Consider the nllo'wing scenario: Blue Hamster Manufacturing In|:.'s inoome statement reporls dale Jrils rst year oF operation. The rm's CEEI would like SEIIE to increase bf 25% next year. 1. Blue Hamster is able to achieve this level oF increased sala, but ii: il'ltE'Et oosts increase from um to 15% oF earnings henre inte'at and laxes {EBTI'}. The oorrqaanf's operating oosts {excluding depreciation and amortization] remain at 55% oF net sala, and ii: depreciation and amortization expenses remain oonstant from year to veer. . The oorrqaanf's 13x rate remains oonstant at 411% oF ils Fire-13x inoome or earnings henre laxes {EB-T}. . In 'f'ear 2: Blue Hamster expedsto pay $2EIEI,DEHJ and $1,215.35! oF preferred and oorrl'non stock dividends, rapectively. Complete the 'f'ear Zinoome statement dale :|r Blue Hamster, then answertl'ie questions that nllow. Be sure to round each dollar value to the nearest whole dollar. Blue Ilernsber Manufacturing II'III. Income Statement for Year Ending December 31 Year 2 Year 1 {breasted} Net SEIIE $2D,DDB,lII-EIEI Less: Dpa'ating oosts, except depreciation and amortization 13,EIEIEI,DEI-EI Less: Depreciation and amortization expenses BEIEIJIDB Dpa'ating inoome {or EBTI'} $6,2DD,DEHJ Less: Interest expense Erll],l]l]l} Fre-tax inoome {or EBT} Erl} Less: Taxes {4D%} 2,232,IJDB Een'l'l'lgs aner laxes $3,34B,Dl]-EI Less: Preferred stock dividends Zrl} 5311th available to oorrl'non shareholders 3,14B,IJDB Less: Common stock dividends 1,0114,4Dl} Contribution to retained earnings $2,143,5 $2,635.15! Even the I'EIJHE oF the previous inoome statementcaleulations, oorrqalebe the nllo'wing statements: In 'f'ear 2: iF Blue Hamster has iii-[II] share oF preferred stock issued and outstanding' then each preferred share should expect to reoeive in arl'lual dividends. If Blue Hamster has 4DD,IJDB share oF oorrl'non stock issued and outstanding' then the rm's earnings per share {EFS} is expected to change from in 'f'ear 1 to in 'f'ear 2. Blue Hamster's henre inte'at, laxes, depreciation and amortization {EBTI'DA} value changed from in 'f'ear 1 to in 'f'ear 2. It is to say that Blue Hamster's net inows and outflows oF cash at the end oF 1Fears 1 and 2 are equal to the oorrqaanf's arl'lual oontrihution to retained eamings,$2,143,EtlII-EI and $2,635.15], rapectively. This is because oF the item reporbed in the inoome statement involve pavmeni: and reoeipis oF cash