Consider the following scenario:

Blue Hamster Manufacturing 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.

Blue Hamster 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 $($exduding depreciation and amortization$)$ remain at $65\%$ 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 $2,$ Blue Hamster expects to pay $$200,000$ and $$2,280,656$ of preferred and common stock dividends, respectively.

Complete the Year $2$ income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the n

Blue Hamster Manufacturing Inc.

Income Statement for Year Ending December $31$

$\backslash$table$[[,$Year $1,$Year $2($Forecasted$)],[$Net sales,$$30,000,000,],[$Less: Operating costs, except depreciation and amortization,$19,500,000,],[$Less: Depreciation and amortization expenses,$1,200,000,1,200,000$earest whole dollar.