Cute Camd Woodcrift Company's incorne statement reports data for its first year of operntion. The firm's CEO would He sales to increase by 25% next yeac 1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of eamings before interest and taxes (EBII) 2. The company's operating costs (exduching deprebatoo and amortiation) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to yeat: 3. The company's tax rate remans constant at 25% of its pre tax income or earnings before faxes (EBT). 4. In Year 2, Cute Camel expects to pay $100,000 and $1,773,344 of preferred and commen stock dividends, respectively. whole dolat. Cute Camel Woodcraft Company Income Statement for Year Ending December 31 - In Year 2, if Cute Camel has 10,000 shares of preferred stock issued and outstandng, then each preferred share should expect to receive in annual dividends. - If Cute Camel has 500,000 shares of common stock issued and outstanding, then the firms eamings per share (EPS) is expected to change from. in Year 1 to in Year? 2 . - Cutn Cameis earnings before interest, taxes, depreoation and amortization (EBTDA) value changed from in Year 1 to in Yeat 2. - it is to say that Cute Cameris net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retaned ea mings, $2,620,250 and $3,194,281, respectively, This is because of the items reported in the income statement avolve payments and receipts of cash