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

Cold Goose is able to achleve 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 $75\%$ of net sales, and its depreclation 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 $$300,000$ and $$1,172,601$ 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,$$15,000,000,],[$Less: Operating costs, except depreclation and amortization,$11,250,000,],[$Less: Depreclation and amortization expenses,$600,000,600,000],[$Operating income $($or EBIT$),$$$3,150,000,],[$Less: Interest expense,$315,000,],[$Pre$-$tax income $($or EBT$),2,835,000,],[$Less: Taxes $(25\%),708,750,],[$Earnings after taxes,$$2,126,250,1],[$Less: Preferred stock dividends,$300,000,],[$Earnings avallable to common shareholders,$1,826,250,],[$Less: Common stock dividends,$956,813,],[$Contribution to retained earnings,$$869,437,$$$1,133,180$