Cold Goose Metal Works Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. 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) 2. The company's operating costs (exduding depreciation and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Cold Goose expects to pay $200,000 and $608, 175 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 Year 2 (Forecasted) 400,000 Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating Income (or EBIT) Less: Interest expense Pre-tax income (or EBT Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings Year 1 $10,000,000 6,500,000 400,000 $3,100,000 310,000 2,790,000 1,116,000 $1,674,000 200,000 1,474,000 502,200 $971,800 $1,219,075