000 $7,200,000 720,000 6,480,000
Cold Goose Metal Works Inc. Income Statement for Year Ending December 31 Year 2 Year 1 (Forecasted) Net sales $20,000,000 12,000,000 800,000 $7,200,000 720,000 6,480,000 2,592,000 $3,888,000 150,000 3,738,000 972,000 $2,766,000 $25,000,000 15,000,000 800,000 $9,200,000 1,380,000 7,820,000 3,128,000 $4,692,000 150,000 4,542,000 1,173,000 $3,369,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Pre-tax income (or EBT) Earnings after taxes Earnings available to common shareholders Contribution to retained earnings Less: Interest expense Less: Taxes (40%) Less: Preferred stock dividends Less: Common stock dividends 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 200,000 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 Year2 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, $2,766,000 and $3,369,000, respectively. This is because income statement involve payments and receipts of cash of the item reported in the
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