Green Caterpillar Garden Supplies Inc.'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 65% of net sales, and its depreciation and amortization expenses remain constant from year to year 3. The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT) 4. In Year 2, Green Caterpillar expects to pay $150,000 and $760,219 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 Year 2 (Forecasted) Year 1 $15,000,000 Net sales Less: Operating costs, except depreciation and amortization 9,750,000 Less: Depreciation and amortization expenses 600,000 600,000 Operating income (or EBIT) $4,650,000 Less: Interest expense 465,000 Pre-tax income (or EBT) 4,185,000 Less: Taxes (40%) 674,000 Earnings after taxes $2,511,000 Less: Preferred stock dividends 150,000 Earnings available to common shareholders 2,361,000 Less: Common stock dividends 627,750 Contribution to retained earnings $1,733,250 $2,130,656