Cold Goose Metal Works Inc. Income Statement Years Ending December 31 Year 2 (Forecasted) Year 1 Net sales $ $30,000,000 Fixed operating costs, except depreciation and amortization ( ) (21,000,000) Depreciation and amortization expenses (1,200,000) (1,200,000) Net operating income (or EBIT) $ $7,800,000 Interest ( ) (780,000) Earnings before taxes (or EBT) $ $7,020,000 Taxes (40%) ( ) (2,808,000) Net Income $ $4,212,000 Preferred dividends ( ) (300,000) Earnings available to common stockholders (EAC) $