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Green Caterpillar Garden Supplies Inci's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25%

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Green Caterpillar Garden Supplies Inci's income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next year. 1. 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). 2. The company's operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year, 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Green Caterpillar expects to poy $100,000 and $1,759,500 of preferred and common stock dividends, respectively. Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar. Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 civen the results of the previous income statement calculatians, complete the following statements: - In Year 2. it Green Caterplatar has 5,000 shares of preferred stock issued and outstanding, then each profarred share should expect to receive in annual dividends. - If Green Coterpillar has 400,000 shares of common stock issued and outstanding, then the firm's earrings per share (EPS) is expectedt to change from in Year 1 to 1 in Year 2 - Green Caterpitar's eamings before inferest, taxes, depreciation and amortzeavion (EBITDA) value changed tram, in year 1 to in Year 2. - It is to say that Green Caterpitar's net inflows and cutfows of cash at the end of Years 1 and 2 are equal to the company's annual contribution to retained earnings, 52,087,000 and 52,539,250, respectively. This is because of the items reported in the income ctatement involve paymenta and recoipts of cash

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