Consider the following scenario:

Green Caterpillar Garden Supplies 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.

Green Caterpillar 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 $65\mathrm{.}00\%$ of net sales, and its depreciation and

amortization expenses remain constant from year to year.

The company's tax rate remains constant at $40\%$ of its pre$-$tax income or earnings before taxes $($EBT$).$

In Year $2,$ Green Caterpillar expects to pay $$100,000$ and $$1,419,075$ of preferred and common stock dividends, respectively.

Complete the Year $2$ income statement data for Green Caterpillar, then answer the questions that follow. Round each dollar value to the nearest whole

dollar.

Green Caterpillar Garden Supplies Inc.

Income Statement

Years Ending December $31$