Cold Goose Metal Works Inc.$\text{'}$s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by $25\%$ next year.

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$).$

The company's operating costs $($excluding depreciation and amortization$)$ remain at $70\%$ of net sales, and its depreciation and amortization expenses remain constant from year to year.

The company's tax rate remains constant at $25\%$ of its pre$-$tax income or earnings before taxes $($EBT$).$

In Year $2,$ Cold Goose expects to pay $$200,000$ and $$1,922,063$ of preferred and common stock dividends, respectively.

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

In Year $2,$ if Cold Goose has $5,000$ shares of preferred stock issued and outstanding, then each preferred share should expect to receive

$$ in annual dividends.

If Cold Goose has $400,000$ shares of common sfock 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 incorrect $q,$ 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, $$3,485,500$ and $$4,284,812,$ respectively. This is because $q,$ of the items reported in the income statement involve payments and receipts of cash.

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$).$

The company's operating costs $($excluding depreciation and amortization$)$ remain at $70\%$ of net sales, and its depreciation and amortization expenses remain constant from year to year.

The company's tax rate remains constant at $25\%$ of its pre$-$tax income or earnings before taxes $($EBT$).$

In Year $2,$ Cold Goose expects to pay $$200,000$ and $$1,922,063$ of preferred and common stock dividends, respectively.

Complete the Year $2$ income statement data for Cold Goose, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar.

Cold Goose Metal Works Inc.

Income Statement for Year Ending December $31$

$\backslash$table$[[$&$,$Year $1,$Year $2($Forecasted$)],[$Net sales,$$30,000,000,$$$37,500,000$