Green Caterpillar Garden Supplies Inc.

Income Statement

Years Ending December 31

Year 2 (Forecasted)Year 1Net sales18,750,000$15,000,000Fixed operating costs, except depreciation and amortization(13,125,000)(10,500,000)Depreciation and amortization expenses(600,000)(600,000)Net operating income (or EBIT)5,025,000$3,900,000Interest(753,750)(390,000)Earnings before taxes (or EBT)4,271,250$3,510,000Taxes (40%)(1,708,500)(1,404,000)Net Income2,562,750$2,106,000Preferred dividends(100,000)(100,000)Earnings available to common stockholders (EAC)2,462,750$2,006,000Common dividends(896,963)(737,100)Addition to retained earnings$1,565,787$1,268,900

Green Caterpillars before interest, taxes, depreciation, and amortization (EBITDA) value changed from in Year 1 to in Year 2.